I want to claim Bankruptcy but I was told the judge will make me payback all my debt with my income tax return, but I was planning on using the money to hire my lawyer to do the proceedings. Can someone let me know if this true and what is the process for filing bankrupt?
2007-01-17 03:40:34 · 6 answers · asked by SALLY 2 in Business & Finance ➔ Personal Finance
I would try a credit counseling service before bankruptcy. These people will negotiate with your creditors to drop interest and lower your payments. They are listed in the phone book. Bankruptcy will stay on your credit report for 10 years.
2007-01-17 03:49:33 · answer #1 · answered by pinball 3 · 0⤊ 0⤋
Attorney's fees for the bankruptcy are considered in the settlement. You are liable for all transactions within 90 days (including atty's fees). Cash and your assets will be sold off to settle debts outside the 90 days, and what has been incurred within the 90 will be reversed, reclaimed, or will be restructured for payment. Most people think that their debt just goes away when they file, and most of it does, but you will still have years of payments to make to settle the bankruptcy. Think this over, because it is literally 7 years of no financial freedom.
2007-01-17 11:53:57 · answer #2 · answered by none 3 · 0⤊ 0⤋
Depending on the state you file your bankruptcy in, you may be able to claim a portion or all of your tax refund as exempt (the trustee cannot take it to pay back your creditors). You may want to check with a local attorney to find out what your personal property exemption would be.
2007-01-17 22:47:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you truly think that bankruptcy is the only way, you need to speak with a lawyer about this.
2007-01-17 11:44:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
well first off, once you claim bankruptcy, the government pretty much owns you for 7 years.... yes, they can take whatever money they would like, what state are you from? that would help people, because here where i live you do not have to pay bak your "bankruptcy", just you will be credit depleated for 7 years.
ask your lawyer then if you already have or are getting one, he would like to know too im sure.
2007-01-17 11:49:52 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Don't file bankruptcy until you read this:
http://worknearn.niesong.hop.clickbank.net/
it might change everything for you.
2007-01-17 20:12:52 · answer #6 · answered by worknearn 2 · 0⤊ 1⤋