Bankruptcy and Divorce Proceedings

Though you can get divorced whenever you want, it often makes sense to wait until a divorce is completed before filing for bankruptcy. Issues regarding property ownership and responsibilities for personal debt will often be cleared up in the divorce.

If you decide to file for divorce in the midst of a chapter 7 case, the filing will likely have little impact: The chapter 7 case will likely end months before the divorce is finalized. If you are on the cusp of filing a chapter 13 case with your spouse and divorce is looming on the horizon, wait to file the divorce until you have spoken to your attorney. You cannot file together if you are no longer married and if you have already filed bankruptcy, at least one of you will likely need to find another bankruptcy attorney to handle your case.

Posted in Bankruptcy Information  |  By: Thomas McAvity

Tips for Consumers in Debt Crisis

Yes! You Can Still File Bankruptcy! Bankruptcy relief is still available. You may have heard about a new law passed by Congress that went into effect in October 2005. While it is true that the new law makes the process much more complicated, the basic right to file bankruptcy and most of bankruptcy’s benefits still remain for most consumers. The cost of filing for bankruptcy also has increased, both in terms of fees you to have to pay the court and the fee you will have to pay your attorney.

Do not procrastinate if you are facing legal action. Often, even when people are in danger of foreclosure or car repossession, or are being sued, or are having their wages garnished – even then, they do not want to think about filing bankruptcy. It is very painful to think of filing bankruptcy – especially before the person understands bankruptcy. In most cases, once bankruptcy options are explained by an experienced attorney, people are greatly relieved to find that their problems can be resolved after all. Do not wait until after your house is foreclosed, your car is repossessed, or your wages are being garnished. Find out what bankruptcy relief is available to you sooner rather than later.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Class Requirements for Bankruptcy

As you may be aware, the new bankruptcy laws require that you attend a credit counseling session and receive a certificate from an approved counselor prior to filing your case. The certificate of completion of the credit counseling session must be filed with your bankruptcy case. Therefore, your attorney  must a have a copy of the certificate before your case can be filed. 

The new bankruptcy laws also require that you attend a Personal Financial Management session and receive a certificate from an approved counselor prior within a certain time period after filing your case. The certificate of completion of Personal Financial Management should be provided to your attorney prior to your Meeting of the Creditors. 

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Will My Boss Find Out About My Bankruptcy?

Employers rarely find out about a chapter 7  filing. One exception to this rule would be if you were being garnished by a creditor, notice of the the bankruptcy would have to be sent to your payroll department in order to stop the garnishment from continuing. The reality is that your payroll department is likely to regard your filing as good news as they will no longer have to deal with the demands of the garnishing creditor.

If you file a Chapter 13 in Washington or Oregon, your employer or your payroll department is almost always going to find out about your case. This is so because, except under extremely dire circumstances, the court is going to require your plan payment to be paid through a wage order which is submitted to your payroll department. While exceptions are made to this rule, embaressment is not one of them.

Posted in Bankruptcy Information  |  By: Thomas McAvity

Rulers for Multiple Bankruptcy Filers

July 20, 2008
New York Times
By GRETCHEN MORGENSON

The collection agencies call at least 20 times a day. For a little quiet, Diane McLeod stashes her phone in the dishwasher.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Utilities and Bankruptcy Filing

If you owe a back balance to utilities providing gas, electricity, phone service or water to your home, they cannot stop providing you service because you have named them in your bankruptcy. Some utitlities, very few, will demand a deposit from you for future service in order to continue doing business with you and, if they do not receive it,  they can then turn off your service. Under no circumstances can they demand payment of a past due amount in order to continue to providing you with service.

Posted in Bankruptcy Information  |  By: Thomas McAvity

The IRS and the Automatic Stay

Even after the filing of a bankruptcy, the IRS can continue certain actions such as issuing a deficiency notice, continuing an audit, demanding the filing of a return and issuing an assessment. Filing a bankruptcy does, however, stop the IRS from issuing a lien, garnishing, your wages or seizing your assets or income.

Posted in Bankruptcy Information  |  By: Thomas McAvity

Bankruptcy and a Landlord-Tenant Dispute

With some exceptions, a bankruptcy filing will not stop an eviction of a tenant under the following circumstances:
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Posted in Bankruptcy Information  |  By: Thomas McAvity

Bankruptcy and a Pending Domestic Relations Proceeding

Nearly all pending domestic relations proceedings continue on after a bankruptcy petition has been filed. While a bankruptcy filing will stop a normal collections action in its tracks, the automatic stay does not freeze a divorce or custody proceeding. Domestic relations proceedings that continue on after the filing of a bankruptcy include the following:
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Posted in Bankruptcy Information  |  By: Thomas McAvity

Credit Counseling Requirements

To qualify for bankruptcy, you must show that you received credit counseling from an approved provider within the 180 day period prior to the filing of your petition. Fortunately, this requirement can be met not only in person but by phone and even online. Once you complete the counseling, the agency will email or fax you a certificate showing that you completed the requirement. If you are represented by an attorney, you will want to make sure that the attorney receives a copy of the certificate for filing.

The purpose of credit counseling is to give you an idea of whether you really need to file. Though the agency may make a proposal to you regarding a repayment plan, you are free to discard the agency’s suggestion.

Posted in Bankruptcy Information  |  By: Thomas McAvity