When a debtor becomes eligible to inherit property from someone who dies within 180 days of the date the debtor filed bankruptcy that property becomes part of the debtor’s bankruptcy estate. This means that the property, when received, must be turned over to the bankruptcy Trustee. This is true even…
Please forgive the length of the title for this entry. But I think it illustrates why there is so much misinformation out there about what happens when you file a bankruptcy (either a Chapter 7 or Chapter 13). I can’t tell you the number of times I’ve had someone tell…
The Supreme Court of the United States recently issued it’s 8-1 decision in the case of Ransom v. FIA Card Services. The question before the Court was whether an above-median debtor in a Chapter 13 case should be allowed to take a $471.00 vehicle ownership deduction on form B22C when…
This is a common tactic used by creditors. They basically tell you that regardless of your bankruptcy filing, the collection agency can still come after you for your credit card debt (or medical bills, or payday loan, or whatever). This is not true (but then, most creditors aren’t really interested…
Most people I meet with come in saying that they want to file a Chapter 7 bankruptcy. This is because Chapter 7 bankruptcies are much shorter than Chapter 13 bankruptcies, averaging about four months before the debtor receives his or her discharge. Chapter 13 bankruptcies last from three to five…
This is easily the biggest misperception about bankruptcy that I hear from people. The idea that if you file a bankruptcy (either a Chapter 7 or Chapter 13), your ability to regain or reestablish credit is completely gone. Undoubtedly, this misperception stems from all the misinformation that creditors give out.…
The simple answer is no. But it never fails to amaze me how often I receive questions like this from people. The amount of misinformation that people receive is astonishing. And if you think about it, it makes sense that there’s so much confusion. When you begin to go into…
Coming to terms with the fact that you need to file for bankruptcy is very difficult for many individuals. Sometimes the emotions surrounding such a decision can make it difficult to accurately assess your financial situation. If you have already tried to fix your financial situation by reducing spending, attempting…
A co-signer is someone who has guaranteed a debt on your behalf. This means that if you fail to pay the debt the co-signer is personally responsible. In bankruptcy, co-signers are referred to as co-debtors. Many of my clients have reservations about filing for bankruptcy because they do not want…
My clients are always very concerned about how filing for bankruptcy is going to affect their credit. While it is true that bankruptcy will negatively impact your credit, and that it can appear on your credit report for up to ten years, chances are if you are filing for bankruptcy…