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Bankruptcy: a Drastic Step but Sometimes the Wisest One
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Filing for bankruptcy stops the clock on such legal actions. They won't proceed until your bankruptcy has been discharged or the court gives a creditor the right to move forward to collect the debt. If you're about to lose your home, Ventura said, filing for bankruptcy stops the lender from evicting you and taking the home.
There are other advantages to filing. Your creditors will have to stop trying to collect from you, which should be a relief, although they may get some of their money through the bankruptcy proceedings. You may also be able to use the process to reduce the amount you owe to some of your creditors.
Bankruptcy will wipe out the outstanding balances on some types of debt, although others, such as school loans and IRS tax liens, will survive and you will still owe the full amount. Bankruptcy also may help you keep your car and house.
But bankruptcy isn't always the right choice, even if you're overwhelmed by debt. For example, if you have no assets, are over 65 years of age, aren't working and are living on your Social Security benefits or cash withdrawn from a qualified retirement account such as an IRA or 401(k), filing for bankruptcy protection won't help.
One thing is certain: Filing for bankruptcy will stain your credit history for a long time, up to 10 years. Your credit score will drop, and you may have a very difficult time getting access to credit for the next few years. You may also have trouble getting a job, especially if that job involves a company's finances or money. Employers routinely pull a copy of a job applicant's credit history.
And finally, your bankruptcy paperwork will become part of the public record, allowing anyone to peer inside your finances.
To find an approved bankruptcy counseling agency, go to the Justice Department Web site http:/
Q: I purchased a Florida condominium a few years ago while living in Maryland. I later made the condo my permanent residence. While I was still living in Maryland, I created a revocable living trust for my affairs but did not put the Florida condo into the trust.
I now wish to transfer the condo into the trust but don't know how.
Can I do this myself, or do I require a lawyer?
A: What you need to do is retitle the condo into the name of the trust. You can use a deed that would convey your interest in the property to your trust.
Can you do this yourself? Yes, but you had better be careful. You can obtain a deed to transfer your interest from a title company or closing agent in Florida. You can then contact the local recorder of deeds to find out about specific requirements and additional forms for recording documents in the jurisdiction where the condominium is located. After completing the deed and other forms, you will have to pay the fee to record the document, along with any additional fees required by the municipality.
