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  • Legal Question about Chapter 7 bankruptcy

    From Sammy@21:1/5 to All on Sat Oct 19 07:59:58 2024
    I need to file Chapter 7 bankruptcy. I may use the
    non-profit upsolve to do this.

    I'm currently in litigation with a bank about a debt.
    When I file the bankruptcy can I include the estimated legal costs
    that are required by my contract? It is probably $10k by the
    plaintiff.


    TIA,


    Sammy

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  • From Stuart O. Bronstein@21:1/5 to Sammy on Sat Oct 19 13:49:24 2024
    Sammy <[email protected]> wrote:

    I need to file Chapter 7 bankruptcy. I may use the
    non-profit upsolve to do this.

    I'm currently in litigation with a bank about a debt.
    When I file the bankruptcy can I include the estimated legal costs
    that are required by my contract? It is probably $10k by the
    plaintiff.

    You can include the legal costs you incurred until the day you file
    bankruptcy.

    If the bank sued you, that suit will automatically be stayed and can't
    proceed until the bankruptcy court allows. However if you were the one who sued the bank, there will be no automatic stay, and the case will continue unless you ask the bankruptcy court to stay it.

    --
    Stu
    http://DownToEarthLawyer.com

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  • From Barry Gold@21:1/5 to Sammy on Sat Oct 19 13:57:08 2024
    On 10/19/2024 7:59 AM, Sammy wrote:
    I need to file Chapter 7 bankruptcy. I may use the
    non-profit upsolve to do this.

    I'm currently in litigation with a bank about a debt.
    When I file the bankruptcy can I include the estimated legal costs
    that are required by my contract? It is probably $10k by the
    plaintiff.

    A Chapter 7 bankruptcy terminates *all* debts except those that are
    explicitly affirmed by the filer and those arising out of an intentional
    tort. The creditors (the people/corporations that you owe money to)
    split the filer's non-exempt assets in proportion to the amount of each
    debt.

    --
    I do so have a memory. It's backed up on DVD... somewhere...

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  • From Stuart O. Bronstein@21:1/5 to Barry Gold on Sun Oct 20 12:38:30 2024
    Barry Gold <[email protected]> wrote:

    A Chapter 7 bankruptcy terminates *all* debts except those that are explicitly affirmed by the filer and those arising out of an intentional tort. The creditors (the people/corporations that you owe money to)
    split the filer's non-exempt assets in proportion to the amount of each
    debt.

    Student loans and many taxes are also not dischargeable.

    --
    Stu
    http://DownToEarthLawyer.com

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  • From Barry Gold@21:1/5 to Stuart O. Bronstein on Sun Oct 20 21:58:44 2024
    On 10/20/2024 12:38 PM, Stuart O. Bronstein wrote:
    Barry Gold <[email protected]> wrote:

    A Chapter 7 bankruptcy terminates *all* debts except those that are
    explicitly affirmed by the filer and those arising out of an intentional
    tort. The creditors (the people/corporations that you owe money to)
    split the filer's non-exempt assets in proportion to the amount of each
    debt.

    Student loans and many taxes are also not dischargeable.

    Valid point. I had forgotten taxes, and yes, 11 U.S.C. ยง 523 makes it
    almost impossible to get a discharge on student loans. Certain other
    loans are also not dischargable, e.g., if you have borrowed money during
    the past 70-90 days (depending on the type of loan), that may not be dischargeable. The presumption is that you knew you were in trouble and borrowed money on the assumption you wouldn't have to pay it back.

    I'm not sure what happens with that last category if you can show that
    your insolvency occurred after you had borrowed the money, e.g., an
    at-fault accident that exceeds your liability insurance coverage.



    --
    I do so have a memory. It's backed up on DVD... somewhere...

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