What if my Bankruptcy makes my creditors angry?

Creditors are scary folks and aren't known to be understanding when your back is to the wall and you're stuck in dire straits. If they were, you would never need to consider Bankruptcy.

Speaking of which, people worry about how creditors will react when the word Bankruptcy is brought to the table. Will they release the hounds?! Will they stalk me in the streets?! Will they spring a trap door beneath my feet?!

Not exactly. In fact, that's pretty far from how they'll react. Let's discuss how Bankruptcy causes Creditors to evaluate you differently...

What does Bankruptcy mean to a Corporation?

Some might think that Bankruptcy rules change when a corporation steps up to file.

In some ways, they'd be absolutely right. In others, not so much.

Let's flesh a few of those details out as we discuss what Bankruptcy is like for a business as opposed to a consumer.

Filing for Bankruptcy forces you to think of the future

For young folks clearly too "immortal" to consider it and for older folks too young to be bothered with it, Bankruptcy is a thought provoking experience.

Retirement is something that happens to a lot of us. Or at least something we WANT to happen to a lot of us and we'd all like to ENJOY said retirement, so a well-planned and financially cushioned retirement is what we all hope to be stuck with.

But things happen. Bankruptcy happens. Why should Bankruptcy change your outlook on the future? Let's chat about that...

What will a Bankruptcy Trustee take from me?

First, become familiar with the Arizona Exemptions.

Let's discuss the Bankruptcy process and how the Bankruptcy Trustee will oversee the process...

What'll happen to my timeshare?!

People worry about their stuff. It's only natural because it's THEIR STUFF after all.

In Bankruptcy some things are harder to keep than others. Let's talk about Timeshares in a Bankruptcy.

What's going on with my case?

Bankruptcy is a stressful period in anyone's life and with that stress comes confusion and fear, so a frequent question that comes my way is: "What's the status on my Bankruptcy?"

Well, let's talk about that.

You Might Want to Go Take a Look at My Old Fashioned Bankruptcy Blog: It Just Became a Top Bankruptcy Resource!

As you know, I have a bankruptcy blog, and I like writing about bankruptcy. It's the source of the discussions in these videos.

And recently somebody decided that my bankruptcy blog should get an award!

I always like awards!

CreditCardProcessing.net

Thank You To My Loyal Viewers For Making My Profile Number One!

This isn't a video; it's just a Thank You!

This week my Martindale Visibility Index went a little higher than before.

To Number One!

Now, that will change, because nobody stays Number One for anything for any period of time these days; we all seem to have our 20 minutes of fame, and then it becomes someone else's turn.

But here is my twenty minutes of fame, in electronic concrete:

Joseph C. McDaniel

  - Lawyer Profile

Joseph C. McDaniel       Attorney Joseph C. McDaniel is a Former Chair, Arizona State Bar Bankruptcy Section, and a Former Chair of the ABA Bankruptcy Committee for the GPS; rated AVVO 10, and Peer-Review rated AV, he is board-certified in Bankruptcy Law by the Arizona Board of Legal Specialization. At this time, his practice focuses primarily on debtor representation, ranging from simple to complex, including Chapter 7, 13, 12, and 11 cases.   Joseph C. McDaniel, P.C. 6245 N. 24th Parkway, Suite 112 Phoenix, Arizona  85016 (Maricopa Co.) Telephone: 602-297-3025 Fax: 623-321-1562 http://www.josephmcdaniel.com/

Profile Visibility #1 in weekly profile views out of 7,210 lawyers in Phoenix, Arizona #1 in weekly profile views out of 1,142,079 total lawyers Overall

What happens at a Trustee's Sale?

For a Debtor, a trustee's sale is a scary concept.

Is Keeping my House an Option in my Bankruptcy?

Filing for Bankruptcy doesn't mean you LOSE everything. That's exactly what it's intended to prevent.

Mind you, that doesn't mean that keeping your house is a good idea; it's just one of the options.





 

Is a Professional License Bankruptcy-proof?

Even formerly highly-paid professionals are being hit hard in this depression.

Apparently this Depression Keeps Getting Called a Recession

This doesn't look to me like a recession; I've seen a couple of those before.

Seriously, just follow the news. Try to find a good new job. Try to sell a car for blue book.

Times aren't simply tough; they're very, very tough.

Bankruptcy Myths in Arizona

Somewhere people got the idea that lawyers could be hired and paid by wages already garnished from the debtor.

Well, not YOUR lawyer, anyway.

Are there Non-Lawyer Alternatives to Bankruptcy in Arizona?

Sure, there are some places out there that swear they can negotiate debt, lower interest, and stop collection activity and lawsuits without bankruptcy.

Would I recommend them?

No, not yet; I have not yet found such a service that provides a positive service!

If I find one, you'll be the first to know.

So what happens at a 341 Hearing, Anyway? The First Meeting of Creditors in your Bankruptcy, Question by Question.

At your First Meeting of Creditors, or your "341 Hearing", the trustee and any creditors that decided to show up will have a small chunk of time to ask you questions under penalty of perjury.

It sounds scary, right? Here is precisely what happens at this hearing, in agonizing detail. Note that some trustees now ask where you resided for the past two years, rather than the past 180 days; that goes to the issue of which set of exemptions you are entitled to claim.




 

So what happens when a creditor actually shows up for your 341 hearing?

Nothing noteworthy.

Their appearance isn't all that strange since they were quite literally invited to the event when you filed, but it makes clients nervous to have them at the hearing, and permitted to ask questions of the debtor (that's you).

Anyway, here is their very limited role at the First Meeting of Creditors:

Be Careful What You Ask For; If You Ask to be Sold, You'll Be Sold, For Heaven's Sake!

I refuse to sell a client. Period, full stop. So if a client asks me to sell him on using me as a lawyer, well, I have to beg off.

Why won't I sell a client? Because then they may have buyer's remorse, and life's too short. My life, anyway.

What do I Tell Collectors Calling all Night and Day?!

Why not start with the truth?

Seriously.

How long does it take to file a Chapter 7 Bankruptcy?

We don't guarantee anything about a specific amount of time because the time is primarily dependent on you.

That's right. It's YOU. It's a matter of how long it takes you to fill out your bankruptcy lists accurately. Once you fill out the information we must have to prepare your schedules and lists, the process is fairly quick, if and only if you pass the means test, or if you are outside the means test because of the exception; if you don't pass the means test, we don't file for you until we all agree on Plan B. 

So once you have completely and accurately filled in the information, we can review the materials you've given us, and you can get in line with the clients ahead of you, and the next available barge over the River Bankruptcy could have your name on it!

"Charged Off" isn't Cause for Celebration!

So you're looking over your credit report and you come across a strange phrase, which makes you smile.

That phrase is CHARGED OFF!

Sadly, that doesn't mean you're off the hook. 

Why does a Chapter 13 Bankruptcy Appeal to You?

I see a lot of people who have friends and television.

They have strange ideas about how the process works and often come in with either incorrect to very dated ideas about Bankruptcy. Chapter 13 used to have a lot of useful advantages. Then 2005 came along.

These days I have a pretty strong prejudice against a Chapter 13.

Because I tend to like my clients!

And making them suffer for five years seems a little harsh to me.

If I own a business, and I Want to File a Chapter 7, does that make a difference?

Well, yeah! A big difference.

ALL my credit cards?? Really?!

List everything, guys! I say that a lot, because you simply MUST LIST EVERYTHING.

However, with some credit cards there's a microscopic exception, for a zero-balance card.

Let's talk about that extremely minor exception to the rule; it's such a tiny exception, it's almost nonexistent.

Is this my First Rodeo? Uh, No.

You may wonder what bankruptcy attorney credentials are; they're all over my website, and a bunch of lawyer directories. And as to credentials, I have a bunch.

Some people collect stamps.

None of my credentials mean I'm smart, or that you will have an easy ride through the Bankruptcy Court; they just means I've been doing this for a while, so I know a lot of ways not to do it. Thirty years, although it feels like just yesterday, that I was working for U.S. Bankruptcy Judge Maggiore, and Chief Bankruptcy Judge Caldwell.

Discounts are cool. Sadly, the Pity Pitch Doesn't Work as Well in Bankruptcy as You Might Think!

Does all your massive debt invite a discount because you have so little money?

Well, if you're meeting with me, I'm going to factor in everything to see how much work I'll need to do on your case, and only then can I quote you a fee.  See why it's important to do your homework?

Let me explain...

Tax Refunds become Filing Woes

It's a matter of timing.

File at the wrong time and you can see the money raining down into a perfect stack... right into the palm of the Bankruptcy Trustee's hand.

Let's elaborate.

Will people know of my Bankruptcy?

Well, it is Public Record.

However, it's not written in skywriting and unless your friends live to comb court records available to the public at all times you're probably safe.

But then, is it really so bad that you filed and survived to tell the tale? Maybe you should tell the tale, inspire hope in people you didn't expect.

No, your Canadian Swampland is not safe just because it's in Canada!

This happens more often than I'd like: A client makes an assumption after we said to list ALL debt and assets that their Hawaiian beach house, French unsecured debt or Summer home in Canada are unimportant in an Arizona Bankruptcy and don't bother to list them.

That's... incorrect. To say the very least.

Debt still counts even if it doesn't get wiped off and failing to list the debt or a foreign asset will cost you big time when the Trustee comes across it. At the very least you can expect you Bankruptcy filing to be dismissed.

When is a Transfer considered Fraudulent?

It's sad that most people don't often check in with a lawyer until everything is almost literally on fire and they're so deep in panic that they can barely hear the Certified Arizona Bankruptcy Attorney that they've come to consult when he patiently tries to explain what to do in order fix their situation.

Be smart. Don't try to hide things from the Trustee. Play it safe and talk to a lawyer first.

Just be sure to check their ratings and certifications so you know you're getting the right kind of information in the first place.

Price of Freedom (from debt)

A question that comes up CONSTANTLY is how much "it" costs. Not just the retainer, but on top of the $299 filing fee controlled by the court and the credit counseling determined by whatever independent service the client chooses to make use of.

By "it" the clients usually mean the whole enchilada, but Bankruptcy is a scathingly complicated business and no client is the same so their enchiladas always differ in sauce, size and choices of filling.

Some have businesses they want to save, some have business that currently occupied by whistling wind and tumbleweeds and some are just scared folks living off of social security with sleazy collectors hanging on their door and phone like apparitions haunting their home.

So let's talk about how much it costs to break free from debt...