Articles Posted in Bankruptcy FAQ

Bankruptcy FAQ – there are so many frequently asked questions about filing bankruptcy. Should I file? When should I file? What will it do to me? Will I lose everything? Can I keep my car? Can I keep my home? Will it stop a garnishment? Will it stop a foreclosure? If I’m married, do we both have to file? Will it affect my spouse? I’m behind on child support, can it help me with that? There are two main kinds of bankruptcy that an individual would choose from and they are Chapter 7 or Chapter 13. Both types have pros and cons. And both types definitely have a lot of false information spread out there about them. That’s where bankruptcy FAQ pulled together and in one place for someone to search through the answers helps so much to clarify fact from fiction. The laws in this area have changed over the years. The stigma of filing should not be there but because of the efforts of credit card companies and many other creditors spreading rumor and judgment, it sometimes still is there. Bankruptcy laws were created to protect you. To keep you and your family functioning during and thru hard times. Everyone experiences rough patches to no fault of their own. Death of a spouse, divorce, loss of a job, medical illness, accident, etc – so many things can impact our finances negatively that we had little to no control over. Bankruptcy allows you to regain control of things and get going back in a stable financial direction.

Did you co-sign a Loan?

Published on: September 26, 2014 | Frank Coxwell

Did you co-sign for your child’s car loan? Are you a co-signer on a loan for your friend? Have you co-signed for a loan for another family member? If so then you owe the loan the same as the primary borrower does. It does not matter who has their name listed first or second on the papers. If you signed the contract or the note then you are a co-signer and owe the full amount of the loan. The primary borrower may be paying right now, but if something were to happen to stop payments, debt collectors will be hot on your trail for the balance.

Finance companies and banks do not release co-signers from loans. They demand a co-signer so they will have someone to go after if the first borrower stops paying. They knew up front that the first borrower was at high risk to stop paying and they wanted you to be there so they could go after you for part of the debt, half of the debt, or all the debt. They will go after whomever is the easiest to collect from. So think long and hard before you become the co-signer of a debt for someone – and if you do – make sure you are willing and able to pay the whole debt if something happens.

Don’t do this before filing bankruptcy.

Published on: September 25, 2014 | Frank Coxwell

Stop – if you are thinking of filing bankruptcy – do not do any of these transactions until you have spoken with me. Waiting a few days will not matter. “Better to be safe than sorry.” There is a right way to do things before you file bankruptcy, but there are also a whole lot of wrong ways to do things. Some actions could get you into a lot of trouble. Put it on hold and let me give you the information you need to understand your options.

Don’t pay back money you owe to family members.
Don’t pay your friends back money you owe them.

Are you looking for the cheapest bankruptcy lawyer?

Published on: September 19, 2014 | Frank Coxwell

Cheap Lawyers are everywhere, but you may not be able to afford them.

You can see a lot of lawyers bragging about being the cheapest. Search on the web and you will see ads for “Cheap Bankruptcy Attorney,” “Low Fee Bankruptcy.”

We all know that quality and cheap don’t go together. If we buy cheap we know it will cost us more in the long run. You get what you pay for. This is no surprise. We expect it and make buying decisions knowing what will happen. When it comes to hiring a lawyer, hiring the cheapest is not the way to go. The risks are just too great.

Three Questions to Ask About Filing Bankruptcy Together

Published on: June 26, 2014 | Frank Coxwell

Your Debts, My Debts and Our Debts.

Married and struggling with money problems? Thinking about filing bankruptcy? You know married couples can file bankruptcy together, they do it all the time. In most cases it’s better for them if they do. But, what if your spouse doesn’t want to file or has very little debt? Did you know you can file by yourself? There are many situations that arise when it makes more sense for just one of you to file by yourself. In some cases, you both need to file, but you each may need to file a different type of bankruptcy.

Question 1. “What debt are we trying to get rid of?”

What About My 401K, My IRA, and My Retirement?

Published on: February 12, 2014 | Frank Coxwell

Many people believe they will lose their retirement money if they file for bankruptcy. This is not true. Many clients meet with me and state that they “cashed out their retirement and are ready to file bankruptcy.” This is not necessary. Retirement accounts and pension plans are fully protected in bankruptcy. There are federal and Mississippi laws that protect your retirement money when you file bankruptcy. This includes accounts like 401(k), IRA, Roth IRA, SEP, 403(b), Keoghs, profit-sharing plans, and defined-benefit plans. Any ERISA Qualified Retirement Account is protected. In most cases, every penny you have in your retirement account is fully protected, regardless of the amount. But traditional IRAs and Roth IRAs are only protected up to a total amount of about $1.2 million.

Even if your retirement account is not ERISA-qualified, it will still be protected in bankruptcy by both federal and state law. Any retirement account that is exempt from taxation under the Internal Revenue Code is also fully protected by other federal laws. Leave your retirement money alone. Let it work for you over the long term and don’t worry about losing it if you need to file bankruptcy.

What Should I Do About My Checking and Savings Accounts?

Published on: February 11, 2014 | Frank Coxwell

If you are considering filing bankruptcy, you need to think about your savings and checking accounts.

There are a couple of important reasons to change credit unions or banks before you file bankruptcy:

First of all, many banks will freeze accounts that have your name on them as soon as you file bankruptcy. The banks say they are protecting assets for the bankruptcy court, but the bankruptcy court did not ask the banks to do this. If you are considering bankruptcy, avoid banking with Wells Fargo, Wachovia, Bank of America, Union Bank and any financial institution which has made it a policy to freeze accounts.

Have You Been Denied A Bank Account?

Published on: July 31, 2013 | Frank Coxwell

TransUnion, Equifax and Experian are the three credit bureaus that everyone is familiar with. Did you know that there are also credit bureaus for checks? If you bounced a check or used an overdraft on your checking account, you are in their database. All of the major banks regularly report information to these check bureaus; the largest of which are ChexSystems and Early Warning. Once a bank sees your information from the check bureau it is up to the bank to decide what to do with it. Every bank has a policy that will determine if they say yes or no to opening a checking account for you.

Millions of working people have been black listed because of past mistakes of thirty or forty dollars, even after paying the check amount, interest and fees. A checking account is a necessity today. Most employers and all government benefits require direct deposit. If you have a checking account, try to imagine what it would be like driving around and paying all of your utilities and household expenses in person at the end of the month. The fees you would pay to cash your check, get money orders and wiring money could eat up a substantial portion of your pay.

If you have been denied a checking account at one of the big banks, try one of the smaller banks or a credit union. They are more interested in getting new customers and do not subscribe to the check bureaus. They may not have all the convenient locations, but with direct deposit and a debit card you may never need to visit the actual bank again.

Can I Pay And Keep My Credit Cards After I File Bankruptcy?

Published on: July 30, 2013 | Frank Coxwell

Can you pay your credit cards after filing bankruptcy? Of course. You can pay anyone you want to pay. But should you? Let’s explore whether first of all you can keep them, and second if you have anything to gain by paying debts that were wiped out by the bankruptcy court…

Can you keep your credit cards after filing bankruptcy? You should know that your credit cards will be canceled by the creditor once you file bankruptcy. Even if you want to keep them and continue to pay, they will be canceled. Credit card companies are constantly checking your credit reports and the moment they see the bankruptcy they will cancel the card. This is a surprise to many people who thought that by not listing one or two cards in their bankruptcy, they could keep using them. No company is going to let you keep a credit card. They all want you to reaffirm the debt and pay it off, but they will not extend the current credit privileges, even if you agree to pay what is owed. Now after filing bankruptcy, you may get flooded with new offers for credit cards (some offers may even be from the same companies!) but they will not allow the current account to remain open.

Why? Once a debt is discharged in bankruptcy, the creditor can’t have any contact with you. No letters, no phone calls, no law suits, no efforts to collect, and no reports to the credit bureau. You can sue them if they violate these rules. So if you repay the debt, the creditor can’t and won’t report it on your credit record. They will take the money, but you won’t any recognition or credit for paying it.

Famous People Who Filed Bankruptcy

Published on: July 17, 2013 | Frank Coxwell

Do only broke or penniless people file bankruptcy? Not at all. If you decide to file bankruptcy, you will be among many of the rich and even famous that have also faces financial difficulty. Here are a few names of people who filed for bankruptcy that you may recognize. Many of them made the most of their fresh start and went on to make millions after they filed bankruptcy.

Larry King- Popular talk-show host Larry King filed for bankruptcy in 1978, but able to retire with an estimated wealth of about $50 million.

Donald Trump – After filing bankruptcy four times, the Trump name and brand is known throughout the world and Donald remains one of the richest men alive.

Will my job, my family, or my friends know that I filed bankruptcy?

Published on: June 13, 2013 | Frank Coxwell

No. Although a bankruptcy case is a public record, it is not that easy to find. Bankruptcy information is not published in any Mississippi newspaper that I am aware of. Yes, one of your nosey neighbors could go to the bankruptcy court and ask but that is a lot of effort and most people will not go that far. The bankruptcy court does not contact your employer and neither will your lawyer.

Now there are several situations where you may need your job, friends, or family to be contacted.

If you owe money to your employer, your friends, or family members, then they may be one of your creditors and they will be notified of the bankruptcy.