Bankruptcy Legal Questions

Here is some general information regarding inheritances and bankruptcy. It should not be considered legal advice concerning your particular fact situation. When someone files a Chapter 7 bankruptcy, a trustee is appointed to liquidate all of their nonexempt property and pay their creditors who have filed proofs of claim. When a person files a Chapter 13 bankruptcy, they get to keep their nonexempt property as long as they pay their creditors what is called the "liquidation value" of the property and pay all of their disposable income to a bankruptcy trustee for 3 to 5 years. Unimproved land is generally nonexempt from seizure and sale under Louisiana law (and therefore IS reachable by the bankruptcy trustee) unless the land is part of a person's homestead. Furthermore, if someone files bankruptcy today and they inherit property within 180 days of filing, the trustee may be able to administer and sell that property. There may be a workaround, if the person's parents have not yet passed away, but it would likely involve their parents making a will or creating a trust. Your situation is too involved to give you a quick answer on an Internet website. You should immediately consult with a Louisiana attorney for specific advice concerning your individual situation..... Read More

Good morning.  You can file for bankruptcy without affecting his home as long as you were not on the mortgage and you otherwise qualify.  If you are considering doing so and are located within NYC or Nassau or Suffolk County and would like to discuss it further, please give me a call.... Read More

I will assume that you and your ex both signed the promissory note (financing) for the car, and that both of you are on the title.  If this is true, you will receive a notice from the bankruptcy court when he files.  If the car is surrendered to the bank or repossessed (because payments were not made), your credit will take a hit.  Also, if there is a deficiency (there is still a balance due on the note after the car is sold at auction and the proceeds are applied toward the balance due), you could face a lawsuit from the bank for the difference.  If you did not sign the promissory note, your credit will not be affected.... Read More

IN bankruptcy, ALL Contracts may be affirmed in the bankruptcy. Contracts that  have a negative impact to the estate can be broken and contracts which the State wishes to maintain and be reaffirmed.  I never recommend that people do their own bankruptcy and I highly recommend that you have legal counsel do it for you.  Properly planned and done, the bankruptcy can be financially liberating, however it without a solid claim behind it, I have seen bankruptcy become a treadmill where the bankrupt keeps needing to refile every 2 or 3 years because the first bankruptcy didn't work and once they are on the slippery slope, they can never get themselves right.   I also always recommend wherever possible that one does a chapter 7 bankruptcy and avoid chapter 13 as much as possible.  Again a bankruptcy attorney is the best person to talk to about this.... Read More

While inquirers understandably want a specific answer, this question requires more information.  Specifically, I, or any advising counsel, would need to review the stipulation. Having said that, the bankruptcy court usually retains jurisdiction to enforce any such stipulation.  If the creditor claims a default and wishes to enforce, he would have to file a motion to reopen the bankruptcy case for the specific purpose of enforcement.  That would be filed in NJ and NJ counsel would be required at that time.  If the creditor does not follow the proper procedure, he may seek to sue or enforce where you live in PA.   Coincidentally, I was approached by a long time referring attorney (CL in Lansdale) who has a client with a similar issue.  So, that is either an amazing coincidence or I am already aware of the issue and periodically checking on it. I trust this answers your questions but do not hesitate to reach out to me on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

The finance company/bank/credit union is not required to do business with you ever again because you caused them a loss in the past. This is not against the law. They cannot demand that you pay the discharged debt at all, but they can refuse to do business with you unless you volunarily pay it back. There are plenty of finance companies, banks and credit unions out there who were not creditors in your bankruptcy - so take your business to one of those instead. ... Read More

I also charge $2,000.00 for a standard Chapter 7 which has been routinely approved by the bankruptcy court and trustees.  Accordingly, I strongly believe it is a reasonable fee. That fee does not depend on the amount of debt so that a client could discharge anywhere from $20,000.00 which is only a 10% fee, to $2 million or infinity.   The concept is that clients do not have the ability to pay all their debts when they become due, but should have enough either in savings or from friends and family to afford the one time fee.  Moreover, many of my clients pay over time with the understanding that the case cannot be filed until all fees and costs have been paid.  As long as there is no rush, even if it takes a year to remit the fee, relief can be obtained. If the debt is less than $20,000.00, I consider reducing the fee to survive the cost benefit analysis even though I receive less funds for the same work. I trust that has been helpful, but you are welcome to call or email on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com... Read More

I appreciate your effort at trying to explain the situation, but I naturally have more questions which are best answered in a free initial consult.  My advice will depend on the answers.  Generally, if the property was transferred out of your name, it is not property of the estate and the debt is not secured as to you.  In that event, there is no reason why you cant file Chapter 7. Feel free to call or email on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

If your daughter was not intoxicated while driving, the debts she caused in the accident should be dischargeable in a bankruptcy case.  She should have a consultation with a bankruptcy attorney in her State to learn her options and eligibility for bankruptcy relief. I offer free initial consultations.... Read More

There is a fee to reopen a bankruptcy case which is accomplished via Motion.  Was the personal injury case pending when the case was filed?  If so, and you are the debtor, all you need do is present the same to the trustee who may file such a motion for you. I trust this answers your questions, but you are welcome to call or email me on a free initial basis.     Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

As you did not provide your home County, we an only state that we are aware of 3 ways to stop a garishment, namely: 1.   Via payment in full (or an agreed negotiated lesser amount). 2.  Appearance in the suit asserting the funds are protected by statute from garnishment.  There are limits to the amounts that can be taken and their source, which may be exempted.  This is a matter to discuss with a knowledgeable attorney. 3.  A Bankruptcy.  Either a Chapter 7 (traditional Bankruptcy) or a Chapter 13 (Wage earner's repayment plan) can be used.  It is also possible for a Subchapter V B or a Chapter 11 filing.  The differences can be explained by an attorney.  Depending on your County, the specific District for any filing will be set.  For example, although our office is in Will County, our coverage federally is LaSalle, Grundy, Kendall, and Will Counties.... Read More

$18,000 is a significant distribution to creditors. The Tustee's duty under the Bankruptcy Code is to represent the creditors interests. It's less expensive for you to stay in the home than it is for you to pay rent, but that is not the Trustee's duty. This is something that you or your attorney should have anticipated prior to converting to Chapter 7. Any increase in value of the house which cannot be exempted goes to the creditors in North Carolina bankruptcy courts. It may not be too late to unwind this and convert back to Chapter 13 if you want to keep the house, but you would need to be able to make up the Chapter 13 payments you missed.... Read More

Yes, but such a filing may be subject to challenge. The question is whether you can pay your bills as they come due.  These kind of questions depend a lot on local courts. I'd suggest you visit with a local bankruptcy attorney. They often will even give free consultations. Before you go, scratch our a budget of your bills, income, assets, and debts.  Good luck!... Read More

There is a difference between loan modification and refinance.  The former may be effected by a Chapter 7 discharge, while the latter should not.  If you obtained a discharge without reaffirming the debt, some mortgage companies will refuse to consider a loan modification.  Based on your description, it does not seem likely you are referring to a loan modification as that will only be considered if you are delinquent.  You stated you are current and have always been so.    By contrast, a refinance does not necessarily involve the existing lender as you can obtain a new loan from any willing new lender.  If your existing mortgage company refuses to consider a refinance based on the lack of reaffirmation, the simple solution is to seek another lender. I trust this answers your questions but do not hesitate to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

If you are filing a claim in a Georgia court, then your attorney ideally needs to be licensed to practice in Georgia. The attorney can live in Alabama or South Carolina, as long as they are licensed in Georgia and are willing to work in the Georgia court. You may want to contact attorneys who live and work near the Georgia border with Alabama (or South Carolina) and see if you can find someone licensed in both states. It's not uncommon for attorneys who live near a state line to be licensed on both sides of it.  ... Read More

The bankruptcy court website has instructions for obtaining copies.  Alternatively, most, if not all, bankruptcy practitioners subscribe to the Electronic Case Filing (ECF) system which maintains all such records.    I trust this answers your questions and feel free to call or email on a free initial basis.       Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Disability income is exempt under state law, so that the account should be unfrozen within 30 days of sharing that information with the creditor.  Having said that, a bankruptcy will prevent them from taking any money, whether exempt or not.  However, filing a bankruptcy requires payment of the fees and costs before filing, which seems like an issue if the account is frozen.   I trust this answers your question, and, if you live in the Delaware Valley, do not hesitate to call or email on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

  Chapter 13 bankruptcy is a wonderful tool which allows a homeowner to repay the arrears over a 5 year plan, while forcing the mortgage company to accept payments after filing.  I do recommend retaining an attorney as bankruptcy does not lend itself to self representation.  It is possible for a person to represent themselves, but an attorney easily satisfies the cost benefit analysis. However, my first suggestion for anyone who is delinquent in their mortgage is to pursue a loan modification.  That is different from a refinance in that it is the same loan, same company, but they merely restate the terms.  Arrears are often deferred and monthly payments reduced.  I trust this answers your questions and, if you live in the Delaware Valley, feel free to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Chapter 13 Bankruptcy is a powerful tool enabling homeowners to cure mortgage defaults and keep their homes.  However, as you observed, it does require a financial commitment.  The plan payment is determined by several factors, only one of which is the amount of the default. If you have equity in your home over and above the liens, any such liens, other than the mortgage, must be paid in full during the plan.  If you do not have equity, the judgment liens may be crammed down and converted to unsecured debt.  If you have no non exempt assets, and your disposable income is only sufficient to cure the arrears, the judgment liens can be removed and discharged following your completion of the plan. My first thought whenever a client is delinquent is to suggest loan modification.  I don’t know if you explored that, but it is a cheaper, easier method of curing the default and managing your cash flow by curing or deferring the default instantly and reducing the mortgage payments.   I trust this has been helpful, and, if you live in the Delaware Valley, feel free to call or email me on a free initial basis.     Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More