DO I HAVE TO INCLUDE ALL DEBTS AND ASSETS ON MY BANKRUPTCY PETITION?

Often times, clients will want to withhold credit cards with low balances from bankruptcy so they can keep that account open and continue using it after the bankruptcy case is completed.  However, the law prevents an individual from doing that.  All debts have to be included on a bankruptcy petition, a debtor cannot merely pick and choose which ones to include.  If the debtor would like to keep the debt and continue to pay it off, they could always choose to reaffirm the debt with the creditor, although this is rarely recommended.  Regarding assets, all have to be included on the bankruptcy petition as well, including some instances where previous assets have been disposed of or distributed.  This is to prevent fraud and to allow the trustee the oppourtinity to reimburse creditors if at all possible.  For assistance about completing bankruptcy petitions or any other general questions, contact our bankruptcy attorneys for a free consultation.

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SHOULD I TRY A DEBT RELIEF PRIOR TO FILING FOR BANKRUPTCY?

Due to several different circumstances, there are very few instances when pursuing debt relief ends up with better results than filing bankruptcy.  While it is true that some of these companies can assist people, the vast majority of these programs fail over 75% of teh time leaving you with more debt and a damaged credit score.  First, these companies are not worried about what is in the client's best interest.  Instead, they are worried about their bottom line, and many customer service agents for these companies work on commission and only get compensated for the individuals they sign up in their program.  Also, unlike bankruptcy, the results are very unpredictable when utilizing a debt relief company.  Our attorneys can let you know upfront what the results will be based on your specific situation and chapter of bankruptcy and whether bankruptcy is even your best option.  Contact one of our attorneys today to schedule a free consultation and see how you can become debt-free.

http://www.westmontattorneys.com/Bankruptcy/

ILLINOIS HOMEOWNER TAX BREAK SET TO EXPIRE

As of now, Congress has yet to extend the Mortgage Forgiveness Debt Relief Act, which provides a tax break for qualified homeowners on debt forgiven by their lenders through loan modifications, short sales, and foreclosures.  The current legislation is set to expire on December 31, 2012, therefore, if you attempting to complete one of the above-mentioned transactions with your lender, it is best to aim for completing the transaction prior to the end of this year in order to avoid potential huge tax consequences.

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341 MEETINGS

Many new bankruptcy clients are unfamiliar with the purpose and procedure of a 341 Creditor's Meeting. A 341 meeting takes place with the bankruptcy trustee, and the purpose is to determine if the debtor has been accurate and complete in preparing their petition, as well as whether there are non-exempt assets that can be liquidated for the benefit of the creditor's. A "No Asset" finding is the holy grail for a debtor, and will result in a complete discharge of all debts in Chapter 7 bankruptcy.

 

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IF I AM MARRIED, DO I HAVE TO FILE A JOINT BANKRUPTCY PETITION?

The easy answer if no, you do not have to file a joint petition even if you are married, however, before filing, make sure you speak with an experienced bankruptcy attorney who can advise you on  the implications and consequences of joint versus separate filings.  Generally, if you are in a joint property state, if both spouses are liable for a majority of the debts, or if you are contemplating a divorce, it is probably wise to file jointly so both individuals will be discharged of that debt.  Conversely, if there is substantial debt in one party's name or  if one party would significantly affect the eligibility of filing, you may want to investigate filing individually.  One note, when a married individual files separately, both party's income is utilized for the purposes of the Chapter 7 Means Test.

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ILLINOIS SHOPPING MALL COULD BE FORECLOSED

Because the economy is down, many retailers are feeling the pressure just like everyone else.  As a result, malls across the county are experiencing 10-25% vacancies with many stores reducing their overhead.  Because of this, there are some malls that are facing foreclosure, including at least one in Illinois.  The Machesney Park Mall currently owes almost $2 million from the loan that was taken out to purchase the property eight years ago, including an additional $600,000 in real estate taxes.

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GABBY DOUGLAS' MOTHER FILED BANKRUPTCY

Over the past several weeks, American have become very familiar with Gabby Douglas, the young gymnast who become a national hero after winning the all-around gold medal for the United States.  Far from the glory of the Olympics also came news that Gabby's mother had filed Chapter 13 bankruptcy prior to the Olympics, and she was not embarrassed or ashamed to acknowledge that fact during the games.  Given Gabby's success during the games in London, I'm guessing the family's financial problems could be over, given that many experts have estimated Gabby's earnings over the next year to be between $6-20 million through mostly endorsements. 

http://www.westmontattorneys.com/Bankruptcy