Posts tagged "Chapter 7 bankruptcy"

When people file for chapter 7 or chapter 13 bankruptcy, they often have a lot of questions. What money or assets can be taken? What happens to debt? And what about an inheritance?

An inheritance creates an unusual situation if someone has recently filed for bankruptcy. Federal law requires that there is a 180 day window after a bankruptcy filing during which an inheritance can be collected by the court.

For those who once had a large amount of money but fall on hard financial times, sometimes filing a bankruptcy is a must. It's not uncommon for people to have to forfeit their assets.

A collector of movie memorabilia who filed for bankruptcy has had to turn over a large portion of his collection for liquidation. One of these pieces include what some claim may be the most expensive -- and sought after -- movie poster in the world. It is one of only four surviving copies of the original poster for the 1927 silent German movie "Metropolis" directed by Fritz Lang.

It's certainly not uncommon for people to miss making their mortgage payments in tough financial situations. That's what has caused the surge of foreclosures in recent years. Even though it doesn't make the news as often, homeowners who live in an association often are unable to pay their dues.

However, when a person files for bankruptcy, it's still possible for the homeowners association to collect such assessments. But how much they get depends on whether a unit owner files for chapter 7 or chapter 13 bankruptcy.

About 1.2 million people in the U.S. will file for bankruptcy this year. There are many common myths about bankruptcy and why people file which can be easily discredited by the real facts. First, in the vast majority of cases, the people filing for bankruptcy are not financially irresponsible. They simply have fallen on hard times through no fault of their own. Loss of a job, a serious illness, or a divorce can all result in financial problems that in many cases would be insurmountable without bankruptcy.

When people get divorced, the same income (or even less) must be used to run two households instead of one. This spring, there were over 5.2 million people in the U.S. who have been without gainful employment for half a year or more, a situation which rapidly depletes any savings or other assets.

People who own properties for which they cannot afford to pay may face challenges whether they file for bankruptcy or not. It is possible to lose a home after filing for Chapter 7 bankruptcy, a process that typically allows for a financial "fresh start" by dramatically decreasing financial liabilities.

Although filing for bankruptcy doesn't always preclude property loss, owners will definitely lose their homes if they fail to pay the mortgage outside of bankruptcy. Homeowners should identify the most appropriate method of property management during bankruptcy proceedings.

Personal bankruptcies in the U.S. dropped by 12 percent last year, new reports say. Overall, 1.35 million Americans filed for chapter 7 or chapter 13 bankruptcy.

The apparent trend is reflected in businesses, too. The number of Chapter 7 and Chapter 11 bankruptcies filed this year is on the decline. Only 88 big companies, as opposed to 106 last year, filed for bankruptcy. It's also way down from the 211 filings in 2009. This comes in tandem with a fragile economy, and the decline has been steady for the past three years of economic turmoil. The 17 percent drop in bankruptcies includes chapter 7 and 11 filings by big companies.

Bankruptcy filings are actually down this year, but it may mean people can't afford to file. When people file for personal bankruptcy due to hard economic times, it's important that they understand the difference between Chapter 7 and Chapter 13 bankruptcy.

According to the vice president of a nonprofit counseling service, there is not only a difference of cost, but also of qualifications that must be met.

It seems that every time you turn on the news, there is some sort of glaring report about the nation's fragile economy. It can be worrisome for those who are already struggling financially.

The decision to file for chapter 7 or chapter 13 bankruptcy is not an easy one, and it is a choice that should be considered thoughtfully. Both could be viable options, and for those who are unable to make ends meet despite a steady income, chapter 13 could be an appealing option.

Well-known figures - even those specializing in giving consumer advice - can still have their own financial woes.

Tom Martino, known by many as the "Troubleshooter," recently filed for chapter 7 bankruptcy in order to obtain debt relief, citing $1.37 million in assets and debt of $78 million.