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A personal Chapter 7 bankruptcy is what you mean.

Some debts cannot be cleared (child support, judgements, certain student loans, most notably).

But you should also note that it doesn't just eliminate debts...or debts of your choice. It involves all of your assets and all of your debts. In basic form...all of your assets (again minus some few exempt things), are surrendered and liquidated with the money used to pay as much of the debts as possible (all debts are given a priority...some are paid more, some less)...any resulting deficiency may be eliminated (wiped clean). Basically, you do not get to get rid of the debt AND keep what you may have gotten with it, (or invested/paid for elsewhere, instead of paying the amount owed).

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Q: Can you still file bankruptcy so your debts are wiped clean?
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What determines when the bankruptcy legally begins?

The day you go to your hearing and after that all debts are wiped clean and you are declared bankrupt that same day.


Where is free information about bankruptcy?

There are two types of personal bankruptcy individuals can file: Chapter 7 is the most common, where most of your debts are wiped clean. A Chapter 7 filing will discharge your debts, except for alimony and child support, federally insured student loans, criminal and traffic fines, state and federal taxes due within the last three years, and debts that resulted from willful malicious acts. Another common bankruptcy filing is Chapter 13 which allows you to pay back your debts on a payment plan, and may also reduce some of your debts such as medical bills.


A bankruptcy can not be wiped off your credit report until after 10 years but if the accounts on your credit report which were discharged in the bankruptcy can these be taken off?

The debts which were wiped out in bankruptcy still stay on your credit report, but they should be listed as "Discharged in bankruptcy." They will still stay on your credit for 7 years (they don't get extended to 10 years like the Chapter 7 just because they were discharged in 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.


If my wife filed for personal bankruptcy are you responsible for her debt?

No you are not. When one spouse and not the other files for bankruptcy they are only doing so with regard to their personal debt. A debt is created by contract between a debtor and a creditor - each debtor must sign the contract to be liable for payment. Therefore, the bankruptcy of one spouse does not cause the other to become bankrupt. Debts where spouses are joint and severally liable for payment will remain with the spouse who has not filed for bankruptcy. Under Chapter 7 bankruptcy, where one spouse's debts are wiped clean, the creditor can go after the other spouse. However, a major advantage of Chapter 13 bankruptcy, where the debtor plans to re-pay her debts, is that the creditor will leave the co-debtor alone, as long as bankruptcy plan payments are timely deposited.


Can only one spouse file bankruptcy when the other one owns the cars and house?

In general, the filing of bankruptcy by one spouse will not affect the other spouse's financial situation. A debt is created by contract between a debtor and a creditor - each debtor must sign the contract to be liable for payment. Therefore, the bankruptcy of one spouse does not cause the other to become bankrupt. Debts where spouses are joint and severally liable for payment will remain with the spouse who has not filed for bankruptcy. Under Chapter 7 bankruptcy, where one spouse's debts are wiped clean, the creditor can go after the other spouse. However, a major advantage of Chapter 13 bankruptcy, where the debtor plans to re-pay her debts, is that the creditor will leave the co-debtor alone, as long as bankruptcy plan payments are timely deposited.


Is money received as surplus from a foreclosure taxable?

Not only money received but also debts forgiven from credit cards, car loans, etc. Any and all debts forgiven or wiped away through bankruptcy courts are taxable as income.


Credit cards were wiped out except for one how can they tax saying the card was considered income?

You cannot put IRS in with your bankruptcy. She still owes this bill. I am speaking from experience, I still owe them 5k after bankruptcy.


Will bankruptcy stop wage garnishment from a landlord trying to collect back rent and late fees?

Yes, it will. You only have to pay secured debts in Chp 13 and everything is wiped out in Chp 7.


When filing for bankruptcy and owing to a line of credit does the bank still keep the house even if this one is protected with a homestead insurance?

Generally speaking, when Chapter 7 bankruptcy is declared, it means a person's debt exceeds their assets. If the amount of debt owed to a mortgage bank for a home, the bank has no interest in taking a home which will not cover the mortgage debt. All debts are wiped away.


Why do many companies not want to give you credit when you have a dismissed bankruptcy?

The bankruptcy is still on your credit report atleast under "Public Records". Any filings show up there. The fact that it was dismissed does not remove it. They see that you attempted to file atleast. (Or were forced to file) First, I would like to be sure the terminology is correct: A "dismissed" bankruptcy is one that was thrown out of Court for whatever reason, and the debts were never wiped out. A "discharged" bankruptcy is one that was successfully completed and the debts were wiped out. I am just guessing here - but I would say that a creditor would be hesitant to give a loan to someone with a dismissed bankruptcy since that person was in financial trouble sufficient to warrant filing bankruptcy, and if their case was dismissed, they STILL owe all that debt. I would think a creditor would be tentative to give even more credit to a person who has so much debt already that he or she tried to file bankruptcy on it once. 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.


I had filed for bankruptcy 2yrs ago and it was dismissed. I have a zero balance on a auto loan that shows on my credit report. Do I still have to make my car payments?

If you reaffirmed your car loan during your bankruptcy, you agreed to continue making the payments. If you included your car in the bankruptcy, then the loan was wiped clean, as it appears to have been according to your credit report. Your car should have been repossessed, but apparently wasn't. You should check with the lawyer who handled your bankruptcy, but my guess is that your car slipped through the cracks.


Will you get a 1099 for debt discharged in Chap 7 bankruptcy?

No. Unlike some non-bankruptcy situations, debt wiped out in bankruptcy (any chapter) is NOT income to the debtor.