Bankruptcy Law

Sometimes. If you reaffirm (i.e. keep) the debt in a Chapter 7, the co-signer is generally unaffected by your bankruptcy filing. In a Chapter 13, if you continue to pay a debt outside the Plan, or pay it in full through the Plan, then again the co-signer is generally unaffected. However, if you file Chapter 7 or Chapter 13 and do not pay the debt (i.e. if you discharge the debt in your bankruptcy case), then the lender will pursue to co-debtor for repayment. In other words, your bankruptcy does not also protect the co-signer; if you don't pay the debt, the lender WILL go after your co-signer. In this case, the co-signer would need to pay the debt or file bankruptcy also. 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!

Bankruptcy is protection from people who are owed money. When a person has so many debts that they cannot pay them in a timely fashion, they are liable to their property being seized by the creditors, as well as wages being garnished. To prevent a person from losing their means to survive, laws have been enacted which allow a person to go before a judge and arrange for some of their debt to be forgiven, in return for surrendering some of their assets and income. This allows creditors to receive some compensation for the money they have lost, and the debtor to continue to work and generate income. These laws grew out of practices such as putting people who could not pay their debts in prison, where they could not earn any money at all, and taking a persons house for a debt which totaled a small fraction of what the house was worth.

I am not sure what you mean by corporate "members" - but C-7 is certainly available to corporations. If the corporation is part of a consolidated group - owned by another corporation - you would want legal to explain the repercussions to the parent.

Generally speaking, there is not a minimum debt that qualifies you to file for bankruptcy but rather the court evaluates your income versus your debt to determine whether bankruptcy is appropriate. Known as a "means test", it is a complicated calculation that determines your ability to pay your creditors and also compares your financial status with that of the average person in your area. You have to pass this test in order to file for Chapter 7. Also, prior to being able to file you will undergo credit counseling.

You can view the Chapter 13 Bankruptcy rules by checking out legal books from your local library or visiting United States Court information website. You can also contact lawyers to send you more information.

I've heard nothing about it, and it's pretty big news when a major truckload carrier folds, such as the recent example of Arrow Trucking.

They may be cutting down their North American operation, but Schneider also has operations in the Netherlands and China, as well.

I know that in California you can protect it when filing Chapter 7.

I believe the above is entirely incorrect.

First - BK is done under FEDERAL LAWS in a FEDERAL COURT, and while there may be some options because of the state, they are generally minor and more to conform things to the local custom than anything.

Second - BK effects and includes just about everything you own and everything you owe. You do not pick and chose. Some things may be excluded from discharge (like child support or court fines), and others exempt from use (like personal items, retirement accounts), but everything is included. The exemptions are really for items of "need", like a reasonable car (actually under $500, but courts generally just use reasonable), so you can work (as long as a loan isn't secured by the car)....things like that.

I can't possibly see how a time share could qualify as anything but a luxury and allowing a debtor to keep it, if it has any value, while creditors go unpaid would seem not only contrary to the ideal of BK, but grossly unfair.

However, Timeshares frequently have no realizable value, many times people that bought them basically have to pay to get rid of them and out of paying any more fees.....as such the creditors may not be interested in them. However, that very fact, that they are not good financial investments, frequently costly to maintain, etc...is a very good reason to using BK to get out of any future obligation to pay for them...especially as if your going BK, a complete reassessment of your lifestyle and how you can afford it is in order.

update 2/24/2010:

In California, you are allowed to keep timeshares under local exemption rule §703.140(b)(5)-- the "wildcard" exemption. This is a $20,825 umbrella designed to protect a debtor's assets in Chapter 7 bankruptcy cases as long as assets protected under the wildcard meet certain conditions; either that is is equity in the debtor's residence or it is personal personal property.

Though timeshares are technically considered real property and thus does not fit under either conditions required for the wildcard exemption, local bankruptcy rules specifically dictate that timeshares, should they have any value, may be exempted under the wildcard, as long as all assets including the timeshare exempted under wildcard do not exceed $20,825 in value.

I believe it's a different debate entirely as to whether a debtor should be allowed to continue to make payments on a timeshare through a pending chapter 7 bankruptcy, as these are funds that might otherwise be paid to other creditors in a chapter 13. I suppose it depends on the trustee assigned to the case, as I have seen many chapter 7 cases receive discharge while debtors were paying for timeshares.

-ap

Bankruptcy will always be on your credit scoring record.

After the bankruptcy is discharged it will have a less negative effect, and then after 6 years it is supposed to be considered done with and you get get a mortgage, loans etc.

However, having a bankruptcy on your record will always have some negative effect even after the 6 years are up.

Bankruptcies are maintained on a credit report for at least 10 years.

Generally it is reserved for business/corporations, unless fairly special circumstances and conditions are met....and even then, there really isn't any reason to go C-11 as C=13 which is easily done for individuals effectively does the same thing and fits the bill better. BK is Federal Law. The state makes very little difference really. From another independent source defining C-11 Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals with unsecured debts of less than $336,900.00 and secured debts of less than $1,010,650.00 as of April 1, 2007. And yet, the below from the official US Courts website introducing the laws involving C-11, with link following. Better tell them they don't know what they are talking about too. A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court. http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html

Absolutely. It being exempt from creditors is a main benefit of qualified retirement accounts.

Not "absolutely." Properly established IRAs are protected up to one million dollars, and a bankruptcy court can extend that higher. Any money that you withdraw from an IRA, unless it is all placed in another IRA or a 401(k) or other qualified retirement plan, is not protected.

You can dispute bankruptcies and items included in bankruptcies the same as any other negative item on your credit report. You must submit a dispute letter to the credit bureaus stating why the item(s) are being disputed. The credit bureaus have 30 days to verify the items or it must be removed from your credit report.

Has the chapter 13 bankruptcy been discharged (completed)? If not then in your bankruptcy agreement for repayment it probably states that you must surrender any tax return to the repayment schedule. Read your entire agreement and consult with your attorney to be sure.

If it is for a debt or claim that existed before you filed, it is in violation of the automatic stay. If it is for a claim that arose after filing, you should not be doing things to cause these claims, and it may wreck your c. 13 if you wind up having to pay it.

If the depts are recently accured then you have the possibility of being sued for fraud if you file for chapter 7. Under chapter 13 you cannot be sued for fraud but will have to pay some of the money back for three years.

A chapter thirteen attorney will not only help you make your bankruptcy legitimate, they will also help you figure out some of your financial problems to make it easier for you to pay off some of your debts.

no u couldn't that would make u poor

chapter 7 you can file every 8 years. chapter 7 lasts 10 years starting with the new laws in 2005. since you filed before 2005 your chapter 7 stays on your credit report 7 years as opposed to 10 years.

If neither the borrower nor the cosigner have the money to pay back the loan, than bankruptcy is always an option for the cosigner. If you don't have the money, you don't have the money. However, be prepared to lose a good deal of your possessions and absolutely destroy your credit!