Answers to Frequently Asked Bankruptcy Questions
A wife could purchase a husband’s solely-owned using only her funds (i.e. not using any joint funds or co-mingled marital funds).
If she became the sole owner of the home, then that home would not be included as an asset in a husband’s bankruptcy case.
But it is unlikely the transaction would be ‘clear sailing.’
When a foreclosure occurs because a loan is in default, the foreclosure lawsuit and ultimate sheriff’s sale “strips” the mortgage(s) from the property, either by paying it off in full or part from the sale proceeds (or in the case of second and third mortgages, by paying a percentage or perhaps none at all).
This is done so that any new purchaser of the property can take ownership free and clear without any encumbrances.
Absent a signed reaffirmation agreement, the debt on the vehicle is discharged once a Chapter 7 Bankruptcy is approved by the Court.
Usually, past due or delinquent taxes are paid through a Chapter 13 Bankruptcy plan.
An emergency Bankruptcy filing — or “skeleton petition” — is the filing of a limited number of the required bankruptcy forms, as compared to a complete schedule and petition.
Within 14 days after filing the emergency petition, the balance of the schedules must be filed with the Court.
Yes, small claims judgments typically are discharged upon the completion of a Bankruptcy case.
A review of the true nature of the relationship a person has to another’s checking account is in order to determine how that account might be treated under a Bankruptcy filing.
The creditor should repay the money garnished, as the garnishment is a violation of the automatic stay imposed by the bankruptcy filing.
But when the cash is returned by the creditor, the money becomes property of the bankruptcy estate (unless it is exempt) and can be used by the trustee to pay the debtor’s creditors.
Technically, reaffirmation agreements are available only in Chapter 7 Bankruptcy cases.
However, in a Chapter 13 case, if a debtor wishes to retain property that is secured by a loan that is current, the Chapter 13 plan can provide that the loan will be paid through (or outside of) the plan.
In general, the full payment of the Chapter 13 Bankruptcy Plan should signal a final resolution of the case — unless the debtor’s income has increased significantly.