Don’t take money out of your retirement account to ease a temporary economic crunch. Difficult times come and go; and sometimes they seem insurmountable. When that happens, it might appear wise to tap into the 401k or the IRA and borrow or take some of the funds. Don’t do it! I see bankruptcy clients every [...]
Douglas Jacobs, California Bankruptcy Attorney
1. Once you decide that a business bankruptcy is the appropriate remedy for your failing business, you must prepare a corporate resolution. 2. The bankruptcy petition is then prepared listing all of the assets and liabilities. 3. The business is closed. Employees are terminated, paid their final wages, all taxes are paid, and the doors [...]
Brett wrote a great post about not reaffirming a mortgage in a bankruptcy proceeding. He’s right – mostly. There are, generally, two types of mortgage loans: recourse and non-recourse. A recourse loan is one where the lender can come after the borrower if the loan is not paid and the security is insufficient to retire [...]
Not really. The greatest effect on your Credit Score (Fico score) Is the number of late payments on your accounts. More late payments – worse scores. Certainly there are other factors, and filing bankruptcy may have the immediate effect of lowering the score. But why do you care? That’s the truly important question. First of [...]
Filing a bankruptcy shouldn’t be the dreaded remedy that many people think it is. There are many benefits to filing; some obvious and some un-expected. My top three obvious benefits: 1. Your bills go away, or at least you get a handle on them through a Chapter 13 plan. Bankruptcy simply eliminates (discharges) most, if [...]
Filing bankruptcy if you have a business can be different from a typical consumer case. First of all, if 51% of your debts were incurred for your business, you won’t have to file the means test! Thus, you avoid the problem of having too much income to qualify for a Chapter 7. Fortunately, it is [...]
