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Clear Counsel Law Group / Bankruptcy

How to Deal with Credit Card Debt of a Deceased Spouse

 

How Community Property Law Affects the Credit Card Debt from a Deceased Spouse

Transcript:

Hi I'm Matt McArthur, attorney at Clear Counsel Law Group. I recently had an individual come into my office whose husband had recently passed away unfortunately. Her husband had acquired a substantial amount of credit card debt and the credit cards were only in his name and he didn't really leave any assets to his surviving wife. So the question that she had is because he has now died, is she responsible to repay his credit card debt even though the credit cards were only in his name?

Now to answer this question, we have to talk about which state we're living in and which state is applicable to this scenario. I'm going to be speaking as though we're operating within the jurisdiction of the state of Nevada. In the state of Nevada, we have what we call community property law. In a community property state, any assets generally speaking acquired during the course of a marriage are considered community property. What that means is each spouse owns or is entitled to 50% of the assets acquired. Unfortunately, the same thing applies to debt. There's such thing as community debt in community property states.

So even though the husband racked up credit card debt in his name only, from a legal standpoint, the credit card debts could pursue the community debt against the surviving spouse. Now it's very unlikely that credit cards will actually pursue this type of debt in this type of situation in my experience, if the surviving spouse was nowhere to be found on the account, the credit card company does not pursue collecting this debt against the surviving spouse. So what my recommendation would be would be to hold off on any type of settlement negotiations or a filing of bankruptcy until you're actually sure that the credit card companies are going to be trying to collect against you. It may be a little premature just knowing that these debts exist and proactively trying to take care of them because there's a pretty fair chance that the credit card companies will simply leave the surviving spouse alone.

If you have any questions about this, please come and see me, an experienced bankruptcy attorney who has a vast amount of experience dealing with these types of situations and I'll give you the best advice for your particular situation and help you get on the right path. Hope to hear from you soon.

 

Bankruptcy / Bankruptcy Videos - 12/11/2015

Keep Your Car with Chapter 7 Bankruptcy!

 

Chapter 7 Bankruptcy is a Great Option to Help You Keep Your Car

 

Transcript:

Hi. Matt McArthur. Bankruptcy attorney at Clear Counsel Law Group. It's a common misconception that if you have a house or a car and you're facing financial troubles, that the only bankruptcy option available to you is Chapter 13 bankruptcy.

I can't tell you how many calls our office receives on a regular basis of individuals interested in filing for bankruptcy to resolve their outstanding debt, but they're under the impression that they have to file for Chapter 13 bankruptcy because they own these items and they wish to retain them.

That's simply not the case in every one situation.

Many of these individuals that come in for a consultation find that Chapter 7 bankruptcy is a much better solution to their financial problems, and they're able to keep their car, they're able to keep their house, and they're able to quickly and efficiently eliminate the outstanding debt that they do have.

If you're concerned about filing for bankruptcy and you have a house or a car that you want to keep, please come in and speak with me, an experienced bankruptcy attorney.

I'll let you know exactly what filing a Chapter 7 bankruptcy would look like, and what filing a Chapter 13 bankruptcy would look like, and how that would affect your ability to keep your car or your house. Hope to hear from you soon.

 

Bankruptcy / Bankruptcy Videos - 12/04/2015

Should I Get a Divorce Before or After I Declare Bankruptcy?

 

Should You Get a Divorce Before or After You Declare Bankruptcy?

Transcript:

Hi. I'm Matt McArthur at Clear Counsel Law Group. A common question that I receive is, unfortunately, should I get divorced before I file for bankruptcy or should I get divorced after I file for bankruptcy? If we're filing for bankruptcy and we both need to ... My ex and myself need to file for bankruptcy should we do it together and should that be before or after we file for bankruptcy?

As we know, many cases in which individuals are facing marital difficulties are often associated or accompanied with financial hardship, so we see a lot of crossover between divorce law and bankruptcy law. This is a very common question that I come across on a regular basis. The answer to this question is it depends. It depends on the individual situation.

Typically speaking, I would say just as an efficient use of your own time and energy and efforts it makes sense for a lot of people to file bankruptcy together before the divorce. They can get a clear discharge that eliminates any dischargeable debt before they file for bankruptcy and then they can go on their separate ways and obtain a truly fresh start with no debts following them afterwards.

A situation in which an individual may wish to file for bankruptcy after they've been divorced might be where a married couple together makes too much money in order to qualify for a Chapter 7 bankruptcy and by getting divorced if they're going to get divorced anyway, from a planning and timing perspective it may make sense to get the divorce, go into separate households where there's going to be separate financial situations, where the income is separate, and file for bankruptcy once you have separated; the reason being is that usually this result in a situation where each individual separately could qualify for a Chapter 7 bankruptcy if they're both working, but together they may not file for Chapter 7 bankruptcy if their income is too great.

The answer is that it depends on your situation. There's a host of other factors that may influence your decision as to whether or not to file before or after a divorce. If you're thinking about getting a divorce and you're facing financial hardship, please come and see me, Matt McArthur. I'm an experienced bankruptcy attorney. I have a lot of experience with this particular issue and I'd be happy to discuss your different options with you, inform you with all of the information that you would need to make the best decision for your situation. Hope to hear from you soon.

Bankruptcy / Bankruptcy Videos - 12/02/2015

What if You Cannot Make the Payments in a Chapter 13 Bankruptcy?

 

Why You Have to Make the Payments in a Chapter 13 Bankruptcy

Transcript:

Hi, I'm Matt MacArthur, bankruptcy attorney at Clear Counsel Law Group.

I recently met with a client who is considering filing for chapter 13 bankruptcy, and they came in for their consultation, and they were concerned that they wouldn't be able to afford the monthly plan payments that are required in a chapter 13 bankruptcy, and the question was presented to me, "What happens if I can't make the payments, if I'm unable to afford the payments?"

Part of the deal with filing for chapter 13 bankruptcy is you have to make scheduled monthly payments to the court, and the court then takes that money and in turn, makes distributions to creditors, and pays administrative fees associated with your chapter 13 case. If you're unable to make those monthly payments, the court will eventually dismiss your case. That's just the way chapter 13 bankruptcies work, and it's part of the deal. If you can't make the payments, you can't do that kind of bankruptcy.

Bottom line, what that means, is when your case is dismissed, it puts you back in the situation you were in before filing for bankruptcy. Creditors are no longer prevented from contacting you directly, and you'll have to deal with each of your creditors on a case by case basis as they may or may not contact you.

You may have other options besides filing for chapter 13 bankruptcy. If you're afraid that you may not be able to afford the monthly payments, it may be a good indication that chapter 7 is a more appropriate path for you to pursue in the bankruptcy world, or there may be other avenues that you can pursue, such as debt settlement negotiations, or debt consolidation options. If you are thinking of filing for chapter 13, and you are concerned about your ability to make the payments, please meet with an experienced bankruptcy attorney, and they'll let you know exactly how much they would anticipate your monthly plan payments being to the court, and talk to you about real options outside of chapter 13 bankruptcy that may be an appropriate path for you to take.

My name's Matt MacArthur, I'd be happy to meet with you to discuss this issue if it's something that's currently in front of you and pressing on your mind. Please come in and meet with me and we'll talk about your different options.

 

Bankruptcy / Bankruptcy Videos - 11/30/2015

What a Casino Worker Needs to Know about Declaring Bankruptcy

 

Addressing the Special Concerns of Casino Workers Thinking about Bankruptcy

Transcript:

Matt: Hi, I'm Matt McArthur, bankruptcy attorney at Clear Counsel Law Group. Here in Nevada, a big segment of the population is employed by the casino industry. A very real concern of these people that run into financial difficulties is whether or not they're allowed to file for bankruptcy, and if they did, whether that would jeopardize their employment.

In my experience, it hasn't been a problem. I've filed bankruptcies for dealers, for guest room attendants, for cage cashiers and porters. All these individuals have had garnishments and bank levies, and we've been working closely with the human resources department and the payroll department at various properties to make sure that these individuals can stop a wage garnishment for example. In my experience, the casinos have been very cooperative in helping us deal with wage garnishments and help their employees out.

In my experience, there has been no difficulty whatsoever with these types of people being able to keep their jobs and still file for bankruptcy and address the debt that's hanging over them. Very common issue. I haven't seen it be a problem. It is theoretically possible because these are gaming institutions and they are very concerned about protecting the financial integrity of their institutions. However, for most, actually for all, individuals that I've filed bankruptcy for that worked in the casino industry, it hasn't been a detriment to their job. Brian, did you have any follow-up questions in this area that you've been seeing?

 

Brian: Is it unique for a casino employee, in particular because they need a sheriff's card to deal with money? Is that going to stop them from declaring bankruptcy?

 

Matt: No. Having a sheriff's card and working in this type of environment isn't going to prevent you from filing bankruptcy. The only real issue is whether or not their employer would view the bankruptcy negatively and in such a light to where it would disqualify them from remaining employed at that property. In our experience, that hasn't been the case. If you have any particular concerns about your situation and you work at a casino or a gaming institution and you're thinking about filing for bankruptcy, please come and see me. We'll discuss it. If necessary, we'll reach out to your employer to make sure it won't be an issue. This is  Matt McArthur at Clear Counsel bankruptcy department. I hope to hear from you soon.

 

Bankruptcy / Bankruptcy Videos - 11/24/2015

How Long Do You Have to Live in Nevada Before You May File for Bankruptcy?

 

 

Nevada Residency Requirements for Filing Bankruptcy

Transcript:

Hi, Matt McArthur, attorney at Clear Counsel Law Group. I'm a bankruptcy attorney. We're going to speak to you a little bit about the timing of filing for bankruptcy. Nevada is known as a transient state. There's a lot of people coming and going from in and out of state, from places like nearby California or far away New York. It's not uncommon that I meet with people that are new to the area, and they're looking to file for bankruptcy. The related question to just having moved here and needing to file bankruptcy is how long do you have to live in Nevada before you can file for bankruptcy here.

The bankruptcy rule is that the court has jurisdiction over you as long as you have lived in Nevada over 90 days of the last 180 days. The actual rule states that the greater part of the last 180 days you have to have made Nevada your residence. If you've been here for three months continuously, you can file for bankruptcy here in the State of Nevada.

One other consideration that you may want to think about if you're new to the area, is which state's laws will apply inside of your bankruptcy. In a chapter seven case, which laws applies is of great importance, in particular because a chapter seven is a liquidation bankruptcy. Any property that you own that cannot be protected is subject to liquidation by the court. The court can sell your property, which isn't protected, and take the money from that sale and give that money to your creditors in exchange for the wipeout of your debt.Which protections are we allowed to take? That depends on state law and which state's law applies depends on how long you've been in Nevada. If you've been in Nevada for two years constantly, Nevada's laws will apply. Nevada is generally known as having very generous protection laws or exemptions when filing for chapter seven bankruptcy. Keep that in mind. If you've been here less than two years, make sure you bring it up with your attorney when you're talking about potentially filing for bankruptcy so that they're aware of any potential exemption issues that may affect your personal or real property.

My name is Matt McArthur, a bankruptcy attorney at Clear Counsel Law Group. If you're thinking about filing for bankruptcy and you're new to the Nevada area, please come and speak with me and I'll let you know exactly where you stand.

Bankruptcy / Bankruptcy Videos - 11/21/2015

What Can You Do About Wage Garnishment?

 

How Declaring Bankruptcy May Help You with a Wage Garnishment

Transcript:

Hi, I'm Matt McArthur, bankruptcy attorney at Clear Counsel Law Group. One of the most pressing issues I see on nearly a daily basis is the issue of wage garnishment. People come in all the time and ask, "What can I do about a wage garnishment?" In particular people are very curious to know whether or not they can get the money back from a wage garnishment if they file for bankruptcy.

In certain circumstances, we can actually get that money back. If we have filed your bankruptcy case and a payroll department or a creditor continues with the wage garnishment after we have filed your case, that is money that belongs to the bankruptcy estate and is most likely an exempt asset that will be returned to you. However, if the money has gone through the wage garnishment process and we file your bankruptcy after that money has been already taken, usually that money is gone.

In some situations, if the money hasn't been delivered to the creditor yet, we can get the money back but as a general rule of thumb, you probably want to consider money that has already been garnished before you filed as gone and any money that may unfortunately be taken after we file for bankruptcy as money that you can get back. The reason being is the moment we file for bankruptcy, a collections freeze goes into place. This collections freeze is known as the automatic stay of the bankruptcy code. It's a very powerful law.

Unfortunately sometimes it takes a little bit of time to get all parties noticed and stop the ball from rolling forward with the wage garnishment. People's payroll are typically run earlier in the week before pay day and once the pay day rolls around, it's after payroll has already been prepared earlier in the week. In other words, even if we're to file for bankruptcy before your pay day, there's a chance your payroll department may have already processed your check with the wage garnishment intact. It's then a matter of us getting that money back because we [would 00:02:12] file for bankruptcy and put into place the bankruptcy protections before the actual pay day when the money is supposed to be received.

This is absolutely something that is a time issue. We want to file your case as quickly as possible. If there is a ongoing wage garnishment, so if you are facing a wage garnishment, please come and speak with an experienced attorney and I'd be happy to help with you. Again, this is Matt McArthur at Clear Counsel Law Group talking to you about wage garnishments and getting your money back.

 

Bankruptcy / Bankruptcy Videos - 11/20/2015

How Will Declaring Bankruptcy Affect Your Employment Prospects?

 

Will Declaring Bankruptcy Affect My Employment?

Transcript:

Hi, I'm Matt McArthur, bankruptcy attorney at Clear Counsel Law Group. It's not uncommon that I get asked the question: How will filing bankruptcy affect my current job or any potential future employment? The answer to this question is a very difficult one to provide because it's a very specific answer to each employer. Each employer has their own policies and their own requirements for employment.

However, I will note that if you're seeking employment from an employer that has very strict credit background guidelines that they're going to be doing a background check and looking into your financial history, chances are that if you have poor credit and you're thinking about filing bankruptcy, you may already be disqualified for this job because if you have a very low credit score they're going to see that you've been either financially irresponsible or you've gotten in over your head in some way or another.

Filing bankruptcy may actually help you with some employers because it shows that you are taking the initiative to address this debt and you're not letting the debt remain a lingering issue that's going to affect you and follow you throughout your life with wage garnishments and bank levies and the like.

Now there are certain types of perhaps government jobs that I've been informed of that have more strict regulations. Working for high end financial institutions. These are the types of companies generally that are going to look very closely at your background and your financial history. However, by and large I haven't really heard a lot of feedback from my own clients that they've been negatively affected by filing for bankruptcy.

If you're concerned at all about how this may affect your employment before filing bankruptcy, and you're either worried about your current job or a potential future job that you're looking into, please make sure to speak with the hiring individuals or the human resources department for these employers to get a clear statement on with their policy is toward bankruptcy, towards bad credit. Then we can take a detailed look at your particular situation and see whether or not bankruptcy will actually help you in terms of keeping or getting that new job. This is Matt McArthur at Clear Counsel Law Group. I hope to hear from you soon if you're thinking about filing for bankruptcy and you're worried about your employment, because I'd be happy to help you.

Bankruptcy / Bankruptcy Videos - 11/17/2015

What Expenses are Permitted to be Included in a Chapter 7 Bankruptcy Means Test?

 

What Expenses May You Include in Your Chapter 7 Bankruptcy Means Test?

Transcript:

(Editor's note: Brian is Clear Counsel's Communications Director. His prompts represent a conglomeration of inquiries submitted. If you have you have a question you would like answered in an upcoming video, email the inquiry to brian@clearcounsel.com)

Hi. Matt McArthur. Clear Counsel Law Group. I had a question come from a client the other day. What expenses are allowed to be included in a needs test analysis? Now, first off, we need to take a step back before I answer this question. The first part of this analysis is whether or not an individual filing for Chapter 7 bankruptcy is under-median or over-median. What I mean by that is you look at your household size and what state you live in. There is a median income figure for a houseful of that size in that state.

If your median income over the last 6 months is under that figure, then there's no need to go into the detailed analysis of what expenses are allowed to be used as deductions in a Chapter 7 needs test analysis. However, if you are over-median, there are a whole slew of different deductions that are available to an individual. Whether or not you are able to use those deductions is going to require some pretty specific detailed analysis for your particular case.

Some common deductions are income taxes that are withheld from an individual's pay stubs, out-of-pocket healthcare insurance premiums and the list goes on and on. If you are over-median and you're thinking about filing for Chapter 7 bankruptcy, please come see me. I will give you a customized, detailed, personal analysis for your particular situation. I'll let you know whether or not you qualify for Chapter 7 bankruptcy. Hope to see you soon.

Bankruptcy / Bankruptcy Videos - 11/15/2015

May You File for Bankruptcy if You are Unemployed?

 

Will being unemployed prevent you from filing for bankruptcy?

Transcript:

Hi. Matt McArthur, Clear Counsel Law Group.

Had someone ask me the other day. "Am I able to file for Bankruptcy even though I'm unemployed?" The answer is yes and no. Chapter 7 Bankruptcy there's no minimum income requirement. In fact I just had a hearing the other day with an individual that was unemployed. He was collecting unemployment income. Even the unemployment income was unnecessary, part of his Bankruptcy case. There is no minimum income threshold in order to qualify for Chapter 7 Bankruptcy. All it really involves is you disclosing all of your assets, and a determination whether or not those assets can be liquidated, and then distributed to your creditors. Income, at least on the minimum side doesn't really come into play. You can make too much money to be able to qualify for a Chapter 7 Bankruptcy. There is an income portion to the analysis of a Chapter 7 Bankruptcy, but on the low end there's no requirements.

If you're thinking about filing for Chapter 13 Bankruptcy there is a requirement that you have regular income. When you think about what a Chapter 13 Bankruptcy is, its a reorganization of your debt. I like to explain it as a repayment plan to a portion, or all of your creditors. If you're making monthly payments to the Bankruptcy court you're going to be expected to have steady and regular income. Unemployment income, if you're receiving any unemployment compensation, is temporary in nature. Whereas the length of a Chapter 13 Bankruptcy is three to five years in length. That is not going to be considered sufficient income to be able to fund the regular payments that will be due during a Chapter 13 Bankruptcy. If you are unemployed and thinking about filing for Bankruptcy, Chapter 7 is most likely the option if there is one for you. However if you come in and see me I'll take a look at your specific situation, and we will go over a detailed analysis of what works best for you and your financial situation.

Hope to see you soon.

Bankruptcy / Bankruptcy Videos - 11/13/2015
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