I am a cosigner for a debt, how does bankruptcy affect my obligation?
If the debt is a dischargeable debt then you will not have to pay it. However, the cosigner will become primarily responsible for the debt. Be sure to list the co-signer as a creditor in your schedules as they have a contingent claim against you.
Depending upon which exemption scheme is selected and your circumstances, you may exempt up to $100,000 in equity. When calculating your equity you should use a value that is based upon a forced liquidation as opposed to the best selling conditions to arrive at a value for your home. Once you know the value, subtract the amount owed plus selling and transfer costs from the value to calculate the equity. In the depressed California market, liquidated properties are often valued less than what we like to think the property is worth.
Can I keep my credit cards after bankruptcy?
Under some circumstances you may keep your credit cards.
There are many factors which must be considered. Some of
those include the credit card balance at the time of the
bankruptcy, what the credit card company is willing to do and
your ability to pay the present and future credit card
debt.
Will I lose my job?
No. Bankruptcy laws prohibits discrimination based upon a
debtor filing for protection under the bankruptcy laws.
Can I go to jail if I file bankruptcy?
No. There are no debtor's prisons in the United States.
Will my employer find out about my bankruptcy?
Under normal circumstances, unless your employer is a
creditor, your employer will not know.
Will bankruptcy stop a wage attachment?
Yes.
Will bankruptcy stop a judgment?
Yes. Most civil judgments are stopped by bankruptcy.
Will a bankruptcy remove a lien?
Under some circumstances once the bankruptcy proceedings
have started, special motion can be filed to remove certain
liens. It will take a bankruptcy court order to remove them.
This is a complicated area of the bankruptcy law and an
attorney should be consulted. >
Will bankruptcy stop an eviction action?
Perhaps. However, this will only delay the inevitable. The
owner is entitled to possession of his property and at best
you will be able to remain in the property until you have
received your discharge from bankruptcy or the landlord
obtains an order from the bankruptcy court. I must caution
you that if the only reason you filed the bankruptcy is to
stop an eviction then this might be considered an abuse of
Chapter 7. If the bankruptcy court finds that this is true
then the court can immediately dismiss the bankruptcy and
impose other legal and monetary sanctions on you.
Will bankruptcy stop a foreclosure?
Yes. However, a home is an asset usually secured by a deed
of trust. The mortgage company is entitled apply to the court
for relief from the automatic stay, the order preventing
creditor action by virtue of the bankruptcy. Depending upon
several factors, you may be able to prolong a foreclosure
until you have received your discharge from bankruptcy.
Usually, to keep a home that is in foreclosure you will have
to make a deal with the note holder.
I am divorced, will bankruptcy wipe out my obligation to
pay community debts?
In general, you will be discharged from all dischargeable
community debts. However, you should discuss this with your
family law attorney to understand the other implications of
the filing of a bankruptcy during the litigation of a
dissolution action (divorce case). Also, remember that if you
are discharged from community debts, your spouse is
responsible for the entire balance owing on the debt. Put
another way, they shift the responsibility on to you.
Are there any debts that I can't wipe out in
bankruptcy?
Yes, there are certain debts that are NOT dischargeable in
bankruptcy. Generally speaking, the following debts will not
be discharged: Taxes; Spousal and Child Support; Debts
arising out of willful misconduct and or malicious misconduct
by the debtor; liability for injury or death from driving
while intoxicated; non dischargeable debts from a prior
bankruptcy; student loans and criminal fines, penalties and
forfeitures. Those debts which are secured will be
discharged, however, expect the creditor to take the
necessary legal steps to take back the property. In most
cases if the debtor's equity interest in the property is
exempt, the debtor may retain the property by redemption or
reaffirmation.
