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Questions Answered by Clark Dray
1 Answer | Asked in Bankruptcy for Louisiana on
Q: In LA. 403b=$10K. Loan for $5K. Is prot prop. NOT listed as secure debt w/no objectn. Chap 7. Aft dischrg value 5 o 10K?

Sorry for all the abbreviations above. I tried to get in the essentials as I am not sure if you see this part. I am in LA. & have a 403b worth apx 1OK. I have a loan against it for 1/2 value (5K). I am filing chap7 pro se. It IS a protected asset, but I am not sure about the loan AGAINST it. The... Read more »

Clark Dray
Clark Dray answered on Nov 7, 2019

Your retirement loan isn't a debt that you would list in the bankruptcy, because it's money you owe yourself. The consequence of not paying it is that it can be treated as a taxable retirement disbursement.

2 Answers | Asked in Bankruptcy for Colorado on
Q: What if my lawsuit hasn't been settled and my bankruptcy is still open?
Clark Dray
Clark Dray answered on Oct 18, 2019

I presume this is a continuation of a question about a car accident settlement. The answer is the same - you need to amend your petitions and schedules and inform the trustee about the claim. The situation is somewhat better if you haven't settled yet, because the trustee still has a chance to take... Read more »

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2 Answers | Asked in Bankruptcy for Colorado on
Q: If I was in a car accident and my case is settled and I have an open bankruptcy, should I had reported the lawsuit?

Will the bankruptcy affect my settlement?

Clark Dray
Clark Dray answered on Oct 18, 2019

If the car accident took place before the bankruptcy, your claim became part of the bankruptcy estate and it technically wasn't yours to settle. If you have a bankruptcy attorney, you should bring this up with him or her. If you don't, you should definitely get one right away because there are some... Read more »

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1 Answer | Asked in Bankruptcy for Georgia on
Q: Chapter 7 Bankruptcy question - can i file separate from my family income?

Hello, i was wondering if I could file chapter 7 in the state of Georgia as an independent or single person family household income separate from my family. I am 27, living at home, I do pay for all my own bills and make under the medium household income in the State of GA, which is around 40k and... Read more »

Clark Dray
Clark Dray answered on Oct 17, 2019

There are multiple interpretations of what constitutes a "household" for means testing purposes. Some judges will simply count how many people are living in the domicile, others will just look at your dependants, while others will try and figure out who's part of your "financial unit". My... Read more »

2 Answers | Asked in Bankruptcy and Divorce for Mississippi on
Q: If in chapter 13 jointly with your wife and you get a divorce can you file chapter 7 legally?
Clark Dray
Clark Dray answered on Sep 26, 2019

You'll need to talk to your attorney (or get one if you don't already have one. In many jurisdictions, but not necessarily MI, the first step would be to bifurcate (split in two) your chapter 13 case. Then you and your wife have separate cases. At that point, your attorney can seek to convert your... Read more »

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2 Answers | Asked in Bankruptcy for Colorado on
Q: Can a debtor try to collect a old bill that was discharged in 2012 to get services again?
Clark Dray
Clark Dray answered on Sep 10, 2019

Depends on what type of service. If it's a utility, like Xcel, they can require a deposit. If it's a cable provider or a gym, they don't have to let you open a new account. If I were representing the creditor, I'd probably advise against bringing up the old debt in the discussion of new service,... Read more »

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4 Answers | Asked in Bankruptcy for New York on
Q: I need to file for bankruptcy as soon as possible to stop the sell of my house and I can't afford another attorney

I need step by step instructions to file it and can it be done online

Clark Dray
Clark Dray answered on Sep 6, 2019

It sounds like you may need a Chapter 13, which you really shouldn't file without the assistance of an attorney because there are too many moving parts. Consult this site for information about finding "legal services providers in your area who may be able to assist you with your legal needs for... Read more »

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2 Answers | Asked in Bankruptcy for Utah on
Q: A discharged Ch 7 bankruptcy from 5 years ago. I just received a medical bill from before bankruptcy. Do I have to pay?

I did not know about a medical bill until today. My chapter 7 bankruptcy was discharged about 5 years ago. I listed all known bills when I filed. Do I have to pay the bill?

Clark Dray
Clark Dray answered on Aug 30, 2019

In some states, debts can be discharged even if they're not listed. I would check with a bankruptcy attorney in Utah to find out whether that's the case there. That said, simply sending a copy of your discharge order to creditors tends to make many of them back off, even if they weren't listed.

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2 Answers | Asked in Bankruptcy for Nebraska on
Q: I told my lawyer I didn't want to reaffirm my car loan. Is it too late to change my mind after the bankruptcy is final?
Clark Dray
Clark Dray answered on Aug 26, 2019

This is going to come down to the judge in your case. Some judges don't believe that they have the authority to approve a reaffirmation after your debts have been discharged. Ask your lawyer to find out whether this is the case before you spend the money to reopen (there's a court fee).

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3 Answers | Asked in Bankruptcy for Missouri on
Q: If i owe a somebody filing bankruptcy money, and there is no written contract nor payment arrangement, what can happen

Amount owed is "allegedly" about $40,000. No written contract and no agreement on how to pay the funds back was ever discussed.

Clark Dray
Clark Dray answered on Aug 20, 2019

The bankruptcy trustee steps into the shoes of the Debtor. This means the trustee can sue you for the money. Whether or not he or she does so will depend on whether the Debtor discloses the claim, which he or she must, and whether the trustee thinks he or she could prevail in a suit against you.

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2 Answers | Asked in Bankruptcy for North Carolina on
Q: Hello I did speak with an attorney and was told IRA's are exempt.
Clark Dray
Clark Dray answered on Aug 20, 2019

I believe that this question stems from an earlier one about whether you should move money from your bank account to an IRA prior to filing bankruptcy. There is no question that funds held in an IRA are subject to both federal and state exemptions. My point was that the act of converting a... Read more »

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2 Answers | Asked in Bankruptcy for North Carolina on
Q: I am considering bankruptcy and have money in the bank , should I move the money to an IRA account prior to filing ?

I am considering bankruptcy next year and have money in the bank , should I move the money to an IRA account prior to filing ? I did speak with an attorney and was told IRA's are exempt.

Clark Dray
Clark Dray answered on Aug 20, 2019

No, you shouldn't make any moves like this without first consulting a local bankruptcy attorney. Pre-bankruptcy asset planning is tricky and shouldn't be done without a full understanding of the risks. Certain activities including moving money around can be avoided by the trustee and put you in a... Read more »

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3 Answers | Asked in Bankruptcy for Georgia on
Q: If you file Chapter 7 bankruptcy but not on your home and land could the courts take your property and home and sell it
Clark Dray
Clark Dray answered on Aug 15, 2019

In bankruptcy, you get to retain any assets which are covered by state and federal exemptions. The key to determining whether your home will be safe in bankruptcy is determining how much equity you have in your home (the home's value less any mortgages, liens, etc.) and how much equity your state's... Read more »

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2 Answers | Asked in Bankruptcy for Tennessee on
Q: I had a chapter 7 discharge three years ago. I’m currently in a chapter 13 plan.

I’m having health issues that may cause me to have to quit my job and start disability. This would make it impossible for me to pay my chapter 13 plan and afford to live. Would I be eligible for some type of hardship discharge even though it’s only been 3 years since my chapter 7 discharge if I... Read more »

Clark Dray
Clark Dray answered on Jul 29, 2019

The relevant dates are the filing dates of your two cases. If your 13 was filled it least 4 years after your 7 was filed, you might be able to get a hardship discharge in the current case. If your 13 was filed within 4 years of the Ch. 7 filing, you won't get a discharge in this case.

Talk...
Read more »

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4 Answers | Asked in Bankruptcy and Small Claims for Ohio on
Q: Are you legally required to continue paying charges on a credit card if the cardholder files bankruptcy?

I am not a joint card holder. My name is no where on the account. They just helped me out when I was having money issues and I agreed to pay a monthly amount until the balance was paid off. Now, there is no balance and they keep taking my money even though they no longer owe the amount.

Clark Dray
Clark Dray answered on Jul 25, 2019

I'm sorry, your question it's a little vague so this might not be what you're asking. If you're a joint account holder on the card, your liability isn't discharged by your co-debtor's bankruptcy. This means that they can come after you if you stop paying.

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2 Answers | Asked in Bankruptcy for Wisconsin on
Q: My father was approved for a mortgage but must pay a credit card filled under bankruptcy as closing costs. Is this legal
Clark Dray
Clark Dray answered on Jul 18, 2019

I suspect that they want the credit card paid because it's showing an outstanding balance. Your father may want to consider figuring out which credit report is still showing the outstanding balance and file a dispute so the card shows as discharged in bankruptcy. Once the balance is resolved, the... Read more »

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4 Answers | Asked in Bankruptcy, Foreclosure and Probate for New Jersey on
Q: What can I do to stop foreclosure on the house and settle parents' estates w/o taking on responsibility for their debts

that could potentially affect my credit. Both parents died in 2017 with NO wills. They both have massive amounts of medical debt and there is a mortgage on the home. I'd prefer not to move from the home and am named as an heir by the mortgage company (and named resident) and am contemplating... Read more »

Clark Dray
Clark Dray answered on Jul 16, 2019

I strongly suggest you speak with an experienced probate lawyer in your area. While you can pay the mortgage and get it caught up to avoid the foreclosure, the bigger issue is the question of how you get this home in your name. You'll have to administer your parents' estates to make this happen,... Read more »

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3 Answers | Asked in Bankruptcy for Kentucky on
Q: I am having problems with bank about a past bankruptcy

I filed chapter 7 in 2008

My lawyer was supposed to remove my car off of it. I refinanced car right after bankruptcy. In 2011 I got beside on payments. Then the bank comes back and said I filed bankruptcy on it so I gave it back to them. A few months ago the sent me a letter saying they... Read more »

Clark Dray
Clark Dray answered on Jul 8, 2019

Please correct me if I've misunderstood, but in your question you indicated that you filed bankruptcy in 2008, but then refinanced the car in 2011. If the refinance took place after the bankruptcy, that's new debt which isn't included in the 2008 case. As such the creditors are within their rights... Read more »

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3 Answers | Asked in Bankruptcy for Georgia on
Q: i owe twice the amount the car is worth i cant keep up with payments, not had a whole yr. got screwed Bankruptcy?

i am 36 yr old woman went to carlot alone & got talked into getting a car thats worth 10,000 for 18,000. i havent had the car 7mo dont wont to buy do i need to file bankruptcy or am i stuck or what?

Clark Dray
Clark Dray answered on Jul 8, 2019

A bankruptcy can be a useful tool in this situation. You could discharge the debt in a Chapter 7 bankruptcy and surrender the car. Alternatively, you might be able to get a redemption loan to pay off the vehicle through the bankruptcy for its fair market value. Talk to a local bankruptcy attorney... Read more »

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4 Answers | Asked in Bankruptcy and Divorce for Ohio on
Q: Do I have to have a finalized divorce before I can file bankruptcy?

I am still legally married. We have lived separately for well over 4 years. I would like to file bankruptcy. I've been told that in order to do so that we both would have to file. He doesn't want to. I need an idea of where to start. Should I start the divorce first or is there a way to do the... Read more »

Clark Dray
Clark Dray answered on Jul 3, 2019

There's no reason your spouse needs to file bankruptcy with you. Even if you were living together, you could file bankruptcy without him.

As to the question of whether you should file the bankruptcy before or after the divorce, opinions vary and you'll want to talk to a local divorce lawyer...
Read more »

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