Bankruptcy Blog
February 3rd, 2012 by Reed Allmand 
Dealing with financial issues during marriage is common but for some couples, money issues contribute to relationships that have gone downhill. With divorce being imminent, a spouse may become curious about what debt is owed, who will be responsible for paying it and what happens if someone isn’t able to pay. Since there are multiple issues that may come up it helps to discuss your situation with a legal expert to understand your rights and obligations but below are answers to some common questions:
Should divorce come first or bankruptcy?
This will vary depending on your unique situation. Filing jointly may be an option for spouses able to cooperate with each other during proceedings. Couples may decide to file a joint bankruptcy which may be cost effective and ease divorce settlement issues.
What if my spouse wants to file on their own?
A spouse has the option to file on their own but debt incurred during marriage could be the responsibility of both spouses. A creditor may decide to pursue the non-bankrupt spouse for payment. Since divorce court only assigns debt it doesn’t prevent a creditor from collecting from either spouse. The non-bankrupt spouse may choose to file bankruptcy on their own to avoid collection attempts.
Can a spouse file bankruptcy when the divorce process has started?
If a divorce is pending when a bankruptcy is filed, it may slow down the process, especially related to financial matters including division of property and debt. The automatic stay associated with bankruptcy goes into effect, and in some cases, divorce will proceed when the bankruptcy case is closed.
What if my ex-spouse files bankruptcy after the divorce?
It is common for an ex-spouse to file when personal finances have changed. They may be granted a discharge on some debts but certain obligations such as child support and alimony cannot be discharged.
February 2nd, 2012 by Reed Allmand
Notifying your creditors about your decision to file bankruptcy is a personal option. It may depend on how comfortable you are talking about it as well as how soon you plan to file. Many people who file often don’t say anything to their creditors, instead they wait till the courts notify them in order to stop collections efforts.
There’s no way of knowing how creditors will react to your intention of filing. Creditors may offer to settle the debt with you or even create a payment schedule. Just keep in mind if they decide to forgive a portion of the debt you may be required to report that information on your tax return. Upon learning about your intent to file they may forward your account information to their legal representative, something they usually do as soon as they think legal proceedings are taking place.
If you plan on telling creditors about filing, do so after you have chosen the bankruptcy attorney you plan on filing with so you can forward your bankruptcy attorney contact information immediately. Forwarding the contact information of your attorney often stops creditors from continuing to contact you immediately rather than avoiding thier calls until they are legally noticed by the courts.
February 2nd, 2012 by Reed Allmand
When you’re buried under a mountain of debt, you might feel like it’ll take a lifetime to put a single dent in your financial burdens. However, bankruptcy provides you with the lifeline you need to wipe your financial slate clean – and this article will make it easier for you to file for a Chapter 7 or Chapter 13 bankruptcy.
Whether you’re determined to file for bankruptcy or still considering your options, here are the easy steps to file for Chapter 7 or Chapter 13 bankruptcy:
1. Talk to a debt counselor to see if there are any other options you may have before filing for bankruptcy. This is a decision that shouldn’t be taken lightly, as it will have an impact on your credit score. A debt counselor may be able to point out other financial options, or encourage you to file for bankruptcy. Another benefit: bankruptcy courts require credit counseling to have a petition approved, so you’ll already be well ahead of the curve.
2. Decide whether you should file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 could require that you liquidate some assets (exemptions can include your house and car) to pay off your debtors, while Chapter 13 re-arranges your debts so it’s easier for you to pay them off. No matter which option you pick, note that these bankruptcies can stay on your credit score for seven to ten years.
3. Research bankruptcy attorneys to determine who best fits your needs. Ask friends or family members for referrals, or read third-party reviews online to determine a shortlist of potential attorneys. Remember, you should always interview a bankruptcy attorney before making a final decision.
4. Once you’ve hired a bankruptcy attorney and filed a Chapter 7 or Chapter 13 bankruptcy, make sure that you refer any creditors who contact you to your attorney. If a creditor persists in trying to collect from you, you it is possible to take legal action against them.
5. Finally, don’t touch your credit cards before and after filing for bankruptcy, as this can cause your petition to be thrown out of the courts. The only exception to this rule is if you must use your cards for the purchase of necessities (which will need to be proved to the courts).
With these easy steps to file for Chapter 7 or Chapter 13 bankruptcy, you’ll be that much closer to financial relief.
February 1st, 2012 by Reed Allmand
When your home is at risk for foreclosure, you may feel like the only thing you can do is throw up your hands and let the banks take over the house you raised your family in. But you don’t have to sign over the deed just yet. There are steps you can take when trying to save your home and any one of them could stop the foreclosure proceedings and help get you out of the jam you are in. The first two can be hit or miss and if they fail bankruptcy may be the only option you have left before your house is put on the auction block.
Call Up Your Lender
You may feel like foreclosure is just around the corner, but there still may be time to work with your lender on keeping your home. As soon as you miss a mortgage payment, give your mortgage lender a call to let them know you’re struggling financially. You may be surprised to find that they are willing they will be to work out a new payment plan with you.
Get a Forbearance
When you let your mortgage lender know that you are having financial troubles, they may opt to declare forbearance on your mortgage payments. This means that your lender will put a stop to any and all foreclosure proceedings, as long as the renegotiated terms of the mortgage are met. Forbearance could range from a few months free of mortgage payments, or a smaller monthly payment; however, if you break the contract, the bank will immediately start foreclosure proceedings on your home.
Declare Bankruptcy
If you have already tried working with your mortgage lender, or you just cannot afford the mortgage payments, it may be time to declare bankruptcy. Even if you are in the midst of foreclosure proceedings, filing for bankruptcy will enact an “automatic stay”, which means that your debtors must stop all debt collections. If your mortgage lender persists in foreclosing on your home, you are entitled to take legal action against them.
When it comes to protecting your home from foreclosure, do not wait for the last minute to save your house. Filing for bankruptcy can give you the relief you need; additionally, you may have other unsecured debt that can discharged as well.
Don’t let a few missed mortgage payments prevent you from staying in your family home – contact a bankruptcy attorney today.
February 1st, 2012 by Reed Allmand
There are different options available that may help you avoid getting sued but if often depends on your personal situation. If you are able to make payments you may consider debt consolidation, debt settlement or work out an agreement with your creditor that allows you to make smaller payments that may be less than the minimum amount to keep the account in good standing.
Going a certain period without making payment on an outstanding account may increase your chances of getting sued. Your account may get forwarded to a debt collector who may decide to file suit for what is owed. If you have been unable to make payment on several accounts including credit cards, medical bills and other outstanding debt, bankruptcy could be a solution to help improve your situation.
The option to file bankruptcy is often a last resort but if you find yourself being harassed by debt collectors or you receive a summons learning you are being sued, filing bankruptcy may be your best option. Filing can help you gain control of your finances especially if you haven’t been able to make payments on debt obligations.
Upon filing for bankruptcy an automatic stay goes into effect. When you file, creditors receive notification of your filing and this prevents further collection action. Some creditors may continue to try to collect from.you when you file and should be reported to your bankruptcy attorney immediately as it is illegal.
January 31st, 2012 by Reed Allmand
The automatic stay is what stops creditors from pursuing collections against a debtor when bankruptcy is filed. In most cases, it either stops or temporarily ceases collection activity which gives you more time to handle finances. The action can be powerful against those who are at risk of eviction, foreclosure, utility disconnection and it can even disrupt wage garnishment.
The automatic stay is like a road block to creditors and collection agencies. If you are facing a utility disconnection, it may keep your utility from being disconnected for a couple of weeks. If you are facing foreclosure, the stay delays proceedings temporarily. While the lender may eventually proceed, Chapter 13 bankruptcy gives homeowners a likely chance to keep their home under an agreed payment plan.
The automatic stay may temporarily halt collection for situations such as overpayment of public benefits and eviction. In some cases, a creditor may try to work their way around the stay by getting the judge to grant certain collection activity. Certain tax collection situations may see a temporary halt in collections and the stay usually prevents liens or property seizures from the IRS. If you owe back child or spousal support, the stay may not be as effective but you have the chance to get other debts discharged and work on getting support payments made.
The automatic stay has helped many debtors by giving them time to work out their situation with their legal representative. Questions and concerns should be reviewed with a qualified bankruptcy attorney.
January 31st, 2012 by Reed Allmand
Payday loans allow you to borrow against your next paycheck. When you apply you submit a post-dated check for the amount you borrow including interest fees. Upon getting your paycheck you either pay the loan off in cash or give the company permission to take the funds from your bank account by cashing the check that was previously written.
For many consumers, payday loans can be a useful option between pay days especially if it’s a financial emergency. The problem that many consumers face is having more than one loan and its gets difficult to pay back what is owed; on top of having other obligations to pay. In general, they can be discharged in bankruptcy since they are considered to be an unsecured debt much like credit cards.
While it is possible to have payday loans wiped out in bankruptcy, keep in mind, the company that issued the loan may look to collect from you if you borrowed and decided to file bankruptcy shortly after receiving the funds.
There are misconceptions about whether or not you can get in trouble or go to jail for a post-dated check that bounces. Since state laws may vary on this topic you should review concerns with a qualified bankruptcy attorney.
January 30th, 2012 by Reed Allmand
Once your bankruptcy filing has been completed and debt has been discharged, you would think you no longer owe on the debt and you can move forward with a clean slate. Unfortunately, some debt collectors think otherwise and want to continue their collection efforts regardless of your account being discharged by the court. In short, they should not continue with collection actions against you. They most likely would be in violation of bankruptcy laws and the Fair Debt Collection Practices Act.
The Wall Street Journal (WSJ) featured a report in December 2011 about Capital One Financial Group, one of the leading credit card company issuers, about multiple claims made against their debt collection attempts. Various lawsuits have been filed against the company because they have been trying to collect on debt that has been discharged in previous bankruptcy filings. Capital One feels they are in compliance and claims they have modified their collection procedures but an ongoing audit against the company may prove otherwise.
Part of the problem lies with debt collectors and how they pursue in collection activity. They are known for buying old debt from creditors but they also buy old accounts that have gone into bankruptcy in hopes of being able to collect from debtors unaware of the law or their rights. Poor record keeping is another culprit. If an account has been discharged, paid or closed for whatever reason it wasn’t documented in a timely manner.
If your bankruptcy case has been completed and debts discharged, the debt collector may be in violation of the law and you may want to look into presenting a case in small claims court. Contact your bankruptcy attorney or legal representative with questions or concerns.
January 30th, 2012 by Reed Allmand
It seems like everyone has an opinion about Chapter 7 bankruptcy – and they’re all too willing to share it with you. From gut-wrenching assertions that you’ll lose your house to fear-inducing statements about the black mark it will leave on your credit score forever, there’s no denying that these opinions create an aura of fear, uncertainty and stress regarding filing Chapter 7 bankruptcy.
Fortunately, many of these negative opinions are blatant myths – and if you’re buying into them, they could be costing you the opportunity to get the debt relief you need. With that in mind, let’s take a look at the five biggest myths about Chapter 7 bankruptcy:
Collection attempts from the IRS may stop temporarily when bankruptcy is filed but it may vary in different situations. It depends on what chapter of bankruptcy you file and what tax issues you are dealing with. Bankruptcy has the potential to help you resolve tax issues and even if you’re not able to get your debt discharged, you may get additional time to pay what is owed.
When you file bankruptcy the automatic stay goes into effect. This keeps creditors from trying to collect from you during the filing process. In some cases, a creditor may try to collect outside of the stay but they need permission from the court in order to do so. The stay remains in effect until the debt is discharged or the stay gets removed by the court.
Many consumers are under the impression that tax debt can’t be discharged but this isn’t completely true. Certain tax debt may be dischargeable but it depends on the circumstances. Tax debt may be eligible for discharge if the tax is older debt that has been assessed by the IRS at least 240 days before filing, you have income tax returns filed for the last 2 years and the debt was due at least 3 years prior.
Each chapter has eligibility that must be met in order to settle tax debt. If your debt is not dischargeable under Chapter 7 bankruptcy, Chapter 13 allows you to make payments with a repayment plan and as long as you abide by the schedule of the plan the IRS won’t pursue collection with the automatic stay in effect.
January 27th, 2012 by Candy Evans
If it helps you try and guess what kind of a second home he’ll buy in Dallas, know that Yu Darveshjust divorced his wife, actress and TV personality Saeko, age 25 and the mother of his two children. I had wondered if Yu has a family. Knowing this explains why he was looking at this slick glass goddess over at the W: 2430 Victory Park, #2509 right smack below Khloe and Lamar. Yu toured this two-story with Crestron Audio Visual System, elegant mother of pearl and suede entry with LED lighting, tooled leather columns, warm suede walls, art lighting, hip Euro kitchen. He liked it, but still looking. Asking ONLY $1,900,000, possibly furnished
