How does a bankruptcy filing affect my tax status?

I’m talking here about personal income taxes. If you file individual bankruptcy (Chapter 7 or Chapter 13), then your bankruptcy case filing will stop any collections activity from the Internal Revenue Service or other taxing body. As far as discharging (wiping out) that tax debt, I can address that more fully in a different post, because it’s a complicated subject. … Read More

How long does a bankruptcy stay on my record?

The three credit reporting agencies all obtain bankruptcy filing information almost immediately when a case is filed. If you file a Chapter 7 case, then it will appear on your credit report for 10 years from the case filing date. If you file a Chapter 13 case, then it will appear for 7 years. There is nothing that you need … Read More

What happens in the beginning of a Chapter 13 case?

After I’ve discussed before, Chapter 13 is a sure-fire way to protect your house from foreclosure, and it can serve numerous purposes, including getting caught up on your income and real estate taxes, and wiping out unsecured debt (such as medical bills and credit cards). So, if you decide to file Chapter 13, what happens next? Okay, you’ve already done … Read More

Should I transfer property to avoid losing it in bankruptcy?

Ah, this is one of the biggest no-no’s in bankruptcy law. Not only are you asked this question in your bankruptcy papers (specifically, the Statement of Financial Affairs), but when you go to Court, the Trustee in your case asks you this question point-blank. It’s called a “preference” to transfer property prior to filing bankruptcy. In Pennsylvania, a bankruptcy trustee … Read More

Will My Chapter 13 Case be Approved?

This is a frequent question that clients have, and it’s a natural one to ask. Let’s review some of the factors that will lead to the answer. First, the automatic stay of the Bankruptcy Court will instantly stop any and all collections activity upon the filing of your case. So, if you are facing a lawsuit, a garnishment or a … Read More