Questions and Answers on Bankruptcy

Today, we are posting Questions with Answers on Bankruptcy by Chris Johnson. Please continue to ask questions about this topic here on our blog. You can also check Chris out at: http://blog.probate-litigators.com

Question:
Can you filed bankruptcy on items that have been charged off?

Answer:
Yes

Question:
If my contractor filed bankruptcy in the last week, will the court
hold my insurance money, which is to rebuild and is in both our
names? And what if my contractor uses a different construction
name than he did to file bankruptcy, does that make a difference
since it is in fact the same personal name at the end.

Answer:
It's difficult to say without seeing the specifics of your situation, but if the contractor was holding money that didn't belong to him (your insurance money), you may be able to claim that as being outside the bankruptcy estate. If the amount is significant, I'd recommend using an attorney experienced in these matters, as deadlines in bankruptcy court are short and the rules are many.

Question:
My boyfriend is currently in jail and I've been paying for his car expenses (the monthly loan, insurance, and DMV registration). The car loan is in his name only. We've only had the car for a year and the payoff amount is around $30,000. So there is still 4 years left to pay on the loan. We don't know yet how long he will be incarcerated (case is pending), but obviously he isn't working and isn't paying his credit card debt or his personal loans (which total about $25,000). First question is should he file bankruptcy now, or wait? Second question is if he does file for bankruptcy, will I be able to keep the car if I continue making payments on it? Thank you.

Answer:
You'd have to negotiate a transfer of the loan to yourself if you wanted to pay off and keep the car, or a new loan to pay off the lender and put the car in your name--it may be easier to get a different car.

Regarding bankruptcy, it may be a good idea in his situation--the bankruptcy can go through even if he's incarcerated. It will require some extra coordination with the trustee assigned to the case, but it can be done. It would be worth a bankruptcy attorney's review of his circumstances to discuss the pros and cons of filing a bankruptcy case.

Question:
I am a 79 year old Grandmother who has accumulated 50K+ of CC debt over the past 20 years because of medical expenses and loss of job. I receive about $1,000.00 per month in SSI and can no longer afford the CC payments. I don't have any savings or retirement, own a home, car, or anything of substantial value. A Credit Counselor/Consolidator that was referred by one of her Credit Card Company's has advised me to file bankruptcy. Should I file bankruptcy?

Answer:
You are probably judgment-proof, meaning that if you just stop paying your credit cards and do nothing, there's probably nothing they can take from you and it will stop the creditors' collection attempts/ This would be the main benefit to your filing a bankruptcy. If your assets were to increase later, you'd also be protected.

Question:
I filed bankruptcy back in 2003 my common law partner was not in the paper work. Now creditors are after him and they are going to take him to court does he have to file separately? And can he still fill even though creditors have filled a law suit?

Answer:
First, although it wouldn't make a difference in this case, California does not have common law marriage or common law domestic partnerships. Certain obligations may arise after a long time together, but not under any "common law marriage." Thus, you may want to get legal advice concerning this issue sometime, as you may not have the rights and responsibilities you think you have.

That said, if your partner had co-signed for the debts, he will still be responsible for them even if you filed bankruptcy. So, he'll either have to pay them, file bankruptcy or negotiate a lower payoff with the creditors. First, though, you'll want to see proof from the creditors that he actually was a co-signer at some point and that he is legally responsible.

You can contact Chris directly at cjohnson@rrjlaw.com or 626.683.8869