is the statutory procedure that can be used when you cannot pay
your financial obligations as they become due. A bankruptcy proceeding
is usually filed in federal court. When a bankruptcy proceeding
is initiated, your current debts will be valued and you will either
pay your debts over time (or a portion of your debts) or give up
certain nonexempt assets to be liquidated in return for the cancellation
of your financial obligations.
consider filing bankruptcy when you cannot pay your financial obligation
or when there is an event that makes the future payment of your
bills unlikely. For example, bankruptcy can be considered when there
is an illness, accident, or loss of employment that compromises
your financial situation. Further, when a judgment is entered against
you, bankruptcy may be used to stop the creditor from attaching
or interfering with your assets or wages. E-mail or call Jeffrey
S. Posin & Associates at (702) 897-5870 so that we can evaluate
your case and let you know if bankruptcy is appropriate for you.
that filing for bankruptcy and even receiving a discharge from bankruptcy
may not release you from all obligations. There are some debts that
are not dischargeable under the law. Therefore, you may be responsible
for such debts, including, but not limited to certain taxes, student
loans, alimony and support payments, long term secured obligations,
debts fraudulently incurred, debts for willful and malicious injury
to a person or property, and debts arising from a drunk driving
are usually given priority and are difficult to erase completely.
A bankruptcy may initially stop the collection process, but may
not eliminate the obligation to pay the taxes.
One of the
negatives of filing a bankruptcy is that future lenders may consider
your bankruptcy when they are making a decision as to whether to
loan you money or issue credit to you. There are laws that exist
to prevent unlawful discrimination due to your filing for bankruptcy.
The fact that you have filed for bankruptcy may appear on your credit
history for 10 years or longer in many cases.
many different types of bankruptcy. The types of bankruptcies are
divided into chapters. The four most common Chapters are
7 and 13.
bankruptcy and determining which chapter to file under can be complex.
By retaining the attorneys at Jeffrey S. Posin & Associates, you
will be providing yourself with experienced professionals who can
help you through a process that can otherwise be very difficult
file a bankruptcy petition, you will be required to prepare several
forms that list all of your assets and liabilities. You will be
required to disclose your current income and expenses. You will
be required to answer numerous questions regarding your financial
affairs and condition. You will have to account for any transfers
of your assets that you have made within the year preceding your
Bankruptcy Petition is filed, a bankruptcy trustee, particularly
in Chapters 7 and 13, may be appointed to administer your case.
If a trustee is appointed, the trustee is placed in legal possession
and control of the Debtor's assets.
required to provide all of your creditors with a form that contains
notice that you have filed for bankruptcy. In addition to giving
your creditors notice of the bankruptcy filing, the form advises
your creditors of certain things that they may not do during your
case and will also advise them of your 341 Meeting. At the 341 Meeting,
the Assistant United States Trustee conducting the meeting with
ask you (the Debtor) a series of questions under oath, and will
request that certain written documents be provided, such as proof
of insurance, copies of bank statements, copies of your last federal
tax returns. The meeting may also include the election of a trustee
or of a creditors' committee. Any interested party may appear at
the meeting of creditors and ask questions of the Debtor relating
to your assets, financial conditions, and conduct of business.
7 | Chapter 13