Archive for the ‘Chapter 128’ Category
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.
As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half or 56.8% of the U.S.’s $12 trillion mortgage market. Fannie Mae announced recently that it intends to fight back against homeowners who walk away from their property without making an effort to negotiate a workout with the mortgage servicing company. Fannie Mae has instructed servicing companies to identify those homeowners who do not attempt, in good faith, to negotiate a workout. Identifying these homeowners will allow Fannie Mae to pursue deficiency claims against them if the property ends up selling for less than what is owed. Fannie Mae also intends to bar the homeowners from obtaining a Fannie Mae guaranteed mortgage in the future for a period of seven years. This move by the mortgage giant is in reaction to a growing response by some homeowners who, fed up with crashing market values, strategically default on their mortgages and walk away from their property.
I will lose my job if I file bankruptcy. Not true! The bankrutpcy code prohibts an employer froam discriminating based on bankruptcy filing.
Can you not be hired if you fired bankruptcy? It may be true they can’t legally use your bankruptcy as a reason not to hire you, but they can certainly find someone BETTER who has not filed bankruptcy – and there is no law to prevent them from doing that. Bankruptcy carries with it a certain negative meaning to employers and there is no guaranteed protection and discrimination against you where this is concerned can be much more covert.
The first step is recognizing that there is a problem. If thinking of your debt keeps you up at night you probably already know that you’re in over your head. Or perhaps you are “robbing Peter to pay Paul” and you may not realize that you’re on a dangerous slope. If you find that you fit either category, you may want to seriously think about getting a handle on your debt.
1. You routinely spend more than you earn.
2. You only make the minimum payment required on your credit cards
3. Your credit limit(s) is maxed out.
4. You are not aware of your total debt or what is on your credit report.
5. You skip paying some bills to pay others or use cash advances or payday loans to pay off others.
6. You argue with your spouse/significant other about money or afraid to discuss money with your spouse/significant other.
7. You panic when faced with an unexpected expense such as a broken water heater or car repair.
8. You owe more on your car than it’s worth.
9. Creditors are calling about overdue bills.
10. You are thinking about filing for bankruptcy.
The Wisconsin Senate has passed a plan regulating the payday loan industry in Wisconsin. Under this legislation, the payday loan companies may not loan more than $1,500 at a time to consumers and consumers may not rollover the loan more than one time. Surprisingly, there is currently no limit on the rate of interest. The Assembly has a slightly different version of the Senate’s plan. Some critics of the plan don’t believe that it goes far enough to protect consumers from predatory lending. While others hold that such loans would not be available at all if payday loan companies cannot charge high interest rates to protect against the risk of default.