If you're experiencing financial difficulties, well-meaning friends and relatives may try to give you advice. As you no doubt do with any piece of advice given to you by your Uncle Ernie, disregard it. It may not help you, and worse, it may hurt you.
Here are some examples of advice you should not follow:
- Get a home equity loan to pay off your credit card debt.
Bad idea.
In Las Vegas, a home equity loan is secured debt. Credit card debt, on the other hand, is unsecured. What this means is that if you file for individual bankruptcy in Las Vegas, your debts to your credit card company will likely be discharged, but your debts for your home equity loan will not. You'll have to pay it back.
Don't do this. First of all, you won't make nearly as much for your property as it's worth. At a garage sale, the DVD player you bought less than six months ago has already been replaced by newer technology, and you'll be forced to sell it for a fraction of what you bought it for.
Secondly, and more important, if you end up filing for bankruptcy, Nevada law exempts a substantial portion of your property, meaning that your creditors won't be able to touch your things. For example, if you file for Chapter 7 or Chapter 13 bankruptcy in Las Vegas or anywhere else in Nevada, you'll be able to keep $3,000 worth of appliances, household goods, furniture, and home and yard equipment. Do you really think you could make more than that at a garage sale?
If you are thinking about filing for individual bankruptcy in Las Vegas, you need to talk to an experienced bankruptcy lawyer. Contact our offices at 1-800-LAWYERS to schedule a free initial consultation with our bankruptcy experts. We'll let you know how a bankruptcy filing can help you get a fresh start on your financial life.
You've probably never heard of Prive Las Vegas or The Living Room, two of Las Vegas' most popular clubs. You've also probably never danced on a tabletop or enjoyed jello shots off of strangers' various body parts. Of course not. When you're not at work, you're at home caring for your children or simply enjoying a good novel. Us too.
Wink wink.
Not that we have any reason to be relieved because we never, ever frequent nightclubs, but word is out that although the clubs' Las Vegas parent company, Prive Vegas, LLC, filed for Chapter 11 bankruptcy a few short weeks ago, both clubs will still be open while the parent reorganizes.
Apparently, the clubs were cited for three violations last year, including topless dancing. Just this past summer, their liquor license was revoked. Since then, new managers have stepped in, and while police investigate their backgrounds, the clubs are operating under a temporary liquor license.
Not that any of that is relevant to us, of course. We're just a couple of Las Vegas bankruptcy attorneys hoping to broadcast some Las Vegas bankruptcy information.
Nudge nudge.
An ecstatic client recently charged into our office waving some paperwork at us, all the while busting some Beyonce-style moves. Turns out, the bank had forgotten to get a lien on his car when they made the car loan. Our bootying client thought that his bankruptcy filing meant that he owned the car, free and clear.
We hate to burst anyone's bubble, especially when they've got a good groove going, but we had to tell our client that wasn't the case. When you take out a loan to buy the car, you sign a security agreement, which pledges your car as collateral for the loan. The bank can file a lien on the car, which notifies the world that it has a secured interest in that car. That way, other creditors know that if you offer your car as collateral for their loan, they'll only have second dibs on it.
If the bank doesn't record its lien, then future creditors may not have to honor the bank’s rights in the car, since they don't know about that right. But that doesn't change your obligation to pay the bank.
A bankruptcy filing complicates things a bit, but still doesn't let you off the hook. In a Chapter 7 bankruptcy, the bankruptcy trustee wold be treated as though he is a buyer of the car without any notice of the lien. Therefore, he may be able to sell the car and distribute the proceeds to all of your creditors, and the bank would have no lien on those proceeds. So the bank might get shafted, but you still lose the car.
A Chapter 13 bankruptcy filing might be the place for you. The unperfected lien will mean that you'll get to keep your car. You still will be obligated to pay the bank the market value of the car, but this might be less than what you owe. Therefore, you may end up benefiting from the bank's mistake after all.
Rising unemployment and foreclosure rates are causing some of our clients to consider leaving Sin City. First we tell them that yes, they can move after filing their bankruptcy case in Las Vegas. Then we tell them that we'll miss them, and that we wish them the very best of luck. We get them the appropriate change of address forms to fill out in order to let the bankruptcy court and bankruptcy trustee know that they are moving.
Once someone files for bankruptcy in Las Vegas, there is no requirement that he or she stay in Las Vegas until the bankruptcy case is closed. There are some events that the bankruptcy filer will need to attend in Las Vegas, such as the meeting of creditors that is held about a month after the case is filed. Also, if the person filed for Chapter 13 bankruptcy, he or she will be required to attend the confirmation hearing, at which the bankruptcy judge will review and confirm the Chapter 13 repayment plan. That usually takes place about four months after the case is filed.
Bear in mind that if you do file for Chapter 13 in Las Vegas, and then move to a state that has a lower cost of living than Las Vegas, you may have some extra income left over in your monthly budget. This means that you may need to amend your Chapter 13 plan in order to pay a little bit extra to your creditors each month.
We certainly don't want to see you go, but we know how invaluable a fresh start in your life - both personally and financially - can be. If you live in Las Vegas and are considering filing for bankruptcy, call us at 1-800-LAWYERS. You'll be able to schedule a free initial consultation with one of our expert bankruptcy lawyers, who can help you get your financial life back on track.
A few weeks ago, we posted an
entry in which we pondered whether the curse of the Chicago Cubs would manifest itself in a bankruptcy filing by the team.
Indeed, the team filed for bankruptcy. Although the filing barely seems like a curse. In fact, we should be so cursed.
The Cubs, which were purchased by the Tribune Company in 1981 for $20.5 million from candy maker Wm. Wrigley Jr. Co., are going to be sold through the bankruptcy case for a whopping $845 million. This deal tops the record $660 million paid for the Boston Red Sox in 2002. The purchaser for the team is the family of billionaire Joe Ricketts, the founder of TD Ameritrade.
The Cubs aren't actually insolvent.
Like we've said, you don't need to be poor to file for bankruptcy. But the Cub's current owner filed for bankruptcy last December as a result of financial problems, and expects that the sale of the Cubs will help it shed some debt. The Cubs' bankruptcy filing will also ensure that any claims against the team will be eliminated, so that the Ricketts family can own the Cubs free and clear.
$820 million in profits and getting rid of your debts doesn't sound like a curse to us. Here's hoping that the Cubs' bankruptcy filing will give the team a fresh start, and end their 101-year title drought.
If you're thinking about filing for bankruptcy, it is crucial that you read this.
The "
means test," used to determine who can file for Chapter 7 bankruptcy,
is changing on October 31, 2009. This test requires your family's income to be the same or lower than the median income for a family the same size as yours living in Nevada.
Here are the changes to the means test:
Previous Median Income New Median Income
Household size of 1: $48,194 $46,316
Household size of 2: $60,557 $60,449
Household size of 3: $65,783 $67,052
Household size of 4: $74,735 $71,104
How are
you affected by these changes? Are you living alone? Then your income will need to be lower than it previously did in order to qualify for Chapter 7 bankruptcy. Same if you live with your spouse and have two kids - and keep in mind that your spouse's salary is included in this equation.
Come November 1, once these changes have taken effect, you may not be able to file for Chapter 7 bankruptcy anymore. If you are considering a bankruptcy filing, it is important that you contact an experienced bankruptcy attorney
as soon as possible.
Call us at
1-800-LAWYERS to set up a
free initial consultation with one of our bankruptcy experts. We can tell you how these changes will affect you. We can also tell you about how you'll still have an opportunity to demonstrate that that you should qualify for a Chapter 7 bankruptcy, even if your income is higher than the median income.
We've posted
entries about wealthy people filing for bankruptcy. And yet, people still ask us: Do you have to be poor to file for bankruptcy?
The answer is no. The bulk of our clients consist of individuals who have been earning pretty healthy salaries. Even with their salaries, however, they often use their credit cards for basic living expenses. With the rising costs of housing, transportation, education and medical care, most people do the same.
Then something happens to our clients. They lose their job. They get a divorce. Or someone becomes ill. Suddenly, our clients realize that their monthly payments just aren't making a dent in that pile of mounting bills.
When they come to our office, we don't focus on their jobs or their salaries. We focus on whether or not they have enough assets or income to cover their debts. If not, a bankruptcy filing might be the right solution for them, no matter how high their income is.
If you live in Nevada and are thinking about filing for bankruptcy, call us at
1-800-LAWYERS to schedule a
free initial consultation with one of our bankruptcy experts. We can help you get your financial life back on track.
We've talked about the "
bankruptcy means test" used to determine whether you can file for Chapter 7 bankruptcy. The test adds up all the income you've received for the past six months, and subtracts your monthly expenses for each of those months. What's left is called your "disposable income." How much disposable income you have determines whether you are eligible to file for Chapter 7 bankruptcy.
How does Christmas factor into the "bankruptcy means test?" It's simple. You may receive a holiday bonus this year. If you do, your bonus will be counted as part of your income if you file for bankruptcy within six months afterwards. That means that you may have more disposable income, which means that you may not be eligible to file for Chapter 7 bankruptcy.
For this reason, we suggest that if you're thinking about filing for bankruptcy, do so before you receive your holiday bonus. You'll be able to present a more accurate picture of your income, without the added bonus.
One more thing - if you're planning on racking up credit card bills during the holiday season and then filing for bankruptcy to get rid of those debts, your plan may backfire. The bankruptcy trustee will not be pleased when he or she sees your bills, and may even find evidence of bad faith associated with your bankruptcy filing. As a result, you may be forced to convert your Chapter 7 bankruptcy case to a Chapter 13 case, where you'll have to pay back your creditors, instead of getting your debts discharged.
You're retired, or on your way to becoming retired. You're collecting Social Security, which is generally considered "judgment proof." That means that creditors who sue you cannot enforce their judgments against your Social Security.
Why would you file for bankruptcy? A few reasons:
- Are you sure you're done working, even part-time? Because if you are working, or you go back to work, your salary is not judgment proof. Your creditors may be able to collect their judgments against your income. A bankruptcy filing, however, can get rid of those judgments.
- How much personal or real property do you own? Some of it might be exempt under Nevada state law, which means that your creditors can't collect it to satisfy their debts. But if your property is worth a lot, you may not be able to exempt it all. A bankruptcy filing will help protect your property by discharging some or all of your debts to your creditors. A bankruptcy filing may also provide better exemption options for your property than the exemption allowances under Nevada state law.
- Are you receiving phone calls and letters from creditors? Even if they cannot collect your Social Security or exempt property, they will still come after you and threaten to do so - unless you file for bankruptcy, which stops them in their tracks. If they do continue to harass you, your bankruptcy lawyer can turn the tables on them and sue them.
You should be spending your golden years enjoying your family, friends and hobbies. If you're worrying about creditors and debts, call us at
1-800-LAWYERS to set up a
free initial consultation. Our bankruptcy experts will tell you how a bankruptcy filing can eliminate threatening creditors and help you with your financial burdens.
You are not going to lose your pet during your bankruptcy filing.
But keep in mind that we're talking dogs, cats and goldfish here. We're not talking about your exotic collection of Albino Ball Pythons.
Nevada law allows a debtor to exempt up to $12,000 worth of household personal property. What this means it that the bankruptcy trustee cannot sell any of the items you've exempted to pay your creditors. We can include the value of your pet in this exemption.
How do we value your pet? Well, your fuzzy friend may be priceless to you, but bankruptcy law looks to the fair market value of your pet, which is the value that a retail merchant would charge for it. If you have a ten year old dog, its value is probably less than $50, since most people would rather buy a newborn puppy than an older animal.
What if you have a lot of personal property you'd like to exempt, and your pet brings you over the exemption limit? Fret not. The bankruptcy court is not a kennel. The judge is not interested in taking your pet from you and walking it. Chances are high that you'll be able to keep your pet.
We do caution our clients, however, to make sure that they want to continue caring for their pets once they get a clean financial slate. Pets can be expensive, so be sure that you include its vet bills, food and other care expenses into your new budget once your bankruptcy is completed.
You may not be the type of person who saves every receipt in a shoe box.
That's okay.
If you decide that a bankruptcy filing is right for you, chances are good that you'll be able to quickly gather all of the information we'll need for your filing. Here are the documents we'll need:
- A credit counseling certificate. This proves that you took the mandatory credit counseling course before filing for bankruptcy. We'll let you know how you can take the course on the Internet, or even over the phone.
- Bank statements from the last six months.
- Pay stubs and any other documents establishing your income from the last six months. We'll need those to determine whether you qualify to file bankruptcy under Chapter 7.
- A copy of your tax returns from the last four years.
- A list of your debts, including the names and addresses of your creditors.
- A list of your assets.
- If your business is filing for bankruptcy, we'll need profit and loss statements from the last six months. If you are filing for bankruptcy as an individual, we'll need a description of your monthly household budget.
Our job is to make your life less complicated, not more. If you have questions about how to obtain or prepare anything on this list, we'll walk you through it. Call us at
1-800-LAWYERS to schedule a
free initial consultation with one of our bankruptcy experts.
PARTYYYY!
According to the
L.A. Times, that's just what one top loan officer at Wells Fargo decided to do after reposessing a home that belonged to owners who had lost their savings to Bernie Madoff. And this wasn't just any home. This was a $12 million beach house in southern California.
Apparently, the Wells Fargo executive was refusing to show the house to potential buyers. No wonder, considering that the executive was living it up by escorting her nearest and dearest via yacht to party at the repossessed home. Finally, suspicious neighbors and a real estate agent who couldn't understand why she wasn't able to show the home to prospective buyers complained, leading Wells Fargo to investigate.
Wells Fargo plans to list the property for sale in the near future. And in case you're wondering - yes, the executive was fired, and is probably not doing much partying these days.
Just two weeks ago, we posted an
entry in which we applauded a Brooklyn judge for tossing out foreclosure requests where the banks had made mistakes in the foreclosure proceedings or in their foreclosure applications.
It seems like the trend of sticking it to the banks is continuing. We couldn't be happier.
Case in point: The New York Times recently ran an
article describing how a Phoenix bankruptcy judge ordered a high-ranking Wells Fargo executive to testify under oath in the bankruptcy case of a homeowner.
The homeowner, Bobbi Giguere, had submitted an application for a loan modification, but heard nothing from Wells Fargo for months, despite her repeated phone calls to the bank. She submitted three applications in total. Still, she never received an answer as to whether she was approved or denied the loan modification. Finally, in order to save her three-bedroom home, Mrs. Giguere filed for bankruptcy.
Ordered by the bankruptcy judge to give answers as to why Mrs. Giguere never received a response to her loan modification requests, Wells Fargo sent senior vice president Joseph Ohayon to testify. Mr. Ohayon explained that Mrs. Giguere had repeatedly failed to provide a financial worksheet in her application. From her files, Mrs. Giguere produced a letter from Wells Fargo describing the paperwork that she needed to file for a loan modification. After reading the letter in the witness chair, Mr. Ohayon admitted that Mrs. Giguere was right. The letter did not ask for a financial worksheet.
The judge continued to press Mr. Ohayon on why Mrs. Giguere, or, for that matter, thousands of other loan modification applicants, was never told that their loan modifications were denied. Mr. Ohayon responded: "Customer communication is something we're taking a serious look at, your honor."
We sure hope that's true. At least Wells Fargo agreed to schedule a three-day seminar in Phoenix, where customers who submitted loan modification applications were able to meet with bank representatives to learn whether their applications were approved or denied. Mortgage servicers may have a long, long way to go, but this is a start.
While we wait to see what happens with the Mortgage Modification Bill
we've been tracking in Congress, we're happy to report that courts have stepped in to crack down on banks and foreclosures.
A recent
New York Times article describes Arthur M. Schack, a 64-year old judge in Brooklyn who gives banks seeking to foreclose upon homeowners a major run for their money. Judge Schack simply reviews the foreclosure documents submitted by the banks, and rejects the ones with mistakes.
And there are many with mistakes. One foreclosure request by Deutsche Bank was accompanied by an affidavit by the bank's representative, who claimed to be the vice president of two different bank. Further, the representative's office is in Kansas City, Mo., but the signature was notarized in Texas. And to cap it all of, the bank did not even own the mortgage when it began to foreclose on the homeowner.
Request denied.
Judge Schack explains: "If you are going to take away someone's house, everything should be legal and correct." "I'm a strange guy," he adds. "I don't want to put a family on the street unless it's legitimate."
It seems that this approach is becoming a trend. According to a recent article in ProPublica, judges have started to scrutinize mortgage servicers' records, and have found that these services "regularly mess up basic accounting, improperly credit payments and charge unwarranted fees."
Experts in consumer credit law are not surprised. "To the extent that judges examine these papers, they find exactly the same errors that Judge Schack does," commented Professor Katherine M. Potter from the School of Law at the University of California, Berkeley. "His rulings are hardly revolutionary; it's unusual only because we so rarely hold large corporations to the rules."
Recently, we posted an entry about things you should NOT do before filing for bankruptcy. Now, we'll tell you about things you should PROBABLY NOT do before filing for bankruptcy.
- You should probably not quit your job.
A lot of our clients who earn too much income to satisfy the
means test required to file for Chapter 7 bankruptcy ask us if they should quit their job.
Probably not, we tell them.
Quitting your job before filing for bankruptcy will raise the suspicions of the bankruptcy trustee, who takes the
means test seriously. The bankruptcy trustee may dismiss your case, which means you'll need to resort to filing a Chapter 13 bankruptcy. A Chapter 13 bankruptcy requires a repayment plan for your creditors. You'll be in quite the predicament if you are required to repay your creditors with no income.
Also, be aware that there is a six-month lookback period for determining whether you earn too much income to file for Chapter 7 bankruptcy. This means that you may need to wait as many as six months before filing for bankruptcy after you quit your job. If you think you're strapped for cash now, wait until those six income-less months.
We know you're asking why we only say you should PROBABLY not quit your job. it's because there are circumstances in which quitting your job is highly justifiable. For example, if you have taken on a part-time or per diem gig in addition to your full-time job in order to supplement your income, you'll likely be able to quit the extra job. Anyone who has worked two jobs can tell you about the mental and physical toll it takes on them, and bankruptcy courts and trustees do not expect you to sacrifice your health in order to pay your creditors.
Here's another action you should PROBABLY not take before filing for bankruptcy:
- You should probably not get a divorce.
The
means test takes into account your income, as well as your spouse's income, when determining whether you earn too much money to file for Chapter 7 bankruptcy - even if your spouse is not filing for bankruptcy. Some of our clients with spouses who earn incomes that have put them over the Chapter 7 threshold have asked us if they should get a divorce.
Probably not, we tell them.
Again, you don't want to raise the suspicions of the bankruptcy trustee, who will not look kindly on a debtor that files a sham divorce in order to qualify for Chapter 7 bankruptcy. Of course, you will be able to convince the bankruptcy trustee that the divorce is not a tool to gain entry to a Chapter 7 case if you can demonstrate that the divorce has been in the making for some time before the bankruptcy case. But bear in mind that there may be benefits to filing for bankruptcy before you get a divorce, as we discussed in a recent
entry.
We loved the movie "Erin Brockovich."
Remember it?
Julia Roberts played Erin Brockovich, the feisty file clerk who discovers that a national energy company has conducted an industrial poisoning of an entire town, threatening the health of its residents. Ultimately, Julia - er, we mean Erin, brings the company to justice by securing a settlement of $333 million. The movie grossed over $250 million worldwide.
Now, we're sorry to report that the law firm portrayed in the movie, Masry & Vititoe, has filed for bankruptcy. Following the death of founding partner Edward Masry in 2005 (played in the movie by Albert Finney), a whole slew of people have come forward, arguing that Masry promised them assets and cash from the firm. Among the people making claims are Masry's wife, who claims she is owed $1 million, and Masry’s estate, which has claims for $19,000 monthly through the year 2011, plus more for his deferred bonuses through the year 2011.
The firm says that it has spent more than $3 million fighting the lawsuits, and has filed for bankruptcy in order to get relief from the litigation. While it is in bankruptcy, it will continue doing business.
And now, to answer the question we know everyone wants to know: Yes, we are available to portray the firm's bankruptcy lawyers. (Agents, call us!)
As for that other question you're asking: Erin Brockovich no longer works for Masry & Vititoe. According to her website, she has set her own environmental-consulting firm, and is working exclusively with Girardi & Keese on the west coast and Weitz & Luxenberg on the east coast.
We've seen it happen. Someone files for bankruptcy, and then days, weeks or months later, he or she passes away.
What happens when a debtor in bankruptcy dies?
Nothing remarkable. For the most part, the case continues as it had before. The bankruptcy trustee will continue to administer the estate, bearing in mind that the debtor's funeral expenses now have a special priority in the order of payments to creditors. A personal representative from the deceased debtor's probate estate may step into the debtor's shoes to supply any information the bankruptcy trustee or the Bankruptcy Court needs.
What's the benefit, you ask, of a bankruptcy case continuing once the debtor has died?
Plenty.
A debtor's debts do not die along with him. Creditors will still be able to come after the deceased debtor's property, much to the dismay of the beneficiaries of the debtor's estate. Continuing the bankruptcy case will ensure that may of the debtor's debts are discharged, and will therefore allow the debtor's beneficiaries to enjoy the property bequeathed to them without fear of creditors pursuing it.
If you live in Nevada and have any questions about how bankruptcy can benefit you, contact our offices at 1-800-LAWYERS. You'll be able to schedule a free initial consultation with our expert bankruptcy lawyers, who can tell you if a bankruptcy filing is right for you.
A debtor who files for Chapter 13 bankruptcy will need to come up with an amount that he or she will repay creditors. This amount is usually calculated at the outset of the bankruptcy case by subtracting certain fixed costs, like a mortgage, from the debtor's income. The balance is called "disposable income," and is used to pay creditors.
But what if you file bankruptcy knowing that you're eventually going to abandon your home? Do you still deduct the mortgage from your income? Wouldn't that allow you to keep the money you used to pay your mortgage when you're not paying your mortgage anymore?
That's the scenario that was recently before the highly esteemed Seventh Circuit Court of Appeals in the bankruptcy case of Joel Turner. Mr. Turner knew that he was going to abandon his home and stop making mortgage payments, but he still deducted the mortgage amounts from his income at the time he filed for bankruptcy, since he had not yet abandoned the home.
The court called the issue before it an "important" one, recognizing that "in the wake of the bursting of the housing bubble, which precipitated the current economic downturn, many mortgagors either cannot meet their mortgage obligations, or, because their house is now worth less than the unpaid balance of their mortgage, consider the house a bad investment."
The court ultimately decided that it could look to Mr. Turner's future financial status to determine how much he needed to pay his creditors, and criticized Mr. Turner for wanting to "use a phantom deduction to reduce the recovery by his unsecured creditors without benefiting any other creditor."
Although it concluded that it could take into account Mr. Turner's future plans to abandon his home, the court cautioned that bankruptcy judges "must not engage in speculation about the future income or expenses of the Chapter 13 debtor." The court distinguished the case before it, reasoning that no such speculation existed, since the mortgage was a "fixed debt that we know will disappear before the Chapter 13 plan is approved."
Coming up with a repayment plan in your Chapter 13 bankruptcy case may prove tricky, as demonstrated by this decision. Make sure you hire an excellent bankruptcy attorney to guide you through the process. If you live in Nevada and have any questions about how a bankruptcy will affect you, contact us at 1-800-LAWYERS. You'll be able to schedule a free initial consultation with one of our expert bankruptcy lawyers, who can tell you if a bankruptcy filing is right for you.
Are you married? If so, what's the number one source of stress in your marriage?
Did you answer money? You're not alone.
So many couples divorce over money issues. One spouse invariably thinks that he or she will be able to solve his or her money problems once the other spouse is out of the picture.
In reality, that spouse may be worse off than ever after a divorce. In Nevada, almost all of the property you gain during your marriage belongs to you and your spouse jointly, as a couple. What this means is that even if you think you - and not your spouse - own certain property, your spouse's creditors can go after that property to satisfy your spouse's debts.
That's why we often advise couples who are splitting up to file bankruptcy before getting a divorce. You and your spouse will be able to eliminate the majority of both of your debts, and creditors can't touch whatever is left over. It's probably a good idea to file for bankruptcy jointly. You don't want to get stuck having to pay your spouse's creditors if your spouse files for bankruptcy alone.
Be mindful that you and your spouse won't be able to discharge any alimony or child support obligations. Congress has cracked down on ex-spouses who file for bankruptcy to shirk their support payments. Still, by reducing or eliminating your other debts, you'll have a better chance at starting over with a clean financial slate.
If you live in Nevada and have any questions about what effect a bankruptcy will have on your divorce, contact us at 1-800-LAWYERS. You'll be able to schedule a free initial consultation with one of our expert bankruptcy lawyers, who can tell you whether a bankruptcy filing is right for you.
Our clients have been watching too much "Boston Legal." When we tell them that they'll need to make an appearance in court after filing their bankruptcy case, they go pale. We can only imagine what they're thinking: ruthless questioning by an brutal prosecutor, tsk-tsking and head-shaking by a judgmental jury, and angry orders barked by a pitiless judge.
Not exactly.
In fact, your court appearance likely won't last more than 10 minutes. You probably won't even be before a judge. Instead, you'll attend a meeting with the bankruptcy trustee, who will question you about the paperwork filed in your case. Your attorney will be there with you. So long as you didn't lie about your assets or liabilities, you'll be fine.
Creditors can also come to the meeting with your trustee, but they rarely do. Again, unless you've lied about your assets or liabilities, there's not much a creditor will learn from your meeting with the bankruptcy trustee. They are not allowed to ask things like "Why haven't you paid me?"
We've attended hundreds and hundreds of these meetings, and we can assure you that as long as you've followed your lawyer's instructions and have made the proper disclosures on your court documents, you'll have nothing to worry about.
If you have any questions about what a bankruptcy filing will entail, contact us at 702-880-5554. You'll be able to set up a free initial consultation with one of our expert bankruptcy lawyers, who will describe the bankruptcy process for you, and can tell you whether a bankruptcy filing will benefit you.
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