What You Should Know Before Filing for Bankruptcy

Bankruptcy has gotten more difficult—and expensive.

wont be protected either.

— If you have money: The bankruptcy court will look at your assets. If you’ve got a healthy wad of cash sitting in your bank account, you’re not likely to qualify for bankruptcy protection. You should work with your creditors to restructure your debts instead.

Originally published in the December 2008 issue.

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  • Stacey. Esq.

    If a foreclosure is emminent; a Chapter 7 Bankruptcy will do nothing to help you. There is no means in a Chapter 7 to catch up that delinquent mortgage. You will lose your home in a Chapter 7 if you are delinquent. Also, non-priority taxes can be discharged in either chapter of bankruptcy. So there is significant relief in a bankruptcy. Also keep in mind that even though you may be judgment proof….dont put that money in a bank account. Those funds are no longer exempt and can be attached in some states. The “savvy” debtor knows this and we need to start using the code to our advantage. The wealthy and informed do it all the time…..

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