Bankruptcy Issues
We begin with the creation of the automatic stay. The stay is automatically created at the time of bankruptcy filing.
The automatic stay is actually a unique feature. If a creditor attempts to collect from the debtor in any way after the bankruptcy was filed and the automatic stay was enacted, the court can undo creditor’s actions. For example, if a car was repossessed without bringing a motion to lift stay, that car, can be requested to be returned to the debtor. So let’s say you filed your case, your case has been filed, and all of the sudden one of the creditors that has security on your car, purchased money security interest, comes in and repossesses your car. Well that means you can go and ask the court to make the creditor return the car back to you, because what the creditor did was actually illegal, and the creditor can actually be punished for that. So, the automatic stay has some benefits and one of the actual benefits is that it allows you to stay in a house you are surrendering for almost a year.
Taxes and Bankruptcy
Now, let’s talk about taxes, taxes owed to the government that were accumulated within three years prior to the bankruptcy won’t be discharged. However, if you file your taxes then you can actually get your taxes discharged that were accrued prior to three years of filing. So, let’s say its 2008 right now. Taxes that you were supposed to pay in 2004, 2003, 2002, 2001…. as long as you filed them, can actually be discharged.
Not paying your taxes can have a significant consequence. For example, the interest rate can amplify the amount you owe significantly. In a couple of years you can go to actually doubling your debt. Now, once bankruptcy is filed the interest on the debt stops.
Personal Guarantees on Businesses
There are different kinds of bankruptcies there is the business and personal bankruptcy. A lot of people have small little businesses that went downhill and are actually bringing owners along for the bankruptcy. Of course if you have an S corporation it’s a different kind of entity and it’s not totally connected to the owner. Let’s say a debtor has an S corporation, a body shop or a restaurant, whatever it is, in order to actually discharge the business debt, some of the liens that are from that S corporation, some of the credit cards that are on that S corporation, you actually have to file bankruptcy for the S corporation itself. However, most S corporations and other businesses have loans that are also secured by the debtors themselves, by the owners of the S corporations and not only by the S corporation itself. These loans cause the owners of the S corporation and the S corporation to have to file bankruptcy together.
Most of the time lenders won’t give you a loan just for the S corporation knowing that you can easily just file bankruptcy under the S corporations without being liable for the rest of the loan. Therefore most of the loans are secured by personal guarantees and by the corporations themselves. In this scenario both the owner of the S corporation and the S corporation has to file bankruptcy and that’s the only way you’re going to get discharged from that debt completely.
David Siegel
http://www.articlesbase.com/law-articles/bankruptcy-issues-621957.html
What agency resolves bankruptcy issues after a bankruptcy is dismissed.?I was provided a payment schedule by the trustee. But two companies say they weren"t paid. The schedule show county taxes paid. When I refinanced my house I had to pay taxes that the trustee schedule shows paid. When I viewed my credit report, it shows GMAC as only receiving one pay of $3200. GEICO paid that when vehicle was totalled. GMAC repreensentative stated that they had not received any other payment. HELP! That's about $15,000. I can't account for. That's holding me back.
I owed $12,000 on the car under the bankruptcy. Trustee schedule showed that I paid $13,000. GEICO paid $3,200 as the settlement to GMAC. GMAC put in my credit report that I still owed nearly $6,000. Their representative says they never received any payment. After several companies kept calling or contacting me by mail amd the lawyers told me to contact the trustee, I walked away from the bankruptcy. I set up arrangements to pay off the debts and completed that in Dec 2006. I was 6 months from the bankruptcy ending. When car was totalled, according to the trustee schedule, I only owed $1,249. GEICO settlement should have more than satisfied that debt. Fter the law firm changed over from lawson/Herring to Higgins/Allmand that's when the problems seem to occur. HELP!
Ok you might want to edit some, first I'm confused. A dismissed bankruptcy means the debts are open for collections, a bankruptcy discharge is when the debt obligation example Chapter 13 has been met in full to the creditors, per the trustee schedule.
Were you paying on the card during active bankruptcy and it got totalled-meaning you paid $3200 into the account, but the insurance company according to GMAC did not issue a check for the damages to the creditor?
Is this $15,000 that is unaccounted for, only in the auto loan?References :
You need to contact the trustee's office regarding any payments. They will also be able to supply proof of payments.References :