Many prospective clients, when meeting me for the first time in my office, seem to shake their heads and wonder what happened with their finances. They say that they never imagined that they would be considering bankruptcy. I don’t know the percentages, but the financial problems of most people are rooted in the following: divorce or separation job loss medical … Read More
“B” is for Bankruptcy Timeline
The timeline for a typical bankruptcy case is as follows. I will talk mostly about Chapter 7 and Chapter 13 bankruptcy, because business bankruptcies in Chapter 11 vary considerably. Both Chapter 7 and Chapter 13 cases begin as follows. Prior to filing a case, one must complete the Pre Filing Counseling, which takes from 30 to 60 minutes. Most people … Read More
“A” is for Abuse of Bankruptcy
In the Bankruptcy Alphabet, “A” stands for abuse of bankruptcy. Clients frequently ask me if their bankruptcy case is going to be approved by the Court. My answer is yes, as long as they follow the rules of the court. I write this today having just read that the Bankruptcy Court has dismissed the Chapter 13 case of T-Boz, the … Read More
How to Get Back Your Drivers License by Filing Bankruptcy
If you are facing a judgment due to a motor vehicle accident, then you risk losing your drivers license if you fail to pay off the judgment. On the other hand, you can file a Chapter 7 or Chapter 13 bankruptcy and discharge (wipe out) that debt in order to retain your drivers license. The State cannot discriminate against people … Read More
2 Quick Tips on How to Rebuild your Credit after Bankruptcy
Here’s a quick case study on one client who recently filed a Chapter 7 bankruptcy, became debt-free and improved his credit rating in the process. When he came into my office, he was bothered by the fact that he had recently been sued by a credit card company at his local magistrate. By the way, he was particularly miffed because … Read More
Pennsylvania Bankruptcy to Change on November lst
On November 1, 2010, the bankruptcy “means test” changes due to changes in the U.S. Census Bureau’s average income totals. The means test in bankruptcy is that portion on the petition in which you must enter your household income totals for the past six months. Your monthly income is then compared to the average monthly income in the State in … Read More
The Initial Bankruptcy Office Consultation–What I Look For
When prospective clients contact me for the first time, I like to get basic biographical information over the phone, such as address, household size, place of employment, types of debts owed and overall debt problems. By the end of the phone call, I can tell if bankruptcy might be an option. If it is, then I like to set up … Read More
What’s the Problem with Debt Settlement?
Today I got yet another client who was disgusted to have wasted his money with a debt settlement company. Why was he so eager to file bankruptcy? Just like many other clients before him, he was upset because he had just been served with a lawsuit from one of his credit card companies. This happens time and time again. In … Read More
Can I Repay Any Debts After My Chapter 7 Bankruptcy Case?
Let’s talk about two kinds of debts that you can repay after your Chapter 7 case has been concluded. First, there are secured debts like car loans and mortgages. Many clients typically say when we sit down to review their Chapter 7 petition and paperwork: “But, I don’t want to include my car loan and mortgage in the bankruptcy.” Well, … Read More
If I file bankruptcy, will the Judge yell at me?
It’s a common thought that if you file bankruptcy, the Judge or Trustee will get angry and yell at you. Definitely not true! First, in the normal case, you will like not appear before an actual Bankruptcy Court Judge. Instead, you will appear before a Bankruptcy Trustee, who is the court official responsible for conducting the mandatory Section 341 Meeting … Read More