Bankruptcy and Car Repossession
What are my options under the Bankruptcy Law regarding Car Repossession? Under the bankruptcy law, debtor has three options for car payment relief: 1. Redemption: If you pay the lienholder the fair market value of the vehicle in a lump sum payment, you can discharge the remaining debt. 2. Voluntary repossession: One way to achieve debt relief is […]
Bankruptcy and Foreclosure
What can Chapter 7 Bankruptcy and Chapter 13 Bankruptcy do for my Foreclosure? Chapter 7 Bankruptcy cannot stop foreclosure. It can stall foreclosure. If you receive a Chapter 7 Bankruptcy discharge, you are not personally liable for the debt after they foreclose on the collateral. Chapter 13 Bankruptcy can stop foreclosure as long as you timely […]
The Foreclosure Process or Timeline
What is the Foreclosure Process or Timeline? When you are late on your mortgage payments, usually by several months, you will receive a notice of default from a trustee, a third party that works for the beneficiary of your mortgage (aka your lender). In the notice of default, it will state the arrearage amounts that […]
Factors to Consider Before Filing Bankruptcy
What factors should a person consider before filing bankruptcy? You should consider how much debt you owe and how long will it take you to pay it off. Whether the debt is dischargeable or nondischargeable. Do you have unexempt assets? Do you qualify for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy? If you do not qualify for Chapter […]
Disclosure of Inheritance After Bankruptcy Filing
If a debtor inherits asset after bankruptcy filing, must debtor report the inheritance to the bankruptcy court? If debtor files a Chapter 7 Bankruptcy, debtor must report the inheritance to the bankruptcy court if someone dies within 180 days after the filing of the bankruptcy petition. If debtor files a Chapter 13 Bankruptcy, debtor must report the […]
Lienstripping and Chapter 13 Bankruptcy
What is Lienstripping in Chapter 13 Bankruptcy? Chapter 7 Bankruptcy or Bankruptcy Discharge does not get rid of liens. Bankruptcy discharge only gets rid of your personal liability to the debt and the lien will remain in the property. If you want to get rid of a junior lien on your home (aka second mortgage, equity line of credit), you […]
If I Operate a Business and I Filed for Bankruptcy, Am I Required to Stop Business Operation?
If I operate a business and I filed for Bankruptcy, am I required to stop business operation? The answer depends on who is filing for bankruptcy. If the bankruptcy filer is a corporation, limited liability company, or partnership, it must stop business operation immediately upon filing Chapter 7 Bankruptcy. Corporation, limited liability company, and partnership cannot […]
Liens and Bankruptcy
What liens can bankruptcy remove? The answer depends of the type of liens and which bankruptcy chapter filed. Judicial liens, aka judgment liens, by credit cards, personal loans, medical bills, or deficiency from car repossession or foreclosure can be removed in either a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy if you meet the conditions. […]
What is the Best Thing About Bankruptcy?
What is the best thing about bankruptcy? The answer to this question will be different for different people. For some people, the best thing about bankruptcy is discharge of debts. Bankruptcy can be a huge relief if you have insurmountable credit card debts, medical bills, unsecured personal loans, deficiency from car repossession or foreclosures, guaranteed […]
What Debts are Discharged in Bankruptcy?
What debts are discharged in bankruptcy? Examples of dischargeable debts in bankruptcy, whether you file for Chapter 13 Bankruptcy or Chapter 7 Bankruptcy, are credit cards, medical bills, unsecured personal loans, and deficiency from car repossession or foreclosure. Examples of non dischargeable debts are child support, alimony, recent taxes, debts incurred through fraud, fines, restitution, […]