Debt and Bankruptcy
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Law & Legal Issues
The US Bankruptcy Code that determines which debts may be discharged and which obligations will remain after a person or organization is deemed insolvent
Asked in Bankruptcy Law
What do you do if you have completed bankruptcy and the lender has not picked up aut?
What to do Call the bank and ask. They will not lie about it. If your car has been repo'd, call your local law enforcement agency. Almost everywhere we has repo people have to notify law enforcement that we have taken the car, that is to prevent you from calling up and reporting it stolen. So if you think it happened, call law enforcement, they will tell you. Now the other question about getting your car back is it isn�t your call....
Asked in Credit Reports, Bankruptcy Law, Credit
How do you remove liens and judgments from your credit report that were discharged in a Chapter 7 almost 2 years ago?
Removing Liens and Judgments You can't. By federal law bankruptcies can be reported up to 10 years after filing, assuming a discharge, of all discharged unsecured debts. Liens are secured debts and may or may not have been discharged. Undischarged debts may be reported up to 7 years after your last account activity. You are probably referring to the "Public Records" part of the credit report. In that case you can't. Court cases are a public record, even if its dismissed, unfounded, you win,...
Can you pay someones taxes and own their land?
United States No. Generally you cannot get title to property simply by paying the delinquent taxes. The procedures vary from state to state but there needs to be a transfer of title. Towns have the legal authority to take possession of real property for non-payment of property taxes. In some jurisdictions the town must then get a court decree that perfects title in the town. Once the tax taking process is completed the town can sell the property at a public auction and...
Asked in Law & Legal Issues, Mortgages, Bankruptcy Law
What is an unsecured promissory note?
A promissory note is a document where you agree or promise to repay a certain amount of money to someone. If it is unsecured, it means that nothing was put up as collateral to back up your promise [such as a house, a car, stocks, etc. ]. ...
Asked in Taxes and Tax Preparation, Bankruptcy Law
Do you pay taxes on debt discharged in bankruptcy?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve: Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners. Bankruptcy: Debts discharged through bankruptcy are not considered taxable income. Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the...
Should you declare bankruptcy?
Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance, or sometimes get a job. However, it is a legal procedure that offers a fresh start for people who can't satisfy their debts. Individuals who follow the bankruptcy rules receive a discharge which is a court order that says they do...
How long after bankruptcy do you have to wait before refinancing?
Refinancing after a bankruptcy The time period you have to wait depends on what chapter bankruptcy you filed. Generally, you are able to refinance 2yrs after a Chapter 7 discharge. If you are in Chapter 13, you can refinance the next day with many lenders. You can email a mortgage broker like myself to find out more. To add to the above answer, you do NOT have to wait 2 years to refinance after a chapter 7 discharge, those are for fannie Mae loans. You can...
Can you rent out your home after filing chapter 13?
After the Chapter 13 plan is approved, whether the rental is included in the proposed plan or not. Until then the trustee holds all your assets in the bankruptcy estate. Once the plan is approved, you become the "debtor in possession" and can manage your property as long as you don't try anything illegal or that will harm the value of the property. However, if you rent out your house, you will not be able to use the homestead exemption in the...
If a tax debt is owed to the IRS can filing bankruptcy settle this debt and allow you to start over?
Yes you can start over but this does have an extreme barring on your credit. You can include the years prior to three years from the tax year you owed the IRS. However any years owing after the fact, you will be responsible for. Actually, you can under certain circumstances -- mainly if enough time has gone by (except in cases involving fraud): As a result of Bankruptcy Code Sections 523 and 527, the following IRS tax is generally dischargeable: Tax penalties for...
Asked in Bankruptcy Law
How much can you spend on your credit card before you file bankruptcy?
you can actually spend it all, and if you are going to go bankrupt, start spending, buy clothes and furniture and stuff, the creditors will have the opportunity to show up at the meeting for the sake of argument, but they usually never do and they really don't want the clothes off your back. Any debts incurred, or assets transferred within 2 years of your filing date are excludable from bankruptcy protection, and frequently are almost automatically. If your doing so appears...
What if a Motion for Relief from Stay is only issued for one of the debtors what can the other do?
The other debtor must either make arrangements to pay, modify or otherwise deal with the pre-petition and post-petition arrears and costs and legal fees or be foreclosed upon. A possible action is filing the other debtor's own bankruptcy, if there is not one outstanding, though this will be short-term relief if the second debtor is not able to file a c. 13 with a plan that will address the arrears. The codebtor needs to get an experienced bankruptcy lawyer - and not...
What happens if bank does not claim a motorcycle after Chapter 7 bankruptcy?
Why do you think the bank has to do anything? You signed a document filed with the court called "Statement of Intention" in which you said you were surrendering the motorcycle. You have to go to the bank and give them the keys and tell them where the vehicle is. They may direct you to take it to a specific location to surrender it. If they want to abandon the property, they have to do it in writing. ...
Can you refinance after Chapter 13 discharge?
Especially in todays and the forseeable future credit environment, probably not. The previous answer was erased as commercial and out of Wiki guidelines; New mortgage, new debt? Well, real tough - not impossible. Especially with the concerns over subprime lending in todays market (which you by being in/recent BK more than likely would be under most any view). You would have to expect that you would pay a very high interest rate, likely making it something even people with stronger financials and financial ability...
Asked in Debt and Bankruptcy, Bankruptcy Law
How many times or when can you file bankruptcy again in any state or place?
Your question may have been redirected here: We receive many questions on this topic and have compiled the commonly needed info in this one general answer: It isn't a number of times..it's defined by type of BK and years in between. It is a FEDERAL law (and a special FEDERAL court system exclusively for Bankruptcy), basically under the same rules everywhere, State lines being irrelevant to FEDERAL matters. (Some districts of this court allow special definitions for things in the case, basically to...
Asked in Insurance, Life Insurance, Bankruptcy Law
What if your insurance company goes bankrupt?
The "bankruptcy" of an insurance company is referred to as "insolvency". It is roughly defined as the financial inability to pay claims as they accrue. As a condition of becoming authorized (licensed) to transact insurance business in the company's state of domicile, it is required to pay a portion of its income into the insurance guaranty association of the state. This is essentially a state-administered pool of funds which is used to pay claims (although not always in full) when an insurer becomes...
When must you leave your house after bankruptcy?
I am also in the same situation you are in. According to my attorney, I don't have to move out until the mortgage company successfully forecloses on the property. I was already in foreclosure before I filed the bankruptcy but by doing so I bought more time with the "stay" and now the mortgage company has to legally foreclose before I have to move if I choose to stay that long. I am a bankruptcy attorney in Indiana. I suspect that the answer...
Asked in Bankruptcy Law
When did the chapter 7 bankruptcy laws change from 7 years to 10 years?
Actually, It never was 7 years. Chapter 13 is 7 years, and Chapter 7 is 10 years (sometimes longer). That regulation is at least 50 years old. Keep in mind however you may only be granted a Chapter 7 Discharge ONCE EVERY 8 YEARS FROM PREVIOUS BANKRUPTCY DISCHARGE DATE (law changed in 10/2005). ...
Can you refile immediately after your bankruptcy has been dismissed?
One can file a bankruptcy case at any time. The only issues upon filing will be: 1. Under what Chapter will one be permitted to file; 2. Whether one will get the benefit of the automatic stay while the case is pending; and 3. Whether one will get a discharge at the end of the case. If a prior case was filed but no discharge order was ever issued, a stay of all collection efforts will issue automatically and the debtor may be...