Category: Bankruptcy Basics
Are My Tools Protected in A Bankruptcy?
Due to the recession our economy has faced, many small business owners find themselves sitting in our office discussing the possibility of filing for bankruptcy. Legitimately, one of their main questions is how to protect their assets. One of the major assets of most small business owners is their “tools”. Tools can range from hand … Read more
What is the Difference Between Gross Income and Net Income?
There is a saying that always helps me remember the difference between gross and net income: it’s gross to see how much you would be bringing home before taxes. Gross income is what you make before taxes and what you claim as income on your tax returns. Net income is what you actual bring home … Read more
How Do I Determine the Value of My Jewelry if I’m Filing Bankruptcy?
When you are filling out your paperwork, you will notice you will be asked to list down all of your personal property. This personal property will contain all assets you may have; including homes, cars, cash, financial accounts, furniture, clothing, jewelry and more. Determining the value of each is different. Most cases, you will use … Read more
What Is An Automatic Stay?
The phone keeps ringing. Letters pile up. Maybe a paycheck got smaller because of a garnishment, or you got a notice about a foreclosure sale. If you are living with this kind of pressure, you may have heard that filing bankruptcy can make it stop. That protection has a name. It is called the automatic … Read more
What is a Notice of Rights to Have Exemptions Designated?
A Notice of Rights to Have Exemptions Designated is a fancy way of the creditor letting you know that your property is going to be taken from you. As mentioned in another blog post, after the creditor serves you with a lawsuit you have 30 days to provide a written response, also called an answer, … Read more
What is a Preference in Bankruptcy?
Preference in a bankruptcy means that you are showing favoritism to one creditor over the others. In other words, you treat one creditor better than another. For an example, let’s say that you received a bonus check of $1000 on top of your regular pay. You have a large number of creditors and you owe … Read more
Will Automatic Drafts With My Bank Stop After I File Bankruptcy?
If you have bills automatically drafted from your bank account each month, filing bankruptcy creates an immediate and important change — but it does not affect all automatic drafts equally. Whether a specific draft continues depends on the type of debt, how it is treated in your bankruptcy, and whether the creditor is a secured … Read more
If I Choose To Voluntarily Turn In My Car, What Should I Do?
Losing a car you can no longer afford is stressful. Maybe you are behind on payments. Maybe you know that next month, or the month after, you simply will not be able to keep up. You may be thinking about handing the car back to the lender yourself instead of waiting for someone to come … Read more
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