Kelly Bankruptcy

Bankruptcy Podcast

Latest Episodes

June 09, 2020
Chapter 13 Bankruptcy – Can I buy a new car in an active case?

Chapter 13 Bankruptcy – Can I buy a new car in an active case?

Hello, this is Jeff Kelly, and today is June the 8th, 2020 and today we’re going to talk about, can I buy a car while I’m in an active Chapter 13 bankruptcy case. Short answer? Yes, you can, but buying a car while you’re in an active Chapter 13, while it’s possible, it’s extremely difficult because most lenders are not willing to go through the process of waiting for the court to approve a post-petition car loan. Finding a lender who’s willing to work with you while you’re in an active Chapter 13 case is the biggest challenge. However, I have seen some clients pull it off successfully. It’s important to note, no one can incur any new debt in an active Chapter 13 case without permission from the court. Now, of course, emergency medical debt, that’s an exception to this rule, but as a general rule, no new debt without permission from the bankruptcy court, or you can get in a lot of trouble. To obtain permission from the court, we had to set it down for a hearing. We have to notify all the creditors in your case what our intentions are, that we want to buy a new car. At the hearing, the trustee is going to have some questions and may or may not oppose your request to purchase a new car. Your bankruptcy attorney will present your case and then the bankruptcy judge will decide whether or not she wants to sign an order allowing it. Typically, this process takes anywhere between 30 to 45 days. It is a slow process. It is not overnight. If you truly don’t have ...

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June 01, 2020
Why am I receiving this letter about a lawsuit?

Why am I receiving this letter about a lawsuit?

Hello, this is Jeff Kelly and in this podcast, I’m going to talk about why you are receiving this letter about someone who’s trying to sue you. Well, one of our big sources for potential clients is a list of people who are getting sued. So one of the most common questions we get is, “Hey, this is my personal information; my name, my address, and the name of this creditor that you say is suing me. How did you get this information?” It’s all public record down at the courthouse. So what we do is we try to help people with Chapter 13 and Chapter 7 and we try to come up with plans to help people deal with all of their debts; the entire situation. Try to help get some relief from the stress of dealing with debt. Now another common question we get is, “Hey, I don’t recognize this name of this creditor that you say as suing me. So how do I know it’s true? Or I want some more details here. When am I going to get more detail?” And usually within about a week of receiving our letter, the sheriff is going to come out to your house and the sheriff is going to serve you what’s called a complaint. Usually these complaints are anywhere between 20 and 30 pages and all the details are going to be in that complaint. Who purchased the debt — A lot of people don’t realize this, but debts get bought and sold a lot by various creditor collection companies. For example, usually if somebody falls behind on credit card debt, typically ...

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May 25, 2020
Do I Qualify for Bankruptcy?

Do I Qualify for Bankruptcy?

Do-I-qualify-for-bankruptcy Hello, this is Jeff Kelly, and today is May the 25th, 2020 Memorial day. Today’s topic is, do I qualify for bankruptcy? This is probably one of the most common questions we get. The short answer is that almost everyone is going to qualify for some type of bankruptcy relief. But as we get into this, it’s important to understand the different types of bankruptcy. So the first one is one people are usually most interested in, that’s Chapter 7, where you wipe out all your debts. Many people like to refer to Chapter 7 as the fresh start provision or the bankruptcy code. To qualify for Chapter 7, you got to have no money left at the end of your budget after you pay all your monthly living expenses. In other words, at the end of every month, you are on zero. In addition, you got to pass what’s called the means test. To pass the means test, your family must have a monthly income that is lower than the average family of your size in your region as determined by the IRS. These numbers are updated every quarter. As of today, the means test limit for a family size of two, just to give you an example, in the North Georgia area, is $65,007 a year. So in other words, let’s say you got a family size of two and you’re making a hundred grand a year. You are way over the limit of $65,007. You’re probably not going to qualify for a Chapter 7. However, there are some deductions we get; health insurance, child support, alimony. So some of the stuff may come ...

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May 19, 2020
Will bankruptcy hurt my credit?

Will bankruptcy hurt my credit?

Will filing bankruptcy ruin your credit? Hello, my name is Jeff Kelly. I’m a bankruptcy attorney. I’ve been practicing for about 22 years now. And in today’s podcast, I’m going to answer that question. Well, I can just tell you right out of the gate, my goal as a bankruptcy attorney, when I have a client come in and meet with me, when it comes to credit, my goal is to take any expectations that they have about credit and just beat them into the ground. I don’t want people to come into bankruptcy with false ideas. And there’s nothing worse than unmet expectations. So, I tell people, “look, we are about to take a big giant wrecking ball and it’s going to go clunk, clunk, clunk, clunk, clunk! Boom, to your credit when you file.” But the funny thing is, the people who I meet with, who seem to be most concerned about their credit are people who have already had their credit ruined by garnishments and judgments and I have a client – I’ve had potential clients out – I just can’t do it. I just can’t afford to wreck my credit and I’m looking at it at their credit report and I’m like, “you’ve got to be kidding me. Your score is 550, you have 10 judgments against you. You’re currently being garnished. They’re taking 25% of your income.” So I think what’s going on is a lot of people – it’s very common for people to make decisions that are just based on emotion. And when it comes to whether to file or not to file bankruptcy, emotion really has to go ...

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May 11, 2020
How can an ex sneak up on you and put stinky on your Chapter 13 Bankrutpcy case?

How can an ex sneak up on you and put stinky on your Chapter 13 Bankrutpcy case?

Hello, this is Georgia bankruptcy attorney, Jeff Kelly and today is May the 11th, 2020. Today I would like to talk about how an ex can sneak up on you and put stinky shoe-shoe on your Chapter, 13 bankruptcy case. Is there anything worse than some hated ex coming back into your life? No, there’s not, but in some bankruptcy cases, it happens. You know that yuck feeling that you get when you hear that voice inside your head say, “Oh no. Now I have to deal with – fill in the blank.” It makes my stomach hurt when I give people the bad news. The number one way that an ex can cause problems in your Chapter 13 bankruptcy case is when they have co-signed on a car with you. Now, in most Chapter 13 cases, we are able to lower interest rates on automobile debt down to around 6% ish. This feature of Chapter 13 is awesome and is particularly wonderful when you have an interest rate of 30% and we’re knocking it down to 6%. What a relief, right? But all this can go out the window, if you have an ex that was involved in the purchase of your car. If an ex is co-signed on the car with you, this is super problematic because if we try to lower the contract interest rate, the creditor will be able to sue the ex for the eliminated portion of the debt. As you can imagine, they will scream and holler to the hilltops. To protect any co-signer from being pursued by a creditor, we can take advantage of the co-sign and protection provision ...

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May 05, 2020
How do I file Chapter 7 bankruptcy and keep the stuff that still has debt on it?

How do I file Chapter 7 bankruptcy and keep the stuff that still has debt on it?

Transcript: Hello, this is Jeff Kelly and in this podcast today I want to answer the question, how do you file Chapter 7 and still keep your stuff that you owe money on? And the answer is reaffirmation agreements. So let’s go through some hypotheticals. Let’s say you’ve got somebody, they’ve got a 2010 Honda Accord and they owe about $10,000 on it, payment’s about $350 a month. Interest rate is 12% and they also have $50,000 credit cards and then another $50,000 in medical. What’s going to happen? Well, in a Chapter 7 situation, assuming they qualify, the credit card debt is going to be wiped out, eliminated, gone. Medical debt’s going to be wiped out, eliminated, gone. Why? Because those are unsecured debts. Now, let’s talk about the car. What’s going to happen with that? Could the person in this hypothetical surrender the car to the creditor and wipe out the debt? Absolutely they could, but if they want to keep it and they’re going to have to keep making the payments and they’re going to have to sign something called a reaffirmation agreement. A reaffirmation agreement is a contract between you and the creditor and basically it says this, “Hey Honda Accord creditor, I could wipe you out, but I’m going to give up all of my Chapter 7 rights and we’re going to treat this debt and treat this debt only as if we have never filed.” Now personally, I’ll be honest with you, I don’t like reaffirmation agreements; I’m extremely cautious about reaffirmation agreements. Once you sign that reaffirmation agreement, you have 60 days ...

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