What would you like to do?
Can you sell assets before declaring bankruptcy?
yes this is usually what is done, as this is how the business may pay off some debts.
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No. But, it may be in your favor to do both. Check with a lawyer.
No asset bankruptcy is a term used to refer to Chapter 7 bankruptcy. Usually in Chapter 7 cases, a person's entire debt is wiped clean. In many cases, the bankruptcy court wil…l assign a trustee to take certain belongings (assets) and sell them to pay off a debt. In quite a number of cases, the courts have found that the person has no assets to sell (they won't take away items that will make your life unlivable without). If this happens, your case is considered a "no asset" case.
Answer If you have no assets, then it's a great way to get rid of debt. Chapter 7 bankruptcy is FAST, and normally pretty cheap compared to what you get (all your debt …gone). If you have assets, you may be forced into a Chapter 13 and have to pay back some debt. Answer I like Nate's answer. But, if by your question you mean "I don't have any assets for creditors to come after, so why bother filing bankruptcy?" then I would say that there still might be reasons one would want to file. For example, even if you don't have a home or car that is subject to a judgment lien, creditors can still garnish wages (but not Social Security). Or, creditors can simply hassle you constantly on the phone. Another thing creditors can do, in Indiana at least, is sue you and keep dragging you back to court every month or so to explain why the judgment isn't paid. Then, the first time you miss a hearing, the creditor asks the Court to put a Writ of Attachment on you, which is basically a warrant for your arrest for contempt of court since you missed a hearing at which your presence was ordered by the Court. So, just because you don't have any property the creditors can take away doesn't mean that you don't need to file bankruptcy. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. ANSWER You should consider petitioning for your own bankruptcy if you have debts that you cannot afford to repay. A large percentage of individuals who petition for their own bankruptcy have no assets and use bankruptcy as a solution to their debt problems. However, bankruptcy is widely regarded as a last resort and should be considered only after receiving expert advice.
A discharge in bankruptcy means all your unsecured debts are discharged and your secured debts have either been reaffirmed or the collateral has been surrendered and the remai…ning balance has been discharged. So you get a "fresh start" financially. Your credit score lowers a bit, but if you had to file for bankruptcy, your score was probably low anyway. It starts going up, finally. The discharged debtor may find it difficult for a while to get a job involving handling money. It may be difficult to get a new apartment or buy a house until you have increased your credit score enough to qualify. You will get offers for a new credit card. Read them carefully. Check the card issuer out carefully at Consumer Reports and get the lowest interest rate available and a low card limit ($300 to $500). Use it, never going even close to the limit, and pay the balance in full before the due date. You will be able to buy a car, but at a high interest rate. Make sure the lender you use (a local credit union is best) will allow you to lower your interest rate if your payments are made on time.
Its easier to consider what they can't/don't: 401K or IRA account. Household Goods. Work Tools. Reasonable (read cheap) Car., Medical type devices, a few other things.
No. You can file for bankruptcy for debts to be discharged. If you are being asked to repay the overpayment, that is a debt.Whether it can be discharged or not depends on whet…her the overpayment is due to something you did that amounts to fraud or misinformation you provided. If you are not at fault for the overpayment, it would usually be dischargeable. Consult a local bankruptcy lawyer, since the case law varies from one bankruptcy court to another.
It is necessary to declare bankruptcy when a person cannot afford to continue paying for bills and other things they need. A person may declare bankruptcy if their business is… not making any money.
In the US, a bankruptcy is petitioned and decided in a Federal Court. It is not done with a letter.
That is not how a Chapter 13 is usually described, since assets are irrelevant except to compare what a Chapter 7 would provide to unsecured creditors. But it is possible that… the monthly income or the means test shows the debtor can do a plan, even though the debtor has no non-exempt assets.
Answer Maybe but not normally. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company dur…ing the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors. So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
It depends on the specific type you are filing for. But whether you are an individual or a corporation, the monetary amount of debt, and how much you make annually can all fac…tor into the equation of qualification.
It depends on what assets you are talking about. Should you declare things like your house and car in your bankruptcy the bank or financier would have a claim to them fi…rst before anyone else. EXAMPLE: I declare my 2008 Chevy Trailblazer in bankruptcy - GMAC holds the loan and title to the car so they would come and repossess it. Declare your home in bankruptcy and whatever bank has your mortgage will, eventually, foreclose and kick you out and take possession of the house and property. If you're talking about your personal assets ... it really depends if they're worth anything. When you file for bankruptcy the trustee handling your case will determine what assets you have and if they are worth liquidating to get money to give to your creditors. If you're worried about the computer you bought last year they won't want it ... don't forget ... you have to take into consideration that whatever they MIGHT take from you is used and therefore has depreciated in value. On the other hand if you tell them you have a $10,000 home theater set-up or a 2ct. diamond ring, stocks, bonds, gold ... things of that nature may have to be liquidated but I'd say probably not. I'd STRONGLY recommend hiring an attorney to handle your bankruptcy case ... there is too much paperwork that needs to be done ... it's worth the cost, plus they can advise you on different situations you may encounter! Hope this info helps!!!
Bankruptcy is a complicated topic and there are different levels with different consequences. Foreclosure and bankruptcy is an even more complicated situation. You should cons…ult with an attorney in your state since your issue is addressed by both state and federal law. The following is general information only and not legal advice. Generally, if you own your home after a discharge in a bankruptcy proceeding you can sell it and keep the equity. However, if there are any outstanding mortgage obligations they will be paid from the proceeds before you receive any proceeds from the sale. If you are facing foreclosure after a bankruptcy selling your home will only complicate the procedure and result in higher costs. The property is subject to the mortgage and any proceeds from the sale are the property of the bank. See the related link for additional general information.
if your legally married when you file bankruptcy, you must include every single asset including the spouses. depends on what type of bk you file. you may be able to keep… your assets.
Yes but the trustee can seek to include the money received in your estate. If you have sold it to family or friends to avoid losing it in bankruptcy, the trustee can have the …sale reversed.
There are General Federal Laws that govern Bankruptcy. Each state may have additional laws regarding bankruptcy. So Is Best to consult an attorney or financial adviser in your… state.
Yes, except if you apply for jobs requiring a clean credit history. The bankruptcy cannot be used as a reason for not getting a job.