Your bankruptcy discharge could be denied because of a prior bankruptcy discharge

Posted on August 19, 2013 by Staff Writer

There are many reasons your bankruptcy discharge could be denied. There are a myriad of debtor’s obligations and time restraints that could affect your bankruptcy discharge. One of the most common and the most utilitarian is the bar of discharge if a bankruptcy was discharged in the past. The rules need to be read carefully. There are many specific ways to use this rule, and many ways the rule can use you.

The rules seem pretty straightforward. Bankruptcy Code 727 (a)(8) discusses the restriction as the case In re Blanchette, 54 B.R. 890 (Bankr. D.R.I. 1985). If a debtor previously received a discharge in a Chapter 7 or a Chapter 11 bankruptcy that was commenced within eight years before the petition was filed in the present case.

That simple rule is more complicated than it looks, it does not discuss what happens if a prior bankruptcy was filed without discharge, and it does not deal with a prior bankruptcy discharge under Chapter 12 or Chapter 13. It is, however, very specific in that the eight-year discharge prohibition runs from the date of the filing of the bankruptcy petition in the prior case, to the date of the filing of the bankruptcy petition in the current case. It does not run from the date of discharge.

There is a similar provision, although it is specific to Chapter 7 discharge within six years of the filing of the Chapter 12 or Chapter 13 bankruptcy. The time measurement is performed the same way, but there is an exception found in B.C. 727 (a)(9) if all or a vast majority of the allowed unsecured claims were paid.

If you are filing bankruptcy for any other reason and are not concerned with discharge, do not let these restrictions fool you. The only apply to prohibit a discharge in bankruptcy.

If you are concerned about a prior bankruptcy filing and how it will affect your current debt resolution or bankruptcy plans, there is no reason to guess about the reading or application of these statutes. Representation by a quality bankruptcy attorney is not only a good decision, but it is affordable. You can schedule a free consultation and let a really good bankruptcy lawyer deal with a very serious and unfamiliar, at least to you, issue. GET FREE HELP TODAY.

Do I Need to be Flat Broke in Order to File Bankruptcy?

Posted on May 2, 2013 by Staff Writer

No, you do not need to be completely broke in order to file bankruptcy. In fact, most of our Arizona bankruptcy clients have jobs and many own homes. You don’t need to be living under a bridge or in a park to qualify for bankruptcy. Regardless of how much or how little money you make, you can file bankruptcy. Additionally, regardless of how much or how little debt you have there will be a chapter of bankruptcy right for you.

When we meet with a potential client, we look at salaries and income to analyze them for determining eligibility under the means test. Most of our clients qualify for eliminating their debts with Chapter 7 bankruptcy. Those who do not qualify for Chapter 7 bankruptcy because they make too much money can still seek relief under Chapter 13.

Bankruptcy relief is available to anyone who is over-burdened by their debts and has difficulty paying them. So even if you have a regular, steady job and are earning healthy a healthy salary you can still seek bankruptcy relief. For many Arizonians bankruptcy is the only realistic way out of their stressful financial situation.

Additionally, most assets are protected by exemptions. So even if you own a home, car, and 401k we can most likely protect them. Take the first step in tackling your serious debt problems by meeting with one of our skilled Phoenix bankruptcy attorneys.

People Cashing in Retirement Savings Just to Pay Living Expenses

Posted on February 14, 2013 by Staff Writer

CNBC recently aired a report about a new study that found that one in four Americans are withdrawing from their retirement savings in order to pay their monthly bills. And for most of those people, the retirement savings account isn’t very abundant to begin with.

Financial advisory firm HelloWallet conducted research by analyzing consumer finance data from the Federal Reserve and the U.S. Census Bureau. The study found that people were either cashing out their savings before retirement — paying substantial penalties and taxes — or forfeiting them to loans. More than $70 billion is pulled out of 401(k)s for non-retirement needs each year. Data shows that penalized withdrawals increased from $36 billion to about $60 billion between 2004 and 2010.

Living expenses such as mortgages or rent, credit card debt, health care and college tuition are bills that are being paid with funds that are supposed to be earmarked for retirement. Surprisingly, the study found that only eight percent of those who are living off of their retirement savings are doing so because they have lost their jobs. The study concluded that 75 percent of those who make early withdrawals do so because they lack basic money-management skills.

CNBC’s financial expert Suze Orman raises the question of what people will do in the future, when they do retire. “If they cannot pay their bills while they have a paycheck coming in, how do they think they’re going to pay those exact same bills later on in life when they no longer have a paycheck coming in?”, says Orman. “It makes no sense in any circumstance to take a loan from a 401(k).”

Research by AARP shows that in 2012, people 50 years old and up carried credit card debt of $8278 while people younger carried debt of $6,258. Financial experts recommend that by age 35, you should have at least a year’s salary in your 401(k), three times your salary by age 45, and by the time you reach 67, you should have eight times your salary saved. They also recommend an emergency fund equal to three months of your salary.

If you are struggling trying to pay your bills, and are thinking about tapping into retirement savings, you should consider talking with an experienced Arizona bankruptcy attorney to find out what your options are.

Filing Bankruptcy as an Individual

Posted on May 19, 2012 by Staff Writer

In Arizona, depending on the type of debt that you have, it is possible to file for bankruptcy as an individual even if you are married. You are not required to file with your spouse, although it is recommended that you speak to a knowledgeable bankruptcy attorney who can inform you of possible consequences and benefits to determine whether it is in your best interest to file separately, jointly, or not at all.

In Arizona, most assets that you or your spouse earned, as well as most debt that was acquired by either party is considered community property or community debt. Any debt or assets that are acquired before or after the marriage are not considered part of the community debt or community property. An Arizona bankruptcy attorney can help you determine what is legally considered community property or community debt in Arizona.

If you and your spouse have joint debts and you file on your own, your spouse’s credit rating may be affected. However, without joint debts, your spouse’s credit rating can remain unaffected by bankruptcy. Your bankruptcy will prevent you from co-signing on future financial obligations with your spouse for several years.

The spouse who isn’t filing does not have the protections that bankruptcy can offer; not only is there the possibility of losing community property, the spouse who doesn’t file may still be responsible to pay joint debts. Because things like a house or a car can be considered joint property, it can be required to be used to pay for community debt. Even if you file for bankruptcy without your spouse, they have the risk of losing such community property to pay for debt. Joint debt is debt that has been agreed by two or more individuals, and each party can be held responsible to pay 100% of the debt if another party refuses. This may not be a problem if your spouse’s credit is in good standing, however if they have acquired large amounts of debt, could create a problem.

It is possible to file for bankruptcy without the help of an Arizona bankruptcy lawyer; however it is in your best interest to consult an attorney to discuss the best financial options for you and your family. Contact a Tuscon, Arizona bankruptcy lawyer today for advice on how to best handle your bankruptcy case.