Impact of Bankruptcy
Here can be some of the impact of bankruptcy:
- Lower credit score (although you can improve your credit score by positive credit reporting)
- Difficulty securing future credit (interest rate on future credit will be significantly higher)
- You may be eligible for a mortgage 3 years after filing bankruptcy
- Difficulty renting an apartment (some landlords may refuse to rent to you immediately following your bankruptcy)
- A second Chapter 7 bankruptcy cannot be filed until 8 years after your first Chapter 7 bankruptcy was filed.
Call LeBaron& Jensen, P.C. today to learn how bankruptcy may impact your life at (801) 773-9488 in Layton.
- BANKRUPTCY AFTER DIVORCE
Financial problems are one of the top reasons for divorce. Bankruptcy and divorce filings often go hand in hand. Depending on your specific circumstances, you may be better off filing for bankruptcy before filing for divorce. This saves money on filing fees and can make it easier to split up property and financial assets during the divorce.
However, there are instances in which filing for bankruptcy after divorce is a better solution. Such reasons are as follows:
- Your combined income is too high to qualify for bankruptcy
- You are splitting up debt between each party
- You and your spouse do not have any joint assets such as bank accounts, homes, cars, etc.
If you are considering filing for bankruptcy and divorce it is important to talk about both matters with your bankruptcy attorney. If you are getting a divorce as well as a bankruptcy it is important to be completely honest with your attorney about the matter because he or she may not be comfortable representing both spouses if this is the case. After discussing the possible consequences of filing bankruptcy and divorce, you can make the best decision for your case. Call LeBaron & Jensen, P.C. for help with your bankruptcy and divorce case today at (801 773-9488 in Layton.
- BANKRUPTCY FOR SENIORS
The percentage of senior citizens filing bankruptcy is steadily increasing. With significant financial strain and rising living expenses for those on a fixed income, bankruptcy may be the best option when the financial burdens become excessive. Often time’s medical debt can push a couple or individual to the point of financial exhaustion. Learning about the consequences of bankruptcy can help you decide whether or not filing bankruptcy as a senior citizen is right for you.
Bankruptcy may be your best option under the following circumstances:
- Your liabilities exceed your assets. Your assets include your monthly income. If paying your minimum payments exceeds your monthly income and your current assets, you may want to consider filing bankruptcy
- You want to clear your debt, but you also want to keep your IRA. The current bankruptcy law protects your retirement accounts.
- You’ve already tried to negotiate down your debt or payments. If creditors are unwilling to work out a new payment plan or negotiate the total debt, you may need to file bankruptcy
You can discuss your specific situation with your bankruptcy attorney at LeBaron & Jensen, P.C. In your initial consultation, you will learn about the full impact bankruptcy may have on your life and your finances.
Call LeBaron & Jensen, P.C. to discuss filing for bankruptcy as a senior citizen at (801) 773-9488 in Layton.
- FORECLOSURE AND BANKRUPTCY
Many clients who are considering bankruptcy are also facing foreclosure. If you are under extreme financial duress and need to postpone a foreclosure, you may benefit from filing bankruptcy. When you file chapter 13 or chapter 7 bankruptcies, you get an automatic stay which prevents your home from being foreclosed for a period of time. The automatic stay prevents all creditors from seeking further action for at least 3-4 months.
With a Chapter 13 bankruptcy you can make a payment plan to bring mortgage arrears current while continuing to pay your ongoing mortgage payments. As long as you make all of the current payments and continue to make the payments on your past due payments, you can prevent the foreclosure from being completed. If you have a 2nd and 3rd mortgage on your home, you may be able to eliminate and strip off that debt through a Chapter 13 bankruptcy if the entire value of your home is secured by your first mortgage.
Call LeBaron & Jensen to discover how you can delay or eliminate foreclosure with a bankruptcy at (801) 773-9488 in Layton.