When filing for bankruptcy, the bankruptcy court, and more particularly the appointed trustee, needs to know what assets you own and what their value are. This enables the trustee to place a value on the bankruptcy estate and to determine how to proceed with the bankruptcy petition. It is important to list every asset that [...]
Most people know that bankruptcy is a process that eventually cancels monies owed to creditors. In legal terms, the canceling of a debt is referred to as a discharge of that debt. There is always some confusion about which debts can and cannot be discharged. As a rough guide, consumer debts that have not been [...]
When filing for bankruptcy, one of the tests that is applied by a trustee is whether or not your petition and its components have been filed in ‘good faith’. In a Chapter 13 petition, for example, the trustee will look at how much you are proposing to pay in your monthly plan, and whether or [...]
Farmers and fishermen have one advantage over other people when it comes to filing for bankruptcy. They can modify their mortgage through the bankruptcy process. One theme that you will often read when looking through our pages is that bankruptcy is not the best solution for distressed mortgages. Under a Chapter 7 petition, filing will [...]
Bankruptcy is a very complex piece of legislation made more complex by the fact that some states have enacted their own versions of what is, essentially, a federal act. Despite having state bankruptcy laws in place, bankruptcy is still petitioned through the Federal Bankruptcy Court system. While it is fairly rare, it is technically possible [...]
The leading cause for bankruptcy in the U.S. is credit card debt. Yet filing for bankruptcy to resolve this debt is not always the best option. However, there is certainly one practice that every citizen should avoid, and that’s ignoring a court summons for a default judgement. In fact, credit card companies are relying on [...]
Whether a person is buying a car, filing tax reports, renting an apartment or running for political office, the establishment of their net worth is essential. Businesses must calculate net worth each time a financial report is filed. In order to arrive at an accurate estimate of net worth a person must know two basic [...]
Bankruptcy is an insolvency solution that will have a serious impact on your finances. It’s designed to help people with unmanageable debts who simply can’t afford to repay them within a realistic amount of time – and is basically considered a suitable approach only once all other potential solutions have been considered. However, if bankruptcy [...]
Bankruptcy is designed to help individuals, married couples and businesses who find themselves in financial difficulties. Bankruptcy law has been modified over the years to ensure that creditors are not in any way cheated out monies that are owed. This places debtors in some difficulties when it comes to debts incurred in the six months [...]
A lot has been made of non-citizens in the U.S. in recent years, particularly when it comes to their rights under law. When it comes to bankruptcy law, non-citizens are treated almost identically to citizens. The determining fact is not whether you’re citizen, but your actual standing. If you are an illegal immigrant, then you [...]
While bankruptcy has been designed to help those in serious debt find relief, in the hands of a smart attorney, it can also be used as a leverage tool. For home owners, the classic example is having secondary mortgages wiped in situations where the house’s current value is less than the primary mortgage. This leaves [...]
It comes as a rude shock to some when a bankruptcy petition goes sour and they are faced with the very real likelihood of spending time in prison. Bankruptcy is a legal process that is designed to protect both debtors and creditors. The important words there are ‘legal process’ and ‘protection’. Bankruptcy is a legal [...]
It is estimated that most people in the US will move house at least four times over their adult lifetime. While moving house is a regular experience, it can have very serious implications when it comes to a petition for bankruptcy. If you have not lived in your current state continuously for the preceding two [...]
The legal professional has a lot of strange terms – sometimes they can be quite amusing. If you were a little old fashioned, then a motion for a relief from a stay could sound like you were asking to have your corset removed (after all, they were rather tight fitting). In legal terms, a motion [...]
If you own a business and that business starts to have financial difficulties, you have the choice between a Chapter 7 or Chapter 11 petition for bankruptcy. Under the Chapter 11 petition, the business is allowed to continue trading while a reorganization plan is put in place. This plan has to be approved by the [...]
In simple terms, there are two types of bankruptcy that affect most people – a liquidation bankruptcy (or Chapter 7 bankruptcy) and a reorganization bankruptcy (or Chapter 11 and Chapter 13 Bankruptcy). The terms really are more appropriate to business bankruptcy, however, the terminology is also used for personal bankruptcy. In a way, the names [...]
The bankruptcy means test is there to ensure that those who can afford to pay off some of their debt do so while those who cannot afford to pay anything are not forced to. That’s a fairly clear concept, and in theory, it should work well. In practice, the process often doesn’t work with creditors [...]
An adversary procedure is a law suit that is taken out against parts of a bankruptcy petition. While it is a lawsuit, it is heard in the bankruptcy court as part of the bankruptcy process. The most common adversary procedures are those taken out by creditors who feel their debts shouldn’t be included for discharge, [...]
There is a growing trend in this crazy world for people to steal the identity of others. The real worry is that these people are also filing for bankruptcy using those stolen identities. The first time the real person knows of this is when they receive a notice ordering them to appear at the Bankruptcy [...]
Bankruptcy law can be a strange beast at the best of times, especially when it includes terms such as ‘fair and reasonable’. What you would consider ‘fair’ the bankruptcy court may not – likewise with the term ‘reasonable’. To make matters worse, there is no consistency across the courts so a bankruptcy court in one [...]
If you file for bankruptcy under the Chapter 7 provisions, the bankruptcy trustee will seize all non-exempt assets. These assets are sold and the funds raised distributed between creditors. Once the trustee is satisfied there are no further assets to seize, your outstanding unsecured debts will be discharged leaving you free of those debts and [...]
One of the most powerful weapons a creditor has is the civil court system. If you are behind in your repayments, a creditor can issue a suit through a local court – these are state courts and judgements are issued according to state laws. In most states, this process is very creditor friendly. So friendly [...]
The Bankruptcy Act is one of the most complex pieces of legislation that affects our everyday lives. Like all things legal, it comes with a special language all of its own. The term ‘insider’ is one that debtors may hear about, either from their lawyer or from the bankruptcy trustee. So what is an ‘insider’ [...]
There are many reasons why people don’t want to file for bankruptcy. It’s understandable in a way. It is a public process and people do become a little self conscious when their private financial management comes under scrutiny. One concern that is often raised is that of employment – the fear is that an employer [...]
One of the biggest problems that lawmakers face is trying to keep pace with our changing society. While bankruptcy laws have been modified over the years to deal with various financial catastrophes, it hasn’t kept pace with our relationship habits. There are millions of couples who are cohabiting outside the formalities of marriage, and unfortunately [...]
Parking fines are the bane of many a driver and you would be surprised at how much is owed annually in outstanding parking fines. When filing for bankruptcy, one of the more common questions relates to parking fines and whether or not they too can be discharged with other unsecured debts. While the question may [...]
One of the major causes behind bankruptcy petitions is credit card debt. There are many petitioners who receive a rather rude surprise when they find that one or more of their credit card debts are not going to be discharged through the bankruptcy process. This leaves the debtor still obligated for these debts and the [...]
Filing for bankruptcy can be a stressful time, so much so it’s quite likely you have missed a creditor on your bankruptcy petition. There are also those old debts that you may have forgotten about. Most petitioners forget a creditor or two when filing for bankruptcy, and in most cases, it’s really not a problem. [...]
The law is full of jargon and legal language and in time that language can become confusing. In today’s post, we clear the air on the term ‘bankruptcy estate’. Under bankruptcy law, you finances are divided into various areas; for example, income, expenses, creditors (and even debtors that owe you money), and assets. The term ‘bankruptcy [...]
Bankruptcy laws are double edged – they are designed to protect creditors and debtors. Some experts claim that these laws lean to heavily towards debtors while others claim those same laws lean to much towards creditors. Either way, both groups have rights under bankruptcy laws, and those rights are strictly enforced by the bankruptcy court. [...]
