NYBankruptcyLawyer asked:

Bankruptcy clients need to be honest and complete in their dealings with the bankruptcy court. Watch this video, produced by the Office of the US Trustee, for more information.

Arnold Rogers

Chad Fisher asked:




If you’ve always been curious, how bankruptcy can impact your credit, then this information can help you answer that question. Hopefully you will then be a few steps ahead in your knowledge of bankruptcy and how it can affect you. This informative article will answer that nagging question: How does bankruptcy affect my FICO score?

A bankruptcy will affect your FICO score negatively because bankruptcy is a proclamation to the world that you are not able to pay your bills. The acronym FICO stands for; “Fair, Isaac and Company”. This is the company that developed the software system (or formula) that puts a credit score on your credit record. It is one of the most popular, if not the most popular way lending institutions make their decisions on who to lend their money to. Literally billions of credit decisions are based on the FICO score. Since this score is so widely used it is plain to see that the question; ” How does bankruptcy affect my FICO score ?” would be an easy one to answer.

Bankruptcy is such a negative downturn on a person’s finances that it will no doubt also be a downturn on your FICO score. Those with bankruptcies are put into the ” problem files ” category. Those with foreclosures and experience with collection agencies can answer the question; ” How does bankruptcy affect my FICO score ?” with a loud; ” For the worse!”. The FICO score does not reflect your income or ability to pay. Instead it reflects your propensity to pay. You may make plenty of money and be able to easily afford a certain car or home, but your FICO score will not be showing such an ability.

As you may have figured out, one of the top reasons for getting a lower FICO score would be bankruptcy since bankruptcy shows your complete delinquency to pay back what you owe. Now that you know the answer to the question, how does bankruptcy affect my FICO score?, it is a wise thing to do all you can to avoid entering bankruptcy protection if you want a higher FICO score.



Samantha Ryan

canionboyd asked:


My family, along with their company, is being sued for nearly $2M. We, along with the company, will have to file for bankruptcy. Does bankruptcy protect some of our cash to live on, and what assets do courts typically expect to be sold off to pay the lawsuit assuming all other debts are paid?

Travis Woods

Joseph Devine asked:




The United States Constitution places bankruptcy under Federal jurisdiction and calls for Congress to write laws constituting uniform guidelines. However, the execution is mandated by statute law as found in the Bankruptcy Code located within Chapter 11 of the United States Code. State law also contributes to minor specifics which are not clarified at the federal level.

Under Title 11, there are six types of bankruptcy. Chapter 7 deals with basic liquidation for businesses and individuals. Chapter 9 is for municipal bankruptcy. Chapter 11 is used for reorganization and rehabilitation, generally by business debtors. Chapter 12 pertains to rehabilitation for fisherman and farmers. Chapter 13 is also a form of rehabilitation, but it is for individuals with a regular source of income and entails a payment plan. Lastly, Chapter 15 is used for ancillary as well as other international cases.

The most common filing is under Chapters 7 and 11. Most consumers file under Chapter 7, and almost all businesses use 7 or 11. In Chapter 7, an individual surrenders all of their property which is not exempt to be liquidated. The funds from the liquidation are then distributed to the creditors. The debtor is granted to a discharge of some debt, but only if he meets legal stipulations and has not demonstrated inappropriate behavior such as concealing records. However, certain debts such as child support or school loans will not be discharged. An individual may only file for Chapter 7 once every eight years.

With Chapter 13, the debtor retains all property and assets but is required to dedicate a percentage of his future income to paying off creditors. The period of repayment and amount of payment vary as they are determined by factors such as the value of the debtor’s property and the amount of the debtor’s income and expenses. However, a standard time range would be over three to five years. Often secured creditors will be entitled to larger payments than unsecured creditors.

In Chapter 11, the debtor becomes a “Debtor In Possession” DIP as they retain control and ownership of their assets. Bankruptcy Court will work with the debtor and creditors to establish a plan while the debtor still runs his business. Creditors then vote on the proposed plan. The debtor will be permitted to continue to operate and pay back the debt as specified by the plan.

Vanessa Hopkins

Chad Fisher asked:




When you’re in a financial hole that is so far down that there seems there’s no escape, there is one final option: bankruptcy. Bankruptcy is a way of legally stating that you cannot pay the debts that you’ve accumulated. The result of this declaration is that your creditors can no longer attempt to collect money or property from you directly. Effectively, bankruptcy allows you to “wipe the slate clean” in some respects – you will no longer be legally bound to pay certain debts after filing for bankruptcy.

 There are five primary results to filing for bankruptcy. The first is, as mentioned, is that it can wipe away previous debts. This is known as discharging – but be aware that not all debts can be discharged. A nice side effect is that it’ll stop annoying and harassing calls from creditors. Second, bankruptcy can stop wage attachments, which are when a creditor gets a legal order to take money from your paycheck to pay a debt. Finally, it protects your future interests, meaning that any new property or money you own is safe from creditors.

 As noted above, not all debts can be discharged. For the most part, any unsecured debt can be discharged – unsecured debts are ones that are not backed by property, such as credit cards. Secured debts, such as car loans and home mortgages, are attached to property, and can be repossessed by a creditor. Other debts that cannot be discharged include: alimony and child support, student loans, debts resulting from fraud, tax bills, and any debts accrued after filing bankruptcy.

In most cases, people file for bankruptcy when they want to hold on to some of their property and protect it against creditors. There’d be little point in filing if you’d just end up homeless on the street. When you file for bankruptcy, you can usually keep your furniture and other household items, some jewelry, clothing, and any work-related tools. You can also keep up to $20,200 in home equity, or $10,775 in personal property if you don’t own a home. In most cases, you can keep your car, as well.

 Bankruptcy is not without its downsides, however. While bankruptcy in itself will not lower your credit score, bankruptcies remain on your credit report for 10 years. It can be extremely tough to be granted credit after a bankruptcy, but it is possible. That decision is up to the lender.

 In order to file for bankruptcy, you are required to have enlisted the help of a credit counseling service prior to filing. You also have to consult such an organization after declaring bankruptcy. In addition, there is a fee to file for bankruptcy, and as you might imagine there is a lot of paperwork to do. You may also need or want a lawyer to help you prepare your paperwork, so you must consider those fees as well. Bankruptcy will have very serious repercussions, so make sure to carefully consider all the options and effects before filing.



Thelma Weber

Marcus Peterson asked:




Chapter 13 bankruptcy is a method employed by consumers who have debts and are not in a position to pay them back. It is a way for them to restore their financial status and get back to a zero balance.

Bankruptcy is a legal process whereby a creditor files for it in a court of law, expressing his inability to pay his debts. Chapter 13 bankruptcy is usually called the reorganization bankruptcy. It is a debt that is filed by consumers who wish to pay their debts within a period of three to five years. It is a strategy that helps individuals to keep some of their possessions such as their homes and at the same time have a means of financially meeting their usual living expenses.

A consumer presents a bankruptcy petition before a court, listing his schedule of assets and liabilities. After this, the person filing for bankruptcy presents a repayment plan, which is meticulously reviewed by the creditors to check whether it meets their needs. After taking stock of objections and making amendments, both the parties follow this reorganization plan.

However, there are other additional confirmation tests that remain before the reorganization of bankruptcy. A part of this is a test to compare amounts that the creditors would receive if they were to follow Chapter 7 bankruptcy. This test is meant to confirm that creditors should receive the same amount from both Chapter 7 and Chapter 13 bankruptcy. Another test requires the applicant to pay all their disposable income to the repayment plan as well.

Chapter 13 helps those people who are interested in keeping an important possession, such as one?s home. An example is a person who has missed many house payments and is scared of receiving a foreclosure. This individual can halt the same by filing for Chapter 13 bankruptcy. This is usually referred to as ?automatic stay? and allows time for a consumer to catch up on missed payments.

Chapter 13 bankruptcy is thus quite helpful. However, one important aspect one needs to keep in mind before filing is that a consumer?s credit record suffers a 10-year black listing where it becomes extremely difficult to secure a loan when one is needed.

Tisha Turner

Anna K asked:




Bankruptcy is a severe process that you would need to put a lot of contemplation, but once you decide to go with this route it is best idea to get prepared for filing bankruptcy forms correctly. It would make the process easier if you have a list of your assets and debts in advance. Here are few tips to completing the forms to save time and energy.

Get your forms typed

It could be different depending on the state, but most courts prefer that your bankruptcy forms be typed, not handwritten. Manual or automatic typewriter was popular about a decade ago, but nowadays almost everyone has personal computer, therefore it became easier to fill out the form using computer. Ask your local court they accept a handwritten bankruptcy forms, or if they have other options you can choose such as online filing. There are forms online that you can fill out using computer and send it via electronic filing.

Know your Local Court

It is common that every bankruptcy court has its own rules and regulations as wells as way of handling things. Therefore it is best for you to ask your local court’s preferences as it might change over a period of time. You can always call or write to the local court when you need more information to make things clear. It is always better to ask than assume.

As technology develops in all area, you may find that your local court will require you to submit the original copy of the petition only one time. Nowadays many courts are moving toward digital record of cases instead of paper ones. At some courts, they will scan your original documents and keep them in the permanent storage, creating multiple electronic copies at a later time. It is all possible due to technology innovation. In that case, you will only have to follow your local court’s directions.

Know your local court’s requirements and follow its rules and guidelines. Also be ready to make changes to your petition when you’re filling out forms, so that you meet their requirements.

Answer questions to your best

Try not to leave any questions unanswered, but fill out as best as you can. Most of bankruptcy forms have a check box where it specifies “none” as an answer. If you still can’t find it, just put “N/A” as not applicable indication.

The trustee might assume that you didn’t complete the bankruptcy forms in case you leave any sections blank. If the question is not clear or doesn’t apply to your situation, then put “N/A” in the first blank, and it will be much clearer than leave it empty.

Disclose everything whenever possible

If you have trouble categorizing a debt or asset on a form, do the best you can and make a note next to your entry that you’re uncertain.

If you are having a hard time how to categorize a debt or asset, do your best to fill out the forms. When in doubt, put down a note stating that you are not certain on that specific items or questions. That way your trustee will be able to sort through those unclear items and put them in an appropriate place later. Try not to leave things out just because you don’t know the answer right away.

Be honest and careful

When you fill out bankruptcy forms, it is better to oversupply information rather than leave them with many questionable empty spots. Even if it looks repeating multiple times in your documents, information is always welcome to trustee’s eyes. The more information you provide in the form, the less will your trustee doubt, suspect and question about your documents.

If you have anything that you fail to disclose upfront, it will make your case dismissed in worst case. Be careful when you put down the lists of all of your assets, because it is very important process and you can’t get lazy about it even if you become tired.

If you don’t take your paperwork seriously it will increase the chance of dismissing your case in the end. At the same time, you would run the risk of losing your assets if you fail to get them listed completely in the forms, which you could have kept if you were more careful.

Make use of continuation pages

When you run out of room on a particular page while filling out forms, you can simply create continuation page of your own by adding another page of the same style. You can make copy of the page you want using original copy of the form you are filling. Make sure that you write down your name on top of all the pages of the entire bankruptcy forms and make a note that it is a continuation page if you choose to use it.

Isabella Lawrence

Tim Wilson asked:




Bankruptcy is a process is there to protect the individual that is filing as well as the company that is owed. How can one process protect both sides? It does this by reassuring creditors their debts will be repaid and also the individual that they will not lose everything they have. It also takes the pressure received off the debtor knowing that the debt won’t ruin or take over their life.

What relief from the harassing creditors do you receive and how long does the relief take? Usually once you file, creditors are not allowed to contact you to pay the debt. They also can not attempt to collect any portion of the said debt until excused to do so from the courts. Not all debts are discharged in any bankruptcy hearing. There is always some debt that remains to be paid.

You may be wondering what causes bankruptcy? I tell you there are no two cases that are exactly alike but there are several similarities. It is estimated that well over 3/4 of all bankruptcies happen as a result of the individual becoming unemployed, medical bills, and or divorce. Filing for bankruptcy is a decision that should be made with the utmost caution.

People usually opt to file Bankruptcy when they feel there is not other plausible way out from under their debts. In order to file the individual must meet certain guidelines of the courts. They must divulge their assets, and debts, income and expenses. The courts also require debt counseling to have been undergone.

The Advantages to Filing Bankruptcy:

o A fresh start to your financial life.
o Collection efforts are stopped upon filing
o Stops wage garnishments
o Can keep all or at least some of the equity in your home

The Disadvantages to Filing Bankruptcy:

o Stays on credit record for years to come
o Makes getting credit harder if not impossible
o May lower opinion of ones self worth

If and when you do decide to file remember, this is a serious matter. Seek out a professional with the experience you deserve and need. Avoid costly mistakes. Do not represent yourself. You may not workout a settlement in your own best interest.

Carlos Kelly

888888888888 asked:


I am filing for bankruptcy because of credit card debt, and a suit from a former employer. I’m dead set on getting my financial world in order, so what steps can I take to get good credit after bankruptcy, and how long will it take?

Philip Stanley

wlwttv asked:

Knowing when bankruptcy is the best solution to personal finance issues.

Cynthia Lawrence