QUESTION
At what point should you file for bankruptcy? How?
Asked on May 26th, 2015 on Bankruptcy - Michigan
More details to this question:
My mom has been out of work since February, she has borrowed from everyone she knows, and she has racked up a lot of debt. She says that she only can pay one more month of her mortgage. I think she is going to have no choice but to file for bankruptcy, but even if she does, she will have nothing to live on. Should she wait until she is closer to getting a job so that she does not have to pay for the debt she incurs in the meantime?
6 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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You ask a very good question. I think the ethical answer is that she should file soon. The only 'qualification' is that you feel you need it and I expect she does feel that way. Also, stopping the payment of other debts should leave at least a little more with which to pay the mortgage. Also, incurring new debt with the intention of discharging it in bankruptcy is fraud, and grounds for all sorts of sanctions I'm sure your mother would want to avoid. Good Luck to both of you.
Answered on May 28th, 2015 at 4:56 PM
There are about 40 to 50 questions I ask every new client. Without the answers to these questions, it is impossible to evaluate whether someone should file BK, and when. I charge a small fee for a one hour meeting. I have successfully filed THOUSANDS of BK's, so I know I can help your mother.
Answered on May 28th, 2015 at 2:44 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Definitely, it doesn't make any sense to file for bankruptcy when she knows that she will be adding more debt without having any way to pay it until she gets a job. She should wait until she starts her new job then file a week or so later.
Answered on May 27th, 2015 at 2:49 PM
I wish there was a one size fits all answer to this question, but I would like to point out that debt run up just before filing bankruptcy may be ineligible to be discharged in a bankruptcy. See 11 USC sec 523. Unless you have a license to practice law, your mom should be asking these questions directly and her questions should not be filtered through you.
Answered on May 27th, 2015 at 1:26 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Getting closer to being employed has no impact on your bankruptcy other than to make you ineligible. She should file now.
Answered on May 27th, 2015 at 10:53 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your mom needs to speak with counsel. Why is she not receiving unemployment? Need the facts.
Answered on May 27th, 2015 at 12:10 AM