Bankruptcy is definitely not one size fits all, and even these days some people might find themselves in circumstances in which they would be better off considering alternatives to bankruptcy in spite of their financial situation. Immigrants still awaiting naturalization are one group discussed before. Bankruptcy is not a crime, as a client has asked, but financial insolvency can be cause for a denial of citizenship rights. Another group would be those with credit in good standing but still having debts they are incapable of paying off. While a discharge would relieve them of such debts, perhaps an alternative to a bankruptcy filing such as private credit consolidation or creditor negotiations for repayment terms might allow them to continue their good credit. Also, as with immigration applications, employers might view a bankruptcy filing on a candidate’s credit history as reflective of poor character. However, more often than not employers regardless of their size or authority would prefer a bankruptcy filing, legal insolvency, to bad credit which can be considered a security risk, particularly by civil service employers. The best person to make a determination whether a bankruptcy filing is right for you using your state’s laws would be a qualified practitioner in your area.
July 10th, 2009 by Administrator
One of the questions a bankruptcy trustee usually asks during their examination of the debtor is “Does anyone owe you money or is there any money you believe you are entitled to?” The answer to this question would be “yes” if the debtor has a personal injury case pending. Personal injury claims are usually pursued by attorneys on a contingent fee basis, meaning the attorney gets paid a share of any amounts recovered. Potentially, an injured party might not get any money from a claim even after filing suit. However, even claims considered to be in an initial settlement stage can have a monetary value. The attorney handling the claim would have at least a minimum value they believe the claim is worth in order to be working on it. The debtor’s bankruptcy attorney can list such a claim as a contingent, unliquidated (lacking a particular monetary value amount) claim of the debtor. The personal injury attorney can provide a statement for use by the bankruptcy attorney indicating the estimated value of such a claim. The bankruptcy trustee will then be aware that such a claim may in a matter of time result in a settlement/judgment awarded to the debtor’s estate. Discuss any claims you may have first with the personal injury attorney handling them and then clarify such a claim’s effect on a bankruptcy filing with a qualified bankruptcy attorney in your jurisdiction.
July 8th, 2009 by Administrator
It is commonly known that student loans are non-dischargeable debts in a bankruptcy filing, but what might raise more questions are unsecured educational debts. Outstanding balances owed for day care and private schooling through the secondary level may be discharged through a bankruptcy filing, as they are not federally-guaranteed student loans. Schools receiving notice of their debt on a bankruptcy filing often have questions about the process and whether they may recover the amounts owed. They may find the attorney filing the case to be more helpful than the court, which by law cannot provide legal advice to any parties regarding cases before it. While the attorney should ensure that it is made clear that he or she only represents the debtor and that the creditor should seek the assistance of their own counsel as regards their rights, the attorney can inform the creditor that such a debt is unsecured and subject to discharge by the bankruptcy filing. The creditor may not, as provided in the notice, pursue further contact with the debtor but may appear at the creditors’ meeting, only to question the debtor about potential assets with which to pay the debt, and attempt recovery through their own court actions (motions to avoid stay, etc.) Practically speaking, the only realistic way for a school to guarantee their debt payment is to bar attendance by children of families having outstanding balances.
July 2nd, 2009 by Administrator
