It’s important for debtors to understand the different ways that bankruptcy rules deal with debts in an individual bankruptcy case. In some cases, bankruptcy may not be the best alternative for a debtor depending on what debts are involved in the case. Debts in Chapter 7 In a Chapter 7 case, virtually all of a...
Bankruptcy
Have a question about bankruptcy? Looking for a little clarification on various bankruptcy issues? Curious about the differences between Chapter 7, Chapter 11, and Chapter 13 bankruptcies? These informative articles can provide you with the answers and tips you’re looking for.
Many bankruptcy filers wonder whether they are entitled to keep one or several credit cards open to handle emergency financial situations. The legal conventional wisdom here is pretty clear. In general, you may not. However, if you’ve maintained a credit card at a zero balance for a long period of time, you may not have...
A number of national studies indicate that credit card debt is cited as the primary reason for individual bankruptcy in between 33 percent to 66 of the time. Other studies have suggested that the five-fold increase in personal bankruptcies between 1980 and 2004 is related, at least in part, to increasing credit card debt. The...
A bankruptcy trustee is an individual appointed by the courts in Chapter 7 and Chapter 13 bankruptcy cases. Appointed specifically by the United States Trustees, for the most part they are private citizens, generally lawyers and accountants, employed by the government and representing the interests of the creditors named in the bankruptcy. Trustees in Chapter...
Bankruptcy can – and should – be a life-changing event. Taking that step is difficult, but often the most important steps are the first that a debtor takes after filing bankruptcy. Bankruptcy experts recommend that the following actions be among your first after filing bankruptcy. Budget, budget, budget. Whether or not spending issues were among...
When you file for personal bankruptcy protection under the Chapter 7 or Chapter 13 titles, you’re automatically entitled to a stay against creditor harassment. This stay isn’t universally applicable, but it can prevent creditors from foreclosing on your primary residence and garnishing your wages at work. In addition, bankruptcy stays can end attempts by creditors...
A bankruptcy attorney is an important part of the process of filing for bankruptcy. While not required for some bankruptcies, it is a good idea to hire one for beginning the bankruptcy process. The attorney will: work with the client to determine whether filing for bankruptcy is the ideal option, and under which chapter it...
Individual debtors are free to save legal fees, avoid a Chapter 13 attorney and file for bankruptcy protection on their own. However, most bankruptcy experts recommend that debtors rely on the help of an experienced attorney, particularly in a Chapter 13 case. Under Chapter 13, a debtor doesn’t just list assets and debts. The debtor...
If you have assets locked away in retirement plans, such as 401Ks, Roth IRAs, certificates of deposit, or other long-term investment vehicles, your assets may or may not be protected from creditors during bankruptcy reorganization. Your attorney can discuss not only how to manage your secured assets to optimize protection against creditors but also how...
The difficulty in completing Chapter 13 repayment plans makes converting Chapter 13 to Chapter 7 a popular option with many debtors. Only about one-third of all debtors complete the entire three or five years required for a repayment plan. That leaves the debtor with only a couple of options, one of which is converting Chapter...