Former Bankruptcy Attorney to the Kansas City UAW: Ford and GM workers, now assisting the general public in Missouri and Kansas with regaining financial control using the Bankruptcy Code. 816-472-HELP (4357).
Now more than ever clients and ordinary people are trying to save money any way they can. People will seek out obvious ways to save such as eliminating eating out or for me, stop coffee purchases. But what about looking for not so obvious ways to save money? Gas is one of those necessary expenses we think we have no control over the price we pay. But, that may not be true.
Rescission, what is it and what does it have to do with bankruptcy? 11 U.S.C. § 524(c)(4) outlines the basis for rescission but it really does not identify what rescission does for you. A rescission breaks or cancels a promise to pay and it is completely legal IF performed according to 11 U.S.C. § 524(c)(4). Clear as mud? Let’s break it down even further.
The holiday season has rolled around once again and regardless of whether you are in bankruptcy, this season tends to be a season of stress instead of joy. Americans continue to focus on purchases geared towards their wants instead of their needs. This pattern of spending is exactly what creditors prey on to increase their profits. They spend money designing advertising to convince you through guilt that you really can afford to spend thousands of dollars for unnecessary Christmas gifts. The creditors do not care you are struggling to keep a roof over your head, pay your student loans, and put food on the table all while continuing to pay for your health insurance. The sole goal of the creditor this holiday season is to increase their money by taking yours.
Wow, you mean I will receive superpowers when I file bankruptcy? Well, kind of, sort of but technically... no. What bankruptcy will do is give you back up when you want to say NO to any family members or friends who continue to ask for money.
You know what I am talking about. Your kids or adult children, parents, or friends who continue to hound you about money, and you just can't say no to them. You try to say no, you know you should say no, but you just can't bring yourself to say the word, no. Why is that? Throughout the years, I have discovered my clients feel incredibly guilty when saying no to just about anyone.
[caption id="attachment_46024" align="alignleft" width="300"] Failure to list assets may make you a liar, liar, pants on fire![/caption]
What is an asset and better still, why do I need to tell anyone about it in bankruptcy? Let's start with the definition of an asset. Merriam-Webster defines an asset as something owned by a person. Merriam-Webster has provided a simple but most excellent way to describe the term "asset".
To determine if something is an asset, ask yourself, "Do I own it?" If the answer is yes, you MUST list "it". Please allow me to illustrate. A dog lives with you, do you list it? If you feed the dog and care for the dog, you probably own the dog. So list it. If the dog is not an AKC registered dog or does not qualify as a show dog, then the value is $0. I know, I know, the dog is part of the family and priceless, but no one else is going to pay a significant amount of money for the dog. Therefore, the trustee will not want the dog, but you have complied with your duty to list the dog as an asset.
[caption id="attachment_45926" align="alignleft" width="300"] Noxious Weeds![/caption]
What happens when you surrender a home in bankruptcy? Must you move the second a bankruptcy is filed? Do they give you time to move or will your possessions be thrown out on the front lawn for the neighbors to view?