Should I Transfer Money To Family Or Friends Before Filing For Bankruptcy?
Transferring money or assets to friends or family prior to filing a bankruptcy is not advisable. This is considered fraud and the bankruptcy code allows the bankruptcy trustee to go after your friends and family in order to recoup the transfer of money and assets.
Can I Charge Up Credit Card Debt Before I File For Bankruptcy?
Charging up a lot of credit card debt before you file for bankruptcy is also considered fraud. The bankruptcy code has a provision that allows a creditor to object to the discharge of the particular debt that’s owed to it if the debt was incurred by you fraudulently.
How Long Does A Bankruptcy Typically Last?
The length of the bankruptcy depends upon which chapter you file. Chapter 7 bankruptcies, which eliminate your debt, are pretty quick and typically take between four and five months. A Chapter 13 bankruptcy is a repayment plan that runs anywhere between 36 and 60 months. The length of the plan is determined by the results of the means test, the amount of debt you have, and your budget.
Should I Consolidate Debt Or Explore Other Options Before I File For Bankruptcy?
I believe that all options should be explored, in addition to your bankruptcy options. The decision as to whether to file bankruptcy or to go a different route depends on your financial situation and the type of debt that you have.
Can I Keep My Spouse Out Of My Bankruptcy?
Whether or not you should keep your spouse out of bankruptcy depends on his or her debts and whether or not he or she is joint on the debts which you are trying to discharge in your bankruptcy. It may be beneficial to keep your spouse out of your bankruptcy because at least one of you will be in a better position, should you have to incur debt shortly after your bankruptcy.
Can I Own Anything Or Will I Own Anything Again After A Bankruptcy?
Most debtor’s assets are untouched in a bankruptcy. Other debts that have liens on them, such as houses and automobiles, must still be paid in order to keep those assets after the bankruptcy. That is a decision that the client has to make and it depends on their budget and whether or not they can actually afford to make those payments.
How Can Filing For Bankruptcy Help With Creditors?
An automatic stay is immediately issued upon the filing of a bankruptcy. The automatic stay prevents creditors from attempting to collect on your debts. The creditors must stop calling you and must stop sending you letters. If they have filed lawsuits against you, then they have to suspend those collection activities.
What Is The Best Way To Start Rebuilding My Credit After A Bankruptcy?
Unfortunately, in order to start rebuilding your credit, you have to incur debt. I always advise my clients not to incur debt that they cannot afford to pay back because it will hurt you in the long run if you are unable to make the payments. Missing payments on loans and credit cards will hurt your credit score. I suggest that they obtain a secured credit card as a first step. With a secured credit card, you deposit money with the credit card issuer and that money serves as collateral for your credit line. The amount of the deposit equals the amount of your credit line. I suggest that you use the credit card by charging a few items a month and then paying it in full at the end of the month. In this way, you can start to build your credit and increase your credit scores.
Will I Have Bad Credit For The Rest Of My Life After Filing For Bankruptcy?
There is life after bankruptcy. Initially, you will have bad credit after you file bankruptcy, but if you do things correctly, you can get back on track. Many people buy cars after bankruptcy and many people buy houses after bankruptcy. People also obtain unsecured credit cards after bankruptcy. However, I caution all my clients to be careful because you will be able to obtain credit after bankruptcy and you want to make sure that you do not fall into the same situation again.
For more information on Transferring Money Prior To Filing Bankruptcy, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 576-9030 today.
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