Santa Fe Bankruptcy Lawyer Blog » FAQ

Should you Buy Back a Repossessed Car?

Gini — Wed, 05 May 2010 14:41:51 +0000

You have your “fresh start” after the bankruptcy. Bravo! The goal was to get you set up to survive and thrive with your new life.

But what about the new opportunities, or enticements offered you? Are you ready, and practiced in making different, better choices than you may have made before?

A client called and asked: they are putting my car up to bid … should I try to buy it?

My response:

Ask yourself, “Can I afford it?” “What can I afford?”
Then, remember that knowing you can afford $300 month payments is not the same as being able to afford it when the additional costs (insurance taxes, etc.) increases your $300 payment.
Plus, what if they kept the $300 as the payment but extended payments out in time so that you paid more interest over time for it?
Plus, will it be possible you could afford to buy something without having to have payments?
And, re: affordability — gas mileage?
Finally, when you know what you can afford, then look at the process through which you are buying — a bid? where social pressures psychological pressures will make it very easy to increase your spending? alittle more, then a little more, and suddenly you are 10 alittle mores over your “limit”.

You are making new habits, this takes time — a least a month of daily practice!

Can I File Bankruptcy Without an Attorney?– NMBankruptcyBlog.com

Gini — Sun, 13 Jan 2008 12:00:14 +0000

Can I File Bankruptcy Without an Attorney?

Although it may be possible for some people to file a bankruptcy case without an attorney, it is not a step to be taken lightly. The process is difficult and you may lose property or other rights if you do not know the law. It takes patience and careful preparation. Chapter 7 (straight bankruptcy) cases are somewhat easier. Very few people have been able to successfully file chapter 13 (reorganization) cases on their own.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

How Do I Find a Bankruptcy Attorney?– NMBankruptcyBlog.com

Gini — Sat, 12 Jan 2008 12:00:05 +0000

How Do I Find a Bankruptcy Attorney?

As with any area of the law, it is important to carefully select an attorney who will respond to your personal situation. The attorney should not be too busy to meet you individually and to answer questions as necessary.

The best way to find a trustworthy bankruptcy attorney is to seek recommendations from family, friends or other members of the community, especially any attorney you know and respect. You should carefully read retainers and other documents the attorney asks you to sign. You should not hire an attorney unless he or she agrees to represent you throughout the case.

In bankruptcy, as in all areas of life, remember that the person advertising the cheapest rate is not necessarily the best. Many of the best bankruptcy lawyers do not advertise at all.

Document preparation services also known as “typing services” or “paralegal services” involve non-lawyers who offer to prepare bankruptcy forms for a fee. Problems with these services often arise because non-lawyers can not offer advice on difficult bankruptcy cases and they offer no services once a bankruptcy case has begun. There are also many shady operators in this field, who give bad advice and defraud consumers.

When first meeting a bankruptcy attorney, you should be prepared to answer the following questions:

What types of debt are causing you the most trouble?
What are your significant assets?
How did your debts arise and are they secured?
Is any action about to occur to foreclose or repossess property, to attach your wages or bank account, or to shut off utility service?
What are your goals in filing the case?

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

What Else Should I Know?– NMBankruptcyBlog.com

Gini — Fri, 11 Jan 2008 12:00:44 +0000

What Else Should I Know?

Utility services—Public utilities, such as the electric company, can not refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills which arise after bankruptcy is filed.

Discrimination—An employer or government agency can not discriminate against you because you have filed for bankruptcy. Government agencies and private entities involved in student loan programs also can not discriminate against you based on a bankruptcy filing.

Driver’s license—If you lost your license solely because you couldn’t pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back.

Co-signers—If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt. If you file under chapter 13, you may be able to protect co-signers, depending upon the terms of your chapter 13 plan.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

Will Bankruptcy Affect My Credit?– NMBankruptcyBlog.com

Gini — Thu, 10 Jan 2008 12:00:54 +0000

Will Bankruptcy Affect My Credit?

There is no clear answer to this question. Unfortunately, if you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse.

The fact that you’ve filed a bankruptcy can appear on your credit record for ten years from the date your case was filed. But because bankruptcy wipes out your old debts, you are likely to be in a better position to pay your current bills, and you may be able to get new credit.

If you decide to file bankruptcy, remember that debts discharged in your bankruptcy should be listed on your credit report as having a zero balance, meaning you do not own anything on the debt. Debts incorrectly reported as having a balance owed will negatively affect your credit score and make it more difficult or costly to get credit. You should check your credit report after your bankruptcy discharge and file a dispute with credit reporting agencies if this information is not correct.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

What Else Must I Do to Complete My Case?– NMBankruptcyBlog.com

Gini — Wed, 09 Jan 2008 12:00:06 +0000

What Else Must I Do to Complete My Case?

After your case is filed, you must complete an approved course in personal finances. This course will take approximately two hours to complete. Many of the course providers give you a choice to take the course in-person at a designated location, over the Internet (usually by watching a video), or over the telephone. Your attorney can give you a list of organizations that provide approved courses, or you can check the website for the United States Trustee Program office at www.usdoj.gov/ust. If you can not afford the fee, you should ask the agency to provide the course free of charge or at a reduced fee. In a chapter 7 case, you should sign up for the course soon after your case is filed. If you file a chapter 13 case, you should ask your attorney when you should take the course.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

Will I Have to Go to Court?– NMBankruptcyBlog.com

Gini — Tue, 08 Jan 2008 12:00:21 +0000

Will I Have to Go to Court?

In most bankruptcy cases, you only have to go to a proceeding called the “meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to come. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.

Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear at a hearing. In a chapter 13 case, you may also have to appear at a hearing when the judge decides whether your plan should be approved. If you need to go to court, you will receive notice of the court date and time from the court and/or from your attorney.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

Will Bankruptcy Wipe Out All My Debts?– NMBankruptcyBlog.com

Gini — Mon, 07 Jan 2008 12:00:35 +0000

Will Bankruptcy Wipe Out All My Debts?

Yes, with some exceptions. Bankruptcy will not normally wipe out:

Money owed for child support or alimony;
Most fines and penalties owed to government agencies;
Most taxes and debts incurred to pay taxes which can not be discharged;
Student loans, unless you can prove to the court that repaying them will be an “undue hardship”;
Debts not listed on your bankruptcy petition;
Loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan;
Debts resulting from “willful and malicious” harm;
Debts incurred by driving while intoxicated;
Mortgages and other liens which are not paid in the bankruptcy case (but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor).

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

Can I Own Anything After Bankruptcy?– NMBankruptcyBlog.com

Gini — Sun, 06 Jan 2008 12:00:28 +0000

Can I Own Anything After Bankruptcy?

Yes! Many people believe they can not own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

What Will Happen to My Home and Car If I File Bankruptcy?– NMBankruptcyBlog.com

Gini — Sat, 05 Jan 2008 12:00:24 +0000

What Will Happen to My Home and Car If I File Bankruptcy?

In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13.

However, some of your creditors may have a “security interest” in your home, automobile, or other personal property. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt. Bankruptcy does not make these security interests go away. If you don’t make your payments on that debt, the creditor may be able to take and sell the home or the property, during or after the bankruptcy case.

In a chapter 13 case, you may be able to keep certain secured property by paying the creditor the value of the property rather than the full amount owed on the debt. Or you can use chapter 13 to catch up on back payments and get current on the loan.

There are also several ways that you can keep collateral or mortgaged property after you file a chapter 7 bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the debt. If you put up your household goods as collateral for a loan (other than a loan to purchase the goods), you can usually keep your property without making any more payments on that debt.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.