401(K). See retirement savings
522 limitation, 108
Alimony, 43–44
Appraisal, of home, 55. See also home, value of
Arbitration, 21–22
Assets, hiding, 114, 125, 143, 148
Auction, 25, 48, 87–88
Audits, 146
Automatic stays, 119
Balloon mortgage, 6–7
Bank account
eligibility for after bankruptcy, 91
and rebuilding credit, 160 Bank fees, 5–6
Bankruptcy
determining effects of, 40
limits on eligibility for, 99–100
myths about, 82–93
as public record, 83–85
things to avoid when considering, 110–114
types of, 96–100 (See also Chapter 7 bankruptcy; Chapter 11 bankruptcy; Chapter 13 bankruptcy)
Bankruptcy discharge, 123
Bankruptcy fraud, 112, 114 Best interest standard, 107
Borrowing. See also debt; loans and high debt ratio, 39
Budget, IRS, 30–33, 103
Budgets, 28–33, 72–73
Car loans, 40, 112–113, 166–167
Cars. See vehicles
Cash advances, 57
CCC. See Consumer Credit Counseling
Chapter 7 bankruptcy
automatic stays in, 119
compared to Chapter 13, 70
description of, 96–97, 118–119
divorce/separation in, 142–143
and increases in income, 143–144
inheritances in, 142
and living expenses, 30 and post-filing issues, 142, 146–148
reaffirmations in, 107
Section 341 meeting in, 119–123
treatment of in different states, 64–69
Chapter 11 bankruptcy, 97–98, 100, 128–131
Chapter 12 bankruptcy, 99, 100
Chapter 13 bankruptcy
automatic stays in, 119
and car wrecks after filing, 139
compared to Chapter 7, 70
description of, 99, 100, 134–135
divorce/separation in, 143
income in, 137, 142, 144
inheritances in, 142
and living expenses, 30
and means test, 102, 103, 104
and need for car insurance, 139–140
and obtaining additional debt, 138
operation of, 135
petition for, 135–136
and post-filing issues, 142–144
property in, 134–135, 138
proposed plan in, 136–137
and short payments, 140
tax refunds in, 142
Child support, 44
Class action lawsuits, 20
Codebtors, 85, 86. See also
debt, cosigned
Collection agencies. See also creditors
tactics used by, 16–26
Collection process, 21–26. See also foreclosure
Committee of creditors, 129
Consolidation. See debt consolidation
Consumer Credit Counseling (CCC), 12, 20, 39, 78
by state, 205–273
Consumer protection agencies, 20
Court orders. See judgments
Court records, importance of checking, 157
Credit. See also credit report;
credit score
and bank accounts, 160
effect of bankruptcy on, 83
and landline phone, 159–160 need for, 150
obtaining after bankruptcy, 150–151
rebuilding, 93, 158–169
and shopping for car, 167
spouse’s, effect of bankruptcy on, 85–86
and travel, 169
Credit cards
and bank fees, 5–6
borrowing against home to pay, 53–56, 74, 75
cash advances, 57
from department stores, 166 freeloaders, 165
interest rates on, 5
living on, 57
as loans, 4–5
need to carry balance on, 165–166
obtaining for a fee, 158–159
problems caused by, 4–6
reaffirming, 151–153, 164
reasons to have, 164–166
secured, 161–164
as secured debts, 41
transferring balances on, 58
Credit counseling, 105–106, 118
Creditors
challenging of petitions by, 146–147
collection process, 21–26
communication with, 19
contacting, 18
harassment by, 17–20
and judgments, 21–24
lawsuits by, 20–21
negotiating with, 18, 77
protection from, 20
and repossession, 62
rules regarding, 19–20
tactics used by, 16–26
Creditors, committee of, 129
Creditors, meeting of, 119–123
Credit report. See also credit;
credit score
CCC programs on, 78
copies of, 156
debt on, 92
errors on, 156–157
inquiries on, 158–159, 166–167
voluntary surrenders on, 26
Credit score. See also credit;
credit report; FICO score and car loans, 166–167
and credit card payments, 165
and department store credit cards, 166
determining, 153–155
and secured credit cards, 161–164
and secured loans, 160–164 ways to improve, 155
Credit services. See debt consolidation
Criminal fines, 44
Debt. See also money problems
in budget, 28–29
challenging, 156–157
on credit report, 92
definition of, 40
guideline for carrying, 29 incurring after bankruptcy, 138
need to pay, 92
prevalence of, 12
quick ratio, 36–39
reaffirming, 106–107, 118, 151–153, 164
taxes as, 43
types of, 40–43
Debt, contingent, 42
Debt, cosigned, 43. See also codebtors
Debt, disputed, 42
Debt, secured, 40–41
Debt, unmatured, 42
Debt, unsecured, 41, 70
Debt collectors. See collection agencies; creditors
Debt consolidation, 73–74, 76–77
Debt consolidation agencies, 78–79
Debtor in possession, 138
Debt ratio, 36–40
Deficiency, 26
Disability, as hardship, 43
Discharge, 123
Disclosure statement, 130
Divorce/separation after bankruptcy, 142–143
Economic environment, state of, 7
Emergency fund, 12–13
Equity, home, 45–46, 54
ERISA, 49
Exemptions. See also protection federal and state-specific, 179–203
Fair, Isaac, and Company, 153–155. See also FICO score
Fair Debt Collection Practices Act of 1978 (FDCPA), 19–20
Family
loans from, 56, 110–111
selling property to, 111–112
Farms/farmers, 87–88, 99
FDCPA, 19–20
FICO score, 153–154, 156, 163–164. See also credit score
Finance companies, 40, 41
Financial crisis. See money problems
Financial problems/pressure. See money problems
Fines, criminal, 44
Firearms, treatment of in bankruptcy, 47
Foreclosure
and importance of consulting lawyer, 74
process of, 24–25
stopping, 25, 134
Fraud, bankruptcy, 112, 114
Freeloaders, 165
Garnishing wages, 17
Gifts, after bankruptcy, 143
Guilt, 12
Harassment by creditors, 17–20
Hardship, determination of, 43
Health care expenses, standards for, 33
Health insurance, 7
Home. See also mortgage
auctioning of, 88
borrowing against, 53–56, 73–75
in Chapter 13 bankruptcy, 134
foreclosure on, 24–25, 74, 134
having payments on taken over, 60
judgment liens against, 23–24
protection of, 44, 54, 55
risk of losing, 54, 86 (See also
foreclosure)
skipping payments on, 73 value of, 45–46, 55
Home equity, 45–46, 54
Home equity loans, 40–41 Home loans, 40, 167–168 Hospitals, 125
Household operating expenses, 28–29
Housing expense standards, 31–32
Illness, as hardship, 43
Income
in Chapter 13 bankruptcy, 137, 142, 144
decrease in and high debt ratio, 39
increases in after bankruptcy, 143–144
in means test, 118
regular, need for, 158
and spouse, 102–103
Income, disposable, 137, 142, 144
Income, median family, 102 Independent reports, 129
Inheritances, 124, 142, 143 Insurance, car, 139–140
Interest rates
on credit cards, 5
effects of on money problems, 11
Internet, finding bankruptcy records on, 84–85
IRA. See retirement savings
IRS Bankruptcy Living
Standards, 30–33, 103
Jail
for bankruptcy fraud, 112, 114
for debt, impossibility of, 16, 20–21, 91–92
for hiding assets, 148
Job
creditors calling at, 17, 19
effect of bankruptcy on, 89–90
Judgment liens, 23–24, 92
Judgments, 21–24, 92, 157
Land. See also property
judgment liens against, 23–24
Late fees, 5–6, 11
Lawsuits. See also judgments by creditors, 20–21
for violation of FDCPA, 20
Lawyer referral line, 39
Leases, treatment of in bankruptcy, 47
Licenses, effect of bankruptcy on, 90
Living expenses, 30–33, 103 Loan brokers, 73–74
Loans
bill consolidation, 76–77 credit cards as, 4–5
from family, 56, 110–111
lying on applications for, 59
misvaluing assets on applications for, 58–59
refinancing, 73–74
for self-employed, 168
Loans, car/truck, 40, 112–113, 166–167
Loans, home, 40, 167–168. See also mortgage
Loans, home equity, 40–41
Loans, interest-only, 6
Loans, student, 43, 90
Loans, subprime, 6, 168
Means test, 30, 31, 89, 102, 103–104, 118
Median family income, 102
Meeting of creditors, 119–123
Money problems. See also debt causes of, 10, 39
difficulties in adjusting to, 10–11
effects of late fees and interest rates on, 11
mistakes to avoid, 52–60
physical effects of, 11–12
responses to, 72–73
Mortgage
and bank fees, 6
and credit score, 154
interest-only loans, 6
lack of, 46
while rebuilding credit, 167–168
Mortgage, balloon, 6–7
Mortgage brokers, 168
Moving, 108
Newspapers, bankruptcy filings in, 83–85
Nonpurchase money security items, 41
North Carolina, 64–65, 68
Notices of bankruptcy, 83–85
Offset, right of, 25, 91
Parents. See also family
ownership of child’s car, 111, 121
Payments
reducing, 18
taking over, 60
Pension plans. See retirement savings
Petition, bankruptcy
challenging of, 147–148
for Chapter 13, 135–136
mistakes/omissions on, 125
need for copy of, 123
Phone, landline, 159–160
Plan, proposed, 136–137
Possessions. See property;
property, personal
Post-filing problems, 125
Property. See also home; land; property, personal; vehicles auctioning of, 87–88
audits of, 146
in Chapter 13 bankruptcy, 134–135, 138
judgment liens against, 23–24 loss of, 62
paid-off, 70
protection of, 23, 62–70 (See also exemptions)
risk of losing, 87
and secured debts, 40
seizure of, 23
selling of to family or friends, 111–112
threats of seizure of, 16–17
Property, personal
protection of, 47
valuation of, 48
Proposed plan, 136–137
Protection. See also exemptions from creditors, 20
of home, 44–45, 86
of nonpurchase money security items, 41
of property, 23, 62–70
of real estate, 46
of vehicles, 46–47, 86–87
Quick debt ratio, 36–40
Reaffirming debt, 106–107, 118, 151–153, 164
Real estate. See also home;
property
protection of, 46
Refinancing, 73–74
Rent, 31–32
Reorganization, plan of, 130–131
Reports, independent, 129
Repossession, 25–26, 40, 62, 134
Restitution payments, 44
Retirement savings
borrowing against, 52–53, 55, 76
potential crisis in, 7
protection of, 49
Savings. See emergency fund; retirement savings
Section 341 meeting, 119–123
Self-employment. See also small business owners
and difficulty in finding loans, 168
and rebuilding credit, 155, 158
Separation after bankruptcy, 142–143
Shame, 12
Shot gunning, 167
Small business owners. See also self-employment
lack of specialized bankruptcy for, 100
Spending, reducing, 72–73
Spouse
in Chapter 13 bankruptcy, 135
and current monthly income, 102–103
effect of bankruptcy on, 85–86, 88–89
and means test, 103–104
Student loans, 43, 90
Subprime loans, 6, 168
Taxes, 43, 59–60, 163
Tax refunds
in Chapter 13 bankruptcy, 142 claims to, 17, 123
need to report, 143
seizure of, 17
Tennessee, 66–67, 69
Texas, 65–66, 69
Tools, treatment of in bankruptcy, 48–49
Transportation costs, standards for, 32–33
Travel, 169
Trucks .See vehicles
Trustee, 62, 119–122
Tuition, view of in bankruptcy courts, 29
Vehicles
in Chapter 13 bankruptcy, 134
having payments on taken over, 60
insurance on, 139–140
keeping, 118–119
ownership of child’s by parents, 111, 121
protection of, 46–47
purchasing before filing for bankruptcy, 113
and reaffirmation agreements, 118
risk of losing, 86–87 (See also repossession)
as security in family loans, 56
skipping payments on, 73
transportation costs, standards for, 32–33
treatment of in bankruptcy, 46–47
valuation of, 104–105
wrecks, after filing bankruptcy, 139
Voluntary surrender, 26
Wages, garnishing of, 17
Work
creditors calling at, 17, 19
effect of bankruptcy on, 89–90