Should I file Chapter 7 before or after divorce?

Should I file Chapter 7 before or after divorce?

If your bankruptcy is a simple Chapter 7 bankruptcy, then filing it before your divorce may be the best option. Since Chapter 7 bankruptcy can be filed and complete in just several months, there’s no reason you and your spouse can’t file jointly, discharge your debts, then divorce afterwards.

What is the downside of filing Chapter 7?

Con: Potentially Losing Property Chapter 7 is a liquidation bankruptcy. Any property that is not protected by bankruptcy exemptions is at risk of being sold by the Chapter 7 trustee. The Chapter 7 trustee uses the money from the sale of a debtor’s property to pay the debtor’s unsecured creditors.

Can I change my mind after filing Chapter 7?

You do have the right to change your mind after filing bankruptcy, but this can be a lengthy and sometimes complicated process. If you filed a Chapter 7 bankruptcy, the court is more likely to dismiss your case as long as doing so wouldn’t harm your creditors.

Is it better to file bankruptcy before or after a Judgement?

In general, it is best to file a bankruptcy case before a judgment is entered after a lawsuit. Usually, if a lawsuit has been filed or a judgment has been entered against you, it does not change whether you can discharge that debt in bankruptcy. But not all debts can be discharged in bankruptcy.

What types of debts are not dischargeable?

Non-Dischargeable DebtDebts that you left off your bankruptcy petition, unless the creditor actually knew of your filing;Many types of taxes;Child support or alimony;Fines or penalties owed to government agencies;Student loans;Personal injury debts arising out of a drunk driving accident;

Can you file bankruptcy if you have a pending lawsuit?

You can file a bankruptcy with a lawsuit pending, but the lawsuit will probably be put on hold. You can file for bankruptcy when you have a lawsuit pending in another court. The bankruptcy case will likely suspend the trial temporarily or end it altogether if it concerns money or property.

Does bankruptcy stop legal action?

ADVANTAGES OF BANKRUPTCY There are many advantages to going bankrupt: You will stop being harassed by most of your creditors. Legal action against you to recover many types of debt will stop. You will be released from most debts when you are discharged from bankruptcy (most commonly after 3 years and 1 day).

Does bankruptcy stop a civil lawsuit?

Nothing. Bankruptcy will stop most common collection lawsuits permanently, and the amount sought after by the plaintiff will get wiped out in your bankruptcy.

Can you get out of a contract by filing for bankruptcy?

Bankruptcy allows people to be released from their contracts if they can no longer afford to perform their obligations. People need to decide whether they want to keep, or “assume,” their contracts or reject them within 60 days of filing Chapter 7 bankruptcy or before filing a repayment plan in Chapter 13 bankruptcy.

Can you file bankruptcy on cell phone contracts?

You must also list all monthly expenses when you file for bankruptcy. This includes executory contracts, such as your lease agreement and your cell phone plan. Judges now view cell phone contracts as an ordinary expense. Typically, you can cancel executory contracts in bankruptcy, including your cell phone plan.

What happens if you can’t pay a civil lawsuit?

If you lose a civil case and are ordered to pay money to the winning side, you become a judgment debtor. The court will not collect the money for your creditor, but if you do not pay voluntarily, the creditor (the person you owe money to) can use different enforcement tools to get you to pay the judgment.

How much cash can you keep when filing Chapter 7?

The amount of cash you can have at the time of filing depends on other exemptions. It is possible to exempt more than but, you have to have the correct combination of other assets. You should meet with an attorney and bring a list of all of your assets to that meeting.

Does Chapter 7 trustee check your bank account?

Bankruptcy trustees will also look through your bank statements to see your cash deposits and withdrawals. Any large deposits in your account should be accounted for. The bankruptcy trustee may ask you to explain where the money came from and why.

Do they freeze your bank account when you file Chapter 7?

When you file for bankruptcy or file a proposal to your creditors, an automatic “Stay of Proceedings” is created. This requires your bank to release your accounts. It also stops your creditor from refreezing them, or any other accounts you may have while you remain under bankruptcy protection.

What if my income goes up after filing Chapter 7?

The increase may not change your circumstances since a Chapter 7 bankruptcy is based on your financial circumstances at the time of your filing. If your income has increased significantly, then you may be required to move to Chapter 13 bankruptcy.

Are 341 meetings scary?

Filing for bankruptcy is a scary experience, but within the entire process from start to finish, the 341 Meeting of Creditors is perhaps the most daunting. The idea of coming face to face with people who are trying to collect on a debt is understandably intimidating.

How long does a 341 meeting last?

The 341 meeting isn’t stressful or long. Many times creditors don’t even show up. Unless you did something that looks suspicious, like running up debts right before filing or suddenly selling valuable property, the whole question and answer session could be over in 15 minutes or less.

Can I buy a car after 341 meeting?

Yes-so long as the Trustee has no claim on the money you are using to buy the car. The Trustee and creditors have 30 days after the meeting of creditors to object to exemptions, although they rarely do. So you should wait at least that long if you are using money you have exempted.

What questions can a creditor ask in a 341 meeting?

Along with these mandatory questions, the trustee may ask about your property and other assets, your income, your expenses, your debts, and so on. The trustee might also ask about discrepancies in your bankruptcy forms, how you came up with a value for various property items, and so on.

What questions do they ask at meeting of creditors?

The meeting of creditors is where the bankruptcy trustee and any interested creditors can ask you questions about your bankruptcy papers and financial affairs while you are under oath. The trustee’s job is to make sure that you are not abusing the bankruptcy system or lying on your bankruptcy petition.