Thursday, December 29, 2011

True or False – Some Bankruptcy Q & A

In these difficult economic times, with unemployment still hovering just under 9%, people at all levels of the economic ladder across the U.S. are considering Chapter 13 or Chapter 7 bankruptcy protection. While bankruptcy may be an excellent option for you to extricate yourself from your financial miasma, do not consider filing bankruptcy without the services of an experienced and knowledgeable bankruptcy attorney from Macey Bankruptcy Law at your side. For a very reasonable fee, lower than many other firms, we will take you from filing to completion of your case. Call us toll-free at 1-800-260-1402 for your initial, free mini-consultation with a caring and skilled member of our staff.

Following are a few myths about bankruptcy:

•    When I transfer my property to family members or friends, can I get it back when I am done with bankruptcy?

Don’t do this! If you purposely transfer anything you own, your home, vehicles, stocks—anything, you will be perpetrating fraud. You may very well be exposing your relatives to a lawsuit in your bankruptcy case. Furthermore, the bankruptcy trustee can “look back” several years, depending on the state, after any property was transferred. If you absolutely must sell your property, make sure that you receive fair market value for it and be sure to check with your attorney from Macey Bankruptcy Law should you decide to do so.
•    Should I use my credit card’s available balance before I file bankruptcy since it will be discharged anyway?

Your entire credit card balance may not be eliminated by your Chapter 13 or Chapter 7 bankruptcy filing. If you use your credit cards with no intent or ability to pay the balance, if you are purchasing luxury items or if you have transferred the balance, you may still be responsible for paying the entire credit card bill. Again, this could be fraud and can lead to the debt being non-dischargeable. A better idea is to stop using your credit cards and call your Macey Bankruptcy Law attorney for reliable advice at a reasonable price.

•    Should I cash in my IRA and 401(k) to avoid filing bankruptcy?

This is probably not a good idea. Your IRA and 401(k) plans are among the most important items to be protected in your bankruptcy proceeding. Normally, even if you emerge with nothing else in your bankruptcy, your retirement accounts are protected. Your 401(k) plan and most other retirement plans are usually exempt from creditors, depending on your state. It is far better financial planning to eliminate debts you can’t afford to pay through bankruptcy, which would allow you to preserve your retirement assets.

•    Should I stop paying my mortgage and other secured creditors since I am filing bankruptcy?

It is probably a bad idea to stop paying your secured creditors, such as your mortgage and car loans, since your debt to these types of creditors must be paid to keep the property. In a Chapter 7, the debt will normally survive bankruptcy; the creditor can take the secured property or you will have to “reaffirm” the debt and continue paying according to the original terms of the secured contract. In a Chapter 13, you will generally need to pay the back-due amount through your court-approved repayment plan and continue paying the amounts due in the future to keep the property. These are very complicated issues. It is vital that you speak with your bankruptcy attorney from Macey Bankruptcy Law. They are familiar with all aspects of Chapter 7 and Chapter bankruptcy law and will advise you accordingly. Please do not make any decisions regarding your bankruptcy without the advice of your attorney.

•    If I file for bankruptcy, will my child support and/or alimony payments be eliminated?

No. Whether you file a Chapter 7 or a Chapter 13 bankruptcy, you must still pay your child support and/or alimony obligations. Your children are not disappearing and neither are your obligations to take care of them. In addition, in a Chapter 13 if you are not up-to-date on your alimony or child support obligations you will not receive a discharge from any of your debts. Again, do not proceed without the solid and compassionate advice of your Macey Bankruptcy Law attorney.

Whatever the reason you are experiencing crushing debt; unemployment, underemployment, divorce or medical emergencies, the skilled bankruptcy attorneys from Macey Bankruptcy Law may be able to help you like we have helped hundreds of thousands of other Americans get relief from financial difficulties. We have over 100 law offices across the United States so we have the collective knowledge, experience and vitality to get you the help you need to file your Chapter 13 or Chapter 7 bankruptcy. We answer our phones Monday thru Saturday and Saturday so you can talk to a skilled representative when you want to, not just 9-5! Please check out our new, easy-to-navigate website www.maceybankruptcylaw.com. The site is user-friendly, interactive and will answer many of the questions you have about filing your Chapter 13 or Chapter 7 personal bankruptcy.

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