Personal Bankruptcy

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Personal Bankruptcy

Personal Bankruptcy questions and answers

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Q: Personal Bankruptcy?
What are the pros and cons of personal bankruptcy? What would I need to do and what other options do I have. I have about 20k in credit card debt with 5 different cards that I basically haven't paid in almost a year. I also have about 10k in student loans and a car loan of about 8k. What should I do? Who should I talk to?

A: The student loans would not be affected by bankruptcy. You should talk to one of the credit counseling companies. They can arrange reduced payments, reduced interest and even sometimes settlements for less than the total amount owed. This will affect your credit rating of course but yours is already totally messed up.

Q: personal bankruptcy ?
personal bankruptcy dos and donts

A: Do use an attorney. Call SEVERAL, the attorney fee varies greatly. In my office, we charge $799 for a chapter 7. I have heard of the fee being as high as $1,500. Smaller attorney offices will tend to charge less. Do get requested paperwork to the attorney when asked. Don't feel like you are only one of the few that file bankruptcy. My desk is full of cases.

Q: Personal bankruptcy?
I need to file bankruptcy with my credit card company due to overwhelming bills. I am on social secuity disability. That is my only source of income. I have no savings, or anything of value. I was told that I really do not need to go through the formality of filing bankruptcy seeing as the only source of income I have is social security disability, I am classified as judgement proof. I was told by a friend that all I have to do is write a letter to my credit card company explaining these details, plus proof of my income and they will cease and desist. Is this true? Thank you for any help!

A: You can go to google.com and type in legalhelpers. This website will give you lots of bankruptcy answers. I use to be collector for collection agency and when I would get someone on social security, no assets, no checking account numbers where we could levy their account and I had nothing then we would outlaw the bill and basically not bother with it. No one can touch disability and if you don't own a house/condo and I would say never give them your bank account info. Only pay with money orders they will forget about you or write you off if they have none of the above. If you are talking to them each time they call then they will keep calling. From my expert knowledge on this subject I would NOT file bankruptcy because in your case you don't have to. Especially if you don't have plans of buying a home/car on credit, etc. What you need to do is write everyone and say you want them to cease all communication with you.. No letters, no phone calls that you have no assets, no money, on social security and have no way of ever planning on paying and sign it. Then mail it to everyone. If someone call you get their name and company and tell them the same thing and tell them if they don't adhere to your request you will report them for breaking the FDCPA law. This law gives you the right to tell them to cease all communication with you immediately or else you can sue the company and the person calling you. They have to cease by law and I remember when someone would tell me that I would flag their phone number..No calls and letters work the same way and you can live the rest of your life in peace...If for some reason you have mailed them a payment to a collection agency in the past and used a checking account they have stored that information and that is an asset for them and they can get a judgement and levy your bank account. If you know for sure they have this acct info then close that acct down and open a different acct at a different bank and then you are fine. If they don't have it provided to them from you then they can't levy your acct. good luck

Q: If I declare personal bankruptcy can i still keep business?
I own a restaurant and it is a C corporation. If i have to declare personal bankruptcy because of credit card debt and i can't afford my home, what impact does that have on my business? will i get to keep it?

A: i dont think u can keep it. but better to consult an advocate

Q: Are personal bankruptcy and a business separate?
My mother has a lien against a business that she sold and it is to be paid in 20 years with interest, however, the owner is declaring bankruptcy (Chapter 13) and she received a letter, but he says it is not with the business, only his personal stuff...Is this possible? Does she need to file a claim with the courts? I don't know if he is telling her the truth..Please help! Thanks.

A: It depends on the business. If the business is a corporation or certain types of partnerships, then its finances are completely separate from the owners. If it's a sole-proprietorship, then, generally, there is no distinction between the finances of the business and the finances of the owner.

Q: Obtaining a Marriage Visa in US with a Personal Bankruptcy on my Record?
Want to marry a my fiance is american and I am Canadian. I've looked into the K1 and k3 visa options, just wondering if my having a personal bankruptcy would affect my obtaining citizenship. Any advice would be appreciated. Thanks!!

A: Your bankruptcy should not affect your immigration status or your petition for citizenship. You are not the only one who has filed for bankruptcy in this economy. Filing for bankruptcy does not make you a criminal.

Q: Can a LLC own property and some one from this LLC file a personal bankruptcy will this affect the property?
Our personal home is in foreclosure, if we apply for a LLC license and add the LLC license to our rental property during a bankruptcy will we be forced to sell the rental property?

A: The bankruptcy look-back period looks at (and will "unwind") transfers within the past year for which the debtor did not receive FMV. Xferring your personal home into a LLC would be one of those transactions that would be "unwound" by the bankruptcy Trustee -- and if it looked like a deliberate attempt to hide assets you could be prosecuted for bankruptcy fraud.

Q: If I am partners in a small business with someone, and I file for personal bankruptcy....How will this effect?
my business and business partner? Is it a totally separate issue from my business? And is there a need to tell my business partner that I'm filing for personal bankruptcy?

A: Your business ownership will count as part of your assets. I would tell your partner. Especially if you owe your partner money. You will have to list your partner as a creditor on your bankruptcy.

Q: How long is personal bankruptcy?
Are we living in the best place (USA) at the best time (they're still soliciting me to accept credit cards!!), or what? How long does personal bankruptcy last, and is it only then that I should be looking at to begin rebuilding my credit history? I'm liking not using the cards, tho' . . .

A: A Chapter 7 bankruptcy proceeding takes about 3-6 months to complete. A Chapter 13 bankruptcy (repayment plan) can take 3-5 years. Both will most likely remain on your credit report for up to 10 years. However, if you make an effort to re-establish, your credit score will improve way before then. The kind of debt you want to establish is mortgage and installment (car loan). Don't go out and open a bunch of credit cards. Usually you will start getting credit card offers as soon as your bankruptcy is discharged. Be careful, they are higher rates and you usually have to pay some extra fees. Just don't let the balance exceed 50% of your limit and this should help your credit.

Q: What does personal/business bankruptcy protect you from as far as whats under your name and assets?
What does personal/ business bankruptcy protect you from as far as whats under your name, personal assets, and what they can and cannot touch, seize, garnish, lawsuits, and or anything of that nature? What does personal/business bankruptcy protect you from as far as whats under your name and assets in the State of Virginia? No debt just need to get out of lease due to lack of business.

A: Depends on the State. In Texas, the creditors can take everything except your house and 1 car. In Indiana, the creditors can take everything that they are able to sell, which is pretty much everything. So as you can see, bankruptcy doesn't "protect" anything. BK is for people who are 50,000 or more in debt, and have no assets to pay their debts. Where BK becomes useful is when a business fails, you can usually walk away from bank loans that are for the business only, and keep you personal stuff. So long as the business was kept in a legal separate entity such as LLC. Sole proprietor is not a separate entity as you would use your SSN for the business instead of obtaining a TIN for an LLC.

Q: What are the consequences of declaring personal bankruptcy?
I own a home with a mortgage and a car fully paid for. I get alimony and child support that barely cover the mortgage, condo fee, my health insurance premium, and utility bills. I have not been able to work because of illness. I have about $25K in credit card bills. Can I declare bankruptcy, and what would I lose if I declare bankruptcy?

A: I am a consumer bankruptcy. Although bankruptcy is a federal law, the property that you get to keep during bankruptcy is usually determined by state law. In bankruptcy, some of your property maybe claimed as exempt, meaning that some or all of the equity may be protected. I recommend that you contact a local member of the National Association of Consumer Bankruptcy Attorneys to determine your options.

Q: When you file for personal bankruptcy, can creditors touch your equity in your home?
I am thinking of filing for bankruptcy. Can creditors touch the equity I have in my home? What assets can they cease?

A: Depends on where you are as to what can be seized or not. Generally the equity in your home would not be an issue, since it has no value except as loan collateral. The home itself may be looked at, really depends how much you owe and to who. If you have equity, you may be advised to use it to pay off debts and avoid bankruptcy, or restructure debt. Any bankruptcy trustee will advise you free on what your options are.

Q: What are some online discussion forums regarding personal finance, bankruptcy and debt collection?
What are some of te better online forums where I can discuss and ask questions about personal finance, bankruptcy, dealing with unruley collectors and cleaning up my credit report after filing bankruptcy? I know it will take YEARS to rectify my credit report but there are always dirty collectors who refuse to make the appropriate reportings and i'd like to talk with people who are having similar experiences that i am having...

A: http://forums.kiplinger.com/index.php http://www.deal-save-online.com/credit.html http://www.nfcc.org/ http://moneycentral.msn.com/community/message/default.aspx

Q: Can money owed to the IRS be included in a personal bankruptcy?
I am currently in a bankruptcy and recieved a $11,000 IRS bill.Can this be included into the bankruptcy?

A: IGNORE ALL THE POSTS THAT STATE YOU CAN NOT INCLUDE TAXES IN A PERSONAL BANKRUPTCY. THEY ARE ALL WRONG: All debts you owe, REPEAT ALL, must be scheduled in a personal bankruptcy or Chapter 13 plan. Make sure you tell your attorney about any tax debts. If you don't have an attorney, get one: This is not a do it yourself project. Taxes that became due and owing less than three years ago (that is tax year 2004 and newer) will not be discharged (forgiven) in a liquidating bankruptcy. Most older ones that most people are likely to owe will be. In a Chapter 13 case, your plan can provide for payment of the tax and interest but not penalty.

Q: Saving small business assets through personal bankruptcy?
I have a small business... sole proprietorship.... i'm having to file personal bankruptcy...mostly credit card debt and medical bills. Can I protect my business assets (my computers and some other stuff are exempt under Ch 7, but not office furniture which exceeds the personal exemption) if i convert it to a corporation a few months before filing?

A: Probably not, since you would own the stock in the corporation, and the stock would be part of the bankruptcy estate. Consult a qualified bankruptcy law attorney though.