Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law
This answer was rated:

I am 60 and I am on disability from prostate cancer. It is

not clear if the cancer...
I am 60 and I am on disability from prostate cancer. It is not clear if the cancer is cured and I will not know for several years. I have had prostate removal and due to side effects of the surgery and complications, I only work several yours a day, but iI am still totally disabled from the insurance stanpoint I am a medical doctor. Due to my illness, economic factors, health care reform I am 0ver 3 million corporation and home) in debt with no assets and negative net worth. My disability insurance income covers by basic expenses. I have moved into a smaller house and I should have this paid off in 4 years.
The bank will not negociate with my BR attorney and it appears that the only option is Chapter11 . I will probably do this in 30 days.
My office practice, leased space is sputtering with decreased number of patients by has overhead insurance payments keeping the doors open ans seeing old patients. I hope to continue to practice, but it may be several years before I can be working at full capacity.
Some questions I do not understand about chapter 11.
1. Can you continue to pay on your new home and car notes if you plan to keep them.
2. Does it make any sense to continue to pay off several credit card balances if I am in chapter 11. I guess they will cancel them anyway and I will have no credit. Or should I should I just include them in the chapter 11?
3.) Once the financial reorganization plan is approved, are they entitled to my disability payments? I have no salary income at all at this time.
4) If I comply with the plan and go back to work fully or I am able to increse my income 6 months after the plan, can the bank come back and get more?
5.) my wife is also party to the bank's claim, because of the house. Her dad is wealthy and is 84 years old. If he passes away in say 1 year after the plan starts, can the bank
still come after herfor the money if we are complying with the plan
6. The bank claims that they are owners of my corporate assets. However, other then some furniture and a few PCs, there are no assets. The medical equipment I have is all on long term leases with other companies and are essential to continue my business. Is there anyway they can claim them. The proceeds of the banks loan were used for a buildout of the office space and operating capital. I do not own the building. The space is rented.
7.) What is meant by coming out of bankruptcy? While in chapter 11 will any increase in income be sucked up by the bank.
8.) I have three kids in college. Can those costs be figured in the chapter 11 plan. I have no emergency funds for medical expenses, etc. Can funds e set aside for this and contibutions to the fund be made as part of the plan?
9.) Is it possible to employ my son part time in my practice to have him get enough money for a used car payment. Should we do this before th plan?
10.) What do you do in the "cooling off period" before the plan is approved. Can you go on a vacation.? Can you prepay expenses? Tuition, taxes etc to free up the cash flow when in the plan?

Sorry about all of the questions. Just answer under the questions. I have paid accordingly for the complexity. I am a medical expert for JA
Jacl
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 20 minutes by:
2/1/2011
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified

Hi JACustomer,

1) Yes, as secured loans - such as for the home and car - get paid first.

2) Most unsecured debt - including credit cards - get paid evenly (in proportion to the amount of debt owed to each one). In other words, you will not be able to pick the ones you want to pay more to.

3) If the disability is from Social Security, the payment is off-limits to the Bankruptcy court. If you are receiving private disability, the payments would be included in the payment plan.

4) If your income increases while the Chapter 11 in progress, your payments must also increase.

5) Yes - the Bankruptcy court is entitled to any inheritance received by you or your wife while the Bankruptcy is in progress.

6) The bank cannot touch assets that are being leased, as these do not belong to you or to your corporation.

7) Coming out of Bankruptcy is good. It means the plan has been finished, and the Bankruptcy is ready to be closed.

8) College expenses are not allowed in a Chapter 7 or 13. Whether you will be allowed those expenses in a Chapter 11 will depend on the creditors. However, although possible, it is unlikely that you will be allowed those expenses in a Chapter 11 either.

9) You can employ him if he is needed, and the need for his services will not be impacted by the fact that he is your son. However, it is unlikely you will be able to prove he is needed if he has never worked there before.

10) You can go on vacation, but you would have to pay cash, as you cannot incur any more debt once you know you are going to file a Bankruptcy. You cannot pre-pay other unnecessary expenses or debts, as these can be ordered returned.

 

cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
cfortunato and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask cfortunato Your Own Question
cfortunato
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
8,023 Satisfied Customers
Experience: Bankruptcy professor.

cfortunato is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
What happens i file chapter 7 bankruptcy and judge denies my
Second opinion] What happens i file chapter 7 bankruptcy and judge denies my reaffirmation agreement...will they repo my car or will the co signer be able to keep it… read more
DrakeLAW
DrakeLAW
Juris Doctorate
965 satisfied customers
What happens i file chapter 7 bankruptcy and judge denies my
What happens i file chapter 7 bankruptcy and judge denies my reaffirmation agreement...will they repo my car or will the co signer be able to keep it… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,316 satisfied customers
I am probably going to need to file a Chapter 7 bankruptcy
I am probably going to need to file a Chapter 7 bankruptcy in Minnesota because Geico is suing me for $100K for personal injures sustained by someone else that was involved in an accident. I am fighti… read more
DrakeLAW
DrakeLAW
Juris Doctorate
965 satisfied customers
I have a chapter 7 in process in las vegas, nv. I have a
I have a chapter 7 in process in las vegas, nv. I have a court date set for a reaffirmation agreement for my mortgage. I would like to change my court date to a more current date. What motion with the… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,316 satisfied customers
I filled chapter 7 and discharged a mortgage with Wells
I filled chapter 7 and discharged a mortgage with Wells Fargo in 2009. I did not reaffirm the mortgage but I continued making payments for these eight years. I requested a payoff from Wells Fargo and … read more
DrakeLAW
DrakeLAW
Juris Doctorate
965 satisfied customers
I have filed a chapter 7 back in June of this year.. today I
I have filed a chapter 7 back in June of this year.. today I got into an accident to which the other party was at fault.. i has to go to the hospital... if I am … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,865 satisfied customers
I am considering filing a chapter 7 personal bankruptcy. I
I am considering filing a chapter 7 personal bankruptcy. I know some years ago there were some changes in the bankruptcy laws. What I need to know, first of all, is how much money can be retained in a… read more
LegalGems
LegalGems
Juris Doctorate
10,647 satisfied customers
Interested in information concerning personal chapter 7
interested in information concerning personal chapter 7 bankruptcy as a member of a 50/50 LLC … read more
DrakeLAW
DrakeLAW
Juris Doctorate
965 satisfied customers
Regarding my chapter 7 ProSe on the Reaffirmation $2000
Regarding my chapter 7 ProSe on the Reaffirmation $2000 behind on payments, $6000 equity in car Obviously, we don't want to be Repo'd with all that equity.My husband went to the reaff hearing today an… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Regarding my chapter 7 Reaffirmation hearing tomorrow,
Regarding my chapter 7 Reaffirmation hearing tomorrow, husband is going without me. $2000 behind on payments, 6000 equity in car. When I try to talk to the people at "ascension capital" who do Cap1's … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,316 satisfied customers
We filed chapter 7 bankruptcy in California with the intent
We filed chapter 7 bankruptcy in California with the intent on reaffirming the car.We are 90 days out with a report of no distribution and "awaiting discharge" on Pacer.We have $6000 equity in the car… read more
DrakeLAW
DrakeLAW
Juris Doctorate
965 satisfied customers
BANKRUPTCY: Debtor is filing Chapter 7 bankruptcy; and
BANKRUPTCY: Debtor is filing Chapter 7 bankruptcy; and elected to surrender their vehicle. Can the Creditor repossess the vehicle while the bankruptcy case is still open? Debtor has not received a dis… read more
LegalGems
LegalGems
Juris Doctorate
10,647 satisfied customers
BANKRUPTCY: A debtor wants to file a personal Chapter 7
BANKRUPTCY: A debtor wants to file a personal Chapter 7 bankruptcy and owns a small business. They are filing mostly consumer debts. Can the Debtor continue to run their small business and generate in… read more
LegalGems
LegalGems
Juris Doctorate
10,647 satisfied customers
This is a Chapter 7 question. The Debtor was unemployed for
This is a Chapter 7 question. The Debtor was unemployed for 4 of the last 6 months, having worked the last 2 months. Her currently monthly income amount is above the local median, but averaged over th… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
My parents filed chapter 7 bankruptcy. They received a
My parents filed chapter 7 bankruptcy. They received a letter back from the attorney they hired and the letter stated, "they are over the limit on the allowable exemptions for a chapter 7".What does t… read more
Ray
Ray
Lawyer
Doctoral Degree
30,828 satisfied customers
How do I find out if I qualify for chapter 7 BK Assets 2000
How do I find out if I qualify for chapter 7 BK Assets 2000 Med Bill Debt 22k Tax Debt 12K ( over 3 years old I have been making payments) Card Debt 9K Collections 7K Income SSec 1611 per month… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,316 satisfied customers
Filed chapter 7 and received discharge, massachusetts dept
filed chapter 7 and received discharge, massachusetts dept of revenue seizing assets and not honoring discharge. how do we make them stop, remove liens and return seized money? … read more
Amadeo Rivera
Amadeo Rivera
JD
82 satisfied customers
I'm a disabled veteran needing to file Chapter 7 bankruptcy.
I'm a disabled veteran needing to file Chapter 7 bankruptcy. What is your fee structure? Thank you, ***** ***** … read more
Michael Bradley
Michael Bradley
JD
1,191 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x