This rant is a little out of the norm for this blog but I can't help commenting on this topic.
I don't know about you but I am a sick of hearing about Eva Longoria's business bankruptcy. Eva Longoria's restaurant, Beso is said to have to declare bankruptcy. That's what I read.
And that's what I read. And read, and read, and read. I got it the first time I read it and subsequent articles have told me nothing new. Stop it already.
I don't care about the bankruptcy of Eva Longoria's restaurant, I really don't. I'm too busy trying to put food on my table to worry about anyone else right now.
I wish nothing but the best for Eva (if I may call her Eva and I'm not certain that I can) but I wish there was more focus in the media on those of us who really needed or need bankruptcy protection.
I had to file bankruptcy a couple years ago and went through it alone because of the stigma that it carries in this country.
It doesn't have to be that way. The media needs to STOP making it be that way. Hope Eva has a good bankruptcy attorney.
back soon
ep
Thursday, January 13, 2011
Friday, January 7, 2011
Bankruptcy and Property
One of the main questions I had when I filed bankruptcy was about bankruptcy and property. I was very concerned with what was going to happen to my property in bankruptcy.
Having gone through bankruptcy and having received a discharge, I now know the answer to this and it depends on which bankruptcy chapter you file. In a chapter 13, you are put on a payment plan (not to exceed five years) that you can afford, and you keep all of your property.
A chapter 7 bankruptcy is different. The premise is that it is a "liquidation" of assets. In theory, your assets are sold to pay your creditors what is possible and then you are free and clear (discharged) to go about your business.
Don't freak out here.....you probably have less "assets" than you think. Plus, you are allowed a certain amount of property exemptions...monetary amounts of stuff you can keep regardless.
The truth is that most people who qualify for chapter 7 don't have many (or any) assets to be liquidated. I didn't have to forfeit any property~ bankruptcy truly gave me a fresh start and that is pretty common.
Bankruptcy property exemptions are complicated. There are federal exemptions and there are state exemptions. Some states will give you a choice between using the exemptions of the state or the federal exemptions. But some states will not let you choose. You have to use the bankruptcy exemptions of that state.
The states that will not allow you to use the federal property exemptions for bankruptcy are Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming.
You will need to value your stuff in order to figure out how much of it is exempt. One thing to keep in mind when valuing your stuff is that your stuff isn't worth what you think it is. You may have paid 2000.00 for your couch two years ago, but it's only worth a tiny fraction of that now.
My lawyer had me value most of my items at "garage sale prices" and that's exactly what I did. However, I am not an attorney so please discuss this with yours.
You may have other considerations when it comes to your property in a chapter 7. It is possible to keep items for which you have secured loans, such as a house, or car, by either reaffirming or doing what is called a ride-through. In either case, you keep paying for them. Which of the two, if either, you do, will depend on your wants and circumstances so---yeah---another thing to discuss with your bankruptcy lawyer.
Another thing that you should know is that you must have lived for two years in the state in which you are filing bankruptcy to use the exemptions of that state. Otherwise the exemptions of the state in which you lived in for six months prior your move will apply.
The laws regarding bankruptcy and property can be a bit confusing but try not to panic. A good bankruptcy attorney will make it so you retain as much, if not all, of your property as possible.
I will list the California bankruptcy exemptions (California gives filers a choice of two sets) in another post.
As always, good luck to you...I wish you the best 2011 possible!
ep
Having gone through bankruptcy and having received a discharge, I now know the answer to this and it depends on which bankruptcy chapter you file. In a chapter 13, you are put on a payment plan (not to exceed five years) that you can afford, and you keep all of your property.
A chapter 7 bankruptcy is different. The premise is that it is a "liquidation" of assets. In theory, your assets are sold to pay your creditors what is possible and then you are free and clear (discharged) to go about your business.
Don't freak out here.....you probably have less "assets" than you think. Plus, you are allowed a certain amount of property exemptions...monetary amounts of stuff you can keep regardless.
The truth is that most people who qualify for chapter 7 don't have many (or any) assets to be liquidated. I didn't have to forfeit any property~ bankruptcy truly gave me a fresh start and that is pretty common.
Bankruptcy property exemptions are complicated. There are federal exemptions and there are state exemptions. Some states will give you a choice between using the exemptions of the state or the federal exemptions. But some states will not let you choose. You have to use the bankruptcy exemptions of that state.
The states that will not allow you to use the federal property exemptions for bankruptcy are Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming.
You will need to value your stuff in order to figure out how much of it is exempt. One thing to keep in mind when valuing your stuff is that your stuff isn't worth what you think it is. You may have paid 2000.00 for your couch two years ago, but it's only worth a tiny fraction of that now.
My lawyer had me value most of my items at "garage sale prices" and that's exactly what I did. However, I am not an attorney so please discuss this with yours.
You may have other considerations when it comes to your property in a chapter 7. It is possible to keep items for which you have secured loans, such as a house, or car, by either reaffirming or doing what is called a ride-through. In either case, you keep paying for them. Which of the two, if either, you do, will depend on your wants and circumstances so---yeah---another thing to discuss with your bankruptcy lawyer.
Another thing that you should know is that you must have lived for two years in the state in which you are filing bankruptcy to use the exemptions of that state. Otherwise the exemptions of the state in which you lived in for six months prior your move will apply.
The laws regarding bankruptcy and property can be a bit confusing but try not to panic. A good bankruptcy attorney will make it so you retain as much, if not all, of your property as possible.
I will list the California bankruptcy exemptions (California gives filers a choice of two sets) in another post.
As always, good luck to you...I wish you the best 2011 possible!
ep
Friday, December 31, 2010
Bankruptcy and Employment Discrimination
You may have heard a lot lately about bankruptcy and employment discrimination. These days, debtors are understandably concerned about the effect that bankruptcy has on their ability to keep their current job and/or the ability to be hired for a new one. Here's the lowdown regarding bankruptcy and jobs.
Under section 525 of the 2005 bankruptcy code, employers may not terminate an employee for filing bankruptcy. They can also not factor in bankruptcies when it comes to advancements or promotions. Furthermore it is illegal for government agency hiring someone for a public job to consider an applicant's bankruptcy during the hiring process. However, there are unfortunately no laws to protect an applicant from this kind of bankruptcy and employment discrimination in the private sector.
Recently, courts have upheld that private employers are indeed able to not hire employees based on their bankruptcy history. I caution anyone who might make the decision to file bankruptcy or not based solely on this factor. If your credit history is really bad, a prospective employer is just as likely to not hire you. A bankruptcy probably isn't going to make the difference between getting a job or not if your credit history is crappy.
Below is section 525 of title 11 of the 2005 bankruptcy code.
Title 11 U.S. Code § 525, Protection against discriminatory treatment
(a) Except as provided in the Perishable Agricultural Commodities Act, 1930, the Packers and Stockyards Act, 1921, and section 1 of the Act entitled “An Act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1944, and for other purposes,” approved July 12, 1943, a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt—
(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.
(1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
(2) In this section, “student loan program” means any program operated under title IV of the Higher Education Act of 1965 or a similar program operated under State or local law.
Under section 525 of the 2005 bankruptcy code, employers may not terminate an employee for filing bankruptcy. They can also not factor in bankruptcies when it comes to advancements or promotions. Furthermore it is illegal for government agency hiring someone for a public job to consider an applicant's bankruptcy during the hiring process. However, there are unfortunately no laws to protect an applicant from this kind of bankruptcy and employment discrimination in the private sector.
Recently, courts have upheld that private employers are indeed able to not hire employees based on their bankruptcy history. I caution anyone who might make the decision to file bankruptcy or not based solely on this factor. If your credit history is really bad, a prospective employer is just as likely to not hire you. A bankruptcy probably isn't going to make the difference between getting a job or not if your credit history is crappy.
Below is section 525 of title 11 of the 2005 bankruptcy code.
Title 11 U.S. Code § 525, Protection against discriminatory treatment
(a) Except as provided in the Perishable Agricultural Commodities Act, 1930, the Packers and Stockyards Act, 1921, and section 1 of the Act entitled “An Act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1944, and for other purposes,” approved July 12, 1943, a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt—
(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.
(1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
(2) In this section, “student loan program” means any program operated under title IV of the Higher Education Act of 1965 or a similar program operated under State or local law.
Subscribe to:
Posts (Atom)