Shane T Anderson's Answers

Affect on record

You can immediately begin repairing your credit after filing a bankruptcy petition. A bankruptcy can stay on your credit report for as long as 10 years, but you can still borrow money for a home during that time. For example, if you have filed for bankruptcy but have subsequently landed a good paying job (or married someone with a high income), then a lender is more likely to provide the financing you need for a home. Keep in mind, however, that your interest rate may be higher than someone...

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Co-signing a loan

As a co-signer, you are liable for the loan. If the vehicle is repossessed and sold for less than the loan amount, then the lender can come after you for the "deficiency" amount. The deficiency is the difference between what you owe and what the automobile was sold for. You should contact the lender to find out the status of your friend's account.You should also check your credit report to make sure that a loan deficiency has not been reported to one of the national credit reporting agencies (...

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Collections

If the debt is owed, then a creditor can assign the debt to a collection agency. Creditors typically use collection agencies as a last resort though, after previous collection attempts have failed. The actions of the collection agency and credit reporting in general are governed by state and federal laws intended to protect consumers. So, you do have many legal rights when a debt has been sent to collections.

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Debt collection notice on debt already paid

Debt collectors are governed by the Fair Debt Collection Practices Act (FDCPA). I would help your son send a "cease communication" letter to the collection agency telling them the debt has been paid and attaching a copy of the receipt. Send it certified mail with return receipt requested. Ask them to validate the debt. If the collector fails to validate the debt and continues its attempts to collect, your son has two FDCPA violations by the collector. FDCPA violations allow for attorney...

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Affect on credit rating

While a bankruptcy can hurt your credit score in the short term, it gives you a "fresh start" so that you can build up your credit over time. Debts that are not paid off or dealt with in bankruptcy can be even more damaging to your credit rating in the long run.

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Can I lose it all

Most bankruptcy (BK) filers can keep all of their personal property as "exempt property." With real property and luxury personal property (e.g, boats, vehicles, lots of cash) it really depends. In a Chapter 7 BK, the amount of property you keep is based on federal or state exemptions. You pick one or the other depending on which is more favorable for you. In Washington state for example, you would elect the WA state BK exemptions if you have alot of equity in your home because federal BK...

Credit card debt

The bankruptcy laws for student loans are quite complex, and you should seek the advice of a bankruptcy attorney if you are contemplating bankruptcy. With that said, student loans are generally not dischargeable unless you can prove "undue hardship." The standard for proving undue hardship is very high, but can vary depending on the county where you file for bankruptcy.