The Complete Idiot's Guide to Personal Bankruptcy

by Epstein, MBA, Lita

• ISBN13: 9781592579471
• ISBN10: 1592579477
• Format: Paperback
• Copyright: 2010-01-05
• Publisher: DK Publishing, Inc.

Summary

You're no idiot, of course. You know that debt can overwhelm even the most vigilant household. In good times or bad, job loss, medical bills, and business setbacks can combine to jeopardize your financial future. And personal bankruptcy might be the only chance to start over and put your life on track.

Author Biography

Lita Epstein is a seasoned financial writer who develops online courses on investing. She holds an MBA from Emory University and is the author of The Complete Idiot's Guide(r) to Improving Your Credit Score, The Complete Idiot's Guide(r) to Value Investing, The Complete Idiot's Guide(r) to Social Security and Medicare, Second Edition, and the co-author of The Complete Idiot's Guide(r) to Foreign Currency Trading.

Table of Contents

Bankruptcy Basics	p. 1
Bankruptcy for a Fresh Financial Start	p. 4
When to Consider Bankruptcy	p. 6
Debt Relief from Unsecured Loans	p. 7
Home Nearing Foreclosure	p. 7
Car Could Be Repossessed	p. 8
Stop Hospitals and Doctors from Calling	p. 8
Need to Fix a Financial Mess After Divorce	p. 8
Erase Some Legal Judgments (but Not All)	p. 8
Halt IRS Seizures	p. 9
Stop the Loss of Your Driver's License	p. 9
Prevent Garnishment of Your Wages	p. 9
The Four Basic Types of Bankruptcy	p. 9
Chapter 7	p. 10
Chapter 13	p. 11
Chapter 11	p. 11
Chapter 12	p. 12
Is Bankruptcy Right for You?	p. 15
Road Map to Bankruptcy	p. 16
Listing What You Own	p. 16
Acknowledging What You Owe	p. 21
Available Cash to Repay the Debt	p. 22
Bankruptcy vs. Other Credit Fixes	p. 24
Credit Counseling	p. 25
Loan Modification	p. 27
Debt Consolidation	p. 27
Debt Settlement	p. 28
Are You Eligible?	p. 28
Chapter 7	p. 29
Chapter 13	p. 29
Chapters 11 and 12	p. 29
How Bankruptcy Impacts Your Life	p. 30
Professionals You Should Contact	p. 33
Role of Credit Counselors	p. 33
Review Your Finances with Accountants	p. 36
Certified Financial Planner	p. 37
Talk with Debt-Relief Agencies	p. 38
Contract	p. 38
Disclosures	p. 39
Debt-Relief Agency Restrictions	p. 39
Bankruptcy Attorneys	p. 40
Bankruptcy Petition Preparers	p. 43
What If You Can't Afford to Pay an Attorney?	p. 44
Understanding the Bankruptcy Process	p. 45
Fifing for Bankruptcy	p. 47
Are You Eligible?	p. 48
Your Official Income	p. 48
Filing on Your Own vs. with Legal Help	p. 51
Immediate Impact of Filing	p. 53
Creditors and Collections	p. 53
Foreclosures	p. 54
Determine Assets in Your Bankruptcy Estate	p. 55
Property in Your Possession That You Own	p. 55
Property Not in Your Possession That You Own	p. 56
Property You Are Untitled to Receive in the Future	p. 56
Marital Property and Bankruptcy	p. 57
Working With the Bankruptcy Court	p. 58
Chapter 7 Bankruptcy Process	p. 61
What Is Chapter 7?	p. 62
The Counseling Requirement62
Median Income and the Means Test	p. 63
Calculate Your Total Monthly Income	p. 64
Subtract Allowable IRS Expense Amounts	p. 64
Subtract Secured and Priority Debt Payments	p. 66
Find Out What's Left to Pay Other Debts	p. 69
More Eligibility Requirements	p. 72
Filing	p. 72
Working With the Bankruptcy Trustee	p. 73
Meeting Your Creditors	p. 75
When You Must See a Judge	p. 78
Getting Rid of Your Debt	p. 78
Attending the Required Budget-Counseling Sessions	p. 79
How Your Bankruptcy Case Ends	p. 80
Chapter 13 Bankruptcy Process	p. 83
What Is Chapter 13?	p. 84
Fulfilling the Counseling Requirement	p. 84
Meeting the Eligibility Requirements	p. 84
Prior Bankruptcy Discharges	p. 85
Businesses Aren't Eligible	p. 85
Debts Can't Be Too High	p. 86
Income Taxes Must Be Filed	p. 86
Developing a Repayment Plan	p. 86
Compute Your Disposable Income	p. 87
Compare Your Disposable Income to Your Debts to Be Paid in Chapter 13	p. 88
Committing Disposable Income to Repayment of Other Debt	p. 90
Filing Costs and Fees	p. 92
What Property Is at Risk?	p. 92
Working with the Bankruptcy Trustee on Your Repayment Plan	p. 93
Meeting Your Creditors	p. 93
Seeing the Judge	p. 94
Possible Endings	p. 96
Choosing the Right Type of Bankruptcy	p. 99
Why Choose Chapter 7?	p. 100
Pros of Filing for Chapter 7 Bankruptcy	p. 100
Cons of Filing for Chapter 7 Bankruptcy	p. 101
Why Choose Chapter 13?	p. 102
Pros of Filing for Chapter 13 Bankruptcy	p. 103
Cons of Filing for Chapter 13 Bankruptcy	p. 104
Using a Chapter 20 Bankruptcy	p. 105
Why Consider Alternatives?-Chapters 11 and 12	p. 106
Chapter 11	p. 106
Chapter 12 Bankruptcy	p. 108
Special Rules for Upper-Income Filers	p. 109
Using Bankruptcy for Specific Goals	p. 113
Saving Your Home	p. 115
Bankruptcy Filing to Stop Foreclosure	p. 116
Saving Your Home from Foreclosure	p. 118
Understanding Homestead Exemptions	p. 119
Declaration of Homestead	p. 121
Wildcard Exemptions	p. 121
Tenancy by the Entirety	p. 121
Relocation, New Home Purchase, and Bankruptcy Filing	p. 122
Illegal Act and Homestead Exemptions	p. 123
Options If You Have Too Much Equity in Your Home	p. 124
New Bankruptcy Laws and Saving Your Home	p. 125
Getting a Fresh Financial Start	p. 127
Secured vs. Unsecured Debt	p. 128
Debts Not Discharged by Chapter 7	p. 129
Debts Not Dischargeable for Any Reason	p. 129
Creditor Objections to Discharge	p. 132
Discharge by Narrow Exception	p. 135
Debts That Can Be Discharged Only by Chapter 13	p. 136
Debts Not Discharged by Chapter 13	p. 37
Debts and Creditors You Don't List	p. 137
Clearing Out Medical Debt	p. 141
Why People Seek Bankruptcy Protection for Medical Bills	p. 142
Medical Bills	p. 144
Treatment Bills	p. 144
Medication	p. 145
Unsecured Debt	p. 145
Dealing With Disability	p. 146
Timing and Choice of Bankruptcy	p. 146
Seeking Outside Help	p. 147
Medicaid	p. 147
Medicaid Services	p. 148
State Children's Health Insurance Program	p. 149
Caring Voice Coalition	p. 150
Chronic Disease Fund	p. 150
The HealthWell Foundation	p. 150
National Marrow Patient Assistance Program and Financial Assistance Fund	p. 151
National Organization for Rare Disorders	p. 151
Patient Advocate Foundation's Co-Pay Relief	p. 152
Discharging Your Debt So You Can Focus on Healing	p. 152
Cleaning Up a Financial Mess After Divorce	p. 155
Dividing Debt-Joint Debt vs. Individual Debt	p. 156
Joint Account vs. Authorized User	p. 158
Community Property vs. Common-Law Property	p. 160
Common-Law Marriages	p. 161
Impact on Ex-Spouses	p. 163
Clearing Out Bad Financial Memories	p. 163
Life After Bankruptcy	p. 169
Managing Your Money After Bankruptcy	p. 171
Taking Responsibility for Your Spending Habits	p. 172
Get Family Support	p. 172
Build Your Budget Quickly	p. 174
Getting Started	p. 174
Build Emergency Funds	p. 176
Budgeting Together	p. 176
Removing Temptation	p. 176
Blocking Mail and E-mail	p. 177
Blocking Telemarketers' Calls	p. 178
Stop Unsolicited Faxes	p. 180
Complaining About Phone Calls and Faxes	p. 180
Watching for Danger of a Credit Relapse	p. 182
Repairing Your Credit History	p. 185
Clean Up Your Credit Report	p. 186
Correcting Errors	p. 188
Plan Your Fix	p. 191
Public Records	p. 191
Merger Mistakes	p. 192
Response from Credit Bureaus	p. 193
Dealing With Unpaid Debts	p. 194
Knowing Statutes of Limitations	p. 194
Adding Positive Information	p. 196
Expect Repair to Take Years	p. 196
Getting a Job	p. 199
Possible Job Loss	p. 199
Security Clearances	p. 201
Check Bouncing	p. 202
Cleaning Up Your Credit Report	p. 202
Problems Getting Hired	p. 204
How to Deal with Bankruptcy While Interviewing	p. 204
Tell Me About Yourself	p. 206
Why Do You Want to Work Here?	p. 206
What Are Your Goals?	p. 207
Changing Industries After Job Loss	p. 207
Qualification Questions	p. 208
Longevity Questions	p. 209
Practice Makes Perfect	p. 211
Getting Credit After Bankruptcy	p. 215
Repair Your Credit Before Even Trying to Buy	p. 216
Credit Score and Interest Rates	p. 216
Lenders and Bankruptcy	p. 220
Getting Student Loans After Bankruptcy	p. 221
Federal Loans	p. 222
Private Loans	p. 224
Seek a Cosigner	p. 225
Starting a Small Business	p. 226
Managing Your Credit with a Spouse	p. 229
Key State Laws Impacting Couples and Bankruptcy	p. 230
Tenancy by the Entirety	p. 231
Community vs. Common-Law Property States	p. 231
Keeping Credit Files Separate	p. 233
Applying for Loans in One's Name	p. 234
Don't Take on Joint Credit Accounts	p. 236
Appendixes
Glossary	p. 239
Resources	p. 243
State-by-State Homestead Exemption Rules	p. 251
Index	p. 275
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