If you have been in your home state for more than two years it is really clear cut which state’s law applies, but otherwise it gets tricky.
If you have not lived (“domiciled” that is lived with an intent to remain there indefinitely) in the same state the last two years (730 days to be exact) the state whose law applies is the one where you were domiciled for 180 days before the 2 years. If those 180 days was not in a single state then the one where you were domiciled for the longest portion of those 180 days applies.
If you have not yet been confused then hats off to you. What really complicates it is that “domicile” means something different than “residence.” Your domicile is the place where you intend to remain indefinitely. You can have more than one residence, but not more than one domicile.
So at least now you which state’s law applies, but some state’s laws do not apply extra-territorially, and some states prohibits their residents, domiciclaries, and in some cases their non-residents from using the bankruptcy code exemptions to keep property. You may be stuck with that state’s law.
What you can keep in bankruptcy depends on your domicile rather than your residence
Written by admin on May 18th, 2009The automatic bankruptcy stay is no longer always automatic for repeat filers
Written by admin on May 17th, 2009We have always known that the moment a bankruptcy petition is filed, that is when I press the button on my computer and e-file the petition, an automatic stay against most collections actions takes effect.
It is still automatic in the first case, but if someone has had a previous case that was pending within one year, then the stay terminates at least in parþ after 30 days, unless you file a motion and the judge holds a hearing within the 30 days and decides to extend the stay.
You have to prove to the judge that this case is filed in good faith and is likely to succeed unlike the previous one. It is best to show a change in circumstances.
The more difficult situation is when you have had two or more cases pending “within the previous year.” No one knows if that means the previous 365 days or the previous calendar year. Regardless of which period applies if they apply you have no stay at all. A judge can impose a stay the same way as they can extend it. Since there is no stay, there is no protection from foreclosure or repossession until the judge signs an order imposing a stay.
If a previous case was not dismissed it does not count against you. Also in Chapters 12 and 13 there is a codebtor stay protecting cosigners and the property on consumer debts which can be a good fall back if you do not have an automatic stay.
There are actually two different credit counseling requirements in order to file both before and after filing
Written by admin on May 17th, 2009Yes that is correct. The first one is the pre-filing credit counseling requirement. All individuals who file must have completed this one with very narrow exceptions. It has to be done within 180 days before filing. The law is unclear and still developing on whether you can do it the same day that you file, but you must do it before you file. Without this counseling you are ineligible and the case will be dismissed by the judge.
The other one is the post-filing financial management course which is shorter and tends to cost less and can be done entirely on the internet without a telephone component. This course is required before a discharge can issue. The certificate and in some judicial districts Form 23 a sworn certification that you took the class must be filed. In Chapter 7 you must take the class within 45 days of the first setting of the creditors meeting. Some courts will close the case without a discharge if this deadline is not adhered to, requiring a motion to reopen and a new filing fee.
Don’t transfer assets before filing bankruptcy especially not to family or other insiders.
Written by admin on May 17th, 2009One of the biggest mistakes people can make is to transfer away assets to friends or family members before filing for bankruptcy. A bankruptcy trustee can void transfers made while you were insolvent if you did not receive reasonably equivalent value in return. In other words you can sell your house for fair market value without problems but not for $10.
When the trasnfer is to an insider which includes family and certain people involved in your business, the trustee can void transfers ocurring up to two years before filing and possibly longer under state law.
The lesson is don’t put stuff in other peoples’ names because they can still lose the asset if you or they file for bankruptcy.
Don’t transfer assets before f…
Written by admin on May 17th, 2009Don’t transfer assets before filing bankruptcy especially not to family or other insiders. http://post.ly/ZkG
Block Debt Collector Phone Calls
Written by admin on May 16th, 2009After a collector calls dial *60 then dial 3 to activate, then #01#. Wait for an announcement that you have blocked a private number then hang up. This works at least with ATT. There is a limit of ten numbers but that should be enough and the surprise to everyone is that debt collectors are treated as “private” numbers even if they show up on caller ID.
Block Debt Collector Phone Cal…
Written by admin on May 16th, 2009Block Debt Collector Phone Calls http://post.ly/ZFZ
Why do I need to take credit c…
Written by admin on May 16th, 2009Why do I need to take credit couseling before I file bankruptcy http://budurl.com/79k8
Why do I need credit counseling to file bankruptcy?
Written by admin on May 16th, 2009Studies have shown that credit counseling does not make you any better at succeeding financially, it is just a silly requirement passed in 2005 by the credit card industry in an attempt to make it more difficult for you to file bankruptcy.
The good news is it is not a big deal. It’s about an hour on the internet and then about ten minutes on the phone and you are done. I provide a link on my website to Hummingbird Credit Counseling which does not even offer debt management plans so do not worry, no one will sell you a debt management plan that you do not want and cannot afford. Another reason I use a counseling service that does not offer debt management plans is that if one is developed during the counseling session you are required to file the plan together with the certificate in the bankruptcy court. I think this is a bad idea because it could be used to argue that you could repay some debt.
Once you have done the phone call my office will download the certificate. It is that simple. I will pay for the credit counseling of all my clients as long as you use Hummingbird.
It is very easy to get the credit counseling and it serves no useful purpose, it is just a barrier set up to make it harder for your to file bankruptcy.
Finally found a free and simpl…
Written by admin on May 10th, 2009Finally found a free and simple way to expand my reach on Twitter. A nice 20 second process. http://tpq.me/gb84w
