Bankruptcy Information

Your potential lawsuits against some else, such as personal injury suits or class action suits, are assets in your bankruptcy case. Many people innocently overlook a potential claim that has not yet been filed as a lawsuit; other people intentionally try to “play games” with their claim in order to justify, to themselves at least, omitting their claim and potential lawsuit from their bankruptcy case.

Today’s case in point comes from an exchange I heard in bankruptcy court while waiting for my own client’s case to be called. A man filed Chapter 7 bankruptcy pro-se, that is, without an attorney. After he filed his bankruptcy he initiated a lawsuit in Florida to recover money damages. The defendant settled and agreed to pay the debtor a significant amount of money. The defendant wrote a check to the trust account of the debtor’s attorney. By this time, the debtor’s bankruptcy case has been closed and a discharge entered.

Then the debtor’s civil attorney does something his debtor client did not expect. The attorney checks the public legal records, and he finds out about the bankruptcy filing. The attorney does not want to pay the debtor money which the attorney now knows, as a result of the search, may belong to the bankruptcy trustee. The attorney contacts the trustee. The trustee files a motion to reopen the bankruptcy case to intercept the damage award and distribute the money to the debtor’s creditors. The civil attorney will still get paid. The judge granted the trustee’s motion so the creditors will get the money.

The judge did not penalize the debtor. Maybe the judge felt that depriving the debtor of the money the debtor had expected was enough of a penalty. However, over the past years I have had a few cases where I found out fortuitously about a bankruptcy client’s lawsuit recoveries after their bankruptcy case was over. I think this issue is more common than most people realize. Maybe a court should deny someone’s discharge for not revealing a significant claim that existed before they filed. That kind of case would send a needed message to prospective bankruptcy filers who think they can hide plans to file future lawsuits.

Tags: Lawsuit, Potential Lawsuit

Question by Jennifer G: Which tax line should I use for my truck loan payment?
I am using quickbooks 2008
It is under tax line mapping. Should it be listed under schuedual C as car and truck expense or something different

Best answer:

In Quickbooks you have a drop-down list of available tax lines. Scroll down and select Balance Sheet or B/S: Notes payable. You don’t really need a tax line to set up the account.

Give your answer to this question below!

Tags: Loan Payment, Payment, Truck Loan, Truck Loan Payment

If you want to stabilize your financial status, the sooner you make a financial plan for your budget, the better and easier the life will be. However, if you have conducted your financial life without a plan and find yourself in a real financial trouble, it is not too late to make a budget and become debt free now. If each pay day, you only pay the creditors who shout louder, you obviously need a plan.

There are many Internet sites that have forms that will guide you through the budget process. Pick one that looks like it might work for you. The first thing to do as you follow the instructions for making a budget is to list the bills that are the necessities of life, such as food, housing, utilities, transportation, and clothing. These expenses are not optional. Once you define just how much you need for covering the basic expenses each month, the rest is what you have to spend on your debts. So you will have a disposable income, you will spend freely after paying all your debts.

If all of your disposable income is less than the minimum payment you are required to do each month on your debts, then you will need to make some changes and maybe get help. Read full post…

Tags: Plan

A recent report from the Center for Responsible Lending suggests that the reforms introduced by the Credit CARD Act of 2009 are working to improve transparency in the marketing of credit cards to consumers.

In case you need a refresher course, the Credit Card Accountability Responsibility and Disclosure Act was designed to improve transparency from banks and other credit card issuers so that consumers could navigate the world of credit with greater ease and less financial distress. Here’s a look at just how much this consumer protection legislation has changed.

• Advertised credit card interest rates: Before the passage of the Credit CARD Act, the CRL reports, the discrepancy between the rates advertised by credit card offers and those that consumers actually paid had reached unprecedented highs. I

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Tags: Act, Card Act, Credit Card, Credit Card Act

Angry & confused is what happens when new home dream disappears…for now! photo credit: tikibata

Maurice Roberts and his wife found their dream home.

They have 20% to put down.

They have W-2 verifiable income.

They also have good credit.

Should be a slum-dunk, right?

That’s what Maurice and his wife thought until their mortgage professional called them with some strange news.

Oh wait, it’s the government we’re talking about here.

Why didn’t you say so. Anything “shocking” is to be expected when the government’s involved.

DO NOT DISPUTE YOUR CREDIT REPORTS….

Maurice followed the book on buying a home.

He first pulled his own credit reports and discovered damaging credit information that was NOT his.

So he did what I expected him to do. He informed the bureaus reporting this INACCURATE information (in writing).

Maurice didn’t have to do any of this. He was golden wit

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Tags: Home