What would you like to do?
Why declare bankruptcy if you do not have any assets?
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.
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yes this is usually what is done, as this is how the business may pay off some debts.
Asked and answered at least a zillion times here already. Had you followed the instructions for the system, you would not have had to wait for an answer, or trouble anyon…e else and use the limited resources already available trying to help! A basic, rough primer: BK is always done under FEDERAL Laws, in a Federal Bankrutpcy Court. Basically State makes little difference. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way. The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furntiure and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that sdebt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not rust people with bankruptcies in their past, especially in the last few years. Many more things. Not disclosing all items is frequently trie and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). Many seem to fall into the trap thinking that they can trick or change the system. It simply ain't going to happen. The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too.
No. But, it may be in your favor to do both. Check with a lawyer.
No, there is no authorization for states to do so under the United States Code. Municipalities are explicitly authorized to declare bankruptcy 11 U.S.C. 109: "(C) An entit…y may be a debtor under chapter 9 of this title if and only if such entity- (1) is a municipality; (2) is specifically authorized, in its capacity as a municipality or by name, to be a debtor under such chapter by State law, or by a governmental officer or organization empowered by State law to authorize such entity to be a debtor under such chapter; (3) is insolvent; (4) desires to effect a plan to adjust such debts; and (5) (A) has obtained the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter; (B) has negotiated in good faith with creditors and has failed to obtain the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter; (C) is unable to negotiate with creditors because such negotiation is impracticable; or (D) reasonably believes that a creditor may attempt to obtain a transfer that is avoidable under section 547 of this title." 11 U.S.C. 101(40), in turn, defines municipality as a "political subdivision or public agency or instrumentality of a State." Given that municipalities are explicitly authorized to declare bankruptcy and states aren't, a bankruptcy judge would most likely conclude that Congress intended not to make bankruptcy relief available to states.
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.
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.
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!!!
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.
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.
Getting a loan after bankruptcy can be difficult depending on what type of bankruptcy one files. A Chapter 13 bankruptcy, one cannot even apply for credit during the length o…f the bankruptcy. In a Chapter 7 bankruptcy, that is a different story. One can file Chapter 7 bankruptcy and as soon as it is discharged can apply for credit. The only problem with getting a loan after bankruptcy is that you may have to have a co-signer until you build up some positive credit.