Bankruptcy
Bankruptcy questions and answers
Learn about Bankruptcy at SaysUncle Online Learning.
Q: How will my parents bankruptcy affect their debts with me?
In the past I took on some of their debt as they had trouble getting credit. This debt is held on credit cards which they and I have been paying off over some time.
They are likely to be forced to file for bankruptcy soon, therefore my question, what will happen to the debt on the credit cards which are under my name?
Will these be covered as I am a creditor to them?
PLEASE ONLY ANSWERS FROM PEOPLE WITH EXPERIENCE IN THESE MATTERS.
(a moral lecture is neither constructive nor desired)
Thank you.
I don't live at home.
I can provide proof of balance transfers from their account to mine.
A: ok, I had similar situation when I went bankrupt because I had borrowed money of my parents the year before to pay a rent deposit when I moved house. Although I had paid some of it off, I still owed them approx £1,000.
so, to the question, assuming the credit cards are in your name...
The money they owe you needs to be included (by them) in their bankruptcy petition. This is so thaat if they win the lottery while bankrupt, you will get something back.
If they are given bankruptcy then their assetts will be sold and the money used to pay off their debts pro-rata. So you will get some of it back, but not all of it.
Legally the credit card debt is in your name, so it is your problem, it cannot be written off in their bankruptcy, so you will still owe it to the credit card company.
If your parents say "this is a debt of honour" and pay you back, in preference to other creditors, once they are bankrupt then they will be breaking the law and liable to criminal prosecution.
That, of course, doesnt stop them paying you back once they come out of the other end, although legally (but not morally) they will have no reason to.
I dont know what kind of relationship you have with them, it must be pretty good for you to have covered some of their debts in the first place. So hopefully they will be OK about it and pay you back after the bankruptcy ends.
(for the record I paid my parents back every penny AFTER my bankruptcy was over).
and an aside for anyone else reading this who is in the position I was in, get your parents to put a codicil on their will, preventing you getting it all, giving it to someone they can trust to give it back to you at the end of your bankruptcy. Otherwise if they were to die your creditors would get your inheritance, not you. When your bankruptcy is over they can remove it again.
Q: How long after a bankruptcy discharge can I apply for credit to rebuild my history?
My bankruptcy is being discharged next week. I want to apply for credit to rebuild my history and hopefully buy another house in 5 - 7 years.
How long do I need to wait to apply? Can anybody recommend any secured credit cards?
A: You can apply for credit as soon as your BK discharges I filed back in late 2000 and had several credit cards a soon as my BK discharged.
I used First Capital, Orchard Bank, H.S.B.C. and Capital One to rebuild my credit.
Q: If a company files bankruptcy, do they have the right to renegotiate contracted union wages?
I work for a company that I believe will file bankruptcy soon. We are on a 4 year union contract. Dose the company legally have the right to renegotiate our wages before the contract is up?
Thanks John. What if the employees say no way to a cut in pay? Then what do they do?
A: my company just went through with the whole bankruptcy thing and we have a union. what they had to do is talk it over with the union and come to an agreement with the union. then the union employees vote on it. we had to vote to TAKE a 8% pay cut.but that is what we voted on. hope this helps you out. The company does have to work it out with the union. good luck
Q: Has anyone filed for bankruptcy in Illinois and used the Law Offices of Peter Francis Geraci?
I wanted to find out if anyone in Illinois has used the Law offices of peter francis geraci to file bankruptcy. My husband and I are planning on filing and wanted to know if this law office was good or not.
A: Hi,
I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:
http://urlhawk.com/29x
Q: Can a company in bankruptcy, deny earned vacation pay to employees?
The company that I work for has filed for bankruptcy (reorganization). They are telling us that they no longer have to honor our earned vacation pay, regardless of the years we have. Is this true?
A: Yes. It is no longer up to the company, it is up to the bankruptcy judge. Not a dime gets spent unless the judge approves.
Q: How badly is your credit affected after bankruptcy? *Serious answers only*?
My husband and I are about to start bankruptcy, but I would like to know how badly it will really affect our credit. I know we cannot do much for owning our own home for approximately two years, but what about other debts, like car loans? Also, once someone has completed bankruptcy, what are some pointers you can offer to begin rebuilding credit (other than paying everything on time)? Thanks!
A: You can go to google.com and type in legalhelpers and it will give you a ton of insight to lots of your questions. I don't think its the end of the world to file for bankrutcy. We are getting ready to do the same thing. We think its a great law of the land. Giving US citizens a fresh new start in life. Lots of people can't help it because of job losses, medical reasons or the fact credit card companies charge such high interest rates that no one can get out of it. they are robbers in my opinion. You will probably get credit card offers after you finish chptr 7 bankruptcy. Creditors will know you can't file again for 8 years and your limits will be around $250.00 and thats about it.. We plan on getting one credit card after bankruptcy so we can have it for emergencies to rent a car and to have something to rebuild credit and show we can pay on time. However, that is it!! No more credit cards for us, ever.. We are going to use cash only and never live on credit again. Just think, when you and your husband come out of bankruptcy you will have a clean slate and all your debts (except your house) will be gone. The money you used before to pay monthly payments will be yours and you can take that money and bank it. Save it and store it for future problems with your house or car repairs. You can throw your car in on the bankruptcy and next time we buy a car it will be a used on(cheap) and we will pay cash for it. Bankruptcy is not shameful because its the law of the land. Gives you and I a fresh clean start at life. I am so glad we are in the US and we are able to have this law... All the airlines filed bankruptcy and that was our demise. Losing our airline jobs over and over. So we are sticking it back to them!!!
Q: How do I get bankruptcy off my credit report?
This month makes 10 full years since I filed full bankruptcy. What steps can I take now to get it off my record?
A: Any account included in a bankruptcy remains on your personal credit report for a maximum of 7 years from the date the bankruptcy was filed. The bankruptcy itself, listed in the public record information section of a credit report, remains for either 7 years from the filing date if it was a Chapter 13, or 10 years from the filing date if it was a Chapter 7, 11 or 12.
Q: How long before filing bankruptcy are you supposed to stop using the credit cards?
I have been unemployed for months and have been on interview after interview. I have been using the cc for mortgage payments, bills, but I know we are going to be filing bankruptcy in March of 2009. How far will they go back to see what I have borrowed? Just curious. BTW, I am still hopeful I will land a job soon. I am still interviewing!!!!!
A: You can continue to use the credit cards until the card companies cancel your cards. But spending the money when you already know about bankruptsy filing would be unethical and down right wrong.
I hope you find a decent job soon so that you will be able to live with good conscience.
Q: How do you process a Ch. 7 bankruptcy without a 60 day counselling , due to no income to counsel about?
I am researching bankruptcy via WIKI HOW, but am confused about processing it without the counseling of a credit counselor. I have had no income to counsel about. Can anyone with bankruptcy legal experience explain this (in the USA).
Dark Green Money: If I was a horse in AZ , I would hide in the barn on Sunday and go out on Monday, although it does get very hot there.
A: The Bankruptcy Reform Act (BAPCPA) of 2005 requires that you receive credit counseling from a credit counselor certified by the US Trustee to provide pre-bankruptcy credit counseling in your District within 180 days prior to filing bankruptcy. The law makes no exceptions for people without incomes, people who just had a $1 million dollar heart attack and didn't have health insurance, people whose homes and businesses or even whole towns were demolished by a tornado or flood or hurricane (except Hurricane Katrina - there is a specific exception for that particular hurricane), etc., etc., etc.
It is a stupid law in some ways (or at very least, the way it was written is stupid in some ways), but it is the law. So you just have to do it.
Sometimes this particular requirement makes no sense, but you have to do it anyway because it is the law, and the law did not grant any exceptions (other than victims of Hurricane Katrina, which was in the news at the time the law was being passed).
Q: How long after a bankruptcy would a person have to wait before applying for a home loan?
I have heard that sometimes banks will disregard the bankruptcy as soon as 1 year after the filing. Please elaborate.
A: Some lenders will do a loan for someone out of bankruptcy one day. Keep in mind that rates and fees will be higher. Standard FNMA lending likes a minimum of four years out with a minimum of four re-established trade-lines.
Q: If you claim bankruptcy but already have your taxes done, what happens with your taxes?
I have claimed bankruptcy, but did my taxes as common-law last year. So my trustee said that I would again have to do my taxes as common-law this year for my bankruptcy. So not that the taxes are done, and my girlfriend is going to be claiming bankruptcy, what happens in regards to her taxes since there already done. Also does my girlfriend get her tax refund, or because it's common-law does the trustee take her taxes as well?
A: This is one of those complicated questions your BK attorney needs to answer.
My guess is yes, if you are filing this as a joint under common-law, they will take her taxes into consideration.
But whether they take your refund will depend mostly on the trustee, as they do have the power to allow you to keep it...as long as it's not an extremely large amount.
Q: What does it cost to file for bankruptcy in North Carolina?
I'm considering filing for bankruptcy. What does it cost?
What can you still buy a car and necessary things while under bankruptcy ?
A: Cost of bankruptcy varies a lot from place to place.
Filing fees and mandatory credit counseling will cost about $360.
Legal fees for a simple chapter 7 could vary up or down from about $1500 in most areas - more in larger cities.
Q: How long is the wait to file bankruptcy a second time?
I have a friend that filed for bankruptcy in 2005. When can he file bankruptcy again? What is that wait when you can file again?
A: It depends on whether it was a Chapter 7 or 13.
The time is based on filing date to filing date of discharged bankruptcies.
If it was a 7, it is 8 more years before your friend can file another 7 and get a discharge.
If it was a 13, he has to wait 6 years to file a 7 to get a discharge.
If it was a 7, he has to wait 4 years to file a 13 to get a discharge.
A 13 can be filed 2 years after a 13 to get a discharge.
You can actually file a 13 almost immediately after you receive your discharge in a 7 or a 13, but you aren't eligible to receive a discharge so you'd have to let the bankruptcy get dismissed closer to the time when you can re-file a 7 or a 13 that can be discharged. Some people do this to keep creditors at bay or save thier secured property such as a car or home.
Q: Can a bankruptcy affect me during my background investigation in law enforcement?
I am filling for bankruptcy because of this huge hospital bill that I can not pay. Will the bankruptcy be an issue during my background investigation for the police?
A: "Princess Of God"? The Bankruptcy may not hurt your chances as much as the "Vanity" (excuse me if the is just the Biblical definition of your Name) Answer, a credit check is a standard part of a "Background Check". Depending on "the Department" and the circumstances of your bankruptcy it may not be a factor. Departments that are "not short" of applicants may use this as a "early discriminator" during evaluation so you may not get an "oral interview" and therefore a chance to explain in person.
Other departments, usually smaller and with lower pay scales may not be as discriminating when it comes to credit. I know some people that had cars repossessed, credit card debt, prior garnishments, etc that still made it on with a department. Also, with sheriff's departments, one can often get their "foot in the door" by applying for and becoming a "Jailer" or "Detention Officer', lower pay and in some case less demanding hiring requirements (except criminal of course). Do a excellent job, do your time in the jail, and you may get a shot at the full academy and position as a full or Road Deputy!
Q: What is bankruptcy recorded in a sivil record?
I found several record of bankruptcy in a person's sivil record. One was made in 2003 and other was made in 2008, and the liable amounts were rather small like $500, $800 or so. I was surprised to know that a person can be accused again and again for bankruptcy in a short period. Is it leagally possible? What situations can be considered? Doctor bill?
A: If you are in the United States, this does not make any sense. In the USA, Bankruptcy is filed in Federal Bankruptcy Court. There is no record of bankruptcies in state civil court, although civil lawsuits may be halted by a bankruptcy filing and in some states may carry the notation "Satisfied in Bankruptcy."