money sectionmoney sectionSince the definition of reaffirmation of a loan is an agreement by the debtor who declared bankruptcy to continue paying the debt, by definition, you can't reaffirm a mortgage prior to a bankruptcy. A reaffirmation agreement is part of the bankruptcy process that removes the loan from the debts for which you’re no longer responsible and makes you liable for any balance.
Creditors often turn over accounts that are past due to collection agencies for collection on the debt. Although a collection agency is a separate entity, it works on behalf of the creditor. If it appears as though the debtor is not going to voluntarily pay the debt, the creditor may file a lawsuit. In Kentucky, a creditor may be able to attach a lien on personal property prior to obtaining a judgment. A judgment is automatically attached after the creditor obtains it. Bankruptcy may temporarily protect the property from enforcement of the judgment.
Filing for a bankruptcy is a problem that may result from high debts, job loss, medical emergencies or other financial problems. You might wonder about the possibility of selling a home or property before bankruptcy to avoid losing the home to foreclosure or to pay back creditors. Though bankruptcy laws do vary by state, there are ways to either keep the house or sell the property before a bankruptcy.
Consumer credit counseling is required prior to filing for Chapter 7 bankruptcy. This requirement was added in order to reduce perceived abuses by debtors in federal bankruptcy filings. Payment of a course fee may be required. Some credit counseling agencies will waive their fees when petitioners have low incomes or other hardships. A directory of approved bankruptcy credit counseling providers for Arizona petitioners is available online at the U.S. Courts website. Many of the approved credit counseling agencies offer their credit courses online.
People often want to transfer their assets before beginning a bankruptcy proceeding, so that they can protect certain of their most valuable assets from repossession or sale by the bankruptcy trustee. However, most types of property transfers are frowned upon or outright illegal under bankruptcy law. They can lead your case to be dismissed at best, and at worst can leave you open to charges of fraud, perjury, or contempt of court. There are a few ways to safely transfer property and assets; however, they should be employed very cautiously, since the court will not look kindly on your case…
An individual retirement account, or IRA, carries income tax benefits. Even when in bankruptcy, it is important to continue making contributions to your IRA. An IRA is considered "exempt" property from a bankruptcy proceeding and is not part of the estate used to pay creditors.
There are two types of personal bankruptcy under the United States Bankruptcy Code: Chapter 7 and Chapter 13. Both types of bankruptcy will potentially discharge any pre-bankruptcy debt. However, if you have sold or purchased any new assets--such as a car--within a year of filing for bankruptcy, that money or asset could potentially be included in your bankruptcy. Purchasing a new vehicle immediately prior to filing for bankruptcy can be risky, but is possible if you follow a few precautions.
When you file for personal bankruptcy under the United States Bankruptcy Code, there are certain types of assets that can be "exempt" from being included in your bankruptcy estate. Exempt property cannot be touched or sold during your bankruptcy plan. Exempt property is especially important in a Chapter 7 bankruptcy. A Chapter 7 bankruptcy liquidates your estate in order to pay creditors. If you file for bankruptcy, you can file a motion to exempt your IRA account from the bankruptcy.
Dissolving a Limited Liability Company (LLC) is actually fairly easy. However, you will not be able to file a bankruptcy for an LLC after you file a dissolution; you may only do so as an individual if needed. If you are trying to discharge any debts the LLC has, you may file a bankruptcy and then use the insolvency as grounds to terminate the entity. On the other hand, depending on which type of bankruptcy you file, you may be able to continue operations even after filing a bankruptcy.
There are two major types of consumer bankruptcy that people may file when overwhelmed with too much debt. Chapter 7 bankruptcy allows legal forgiveness of almost all debts, with some exceptions such as most student loans and child support. Chapter 13 is a debt repayment plan where consumer debts are restructured and in some cases lowered. There are limits on how often people can file bankruptcy, depending on what type of case they pursue.
