Get Free Credit Report!

No. Surprisingly, a person doesn’t have to be a citizen of the United States to file a bankruptcy case under the U.S. Bankruptcy Code.

Bankruptcy is available to anyone who either lives or owns property in the United States.

The Bankruptcy Code states that “Notwithstanding any other provision of this section, only a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title.” 11 U.S.C. Section 109(a).

There is no requirement of citizenship in the Bankruptcy Code.

A person who lives in the Unites States, whether a citizen or not, must have established residency in the state or territory where he plans to file bankruptcy. A per

Read more…

| Tags: Bankruptcy, United States
Posted April 13, 2011 by Amelie Hampton under Bankruptcy Articles

The NYDailyNews.com reported on November 26 2010, that “Real Housewives of New York” star Sonja Morgan filed bankruptcy in Manhattan, NY. Morgan listed $19.8 million in debt and $13.5 million in assets on her bankruptcy petition. She blamed money troubles on a failed venture with Hannibal Pictures Inc. to make a movie with John Travolta. In a lawsuit Hannibal Pictures Inc. filed against her company, Sonja Productions, Morgan lost in $7 million judgment. She also suffered divorce.

CNNMoney.com reported November 2010 that MGM filed for Chapter 11 bankruptcy protection as part of a “pre-packaged” plan with creditors. The movie studio, has offices in Southern California, is behind the “Rocky” and James Bond movies.

As the economic downturn continues in Stockton and the Sacramento area, many Americans still unemployed after over 2 years, unable to find even temp jobs, are seeking bankruptcy relief to get out of credit card debts, medical bills, second mortgage obligations, or rental property liabilities.

Read more…

| Tags: Bankruptcy, Bankruptcy Stockton
Posted April 11, 2011 by Imogen Lay under Credit Report Tips

A woman called me to ask whether she and her husband could file bankruptcy while her husband was in prison. The woman is concerned about her husband’s inability to attend the trustee meeting. She said her husband could not initiate phone calls, and that the state will not transport him to a bankruptcy meeting or hearing. This woman said another bankruptcy attorney previously told her that she and her husband could not file bankruptcy until her husband was released permanently or on parole. I disagree.

Bankruptcy courts have been making it more difficult for debtors to avoid appearing at trustee meetings. For instance, medical excuses must be documented, and it is insufficient for one debtor spouse to simply show up with a power of attorney from the non-appearing spouse.

A debtor in prison legally prohibited from attendance at the trustee meetings, but he is not otherwise prohibited from filing bankruptcy. I

Read more…

| Tags: Prison, Spouse Prison
Posted April 10, 2011 by Brayden Laura under Credit Report

A cynic is someone who knows the price of everything and the value of nothing.

Oscar Wilde

The great recession has caused a once housing obsessed country to lose its appetite for real estate. Its no coincidence that the tidal wave of house flipping reality TV shows has retreated to late night televisions infomercial nether regions. Homeowners everywhere are feeling the pain that the personal guarantee can inflict. Prices have gone down, interest only mortgage balances have remained intact. Ouch. The blogosphere and talking head commentators have taken notice. Investment expert James Altucher recently penned an interesting article on his blog titled: Why I am Never Going to Own Another Home Again.

No doubt Altuchers unapologetic attack on the white picket fence dream is compelling. Its true, homes are often money pits requiring unforseen maintenance. Theyre a constant drag on time. Owning a home severely limits mobility.

Read more…

| Posted April 3, 2011 by Imogen Lay under Credit Report

For a nation consumed by bankruptcy, this information will not be as shocking as it would have been for previous generations. Isn’t that fact, itself, reason to be worried? From the state with a 19% increase in bankruptcy filings (especially chapter 13 bankruptcy), to the surprising dip in credit card debt, learn all you want to know about the financial state of the U.S. in 2011 in this graphic.

Bankruptcy in 2011

| Tags: Bankruptcy, Bankruptcy 2011
Posted April 3, 2011 by Amelie Hampton under Credit Report Tips

Earlier this month, the Chapter 7 Trustee (the “Trustee”) appointed in the Indalex bankruptcy began filing avoidance actions against various Indalex creditors.  For those not familiar with the Indalex bankruptcy, Indalex filed petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware on March 20, 2009. Prior to filing bankruptcy, Indalex was one of the largest aluminum extruders in the United States. 

In April of 2009, I wrote a post summarizing the Indalex bankruptcy proceeding.  A link to my prior post is available here for review. Months after Indalex filed for bankruptcy, the company sold substantially all of its assets. The Bankruptcy Court entered an order approving the sale of assets on July 20, 2009.  Approximately two months after the Court approved the sale of assets, the Official Committee of Unsecured Creditors filed a motion seeking to convert the Indalex proceeding from a chapter 11 reorganization to a chapter 7 liquidation.  Indalex and other parties in interest submitted an agreed order converting the case to chapter 7 on October 14, 2009.

With the sale of substantially all of Indalex’s assets and the conversion to chapter 7, Indalex is no longer operating as a viable business. Instea

Read more…

| Tags: Actions, Indalex Bankruptcy
Posted April 3, 2011 by Brayden Laura under Credit Report

Whether you’re recovering from a personal bankruptcy filing or simply trying to prepare your finances for buying a home, you may have wondered what kind of financial preparation you should do in order to maximize your chances of getting an affordable mortgage. And, with many mortgage lenders wary right now, it’s wise to plan ahead if you’re ready to buy.

Here’s a look at some tips for potential homebuyers, adapted from an article from WalletPop.com.

Before You Fill out Application Paperwork

• Get rid of debt. If you have debt from student loans, credit cards, a car or anywhere else, it is negatively affecting your debt-to-income ratio. In order to raise your credit score and thus improve your chances of getting offered a mortgage loan, you need to pay down as much of that debt as you can.
• Check out your credit. If you haven’t checked your credit report in a while, it’s essential to do so now. To check yo

Read more…

| Posted April 1, 2011 by Amelie Hampton under Bankruptcy Articles

If you’ve ever applied for a credit card, there’s a good chance you’ve seen the “household income” section on the application form.

And when you came across it, you may have wondered how to fill it in. If you were a kid, you may have added your parents income to your non-existent income.

Or perhaps you combined the income of your roommate(s) or spouse. And while doing so may have seemed fairly innocuous, those people wouldn’t really be on the hook if you were unable to make your minimum credit card payment.

The reality is that only those who co-signed would be accountable if you were unable to make a payment, or worse yet, missed a payment.

And so credit card issuers will now have to consider a card holder’s ability to repay, not the household’s, per Federal Reserve rules tied to the recently enacted CARD Act.

The Fed felt the term “household income” was too vague, and simply didn’t allow credit card issuers to properly evaluate an applicant’s ability to repay their debts.

So in order to protect consumers from taking on unaffordable levels of credit card debt, the Credit Card Act will require that before opening a new credit card account or increasing a credit limit on an existing account, card issuers will have to consider an individual’s income/salary.

Of course, this doesn’t necessarily mean they’ll be asking for income documentation. It just means it’ll possibly

Read more…

| Tags: Card, Credit Card, Household Income
Posted March 25, 2011 by Brayden Laura under Credit Report

Yes, if youre behind on your mortgage, the bank can foreclose while youre in bankruptcy. There are two common situations in which foreclosure can take place during a bankruptcy.

1. Youve fallen behind on mortgage payments: While filing bankruptcy will temporarily stop foreclosure, it wont get you out of paying the mortgage. If you file bankruptcy owing past due mortgage payments, the foreclosure process will be disrupted, but only temporarily. The bank will file a motion asking for permission to foreclose and there wont be a whole lot your attorney can do to stop them. Despite what you may have heard about the broad protections of bankruptcy, filing a case doesnt give you a free house.

2. Youve surrendered your home in bankruptcy: Homeowners who find themselves hopelessly underwater often elect to surrender their home in a bankruptcy. Surrendering the home allows the borrower to effectively remove their personal guarantee from the note.

Read more…

| Tags: Bankruptcy, Foreclose While
Posted March 24, 2011 by Imogen Lay under Credit Report