It’s always interesting to learn how clients find us. Frequently, clients find us through referrals, other times, through the Internet. With a little help from Google, I have some interesting insights into what keywords people are using to find us. Here are some popular questions you are asking (along with additional information.)
Do I have to be behind on payments to file for bankruptcy?
Nope. You can be totally current, 6 months behind, current on some bills, behind on others. Whether you are behind has no bearing on if you can file for bankruptcy. (Full answer here: Part 1 and Part 2.)
Is there a minimum debt to file for bankruptcy?
Nope. There is no minimum debt requirement, but as a practical matter, if you have very little debt it probably doesn’t make sense to file. The filing fee for Chapter 7 is $299 plus attorney fees so if you have only a couple of thousand dollars in debt, you’re probably better off paying it. (Read the long answer here.)
What is credit counseling - bankruptcy?
Every single person that files for bankruptcy must complete a credit counseling class. Before you start to panic or have flashbacks to your high school algebra class, relax. Credit counseling can be done online, over the phone or in person and takes less than 1 hour. I had one client complete it in 33 minutes. If you complete it in less time, let me know.
Transfer assets to my husband before bankruptcy?
This is a big no-no. First, certain transfers prior to bankruptcy must be disclosed on your bankruptcy petition. In addition, Trustees regularly do assets checks to screen for fraudulent transfers. Second, because California is a community property state, all of your spouses’ property counts as your property. Fraudulent transfers can result in unwinding of the transfer, denial of discharge or even criminal charges. So, please don’t exercise self-help and consult with an attorney first.
Can bankruptcy save my home?/ Can bankruptcy stop foreclosure?
It depends. Many clients falsely think that the “automatic stay” will permanently stop all foreclosures. Not true. In Chapter 7, the automatic stay is a temporary stop of foreclosure buying you maximum of 3 - 4 months. In Chapter 13, it may be possible to save your home by a) rolling in the missed mortgage payments into your Chapter 13 Plan, b) applying for a loan modification, c) stripping a second mortgage that is completely unsecured, or using a combination of the above strategies.
Bankruptcy do’s and don’ts
Here is our short list of bankruptcy do’s and don’ts.
Getting rid of student loans through bankruptcy
Unfortunately, student loans are non-dischargeable. In rare circumstances it is dischargeable provided you can demonstrate an “undue” hardship. This is an extremely difficult standard to meet and rarely granted. Chapter 13 can offer a breathing room and offer a temporary solution (for 5 years) but it’s not a permanent solution. (Read more about student loans and bankruptcy here.)
Price of a cup of coffee in San Francisco
Not bankruptcy related but it’s interesting to me that so many people found our website while searching for coffee! I love coffee but I limit myself to one (sometimes two… or three) cups a day. I used to put a lot of sugar and fatty cream into it but after I quit Starbucks, I started drinking it black.
