Debt is not uncommon by any means in America. The average American has more than $10,000 in credit card debt. And credit card debt is one of the leading causes of bankruptcy filings. So how did this happen? Below are the habits most credit counselors site as the leading causes of debt, and therefore the habits each of us should avoid. (1) Impulsive purchasing. It is easy to buy without thinking about a purchase. In fact, insiders say that our shopping experience is designed...
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When you file for bankruptcy, you try to control the timing of every expense and income. Your case often hinges on having only a certain amount of money available. More can cause you to lose assets or not qualify for Chapter 7 bankruptcy. But there are always things you cannot predict, such as a death in the family or an illness. If you receive an inheritance, how will that inheritance affect your bankruptcy case? It’s all about the timing of the inheritance. Technically, you become...
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Most people are aware of the fact that they may file for bankruptcy and discharge their debt. However, most are unaware of something called an involuntary bankruptcy, in which your creditors file your own bankruptcy. In such cases, you have no say in the matter once the bankruptcy case is approved. So it is important to be aware of what an involuntary bankruptcy is, and how you can prevent one. Involuntary bankruptcy cases are very unusual for individuals. In certain circumstances, however, they do happen. ...
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In re: Smith-Canfield, No. 08-61630-fra13 (Bankr. D. Oregon, May 17, 2011). Your attorney in a bankruptcy proceeding should always behave in a professional way, and keep your interests paramount. If your attorney has interests that conflict with yours, they may be violating rules of professional conduct. In order to avoid such conflicts, your attorney should not represent one of your creditors, and should not get money out of a deal he is advising you to consider. In this case, a woman went to see an...
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In re: Mortensen, No. A09-90036-DMD (Bankr. D. Alaska, May 26, 2011). Sometimes, people who file bankruptcy need to wipe clean their debts, but fear losing some valuable asset. In order to avoid losing their car or their home, they try to hide the asset or make it unavailable to the court. A trust is a legal way some people attempt to make their property unavailable. Most trusts allow someone to not legally be in possession of property. By transferring property to a trust, they are...
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What is a Cram down? Cram down is only available in chapter 13 bankruptcy and is a way to reduce the total amount you will pay to obtain a free and clear title to your vehicle. If you purchased your vehicle more than 90 days prior to filing for bankruptcy protection and the fair market value of the vehicle is less than the debt owed then the cram down option is available. In cram down you only pay the fair market value of the vehicle...
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When you file for Chapter 13 bankruptcy, you prepare a plan to repay your debts as much as you can. At the end of the plan, you will be able to wipe clean many debts that you were not able to pay off. By law, the plan must be 3 years long, unless you make a certain amount of money, and then the plan is usually 5 years long. If you propose a 3 year plan but the trustee, whose job it is to administer...
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The purpose of filing bankruptcy is to allow the debtor to have a fresh start. By using a Tempe bankruptcy attorney, it enables the debtor to ensure the case is filed properly and is increasingly more likely that the debtor will receive a discharge. There are checks and balances in the bankruptcy system to weed out the debtor’s who are honestly filing bankruptcy from those who are fraudulently filing bankruptcy. One who is honestly filing bankruptcy will receive a discharge of debts, while a dishonest...
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When you file for bankruptcy, you must inform any potential creditors that you filed, so that they can come forward and ask for what you owe them. If they do not do this within a certain time, they lose all rights to claim anything from you. There are, however, six exceptions to the rule that creditors have to file within a certain time. In this case, a credit union claimed that it was owed money, and that it should be allowed an extension in which...
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Wherever you decide to file for bankruptcy, that location is presumed to be the right one until it is successfully challenged by a creditor or the trustee in your case, whose job it is to administer your estate. However, once challenged, there is a rule for where to file. You can file where you were living, doing business, of kept most of your property for the 180 days before you file your petition. This means that you can actually have multiple places to file for...
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