Bankruptcy Questions Answered

How To Aviod Bankruptcy

Tags: Bankruptcy Uk, Financial Obligations, Uk Bankruptcy

Bankruptcy Questions : About Bankruptcy

Tags: Bankruptcy Bankruptcy, Bankruptcy Questions, Free Video, Law Solutions, Legal Proceeding

Federal Bankruptcy Debt Consolidation Durham Wilson Raleigh & Fayetteville

Tags: Bankruptcy Attorneys, Bankruptcy Debt Consolidation, Consultation Bankruptcy, Credit Cards, Free Consultation

Amazing Bad Credit-Get Out Of Debt Secret

Tags: Bad Credit, Credit Debt, Drowning In Debt, Insight, Stress

Marc Tow Commercial

Tags: Bankruptcies, Foreclosure Defense, Marc Advertising, Time Warner

Debt after Death: What Happens when a Debtor Dies

What happens to your debt after you die is not a topic that’s likely to come up on its own at the dinner table, but it’s a good idea to talk about this matter anyway. It’s important for you and your loved ones to know when you’re responsible for each other’s debts post-mortem—and when you’re not.

A recent post from WalletPop.com offers an outline of what to expect after the death of a family member who owed money. Here’s a summary.

• Can debt be inherited? In most cases, debt does not automatically pass from one family member to the next, according to sources. That means that, if you receive a letter from a creditor demanding payment on a loved one’s debt after his demise, it’s a good idea to do some research before paying.
• Debt in community property states: One of the exceptions to the above rule has to do with state law. If you live in a community property state (find out here), you can inherit debt from a dead spouse (but not from a sibling or parent).
• The link between debt & inheritance: Another exception involves the relationship between a person’s debts and her legacy. If, for example, a parent dies and leaves you money or a house in addition to consumer debt, you’re legally obligated to pay the debt before collecting the inheritance.
• What about debt from a co-signed loan? If you co-signed a loan for a family member or friend and that person passes away, you are responsible for paying the remainder of the loan.

How to Know if You’re Responsible for a Debt

One unfortunate truth about debt and death is that some creditors might try to collect on a debt whether or not it’s legal for them to do so. Worse, some scam artists may specifically target survivors in an attempt to trick them into paying money they don’t really owe.

If you’re mourning a loved one, the last thing you likely want to deal with is finances, but following these guidelines might help protect you from fraudsters:

• Avoid sending a creditor any money at all until you’re sure that you are actually responsible for repaying a debt.
• To determine your obligations, ask the creditor to send you written documentation of the debt’s original purpose, the terms of the debt and the exact amount currently owed.
• If possible, consult an attorney to help you work through the complexities of covering debt’s after a loved one’s demise.

Bankruptcy Debt Relief - The Last Resort

Tags: Bankruptcy Debt Relief, Bankruptcy Help, Credit Counselor, Credit Difficulties, Last Resort

Bankruptcy in the UK

Tags: Bankruptcy Uk, Yt

401K Withdrawal or Bankruptcy? Which One Is Better?

As a Consumer and Bankruptcy Attorney, I meet with people everyday to discuss Bankruptcy and other available Consumer remedies. I always tell people not to touch their retirement savings because a 401K and IRA are protected 99.99% of the time when a consumer files for bankruptcy.

Recently, Fidelity released its report on the status of the 401(k) programs that it manages. Some of the highlights, or perhaps better described as lowlights, “(1) participants who borrowed or initiated an application to borrow from their plans reached a 10 year record high and (2) nearly 45% of borrowers who received a hardship withdrawal in the past year took another one this year.”

Parents On Title To Child’s Homestead: What Happens When Either Child Or Parents File Chapter 7 Bankruptcy

Homestead protection in bankruptcy gets complicated when there are non-resident co-owners of the debtor’s homestead. An example is when parents help an adult child buy a home and insist on placing their names as co-owners of their child’s house.

A caller from south Florida asked me how a Chapter 7 bankruptcy would affect his homestead owned jointly with his parents free and clear.  His parents purchased a house in Florida for their son. The house was titled jointly in the names of the son, who lives there, and the two parents. All three family members have credit card problems and are considering bankruptcy. The son asked me whether his Chapter 7 bankruptcy would affect is parents’ interest in his house. The house qualifies for unlimited homestead protection under the bankruptcy rules.

If the son files Chapter 7 only the son’s partial interest in the house is at issue. The Chapter 7 trustee has no interest or rights relating to what the parents own including the parents’ interest in the house (if any). The son’s ownership of the house would be exempt as homestead because the house is his primary residence.

The result is more complicated if the parents file Chapter 7. The parents’ Chapter 7 trustee may have a claim against the parents’ interest in their son’s house because the parents do not reside in the home as their own homestead.. The trustee could not force the sale of the home as long as the son resided there. The trustee could place a lien on the parents 2/3 interest which would be payable upon the sale or refinance, and the trustee could sell the lien on proceeds to an investor or to the debtor himself.

The parents could argue in their bankruptcy that they have no equitable interest in the house subject to their bankruptcy estate because they intended to transfer all beneficial interest in the house to their son. This position may be viable if the son has been paying all taxes, mortgage payments,  and other expenses and if the son exclusively uses the property. The parents’ filing of a gift tax return or other written evidence of their intent to gift the property to their son would substantiate this position.  It is possible for the parents to have part of the bare legal title without them having any equity interest subject to their own bankruptcy trustee, but that position depends on the facts.

This is another example of why parents should not jointly own assets with their children for estate planning or any other reason.