CAN YOU USE YOUR CREDIT CARD RIGHT BEFORE FILING BANKRUPTCY?

The answer is dependent on when the credit cards were last used and for what purpose. Generally, any use of a credit card for luxury goods over $500 and debts owed to any one creditor incurred within 90 days of filing will not be discharged. Also, any cash advances made within 70 days before filing or debt incurred without any intention to repay will also not be discharged. Typically, if minimum payments are made to the creditor for the last six months prior to filing, a debtor should have no problem having such a debt discharged as long as no debt was incurred under false pretenses or fraud.

WCZ
http://www.westmontattorneys.com

THE DIFFERENCE BETWEEN A CHAPTER 7 AND CHAPTER 13 BANKRUPTCY

Many of the potential clients I receive calls from do not understand the differences between a Chapter 7 and Chapter 13 bankruptcy, nor which one would benefit them more. I would say in at least 95% of cases, a Chapter 7 is more beneficial to an individual debtor. A Chapter 7 bankruptcy offers a complete discharge of all debts that are allowed to be included by the courts, meaning, the debtor will no longer be liable to any of the creditors in the cases. In a Chapter 13 bankruptcy, a debtor agrees to repay as much of the debts as they can over a few years, at the end of which, any outstanding balance will be discharged. Many people wonder why anyone would ever file a Chapter 13 bankruptcy, given the greater benefits of a Chapter 7, however, in some circumstances, filing a Chapter 13 may be the debtor's only choice. In order to qualify for a Chapter 7 bankruptcy, your annual income needs to be under a certain level, otherwise, you cannot file. In addition, debtors with assets above the exemtpion limit, or who are behind on their house payments, but wish to catch up, can use a Chapter 13 to retain possession of their house and bring their mortgage current. Finally, some debts can be included in a Chapter 13 bankruptcy that cannot be included in a Chapter 7. Contact our law office today to learn if you qualify for Chapter 7 bankruptcy and which option would serve you properly.

WCZ
http://www.westmontattorneys.com/

CAN I WITHDRAW MY CHAPTER 7 BANKRUPTCY PETITION?

The easy answer is maybe. The bankruptcy code allows a debtor to withdraw his or her petition provided that they have cause to do so, meaning they need a reason acceptable to the court. The bankruptcy court generally feels that incorrect legal advice or a misunderstanding of your rights is not proper cause for a debtor to dismiss his/her petition. The process for withdrawing your petition from the court is rather simple. First, a Motion to Dismiss must be filed with the court, and then a hearing will be scheduled. It is important to notify your bankruptcy trustee of your intention to withdraw your petition, and if the trustee either agrees with the motion or does not object, that will greatly increase the chances of having your motion approved. Finally, you or your attorney must attend the court hearing to present the motion to the judge and answer any objections. At that point, the judge will either grant your motion to dismiss or deny it, where you would then be faced with several alternatives which will be discussed in a later post.

WCZ
http://www.westmontattorneys.com