So you’ve been making your monthly Chapter 13 payment and it hasn’t been easy. There isn’t a lot of wiggle room to begin with but some months have been better than others. Plus, you know you’re on track to save a lot of money by completing the Chapter 13 bankruptcy. Then life happens. It’s the loss of a job, unexpected medical situation or a variety of other reasons why you may not be able to afford your monthly Chapter 13 payment anymore. So what do you do?
An upset bid period is a time period that exists after a foreclosure sale. In North Carolina, after the sale of a property in a foreclosure there are ten (10) days for another party to offer a higher bid on the property or for the owner of the property to file a bankruptcy to stop the foreclosure.
When it comes to bankruptcy, it’s important to know the limitations of a bankruptcy. One area we occasionally have people ask about is whether they can file bankruptcy or not if they have a trust. To answer this question, yes; generally speaking, someone with a trust fund is more than likely able to file a bankruptcy.
There are two different types of trusts. There is a revocable trust and an irrevocable trust. A revocable trust is when the grantor (the person who created the trust and put property into it) of the trust has full access and control over the trust and at any given time can access the property in the trust. This is true only until the passing of the grantor. The beneficiary of the trust (the person that will receive the trust) is not able to control the assets of the trust until the grantor of the trust is deceased. Even then, the beneficiary may not have full control over what happens to the trust. This is due to there being provisions and rules associated with the trust that may limit what the beneficiary can do with the trust and the assets in the trust.
An irrevocable trust means the trust cannot be changed, and the assets in the trust cannot be accessed, without permission from the beneficiaries. This is because the grantor of the trust has given up their rights of ownership of the assets in the trust. The beneficiaries may not be able to access a trust instantly, but because the grantor has removed their ownership rights, the beneficiaries of the trust have some legal rights to those assets.
The main concern with trust funds is whether or not the trust can be protected from creditors. There are many allowances that will let you protect a trust. One of the most common allowances in the legal field is a “spendthrift” clause. A spendthrift clause can limit creditor’s claims to trust assets, regardless of whether the trust is revocable or irrevocable.
If you are a beneficiary or a grantor of a trust fund, and you are considering filing for bankruptcy, it is very important that you make your attorney aware of the trust. You should also have your bankruptcy attorney or trust attorney look over the trust and contract to be sure that it can be protected from creditors.
What is that you ask? It is someone who ?guarantees? (hence the derivative ?guarantor?) to pay for someone else?s debt should they default on their obligation. It is quite like a co-signer but normally applies to business debt.
As you know, businesses come and go as the days go by. It is quite easy to open and close a business; and as many credit card and loan companies understand this, they will often have the owner of the company personally sign as a guarantor on the loan. This protects the creditor should the business close; this way even if the business itself is not open, there is still a live body that obligated to pay them their monies owed.
The good news is that if you have signed as a personal guarantor on a business credit card or loan and the business has closed, should you file a bankruptcy, you can include that business debt as part of your personal debt to relieve your personal liability on the debt owed. If the business is still open then the creditor has every legal right to go after the business for the debt owed, but not you personally.
In the State of North Carolina, foreclosure hearings are held by the Clerk of Court or Assistant Clerk of Court, as judges rarely hear foreclosures. The Clerk of Court is only to hear cases involving “legal defenses.” Cases involving any other type of defense, such as defense of fraud cases, are to be handled through Superior Court. This is due to North Carolina being a “Power of Sale” state.
Can a person who is not a legal resident of the United Stated file for bankruptcy in the US? According to 11 USC §109(a), any person that resides or has domicile, a place of business, or property in the United States or a municipality, can in fact file a bankruptcy. This means that anyone who lives, owns a business or owns property in the United States can file for bankruptcy, whether they are here legally or not. They do, however, have to have some sort of identifying number such as a social security number or a tax payer ID number.
However, if someone is applying to become a legal citizen of the United States, a bankruptcy on their record could negatively impact their application. Immigration officers typically delve into many areas of a person’s life, including their finances. An immigrant must be able to prove that they are of good moral character in order to be granted citizenship in the United States. Although we have never heard that filing a bankruptcy has stopped someone from receiving citizenship, it is something that should be considered. Having a bankruptcy in their record could throw up a red flag to the immigration office about their morality. There is currently no law that states that a bankruptcy can affect your immigration status legally, but the issue of morality could come in to play.
There is also the chance that information divulged in a bankruptcy proceeding could affect ones immigration status. If in the bankruptcy it is revealed that there are taxes owed, jobs that were obtained illegally, refusal to pay child/spousal support etc., this could greatly affect ones chance to stay in the US and be granted citizenship. If you are an immigrant to the United States and are considering bankruptcy make sure to contact an immigration lawyer and /or bankruptcy lawyer in your area soon.