How often can I file for Bankruptcy? That's the question I read being discussed this morning. A debtor has paid his lawyer only to find that he is not going to be able to file a chapter 7 bankruptcy due to insufficient time passing between bankruptcy filings.
So how often can you file for bankruptcy? I figured that some of you might like to know the answer to this so I'll give you the nutshell version.
A Chapter 7 Bankruptcy stays on your credit report for 10 years (Chapter 13 for 7 years) but remains on your public record for 20 years. While these are issues that should be taken into consideration when deciding whether or not to file for bankruptcy, they have no bearing on how often you can file bankruptcy and receive a discharge.
The 2005 bankruptcy laws established that a debtor cannot obtain a discharge in a Chapter 7 case if the debtor obtained a discharge in a Chapter 7 case filed within the past 8 years. Or 6 years between Chapter 13 cases. The clock starts ticking at the time of filing, not the time of the discharge.
For the best advice, "How often can I file for bankruptcy?" is a question for your bankruptcy attorney. There are some exceptions (in chapter 13 cases) and there are some additional rules. Also, there may be other circumstances unique to your case that affect your filing. I am not a lawyer.
I wish you the best 2011 possible!
ep
Wednesday, December 29, 2010
Friday, December 24, 2010
Definition of Insolvency
What is insolvency? That's what I got asked yesterday...New Years Day...it makes me sad but I also found it encouraging that a friend of mine wants to finally put her financial house in order. She wanted me to define insolvent because she was trying to figure out if she's insolvent or not.
You may be wondering if you are insolvent. I'm thinking that if you have to ask you probably are but according to dictionary.com, the definition of insolvency is the following:
in·sol·ven·cy
Pronounced [in-sol-vuhn-see]
–noun
the condition of being insolvent; bankruptcy.
Well that's not very helpful, is it? Okay, let's go to the definition of insolvent then. The definition of insolvent according to dictionary.com is:
in·sol·vent
Pronounced [in-sol-vuhnt]
–adjective
1. not solvent; unable to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debts as they mature.
2. pertaining to bankrupt persons or bankruptcy.
–noun
3. a person who is insolvent.
Still not very clear, is it? Okay, well if you are wondering if you are insolvent or not for the purposes of filing bankruptcy I say that you are insolvent if you are unable to pay your debts. If your debts exceed your income and your assets then you are insolvent.
Problem is, a lot of people don't know whether they are insolvent or not because they don't want to take a good, hard look at their financial situation. I know it hurts. But you can gather all of your information and a good bankruptcy attorney will easily be able to tell you whether you are insolvent or not. You may not be, but if you are, that is why bankruptcy exists. To give you a fresh start.
I wish nothing but the best of luck to you in 2011 and beyond.
ep
You may be wondering if you are insolvent. I'm thinking that if you have to ask you probably are but according to dictionary.com, the definition of insolvency is the following:
in·sol·ven·cy
Pronounced [in-sol-vuhn-see]
–noun
the condition of being insolvent; bankruptcy.
Well that's not very helpful, is it? Okay, let's go to the definition of insolvent then. The definition of insolvent according to dictionary.com is:
in·sol·vent
Pronounced [in-sol-vuhnt]
–adjective
1. not solvent; unable to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debts as they mature.
2. pertaining to bankrupt persons or bankruptcy.
–noun
3. a person who is insolvent.
Still not very clear, is it? Okay, well if you are wondering if you are insolvent or not for the purposes of filing bankruptcy I say that you are insolvent if you are unable to pay your debts. If your debts exceed your income and your assets then you are insolvent.
Problem is, a lot of people don't know whether they are insolvent or not because they don't want to take a good, hard look at their financial situation. I know it hurts. But you can gather all of your information and a good bankruptcy attorney will easily be able to tell you whether you are insolvent or not. You may not be, but if you are, that is why bankruptcy exists. To give you a fresh start.
I wish nothing but the best of luck to you in 2011 and beyond.
ep
Monday, December 20, 2010
Bankruptcy Solutions
Lots of people today are looking for bankruptcy solutions. I would argue that there really are no bankruptcy solutions. The word solution implies that there is some remedy which does not impose side effects...a magic wand, an attractive genie, some paranormal activity with regards to your finances. Difficult to prove.
However, insolvency is not the end of the world in most cases. Take corrective action and you can turn your life around.
The recent recession and individual circumstances have caused more and more people to become insolvent. If you are in over your financial head, there are no bankruptcy solutions short of winning the lottery this second in time. The sooner you realize that there is going to be no miracle cure to disolving your debt, the better off you'll be.
To some, bankruptcy is the solution. It then becomes a question of whether to file a chapter 7 or a chapter 13. A bankruptcy attorney will be able to tell you which chapter is right for you after hearing the details or your case.
Other options that some might consider bankruptcy solutions are actually bankruptcy alternatives. These could include consumer credit counseling, debt settlement, or debt consolidation loans.
There really aren't a whole lot of other options. And you need to be careful when making decisions. Not all debt settlement services are reputable and there are things to take into consideration when selecting a bankruptcy attorney. Please see my tips below for selecting the right one and as always Best of Luck to You!
Tips For Selecting The Right Bankruptcy Attorney
However, insolvency is not the end of the world in most cases. Take corrective action and you can turn your life around.
The recent recession and individual circumstances have caused more and more people to become insolvent. If you are in over your financial head, there are no bankruptcy solutions short of winning the lottery this second in time. The sooner you realize that there is going to be no miracle cure to disolving your debt, the better off you'll be.
To some, bankruptcy is the solution. It then becomes a question of whether to file a chapter 7 or a chapter 13. A bankruptcy attorney will be able to tell you which chapter is right for you after hearing the details or your case.
Other options that some might consider bankruptcy solutions are actually bankruptcy alternatives. These could include consumer credit counseling, debt settlement, or debt consolidation loans.
There really aren't a whole lot of other options. And you need to be careful when making decisions. Not all debt settlement services are reputable and there are things to take into consideration when selecting a bankruptcy attorney. Please see my tips below for selecting the right one and as always Best of Luck to You!
Tips For Selecting The Right Bankruptcy Attorney
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