You might be thinking it is a bad idea to have a credit card after bankruptcy. However, even though credit cards could have been your reason for filing bankruptcy, they are essential to use after this process in order to begin restoring your credit. Lenders, landlords, utility companies, insurance companies, and employers can look at your credit score to determine the amount you will be paying for loans. Since bankruptcy can destroy your credit score, it is necessary for debtors to restore their credit score. If you don’t have a card, it will be impossible for you to score points. There…
Posts Tagged ‘Chapter 7 bankruptcy’
Chapter 7 bankruptcy filings usually remove all credit card debts and other unsecured obligations. So why not load up on merchandise before filing for bankruptcy? There are several reasons why this is not the best idea. If you charge more than $1,150 within two months before filing, your trustee and the bankruptcy court may prohibit you from getting rid of that debt—even if it is unsecured—since those moneys appear to the court to be wasteful debt. However, the court could pardon credit card purchases that were for medical bills or other urgent, nondiscretionary purchases. Try not to hide secured or…
Former MLB All-Star Jose Canseco filed for Chapter 7 Bankruptcy. He was ranked 32nd on the MLB all-time list with 462 career home runs. Canseco isn’t the only athlete who has had to file for bankruptcy. Former NFL running back Jamal Lewis filed for Chapter 11 bankruptcy, former NFL star Warren Sapp filed for Chapter 7 bankruptcy. Dennis Rodman, Michael Vick, and Allen Iverson are some other celebrities who have filed for bankruptcy. When these young athletes obtain a small fortune, they have a habit of purchasing luxury items instead of trying to secure a long-term fortune. Most of these…
Declaring bankruptcy is a stressful and emotional time, but afterwards, it can leave you with a fresh start and a sense of freedom you haven’t felt in years. In order to declare bankruptcy, you must first find out which chapter of bankruptcy best suits you. Second, you have to qualify in order to declare bankruptcy. Chapter 7 bankruptcy requires those in debt to liquidate all non-exempt items. The items on the non-exempt list include: One car Your primary residence and the equity in the property Your 401K plans Your life insurance policies Personal effects, such as household items, and clothing…
Nadya Suleman, known by many as the “Octomom,” filed for Chapter 7 bankruptcy in California on Monday. She admitted that she has accumulated over $1 million in debt, owing money to the city’s water department, Sylvan Learning Center, Whittier Christian School, and her father. A court-appointed trustee will liquidate her assets, estimated at $50,000, before she is discharged from the remainder of her debt. At the time of her filing, Suleman owed 20 times more than her total net worth.
Often times, when people consider filing for bankruptcy, they think they’ve reached their worst case scenario. However, in reality people have many options when filing for bankruptcy. The length of the bankruptcy as well as the amount written off can vary according to what chapter you file. The benefits of filing a Chapter 13 are so numerous that it becomes difficult to list and explain them in just one blog post. The next few blogs are devoted to highlighting some of the benefits and resources in a Chapter 13 to outline the options available to you if you are considering filing bankruptcy in Arizona.
Finding an experienced and knowledgeable personal bankruptcy attorney can make a significant difference for your future financial situation. Some firms have a long history of practicing in the area bankruptcy and have the necessary knowledge that only comes with many years of experience. Others have only recently added bankruptcy as a practice area to keep up with the needs of our dismal economy. In a climate with so many options, how are you supposed to know the difference between the attorneys who have a legitimate history of practicing bankruptcy and those who do not?
With Tax season upon us, the question on the minds of potential bankruptcy filers is, “How do we keep our tax refund after filing?” Some people opt to spend their tax refund outright. The problem with this strategy is that when a person or couple files for chapter 7 or chapter 13, their possessions are absorbed into the trust estate to pay for their debts. Frankly, it doesn’t make sense to make a purchase today only to have it taken away tomorrow. A word of caution: If you spend your tax refund on luxury items or vacations, pay off a credit card or other unsecured debt, or use it to repay a friend or family member, you may trigger an objection from the trustee, and be required to surrender your tax refund, even if you have already spent the money.
I Need to File for Bankruptcy in Arizona, but How am I Supposed to Come Up with Money for Attorney Fees?21 February 2012 by jacksonwhite | Attorney Fees, Bankruptcy Process, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy | No Comments
Hearing the term “attorney fees” when filing for a bankruptcy can be a real nail biter. Let’s face it, if you are behind in paying other bills, hearing about a new expense can cause even more anxiety. The good news is, once you have retained an attorney, the creditors stop calling. That still leaves many with the question, “How do I come up with the money for my attorney fees?”
There are two common tools in bankruptcy that relate to mortgages. The first is called a “Lien Strip,” and the second is a “Cramdown.” It’s important to note that these tools are only available in a Chapter 13 bankruptcy. (Chapter 13 requires monthly payments.)
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