Jeffrey Phillip Mathias's Answers

Bankruptcy or not? Credit card debt out of control and got worse when credit was cut and interest rates went out the roof!

Bankruptcy is a last resort. So if you have a good option you should take it. Some people do succeed in debt repayment plans. If you try one I suggest doing it with a local non-profit credit counseling service. If you can go into a local office and see someone face to face you are less likely to have problems. Whatever you do, avoid the national debt settlement companies. I've had many clients come in who tried debt settlement. They made many payments but few if any debts were settled...

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Under the new bankruptcy law an IRS debt can be forgiven. How does that work and what happens if you did not file?

Discharge of tax debt is determined by type of taxes, how old they are and if the returns were filed on time. Here is the deal Sparky: If all four answers are YES the taxes should be dischargeable. 1. Are they income taxes? 2. Was the tax return due more than three years ago? (returns are due on April 15th of the following tax year) 3. Was the return filed more than two years ago? 4. Was the tax assessed by the IRS more than 240 days ago? (see your tax transcript) Note-...

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After chapter 7 can my truck be repossed?

Your friend needs to contact her bankruptcy attorney and tell them what is going on. Once someone files bankruptcy they are protected by the automatic stay. Creditor collection efforts are limited by the bankruptcy code. In particular, they need to move for relief from the stay before they can pick up a vehicle. However, if your friend simply can not make the payments even the bankruptcy court will allow the creditor to pick up the car. If your friend owes more than the vehicle is worth...

I was left money in my great uncle's will. Can creditors take this money?

The usual approach creditors take is to sue, get a judgement, usually by default, and then clear out your bank accounts. Next they garnish your wages if your state allows wage garnishment. Some income like social security is exempt from garnishment. You would want to talk to an attorney in your state to see if there is a way to protect the inheritance, but what you describe is a common "triggering event" for people who file bankruptcy.

Can bankruptcy affect the disbursement of current student loans accepted prior to filling for bankruptcy?

I've filed cases for many students receiving loans over the years and have never had a client experience the problem you describe. Sometimes clients have just received a large loan and have the cash on hand when filing, which can complicate the filing, but I've never had any trustee even inquire about future disbursements. To be safe you should ask your student loan office about whether bankruptcy might affect future loans and of course discuss the issue with your local attorney as local...

I am a merchant who will be going bankrupt within the next 2 months and was thinking about taking out a merchant cash advance...

Some debtors do try to "load up" on debt before filing bankruptcy. Debt acquired through loading up often is not discharged. Worse, if the amount is high enough, the debtor may lose their discharge completely and could even be prosecuted for fraud. For most people that means it is best to avoid cash advances and balance transfers before filing bankruptcy. You certainly should not do any sort of cash advance. Debtors who have had large credit card use before filing should discuss it...

Can all the unsecured debt be erased by filing bankruptcy?

Most debtors file bankruptcy to discharge credit cards and medical debt. Most credit card debt is discharged. The most common exception is loading up. Loading up involves large credit card usage, usually cash advances and/or balance transfers prior to filing bankruptcy. The last 90 days before filing is the most crucial period. Medical debt is also discharged. Student loans are normally unsecured too but normally are not discharged. In most jurisdictions the debtor needs to show...

My wife is planning to file bankruptcy to get rid of her debt. Will it affect our house...

Although Chapter 7 bankruptcy is often called "liquidation", for most debtors that does not include the family home, because it is exempt. Exempt assets are those you get to keep because they are needed to go forward with your life. Florida is famously one of the states with an unlimited homestead exemption although there are exceptions for homes recently purchased even in Florida. So if you are wondering why so many affluent people have a home in Florida it is because of the unlimited...