I’m being sued by a credit card company. What do I do?

First, you need to take a deep breath. Yes, a sheriff’s deputy just came to your house to serve you with legal papers, but no, you are not going to jail. This is a civil lawsuit, and there will be a hearing in a magistrate’s court (district justice) or a Common Pleas Court (I’m talking to you Pennsylvania residents here). … Read More

Can I exclude one of my credit cards from my bankruptcy case?

No, you can’t exclude any of your credit cards when you file a bankruptcy case. You must list on your bankruptcy papers all of your debts. Pursuant to very clear bankruptcy law guidelines, you must disclose all of your property and all of your debts. With respect to your debts, you must even list in your bankruptcy paperwork (“the schedules”) … Read More

How Long Will My Chapter 7 Bankruptcy Case Take?

From the time you file your Chapter 7 case, it usually takes between 4 and 6 months to complete your case. Here is the breakdown on what happens. First, you obviously have to obtain your Pre-Bankruptcy Counseling; that takes you just 45 minutes online or over the phone. You then review and sign your bankruptcy petition and schedules with your … Read More

Can I keep my bank accounts if I file bankruptcy?

Yes, you can keep your bank accounts, except there are a few things to think about first. As I explained in an earlier post about bankruptcy “exemptions”, folks filing bankruptcy in Pennsylvania can keep property up to certain dollar limits. Bank account funds fall within the “wild card exemption”, which is the exemption used to protect any and all property, … Read More

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 when a corporation or LLC files a Chapter 7 bankruptcy case?

In the case of a corporation or LLC (limited liability company), the filing of a Chapter 7 bankruptcy case means that the business will not be permitted to continue its activities. The Court will appoint a Bankruptcy Trustee, who will literally shut down the business. In most cases, however, the business has already closed or the owners are contemplating closure. … Read More

What should I bring to meet with a bankruptcy attorney?

Basically, in order to adequately assess your debt problems and prospects for filing bankruptcy, any bankruptcy attorney would need to review the past six months of paystubs, along with as many of your bills as possible. If you are married, then paystubs for both spouses (whether you are intending to file a joint bankruptcy case or not) would be needed. … Read More

My case has been filed and I forgot to add a creditor.

The general rule in bankruptcy law is that you must list all of your creditors on your bankruptcy schedules that are filed with the Court. If your case has already been filed however, and you realize that you’ve forgotten a creditor, you may amend your schedules by adding a creditor. You will have to pay a court filing fee of … Read More