BANKRUPTCY

Bankruptcy is the statutory procedure that can be used when you cannot pay your financial obligations as they become due. A bankruptcy proceeding is usually filed in federal court. When a bankruptcy proceeding is initiated, your current debts will be valued and you will either pay your debts over time (or a portion of your debts) or give up certain nonexempt assets to be liquidated in return for the cancellation of your financial obligations.

You should consider filing bankruptcy when you cannot pay your financial obligation or when there is an event that makes the future payment of your bills unlikely. For example, bankruptcy can be considered when there is an illness, accident, or loss of employment that compromises your financial situation. Further, when a judgment is entered against you, bankruptcy may be used to stop the creditor from attaching or interfering with your assets or wages. E-mail or call Jeffrey S. Posin & Associates at (702) 897-5870 so that we can evaluate your case and let you know if bankruptcy is appropriate for you.

Please note that filing for bankruptcy and even receiving a discharge from bankruptcy may not release you from all obligations. There are some debts that are not dischargeable under the law. Therefore, you may be responsible for such debts, including, but not limited to certain taxes, student loans, alimony and support payments, long term secured obligations, debts fraudulently incurred, debts for willful and malicious injury to a person or property, and debts arising from a drunk driving judgment.

Also, taxes are usually given priority and are difficult to erase completely. A bankruptcy may initially stop the collection process, but may not eliminate the obligation to pay the taxes.

One of the negatives of filing a bankruptcy is that future lenders may consider your bankruptcy when they are making a decision as to whether to loan you money or issue credit to you. There are laws that exist to prevent unlawful discrimination due to your filing for bankruptcy. The fact that you have filed for bankruptcy may appear on your credit history for 10 years or longer in many cases.

There are many different types of bankruptcy. The types of bankruptcies are divided into chapters. The four most common Chapters are 7 and 13.

Filing for bankruptcy and determining which chapter to file under can be complex. By retaining the attorneys at Jeffrey S. Posin & Associates, you will be providing yourself with experienced professionals who can help you through a process that can otherwise be very difficult and confusing.

When you file a bankruptcy petition, you will be required to prepare several forms that list all of your assets and liabilities. You will be required to disclose your current income and expenses. You will be required to answer numerous questions regarding your financial affairs and condition. You will have to account for any transfers of your assets that you have made within the year preceding your bankruptcy filing.

After the Bankruptcy Petition is filed, a bankruptcy trustee, particularly in Chapters 7 and 13, may be appointed to administer your case. If a trustee is appointed, the trustee is placed in legal possession and control of the Debtor's assets.

You are required to provide all of your creditors with a form that contains notice that you have filed for bankruptcy. In addition to giving your creditors notice of the bankruptcy filing, the form advises your creditors of certain things that they may not do during your case and will also advise them of your 341 Meeting. At the 341 Meeting, the Assistant United States Trustee conducting the meeting with ask you (the Debtor) a series of questions under oath, and will request that certain written documents be provided, such as proof of insurance, copies of bank statements, copies of your last federal tax returns. The meeting may also include the election of a trustee or of a creditors' committee. Any interested party may appear at the meeting of creditors and ask questions of the Debtor relating to your assets, financial conditions, and conduct of business.

Chapter 7 | Chapter 13