Shelly Crocker's Answers

Debt

We did away with "debtor's prison" in the 1700's in this country, but every so often, creditors do try to find a way to bring criminal charges against debtors. I was shocked to read in last week's Puget Sound Business Journal that the Washington State Department of Revenue has recently charged a restaurant owner with theft for failing to pay sales taxes. The Fair Debt Collection Practices Act prohibits a bill collector from making untrue claims in an effort to collect a debt. If you are...

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Car repair before filing bankruptcy

If it isn't obvious from what has been said, if you are paying cash, these expenses should be fine and will not likely create any problems. Keep receipts just in case the trustee wants to see them. If you charge these on a credit card, after you have begun planning for a bankruptcy, it could be construed as a nondischargeable constructive fraud, and that could be a problem. You cannot intentionally incur debt that you know you will not pay in advance of a bankruptcy filing. Hope this is...

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We have business debt that forcing us to file of chap 7. Will we required into a payment plan ? or just liquidate our assets?

One thing the prior answers overlook is that a "business debtor" can often qualify for Chapter 7 relief even if they earn too much to be a "consumer debtor." If the deficiency is your primary obligation, and it totals more than half of your total debt, you could qualify to be a "business debtor" and you can use a Chapter 7 case to liquidate your remaining non-exempt assets and receive a discharge. In that case, you would not have to make payments of your future earnings. I would urge you...

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Will they take my house away?

Without knowing the exact circumstances, including the value of your property, the size of the mortgage, and your ability to make payments, no competent lawyer would answer this question. You would need to consult with a bankruptcy lawyer in person and answer these and other questions first. In general, bankruptcy does not always mean you will lose your house. Most states allow you to claim a “homestead exemption,” and keep part of the value in your home. If your equity is less than...

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Business bankruptcy affect personal assets?

Most small business owners are required to sign personal guarantees for credit from their bank, their landlord, and other creditors. A business bankruptcy will not eliminate these personal guarantees, and in fact, will probably cause the creditors to come after the individual owner. In addition, there are some debts which owners are personally liable for, such as payroll and certain taxes, and a business bankruptcy will not alleviate those debts either. Generally, insolvency counsel for a...

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Real Estate Fraud with Quit Claim Deed

It sounds to me like you have been the victim of what's known as a foreclosure rescue scam. These have been proliferating in Washington state and around the country. My lawfirm, Resolve Legal, does take on these types of cases. Another attorney in town who probably has handled more of them than anyone is Melissa Huelsman. You will most likely have to start a lawsuit againt the mortgage broker to reverse the damage that's been done. You may also consider contacting the Washington State...

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Would Home Equity Line of Credit be discharged in a Chapter 7 bankruptcy

The deficiency portion of a home equity line of credit would generally be dischargeable, but the creditor would be able to take action against the house to collect on their debt. In general, debts secured by residential real property must be paid or the creditor can foreclose. If you have already had a foreclosure, or if you lose the house in your Chapter 7, then the remaining amount due is usually discharged. Sometimes, a creditor can bring a lawsuit to prevent the debt from being...

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Have lawsuit against me for credit card dept.

Under Washington law, the homestead exemption is $125,000. Generally, that means that up to $125,000 of the equity in your home is protected from your creditors, including those who file lawsuits.

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Collections limits

The statute of limitations for debts arising out of a written contract is six years under Washington law. Udner the Fair Debt Collection Practices Act, it is illegal for a bill collector to give you false information pertaining to a debt in order to try to collect. I have not researched whether this might fall in that category, since the statute of limitations is what is known as an affirmative defense that you are required to raise. You may want to try writing the agency and telling them...

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Credit reporting regarding bankruptcy

There have been an increasing number of instances where credit reporting agencies show the debt as charged off or sent to collection, when in fact it was discharged in bankruptcy. Even after the discharge, the debt will be shown, but the credit report should reflect that the debt was discharged. I agree that consumers must be extrememly wary of "credit repair." It is a fairly straight forward task to write the three credit reporting bureaus and request that they correct a particular entry....

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