Archive for the ‘Bankruptcy’ Category

My Spouse has Just Filed for Bankruptcy in the Middle of Our Divorce Case. What Do I Do Now?

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Living in California is expensive, and divorce can be even more so when bankruptcy is involved. A divorce can trigger a bankruptcy filing for a multitude of reasons, and it quite often turns into a supreme mess. There is no clear winner ad loser in a divorce case, so all parties should try to achieve a compromise and reach a fair property settlement agreement. In many cases, a bankruptcy can help out both spouses if they joint file.
If an ex-spouse files for bankruptcy, the family court can still hear testimony and decided issues relating to support. However, the court requires stay relief for equitable distribution, which involves the bankruptcy court permitting the divorce case to continue. Basically, the family court won’t split up the family home, divide pensions, or apportion any stocks or mutual funds until it receives permission from the bankruptcy court.

My husband and I have a lot of debt and collections. We aren’t able to get ahead and want to file bankruptcy but are afraid we make too much. Can my husband and I file bankruptcy if we make over $85,000 a year?

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You did not mention how many you are in your household, which has a bearing on which median income to apply for your particular case. In California, for example, the median income for a 2-person household is $63,030, for 3-person is $67,401, for 4-person is $75,656 and an additional $8,100 for any additional member in excess of 4. Read the rest of this entry »

I am self-employed and make less than poverty level. Can state payroll taxes be claimed as part of bankruptcy? Can I file bankruptcy if I have mutual fund investments under $25,000?

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Payroll taxes cannot be eliminated in bankruptcy. Qualifying for bankruptcy is usually a case-to-case basis. Whether you’re filing as an individual or business, it depends on the income, assets and liabilities and other factors. If you are struggling to pay off your debt, then it is best to consult a bankruptcy lawyer first before filing for bankruptcy to ensure that you qualify, or if you may still be able to negotiate with debtors regarding payment and schedules. Read the rest of this entry »

I received wage garnishment from a creditor but it was for either 2001 or 2004. How can I stop this? What are my options?

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One option is to contact your creditor to clarify the details of your debt, and if possible, so that you can come to an agreement regarding other ways for you to pay the debt. And also, depending on the debt, generally there is a 2-year or 4-year statute of limitations for the collection of debt, but this doesn’t stop the creditor from pursuing the case and demand payment. Read the rest of this entry »

The judge ordered me to pay the non-cover and co-payments for my son’s insurance. But I don’t want to send the money to the mother. Can I pay directly to the insurance company? How can I do it?

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You may contact the insurance company and ask them if there is an option for you to pay directly to them. They may be able to receive your payment and certify that you have indeed paid for your share according to the court order. If you have an attorney, consult with them regarding the details of the order to make sure that you are complying with what has been stipulated. Read the rest of this entry »

My grandmother left me some money in her will. My parents have the money in a bank account set up in a way that I cannot withdraw the money without my parents’ signature. So unless they approve, I cannot withdraw the money on my own. Can they legally withhold this money from me? What are my options?

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Your parents could legally hold the money depending on the stipulation on your grandmother’s will, especially if your parents (or at least one of them) were assigned as the executor or trustee. One of your options is to study the will and what is written on it regarding the conditions set as to when and how you could get your inheritance. Read the rest of this entry »

My mother is 82 and lives alone in her home. There is a reverse mortgage on the home and the mortgage balance is more than the worth of the home. Her only income is the pension from her deceased husband’s employer and Social Security. She has stopped paying several credit cards and other unsecured debt, so now she has been receiving lots of calls and letters from her creditors. She doesn’t know what to do. Is Chapter 7 bankruptcy a good choice? How much does it cost?

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For Chapter 7 bankruptcy, a fee of $306 is collected upon filing (http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/BankruptcyFilingFees.aspx). However, knowing whether filing for Chapter 7 is a good choice or not depends on different factors such as the amount of debt versus the income received, among others that may be considered. Based on the information you have given, your mother probably will benefit from filing for bankruptcy, Read the rest of this entry »

I was in a car accident while driving with a suspended license. I have insurance and my car is registered. I told the police officer that I was in the process of getting my restricted license. He took down my information and let me leave the scene. I’m not sure if he heard me wring and though that I said I had a restricted license. Will they come looking for me once they run my information, or will I get a fine in the mail? Will I go to jail?

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The answer to your question depends on the situation, such as for what reason was your license suspended, or if there were other stipulations related to the suspension of your license, or how many times has your license been suspended before, etc. Contact a lawyer as soon as possible first, to seek advice regarding your license situation, and to deal with the accident and possible issues with the insurance companies of the parties involved. Read the rest of this entry »