In recent years, it has become increasingly common for individuals to add the name of a friend or a relative to the title, or deed, of an asset.  This primarily occurs due to a desire to either prepare for the asset to be passed on to that person after the eventual death of the original owner, or as is often the case with bank accounts, to allow the person whose name has been added to assist in managing and monitoring the asset.  For anyone who is contemplating bankruptcy, such a circumstance might well lead them to question the extent to which the inclusion of their name on a title or deed could be relevant in bankruptcy, and if so, how?       

One common myth about bankruptcy is that you can pick and choose which debts to list. People often have a credit card or particular debt that they want to keep. People often ask, do I really have to list every debt? The answer is yes. In a Chapter 7 or Chapter 13 bankruptcy you are required to list all of your debts. The bankruptcy code says that all creditors must be treated equally. 

When facing overwhelming or unmanageable debt, people will frequently find themselves weighing the possible options available to them to address the situation.  One of these options is, of course, bankruptcy.  Another that is frequently promoted or advertised is a process known as “debt relief”.  Thus, you might naturally wonder, how do these processes differ from each other, and which one is better?  Herein, we shall answer both of these questions and delve into the implications of each of these processes.

With a Chapter 7 bankruptcy, your debt typically isn’t repaid. It is often times referred to as a fresh start bankruptcy. In a Chapter 7 bankruptcy any non-exempt assets are liquidated by the Trustee and the proceeds are used to pay towards your debts. To the extent your debts are not paid off, they get wiped out or discharged. The vast majority of Chapter 7 cases are no assets cases, meaning there are no proceeds to disburse to creditors.

Something that many people wonder when filing bankruptcy is the extent to which it can assist them in addressing any existing judgements that they might currently have related to collections actions.  Judgements are frequently pursued by creditors during the collections process because they allow the creditor to do things like access wages or bank accounts to collect from the person who the judgement is held against.  Thus, when considering bankruptcy it is very common for anyone who is going through the process to wonder how the bankruptcy filing can assist them with any judgments that might currently exist.  

Filing for bankruptcy can be confusing for those who aren’t familiar with the process. You may be wondering if there is anything you shouldn’t do before filing for bankruptcy. Certain things are normally innocent, but if done before bankruptcy, can cause problems. Below are things to avoid before filing for bankruptcy. 

In virtually any bankruptcy proceeding, one of the first things that will always take place when preparing to file is that your attorney will sit down with you to discuss the assets that you own and the values that they hold.  This is done because in any bankruptcy, the person filing must disclose their assets to the court as a part of the bankruptcy process.  One of the primary reasons that this occurs is so that your attorney can assist you in informing the court (and your creditors) of the protections, known as exemptions, that exist to safeguard the things that you own as you navigate bankruptcy.  

If you are considering filing for bankruptcy you may be concerned about whether you’ll be able to find housing. The good news is that you can rent an apartment after filing for bankruptcy.  Even though a bankruptcy will remain on your credit report for seven to ten years, you will still be able to rent a home. Fortunately, there are other factors landlords take into account when considering renting to you. 

Receiving a motion to dismiss while in a bankruptcy can be a scary or anxiety-inducing situation.  A motion to dismiss (often abbreviated as an MTD) could result in your bankruptcy being dismissed prior to the discharge taking place, which is rarely ever an outcome that you would like to see occur.  Thus, when you receive notice of a motion to dismiss, you may often wonder whether avoiding dismissal is possible and what steps you must take to ensure that dismissal does not occur.

When you can’t pay your debts, your creditors can take legal action against you to recover the money you owe. Your creditors will often file a lawsuit against you. If your creditor obtains a judgment against you they will be able to take action to enforce that judgment. This can include wage garnishments or seizing money from bank accounts. 

Something that is frequently contemplated by anyone who might be considering a bankruptcy filing is the extent to which the bankruptcy will impact their existing car loan or lease.  You might wonder whether you can preserve the loan throughout the bankruptcy discharge process, or whether arrears on the vehicle loan can be caught up or paid off through the bankruptcy.  In brief, the answer is that yes, you can certainly preserve your vehicle and similarly, you may also be able to either catch up or pay off your car loan, depending on the chapter of bankruptcy that you file.  

Lenders commonly ask for a co-signer. A co-signer is someone who agrees to be legally responsible for repaying a debt if the primary borrower defaults. A co-signer takes on equal responsibility for the loan, this means they are obligated to make payments if the primary borrower cannot. Common examples are parents co-signing for their children’s student loans or auto loans, or a friend co-signing a lease. 

Something that many people wonder when filing bankruptcy is the extent to which it can assist them in addressing any existing judgements that they might currently have related to collection actions.  Judgements are frequently pursued by creditors during the collections process because they allow the creditor to do things like access wages or bank accounts to collect from the person who the judgement is held.  Thus, when considering bankruptcy it is very common for anyone who is going through the process to wonder how the bankruptcy filing can assist them with any judgments that might currently exist.  

If you are considering filing for bankruptcy, you may be wondering if your assets and property will be protected. If you have a health savings account (HSA), you may be wondering whether or not you will be able to keep those funds. 

Confirmation hearings are a fundamental part of any Chapter 13 Bankruptcy.  They are the mechanism through which a proposed Chapter 13 plan becomes official, allowing the bankruptcy to proceed and opening the path towards the eventual bankruptcy discharge.  They occur any time that a new plan is proposed, and invariably follow a 341 hearing (also referred to as a first meeting of creditors) when the Chapter 13 bankruptcy is filed.  When notified of this hearing, many wonder whether it is something that they must attend, or whether the bankruptcy plan will be negotiated or modified by the parties involved when the hearing takes place.

Whether you file a chapter 7 or a chapter 13 bankruptcy you will be required to attend a 341 Meeting or meeting of the creditors. This is a 5-10 minute meeting with the bankruptcy trustee and an attorney will be there with you. It is called a meeting of the creditors but few creditors actually attend the meeting. Most of the time individuals can expect that no creditors will be present.