1. All debts must be listed. It is illegal to pick and choose when listing your creditors. All creditors must be listed even the ones you intend to pay after filing i.e. your mortgage
2. You may have to turn over tax refunds to the bankruptcy trustee. Part or all of any tax refunds due for the tax year a bankruptcy case is file may be required to be turned over to the trustee.
3. You must list all business information if you are self-employed. You must list all personal and business debts, assets and income.
4. You need to refrain from incurring new debts before filing. Intentionally incurring debts with the intent not to pay may be a crime.
5. Keep making your house and car payments if you intend to keep the property.
6. Lying can get your case thrown out of court. The Court may disallow a bankruptcy if a client misrepresents any facts or otherwise lies on the papers filed in the bankruptcy.
7. Bankruptcy stops all bill collectors. The creditors including tax collectors are barred from attempting to collect any debt from you the instant the petition is filed. Bankruptcy does not stop any criminal proceeding or government regulatory proceeding.
According to Clark Howard beware of temporary loan modifications. This is when a lender might ask you to only pay half of your usual payment for several months. But despite this being the lender’s recommendation, some banks subsequently report you as delinquent in your payments. This reflects poorly on banks so even under a temporary modification agreement, you need to verify with the bank – and get it in writing – whether or not you will be reported as delinquent if you choose to go through with it.
According to Clark Howard if you are already drowning and haven’t stayed current, a temporary modification could honestly be a waste of your time and effort. Finally, will a modification really help or is it just delaying the inevitable?
As reported on 24/7Wall St. they have compiled a list of brands that may disappear in 2011 which includes, Kia Motors (they are a part of Hyundai), Readers Digest, Dollar Thrify, Zales, Blockbuster, T-Mobile, RadioShack, Merrill Lynch and Moody’s.
We are all aware of the change in rentals of DVDs etc espcially since the advent of Redbok and NetFlix. Blockbuster may be around as a company as mail or internet-delivered but the brick and mortar business is dead.
Dollar Thrifty Automotive is for sale with Hertz is a potential buyer as is Avis. T-Mobile is the no. 4 cellular company and only has 34 million customers and faces three larger competitiors.
RadioShack is the one of the oldest retailers in the US. It was founded in 1921 and is currently a takeover target. The company may be bought out by Best Buy.
Taxes can’t be eliminated in bankrutpcy. Wrong! Many taxes are eliminated in bankruptcy. However, there are several complex rules that apply. Eliminiating taxes depends on how old the taxes are, when the returns were filed and whether the taxes have been assessed and the type of taxes. Both federal and state income taxes can be eliminated in bankruptcy. In cases where taxes cannot be eliminated it is possible to force a payment plan on the IRS and stop interest and penalties. Any questions should be directed to an attorney.
I am not allowed to have a checking account if I file bankruptcy. Wrong! There is no rule that stops you from keeping or opening a bank account. Most people keep the account that they had and continue to use it without interruption. Sometimes you may have to close an account prior to filing since the bank may be a creditor in the bankruptcy. In general, if you do not owe money to the bank your account is at, there is no need to close the account.