Debt and Bankruptcy

i) When the capital structure of a company is complex and it is required to make it simple.

(ii) When there are huge accumulated losses and it is required to write off these losses to depict a better position of the company.

(iii) When a part of the capital is not represented by available tangible assets.

(iv) When change is required in the face value of shares of the company so that they can become attractive for future investors.

By the use of the word "required" one logical answer is when it applies for bankruptcy usually under Chapter 11.

Federal income taxes due in an amount certain 3 years or more before the bankruptcy filing date can be discharged along with other dischargeable debts. You cannot just file to discharge the taxes, unless you have no other unsecured debt.

Around $18.75.

It can, provided the trust is written properly and, often more important, the transfer of property to the trust is not able to be considered a fraudulent transfer. You should consult an attorney to see if it would work for you, because everyone's facts are different.

Todd H's experience: "I put a home in a SPA Trust a couple years ago and recently went through a business and personal bankruptcy. We disclosed everything to the bankruptcy judge and he said it was perfectly legal and a SPA Trust is not included in bankruptcy. I still have a home to show for it."

If the chapter 7 is still open, you cannot buy a house. If you have received your discharge and the case is closed (usually 6 months from the filing date), you should not have the cash to buy a house unless you lied on your bankruptcy documents about your assets. That can lead you to prison.

If you win a lottery or get a big inheritance within 6 months after the case is closed, you have to report it to the trustee. Your case will be reopened and the money will have to go to the bankruptcy estate to be distributed by the trustee.

If you have been able to pay all your new bills as they come due and put some money into a savings account for three or four years, you can start looking for a house and a mortgage lender, but if you do not have enough savings to make a substantial down payment, you will not find a lender willing to lend you money for a mortgage. You may find a better reception if you have your accounts in a local credit union and ask them about qualifying for a mortgage.

The most common form of a demand draft is a check. Checks have account numbers, not docket numbers. Other demand drafts may or may not have account numbers, but not docket numbers, unless there is a legal action that ordered the demand instrument.

The bankruptcy stay prevents any action by the lender until the BK is finalized. Be advised that a mortgage lender can petition the court to have said stay lifted so foreclosure proceedings can continue. That rarely happens though.

Unless the debtor reaches an agreement with the mortgage holder to reafirm the lending agreement the foreclosure will likely occur after the BK discharge.

Bankruptcy dismissals typically remain on your credit report for up to 10 years from the filing date. However, the impact on your credit score may lessen over time as you establish a positive credit history. It's important to note that while the dismissal itself stays on your report, the effects on your creditworthiness can vary based on your overall financial behavior post-bankruptcy.

Since the debt/equity ratio is determined as a fraction, you either decrease debt or increase equity. Before 2008, home equity increased yearly, but middle class persons kept borrowing against the equity rather than let it increase. Many mortgages are now underwater - the value of the house is less than the mortgage(s). So increasing equity is difficult.

Debt can be improved by 1)discharging debt in bankruptcy, 2) paying down credit cards, 3)never going over credit limits, preferably staying under half of the credit limit and paying the balance due at the end of the period (not the minimum payment due, the full balance). If you have more than one card, you might want to try paying down one card completely. Picking which card to do that to can get complicated, so you might consult a US Trustee approved debt consultation agency.

In general, in the U.S. a bankruptcy stays on your credit 7-10 years. Most people will say 7, but there is no guarantee it will go away after 7.

If the home has been sold to a third party, you cannot keep it. If the home has not been sold, you may be able to keep it, but you will have to pay the mortgage arrears, including legal fees and costs unless a court orders otherwise. You may still have problems paying the mortgage, so think about whether you can afford to keep it.

A person can lose everything he or she owns when creditors move in to collect what they are owed. A person might have to go through bankruptcy.

No.

when filing any bankruptcy you must disclose ALL debts.

Chapter 7 Bankruptcy will be removed from a credit report 10 years after the date the Bankruptcy was FILED.

It depends on what the chapter 13 plan provides. Most 13s are started to save a home from foreclosure, so the debtor remains the owner until the plan is completed. If the debtor misses post-filing mortgage payments, the mortgagee will file a motion for relief from stay to get the court's permission to proceed with the foreclosure.

The plan can provide for the sale of the house, most often at auction, and the balance of the mortgage becomes unsecured debt to be paid according to the plan provisions for unsecured creditors.

Or the plan can provide for the surrender of the collateral (home) to the mortgagee, with the same result for the mortgage balance.

As soon as you get the cash to pay for it

No. The bankruptcy is to stop anyone who has a right to collect a debt from being able to collect, called the automatic stay. If the debt is listed in the correct debt owner's (creditor's) address and it is discharged, it does not matter who owns the debt.

1. Start saving a small amount each month, until you have enough to meet at least 3 months' worth of needed expenses.

2. Develop a budget and stick to it.

3. Pay your bills on time. That means not mailing the payment on the due date, or paying after the due date but before the date set for a penalty, but at least three days before the due date.

4. Get a low-limit ($300-500) card, use it to buy only as much as you can pay in full at the end of the month (or whatever period your card uses).

5. If you have no utility bills in your name, change one to your name, and pay it regularly.

6. If you can, pick a discharged debt to pay. Save the money to make a lump sum payment. The discharge means the creditor cannot take action to collect, but it does not prevent you from paying it.

7. Get your free annual credit report from www.annualcreditreport.com every year and make sure it is correct and up to date.

8. Check your credit score at a free site

9. Do NOT apply for credit at more than on source. Multiple credit applications reduce your score.

Control your spending. Know what you spend. Spend only for what you need and only if you can afford it. If you get gas, don't go into the store to get a soda or a snack. Write down every penny you spend for a week. Lower that amount the following week. Repeat as needed.

Yes you can file bankruptcy. Whether or not it is dischargeable is another matter. In a Chapter 13, it could be included in your repayment plan. Not sure how it works in a Ch 7.

No, they did not file for bankruptcy.

Federal income tax can sometimes be discharged in a bankruptcy, but there are several rules that apply. Only one example is, federal taxes must be at least three years in arrears before qualifying for bankruptcy discharge.

it depends on your state exemptions and what you mean by savings... for example, some states provide for 150$ of a bank account to be exempt, meaning everything else will become part of the bankruptcy estate to repay creditors.

Bankruptcy court records are public records, unless the court has impounded some or all the information for some good reason. There are banking publications, like Banker & Tradesman, that publish all filings in their area. Some local newspapers still publish bankruptcy filings from their communities. And you can check out the bankruptcy filings at the bankruptcy court for your area. There is usually a public access computer in the clerk's office where you can look for filings by name. A deputy clerk will be happy to assist you.