I am a cosigner for a debt, how does bankruptcy affect my
obligation?
If the debt is a dischargeable debt then you
will not have to pay it. However, the cosigner will become primarily
responsible for the debt. Be sure to list the co-signer as a
creditor in your schedules as they have a contingent claim against
you.
Can I keep my house after bankruptcy?
Depending upon
which exemption scheme is selected and your circumstances, you may
exempt up to $100,000 in equity. When calculating your equity you
should use a value that is based upon a forced liquidation as
opposed to the best selling conditions to arrive at a value for your
home. Once you know the value, subtract the amount owed plus selling
and transfer costs from the value to calculate the equity. In a
depressed market, liquidated properties are often valued less than
what we like to think the property is worth.
Can I keep my credit cards after bankruptcy?
Under
some circumstances you may keep your credit cards. There are many
factors which must be considered. Some of those include the credit
card balance at the time of the bankruptcy, what the credit card
company is willing to do and your ability to pay the present and
future credit card debt.
Can I go to jail if I file bankruptcy?
No. There are
no debtor's prisons in the United States
Will a bankruptcy remove a lien?
Under some
circumstances once the bankruptcy proceedings have started, special
motion can be filed to remove certain liens. It will take a
bankruptcy court order to remove them. This is a complicated area of
the bankruptcy law and an attorney should be consulted.
Will bankruptcy stop an eviction action?
Perhaps.
However, this will only delay the inevitable. The owner is entitled
to possession of his property and at best you will be able to remain
in the property until you have received your discharge from
bankruptcy or the landlord obtains an order from the bankruptcy
court. I must caution you that if the only reason you filed the
bankruptcy is to stop an eviction then this might be considered an
abuse of Chapter 7. If the bankruptcy court finds that this is true
then the court can immediately dismiss the bankruptcy and impose
other legal and monetary sanctions on you.
Will bankruptcy stop a foreclosure?
Yes. However, a
home is an asset usually secured by a deed of trust. The mortgage
company is entitled apply to the court for relief from the automatic
stay, the order preventing creditor action by virtue of the
bankruptcy. Depending upon several factors, you may be able to
prolong a foreclosure until you have received your discharge from
bankruptcy. Usually, to keep a home that is in foreclosure you will
have to make a deal with the note holder.
Are there any debts that I can't wipe out in bankruptcy?
Yes, there are certain debts that are NOT dischargeable in
bankruptcy. Generally speaking, the following debts will not be
discharged: Taxes; Spousal and Child Support; Debts arising out of
willful misconduct and or malicious misconduct by the debtor;
liability for injury or death from driving while intoxicated;
non-dischargeable debts from a prior bankruptcy; student loans and
criminal fines, penalties and forfeitures. Those debts which are
secured will be discharged, however, expect the creditor to take the
necessary legal steps to take back the property. In most cases if
the debtor's equity interest in the property is exempt, the debtor
may retain the property by redemption or reaffirmation.
