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Bankruptcy

Bankruptcy questions and answers

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Q: bankruptcy?
hello , after lots of consideration i want to go through with bankruptcy, the thing is that im unemployed and i dont want to spend any money going through with it, is there an organisation out there that can help the unemployed to file and go through with it?

A: Even if you find a low or no cost attorney, be aware that there are some charges that you will be reponsible for. The court filing fee for a Chapter 7 bankruptcy is $299 today. There is some talk that it will be raising in the next few months, but nothing official yet. You can also petition to court to pay this fee in installments, but in our experience, it's really not worth it. You will also be required to take a two credit counseling classes, one before filing, one before discharge. They cost, but must be available for no fee if you qualify. There is also quite a bit of documentation you need to provide to your attorney and getting copies might cost as well. Be aware, also, that bankruptcy laws depend on total household income, not just your income, so if you live with someone who has a substantial income that may hinder your getting to file low or no cost. If you don't live with anyone, your attorney may want to know what you are doing to get by, as far as food, etc.

Q: How does Bankruptcy work if you are married?
Wondering how bankruptcy works if you are married. Say if one has awful credit, and the other has really good credit. The one needs to file for bankruptcy. Will the bankruptcy affect the other spouse? Or can the one do it alone without affecting the spouse at all? Any info or sites to look at would be appreciated. THANKS!

A: It will because they look at BOTH incomes and now that the bankruptcy laws have become more strict, it is even harder to file for bankruptcy. you can try these sites: www.bankruptcyaction.com www.law.cornell.edu/topics/bankruptcy.html www.lectlaw.com/files/bnk06.htm Hope this helps

Q: Can the bankruptcy courts or trustee withhold my rebate tax stumulus check?
I am filing bankruptcy on June 1, 2008 and am expected to receive my rebate stimulus check in July. Can the bankruptcy courts take my check to pay my creditors?

A: Okay I don't beleive they will take your money, I filed Bankruptcy years ago and they never took my tax money, but things have changed better contact your lawyer on this one

Q: How soon after declaring bankruptcy can you buy property?
I am in the process of filing for chapter 7 bankruptcy. My girlfriend and I are also trying to buy a house. She has all of the money for the house. We are going to pay cash. All of the debt that I am declaring bankruptcy on is mine. I haven't used a credit card in nearly a year, but am still buried in debt. How soon after declaring bankruptcy can I own property? We would like to put my name on the house at some point, but don't want it to look like we have been hiding assets.

A: You will have to wait until it is discharged. The time for this varies on a case by case basis.

Q: Bankruptcy? How hard is it to rebuild credit after. Also I am turning in a car that i have financed?
I had a very bad injury and now no income, I can not afford to pay for car or any other bills, bankruptcy is only option. How hard is it to rebuild your credit?

A: Disclaimer: Nothing that follows is intended to be legal advice. If you need legal advice for any issue, please consult a qualified, licensed attorney in your area. What follows is simply a lay, but educated, opinion, and no warranty, guarantee, or responsibility; legal, financial, or otherwise, passes from the author to the reader. In other words, don't sue me for what I am about to say. Bankruptcy is almost never the only option. If you speak to a bankruptcy attorney, I can guess their advice to you with a very high degree of certainty (if you need a clue, think how s/he makes money). If you don't file, they don't get paid. A bankruptcy will stay on your credit for ten years. Also, you will NEVER be able to check a box on a credit application which states, "Have you EVER filed for bankruptcy protection?" without committing perjury. People file bankruptcy in order to protect their things or their income. It will be much easier to rebuild your credit if you don't file bankruptcy than if you do, although it may look like it would be easier to start off fresh. (It's not really a fresh start) A couple of rules of thumb with regard to choosing if you do, or if you don't, want to file: 1) Is anyone suing you? If not, you have no worries yet. 2) Are you going to lose anything that you might be able to afford to keep otherwise? You said you want to give back your car, so let it go. (The finance company will try to sue you for a deficiency balance. Do everything you can to convince them that they are wasting their time and money, because you will never be able to pay them back, and you have no income or assets. - If they don't sue you, that will help you a lot.) Regarding medical bills, which I assume you have. If you were treated at a county hospital (or other state-funded care facility), speak to someone at their collections department, and see if you qualify as a "Medically Indigent Adult" or MIA. No, this does not mean that you are living on the street or that you are missing in action. All it means is that you do not have the resources (cash or insurance) to cover your debt to the hospital. If you qualify, a good portion or perhaps all of your medical debt from the hospital can go away. No collection agencies, no bankruptcy, just forgiveness. Next, you should probably choose one credit card to keep for emergencies. Pick one with a high limit, and hopefully, a low balance. Let the rest go, if you can't make the payments. If you cannot work because of your injuries, file for disability, unemployment, or worker's compensation; whichever might apply to your situation. Do contact your creditors and ask if they have any possible solutions for you. DO NOT go to a credit counselling service or debt management company, because this can cause more damage to your credit than a bankruptcy would! If your injuries are permanent, you should investigate whether you might be able to qualify for state disability, medicare or social security disability benefits. If you will not be able to generate an income in the future, then credit will not be an issue for you anyway, because no one will give you credit if you have no income. If your inability to work is temporary, then I have good news for you! Even though you will not be keeping up with your bills in the short term, when you do start working again, and you can afford to make payments again, you can more easily rehabilitate your credit by resuming the monthly payments on your bills. After six to twelve months of on-time payments, you can approach your creditors to see if they would be willing to remove any negative marks against you, taking into account your prior payment history and the fact that you are making good on your original promises, in spite of your injury, now that you are back on your feet again. If you do get sued for any of your bills and lose, all they can take is a maximum of 25% of your income above a threshhold that varies by state. The 25% may hurt, but it's probably not as much as you are paying in total for your bills now, so it could actually be an improvement. It may sound like I am saying to run from your bills. Actually, I'm not saying that, but that's what a bankruptcy does. I'm saying that your situation, while dire, need not be fatal to your credit future. I hope you recover quickly, and I hope that some of this advice may help you. Good luck to you.

Q: Bankruptcy or choosing to default on credit card debt. What are the ramifications of each?
I have A LOT of credit card debt from opening a business and having to sell it in one year because of family responsibilities. Saw a bankruptcy attorney, but the options don't seem to work for me as there's no way I could ever pay off these debts. I know it's very immoral, but what will actually happen if I just stop paying on them? I know I'll be inendated with phone calls and lose my good credit standing, but can they attach my bank account or any other asset?

A: I am a paralegal for a bankruptcy attorney who specializes in Chapter 7 and Chapter 13. The first thing you need to ask yourself is--can you live if these creditors get garnishments against you? A creditor can get up to 25% of your paycheck. If the debt is small enough to where it can be paid off rather quickly through the garnishment, then it may not be so detrimental. However, if you are living paycheck to paycheck, it may not be the best situation for you to be in. The other issue is that a judgment, if certified, can attach to your assets, particularly any property you own. If you should want to refinance or even sell your home, those judgments will have to be satisfied and they can often screw up any financing that you have acquired. Bankruptcy is not as negative as everyone thinks it is. It can stay on your credit report for up to 7 to 10 years. It depends on the credit reporting agenxt. Experian typically reports for 10; transunion and equifax are typically 7 years. However, there have been a multitude of studies recently that show that after you get out of bankruptcy, your credit rebuilds faster than if you were to attempt to do it on your own. A Chapter 7 bankruptcy usually lasts from 4 to 5 months. And for most individuals, depending on your income level and the exemption laws of the state you live in, you may be paying a miniscule percentage of what you owe. Think -- you pay $1500.00 for attorney fees in a Chapter 7 and you discharge $40 or $50K worth of credit card debt. While some people think it is immoral--just open your Bible and turn to Nehemiah 10:31 and Deuteronomy 15:1-2. If bankruptcy were immoral, would it be legal and provided for by the U.S. Government -- one of the most prudish governments there is? What you really need to look at is your income level. If you are below the median for your area (which you can find in bankruptcy code books or from the state statutes concerning exemptions, which vary from state to state) then you are eligible to file for a Chapter 7. There are other issues such as personal property and how much of it falls within the exemptions, as well as concerns regarding recent transfers of property. These can all be brought to the attention of a bankruptcy attorney and they can guide you in the right direction. If your income is OVER the median, then you have no choice but to a Chapter 13 bankruptcy...which can be very long and painful for some people. They last from 3 to 5 years and eat up a lot of your income. The Chapter 13 is ideal for people who are behind on their loans to either mortgage companies or their vehicle lenders or if you are behind in taxes and/or child support payments. The bankruptcy code is federal and does not change from state to state. However, what does change are the exemptions which are incredibly important so I would recommend seeking counsel on those matters. I have had a lot of clients who have been screwed over by the credit negotiating programs but if you find one that has good references from people you know and is trustworthy-go for it.

Q: What are the consequences of filing for bankruptcy?
I recently found out that when I was about 5, my parents had to file for bankruptcy. My parents are now divorced. Since I am only 15, I don't fully understand the concept of bankruptcy. What are the consequences of filing for bankruptcy? What are the benefits? And, What are the benefits of not filing for bankruptcy?

A: Depending on what chapter the bankruptcy was filed under, I'm assuming Chapter 7, liquidation, the bankruptcy court appoints a trustee to break up the assets owned by your parents and distribute it to creditors. Aside from essential assets such as tools of the trade, home, etc. you lose everything to pay off any delinquencies. There are almost no benefits to bankruptcy as it ruins your credit score and makes it almost impossible to receive a loan in the future. Bankruptcy is only a last resort, if all other choices have been exhausted. There are much more implications to bankruptcy I probably left out, but that's the general stuff.

Q: How can I get a bankruptcy removed from my credit report?
I filed in 2001. I disputed my bankruptcy and a lien with all 3 credit bureaus. Transunion removed the lien not the bankruptcy Equifax removed the bankruptcy and not the lien Experian wouldn't remove neither one. Now i know once you dispute an item the creditor has 30 days to respond or its removed from your file how can i get the others removed or do I just have to wait it out If one bureau remove it dont the others have too.

A: By waiting til the statue of limitations is up. Sit down you were lucky to have removed what was mistakenly removed. 10 yrs.

Q: How long after I file bankruptcy can my divorce be finalized?
How long after I and my soon to be ex-wife file the chapter 7 bankruptcy can i finalize my divorce from her? We both agree to the bankruptcy and the divorce, so can we get the divorce done before the Bankruptcy is 100% finalized?

A: Yes, you can divorce before the bankruptcy is 100% finalized if you file for an uncontested divorce. All you need to do is list your divorce terms (who gets what) and file the paperwork. You can learn more and get the paperwork you need at the website below.

Q: How will filing bankruptcy affect my ability to get health insurance?
My financial situation is such that I may need to file bankruptcy. I am starting a new job and as it is a small company I may need to get health insurance on my own instead of through the company and the employer will reimburse me for a portion. I am wondering how filing Chapter 7 Bankruptcy will affect this, if at all. Any assistance would be VERY helpful. Thank you!

A: no there is a different criteria on policies like health and life

Q: How long does bankruptcy stay on your credit file?
I had to file for bankruptcy in 2006 because of medical bills. I was wondering how long it will show up on my credit file. I am trying to improve my credit score and it is up to 685, but I think it would be higher if the bankruptcy wasn't on there. Thanks!

A: Your bankruptcy will show on your credit report for 10 years from your discharge date. Example: Say you filed 03/01/2006, you bankruptcy should fall off your report 03/01/2016. The actual debt should be on your credit report for 7 years from the date of your last payment. Most of the credit bureaus are showing the dates the debts listed will be removed. If you have your credit report, it should list the date it discharged, or you can contact the bankruptcy court where you filed and they will assist you, you may need to furnish your case number or social security # so they can look your information up. Good Luck....If 685 is your current credit score..you're already improving your credit rating with solid and good payment to have it back up to 685, Way to go!!

Q: Filling Bankruptcy and need to purchase a vehicle in which I intend to keep?
Will the Bankruptcy court still allow me to file? I am not planning on purchasing TV's and Furniture, just a vehicle for work.

A: Generally the courts expect you to have transportation so you can get back and forth to work. They won't expect you to have anything extravagant. I'd suggest scheduling a consult with a bankruptcy attorney. Usually they will do the first meeting for free and answer your basic questions. The bankruptcy laws changed a couple of years ago so it is best to talk with someone in the biz.

Q: How long after a bankruptcy is discharged (finalized) does your credit report reflect that?
In other words, my bankruptcy was discharged at the end of March, when will the credit report relect which accounts were thrown out in the bankruptcy? Thanks! DAS: I know that the items stay on the credit report, but they will have a note indicating that the were included in the bankruptcy so that any future creditors can see that the debt is not outstanding.

A: usually within 30 days. However, you will want to get a copy of your credit report and make sure. Also, you will need to contact all 3 credit agencies because I can guarantee you that there are things in the bk that will still show delinquent on the report. It is important that you make sure everything says "included in bankruptcy" because it reflects dramatically on your credit score if you do not.

Q: How long after my bankruptcy is discharged do I have to include a company?
I filed over 2 and a half years ago and was discharged little over 2 years ago. My question is how long after I am discharged do I have the right to include someone in on my bankruptcy? Because 2 months after I was discharged one creditor that wasnt on my bankruptcy but I was deliquent at the time of the discharge is now reporting negative info to the credit companies.

A: Sigh....three answers and not one of them answers your question. Sorry. Once your bankruptcy is discharged it is next to impossible to get it re-opened to include a debt. You would have to file a whole new bankruptcy. Actually, if the debt is not included by the "bar" date it's already too late.