Additional Information:

I’m a student in RI, working 2 jobs but have terrible credit.  A friend opened a credit card account and listed me as an authorized user.  I filed for bankruptcy and the account has been labeled as bankruptcy on my credit report.  My question is since my friend never used the card, is she actually responsible for the amount owed on the account or can she dispute it somehow since she had never actually used the card?

ATTORNEY ANSWER:

Unfortunately, your friend is as responsible as you are for the debt whether she used the card or not. When she signed the credit card agreement, she agreed to cosign for you. This means the bank can look to recover any balance owed on the card from her as well as you.  [Read more...]

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I am filing for protection under Chapter 7. A few months ago my father purchased a car in Johnston.  His name is on the Title but he gave the car to me to use, and I am paying him to use the car. We didn’t sign any papers or anything, it was just the verbal agreement. Should I list the money as payments made to an insider in the bankruptcy? Will the Trustee seek to recover those funds from my father? Will I be able to reaffirm this lease and keep the car?

ATTORNEY ANSWER:

You absolutely should list the payments made to your father. Failing to list them could be considered fraud. However, you probably will be able to keep the car through the Bankruptcy process so it is best to be open and honest about your arrangement.  [Read more...]

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I’m starting to think about filing for bankruptcy in RI.  What will happen to my student loans and tax debts if I file for personal bankruptcy?  Do they get dismissed or put off until I can pay them?

ATTORNEY ANSWER:

You can not discharge tax debts. You also can not discharge student loan debts if they are federally guaranteed student loans. If they are purely private in nature, like through a bank without federal assistance, you may be able to discharge the loan completely. The lenders may choose to try and collect from you through the use of collection agencies or Court appearances. You will need to work out a payment arrangement.

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I’m considering filing for Chapter 13 bankruptcy.  I’m currently crashing at a friend’s place in Cranston but will eventually need to get my own place.  Will I be able to rent an apartment or renew a lease?  I’m assuming filing for bankruptcy stays on your credit history forever?

ATTORNEY ANSWER:

You should be able to rent an apartment, but you will take a credit hit for some time. This may mean that you could pay more for an apartment, or some landlords may not even rent to you. How long your credit actually suffers depends upon how well you can fix your credit score. This generally takes most people two to three years.

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I filed for personal bankruptcy in Rhode Island.  Will I be able to obtain credit after filing for personal bankruptcy?

ATTORNEY ANSWER:

You almost certainly will be able to obtain credit shortly after a Bankruptcy. You may pay a higher interest rate and you may receive less credit but you should be able to qualify almost immediately.

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I filed Chapter 7 bankruptcy in Rhode Island and mistakenly forgot to list a substantial doctor’s bill as a debt.  Am I now responsible for this bill or can I file to amend my bankruptcy?

ATTORNEY ANSWER:

Yes you can generally amend a Bankruptcy petition, you should check with your RI Bankruptcy attorney immediately as amendments to a petition are time sensitive and should be done as soon after a discharge as possible.

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I pay monthly dues for a time share.  The company just field chapter 7 bankruptcy, am I still liable to pay?

ATTORNEY ANSWER:

Unfortunately, yes you still must pay. They are trying to avoid their obligations to their creditors it should not affect your obligation to pay them a monthly fee.

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Additional Information:

I want to reaffirm my auto loan. My mother co signed for my auto loan. Can this be done?

ATTORNEY ANSWER:

Sure, you can reaffirm anytime you want, but beware our Bankruptcy Judge does NOT like reaffirmation agreements. There is a substantial likelihood that he will not allow you to do this even if you want to. Keep in mind that it is probably not necessary anyhow as the lien holder probably will not repossess your car so long as you continue to make payments. You must remember to send in payments, once you declare a bankruptcy, you will no longer get a bill form your lien holder you must send in payment on your own.

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ATTORNEY ANSWER:

In almost all cases the only people who will be made aware of your Bankruptcy Petition are your creditors. Friends, family and coworkers are not contacted. While the information filed with the Court is public, no affirmative action is taken by the Court to notify anyone other than a creditor. Actions taken by creditors to notify friends or family may be illegal and violate the Federal Fair Debt Collection Practices Act.

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ATTORNEY ANSWER:

Not necessarily. Whether to file a Joint Petition for Bankruptcy or an individual Petition depends upon the unique circumstances of your case and should be discussed with attorney Heberg. However, you are not obligated to file a Bankruptcy Petition just because your spouse has.

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