What would you like to do?
Answer . There are a couple of different things to consider.\n. \nFirst, it depends upon the bankruptcy laws of the state you are in. Specifically, if there is a homestea…d exemption in your state. If there is a homestead exemption, then the creditors cannot take your house / force the sale of your house. However, you must be careful in this area because new bankruptcy laws were just passed & this area of bankruptcy law may have changed.\n. \nAnother factor to consider is whether you have any equity in your house. The last time I checked, the home equity limit was $18,450, doubled for married couples (Dec 2004). If you have no equity (or very little) and you do not list your home mortgager in your bankruptcy, then you do not have to sell your house. However, if you have a lot of equity, and there is no homestead exemption, they can usually force the sale of your home.\n. \nHere are some excerpts from a bankruptcy article I read in March of this year. It'll give you a better idea of the changes I referred to earlier.\n. \n"Bankruptcy Bill Set for Passage Is a Victory for Bush\n. \nBy STEPHEN LABATON, The New York Times\n. \nWASHINGTON (March 9) The bill would impose a means test that would prompt many people to file for bankruptcy protection under Chapter 13, which requires a repayment plan. The means test would not be applied to debtors who earn less than the median income in their state. Those who earn more than that and can pay at least $6,000 over five years would have to seek protection under Chapter 13.\n. \nThe median income for a family of four in 2003 was $65,093, ranging from $45,867 in New Mexico to $82,561 in Massachusetts, according to the United States Census Bureau.\n. \nThe bill would also increase the costs of bankruptcy by increasing the amount of paperwork filed and force people in bankruptcy to pay for counseling about the way they use credit. It would also make it more difficult for some people to try to shelter their assets through the purchase of expensive homes in states like Florida and Texas, which have homestead exemptions. To shelter more than $125,000 in assets, homes must have been purchased at least three and a third years before a bankruptcy filing".
Answer Yes, but not until your discharge. If you take money out of a 401K after you file and before discharge, the money is no longer exempt and could be taken b…y the Trustee. If you take it out after your discharge the money is yours.
Answer You will generally be notified and have to timely submit documents - a proof of claim - to support how much you are owed. Then depending on a number …of factors, what the debt is for, if it is secured, howm much assets the debtor has, etc., and how big a creditor you are...your participation in a plan to eliminate or restructure the debt with the other creditors, as part of the court process, will be available. The court will ultimately determine an acceptable plan, (albeit hopefully with the approval of creditors), and the assets of the debtor are used to pay off the debts...normally, with each creditor getting less than the were fully entitiled to.
Answer I believe new bankruptcy law exempts all retirement from being touch during bankruptcy so it should be safe
There are several different types of bankruptcy. A Chapter 7; which eliminates most but not all of your debts, not including your home or other secured obligations at least u…p to the market value of the secured item. A Chapter 13; which is a repayment plan including your home. A Chapter 11; this type of bankruptcy is only for a business. Contact your local bankruptcy attorney if you are interested in more information. I am not a legal representative, so my best advice to you is do your research first to see if this is your best option.
No...your retirement in a qualified plan (like a 401k), is exempt from seizure up to any amount!
Nothing they are exempt form seizure.
Your debtors BK effects your obligation to pay the same as your BK effects your creditors obligations to pay you. That is, not at all.
Absolutely nothing. The emplyees 401 is held in investments the emplyee determines, manged by an independent group (normally a brokerage house or large bank, like Fideli…ty or Wachovia, etc). The money is entirely independent of the company and has nothing to do with them.
No. Never. It is exempt and protected.
Absolutely...it is always exempt from seizure or use and will NOT be taken.
If they were ordered by the court (i.e.: child support - back taxes - etc) you must still honor them, bankruptcy will not do away with court ordered liens. . Liens placed by p…rivate persons or businesses will have to take their place in your long line of creditors. As soon as you file, you take the papers from the bankruptcy court showing that you filed to your employer and the garnishment will stop. There are some exceptions to this.
In Australia they check out what you own and sell of your house and some of your possessions they let you keep your car tools if you have any and furniture. after that they le…ave you alone. Keep your nose clean for a few years and you can start all over again.
All ERISA qualified accounts are protected in a BK- meaning creditors cannot seize those accounts.
In most cases, foreclosure action is suspended until the BK is ruled upon either by discharge or dismissal. The mortgage holder may request a stay from BK proceedings, if it… is granted the foreclosure process as defined by the laws of the state in which the residence is located will continue.
I assume that you live in the United States... Don't think that you can "pick and choose" debts to include in your bankruptcy case. A lot of lawyers get this wrong. When you… file bankruptcy, all your debts must be listed...under penalty of perjury. A Chapter 13 bankruptcy allows you to keep your house, cure your missed mortgage payments, and resume your future mortgage payments. You must have sufficient income to get a Chapter 13 plan confirmed by the court. In Chapter 7 bankruptcy, you don't have to give-up the equity in your house (as long as the home equity doesn't exceed applicable dollar-limits, and the house otherwise qualifies as your "homestead" under applicable law). The discharge order relieves you of your personal liability for the mortgage loan (as long as you don't sign a reaffirmation agreement). The mortgage lien survives the case. Chapter 7 can temporarily delay foreclosure, but it doesn't help you cure past-due mortgage payments if you are trying to save your house.