After a judgment has been obtained against you for a debt owed, the court may require your presence at a post-judgment hearing in order to determine based on your financial situation your ability to repay the debt owed. If you fail to attend such a hearing, a civil warrant (also called a capias) may be issued for your arrest. In Massachusetts, these notices are usually bright in color and require your presence as the debtor before a deputy sheriff at the local court on a designated date and time. When you appear, you may tell the sheriff if you plan to file for bankruptcy. By doing so, the creditor will get notice of your intent to file bankruptcy and discharge their debt. The creditor will also get the chance to learn more about your financial situation through the sheriff’s examination, but any further actions to attach your property or wages would first have to be allowed by a court order. Because local law as regards civil judgments varies widely from one jurisdiction to another, first consult a qualified bankruptcy practitioner in your jurisdiction before proceeding further.
June 22nd, 2009 by Administrator
Adding a debt to your bankruptcy petition should be allowed prior to the closing of the case, but such post-filing motions will result in additional costs. In the District of Massachusetts, each additional debt added to the petition post-filing has a $26.00 fee. This is why it is always better to get all three agency credit reports if possible, so as to ensure that the list of debts is as comprehensive as possible. Still, additional debts only known of (not incurred) after filing may be added through a motion to amend with service upon those and other creditors and the trustee. Do consult first with the attorney filing your petition in your jurisdiction, as the additional work would usually not be covered by a standard fee agreement and may result in additional attorney fees depending on the amount of additional debt declared.
June 17th, 2009 by Administrator
The life insurance policies offered through employers are usually term policies with benefits payable only upon the insured’s death. Thus, the amounts of such life insurance policies are exempt and not subject to seizure in a bankruptcy. Anything else with a present cash-out value is a whole policy and may be a nonexempt asset. The good news is that amounts presently available in a retirement plan (pension or 401k) receive an unlimited federal exemption and cannot be seized to pay creditors. Your life insurance agent can inform you whether you in fact have a term or whole policy and because state law would also vary as to exempt amounts, definitely consult a qualified bankruptcy attorney in your jurisdiction as regards the exemptions you may receive for your accounts.
June 10th, 2009 by Administrator
