No, I won't file a bankruptcy for you.
Because you are already entitled to receive a $2,000,000 inheritance (not her real number) from your mother's estate in Lithuania (not his real country).
And 11 USC 541 (Property of the Estate) says that if you are or become entitled to an inheritance within about six months of filing your bankruptcy, that inheritance becomes property of the estate.
No, it makes no difference at all that your name is not yet on the property.
No, you can't refuse the bequest; you'll be asked about that at your First Meeting of Creditors, under penalty of perjury.
So what can you do about your current situation, which involves lots of calls from credit card companies and a pending trustee's sale?
We'll, you weren't planning on keeping the house, and there's only one mortgage. Do check and see if there's a tax consequence relating to the trustee's sale, but the Arizona Anti-Deficiency Statute may apply as to deficiencies. Check with your cpa about tax consequences.
As to your credit cards, you're almost a year late paying some of them. Negotiate with them. And talk to your cpa about cancellation of debt tax consequences, because if debt is forgiven, it's treated as regular income. That's what I hear, anyway.
Check with your CPA.
How to negotiate credit card debt?
Very carefully.
Sorry, I couldn't resist.
But after you check with your CPA and decide that you can live with the tax consequences, call all of your credit card creditors and tell them you want to borrow dough from dad, in order to pay something to everybody and make them go away.
After a year of nonpayment, you aren't dealing with The Friendly Bank. You're dealing with The Unfriendly Bottom Feeder who bought your debt for a penny on the dollar or less. Or more, perhaps. But not much in any case.
The bottom feeder sees a 1/3 recovery as a home run. And any more than he paid for the debt is just gravy, after all.
So read ten books on Amazon on negotiating with credit card creditors, and email me and let me know which of them are worthwhile, and which are worthless, so I can let others know as well.
Some folks negotiate credit card debt down to less than 10% after a year, and some can't do that. Remember that it's hard to predict, because you have no clue who has bought and sold your debt again and again.
I don't do credit card debt negotiation because it's frustrating, and debtors are never happy with any results, because it takes too long, and it costs too much, and your credit is trashed during the process, and there's that pesky tax consequence if you're able to do a great job, and the whole process is hard to predict.
And I only like happy clients; I should have gone into adoption law.
And no, I don't know of any companies that advertise on tv or radio who do a good job of credit card negotiating. I know a few that have gone out of that line of work, but none that are good at it.
If you find one, let me know!
Because you are already entitled to receive a $2,000,000 inheritance (not her real number) from your mother's estate in Lithuania (not his real country).
And 11 USC 541 (Property of the Estate) says that if you are or become entitled to an inheritance within about six months of filing your bankruptcy, that inheritance becomes property of the estate.
No, it makes no difference at all that your name is not yet on the property.
No, you can't refuse the bequest; you'll be asked about that at your First Meeting of Creditors, under penalty of perjury.
So what can you do about your current situation, which involves lots of calls from credit card companies and a pending trustee's sale?
We'll, you weren't planning on keeping the house, and there's only one mortgage. Do check and see if there's a tax consequence relating to the trustee's sale, but the Arizona Anti-Deficiency Statute may apply as to deficiencies. Check with your cpa about tax consequences.
As to your credit cards, you're almost a year late paying some of them. Negotiate with them. And talk to your cpa about cancellation of debt tax consequences, because if debt is forgiven, it's treated as regular income. That's what I hear, anyway.
Check with your CPA.
How to negotiate credit card debt?
Very carefully.
Sorry, I couldn't resist.
But after you check with your CPA and decide that you can live with the tax consequences, call all of your credit card creditors and tell them you want to borrow dough from dad, in order to pay something to everybody and make them go away.
After a year of nonpayment, you aren't dealing with The Friendly Bank. You're dealing with The Unfriendly Bottom Feeder who bought your debt for a penny on the dollar or less. Or more, perhaps. But not much in any case.
The bottom feeder sees a 1/3 recovery as a home run. And any more than he paid for the debt is just gravy, after all.
So read ten books on Amazon on negotiating with credit card creditors, and email me and let me know which of them are worthwhile, and which are worthless, so I can let others know as well.
Some folks negotiate credit card debt down to less than 10% after a year, and some can't do that. Remember that it's hard to predict, because you have no clue who has bought and sold your debt again and again.
I don't do credit card debt negotiation because it's frustrating, and debtors are never happy with any results, because it takes too long, and it costs too much, and your credit is trashed during the process, and there's that pesky tax consequence if you're able to do a great job, and the whole process is hard to predict.
And I only like happy clients; I should have gone into adoption law.
And no, I don't know of any companies that advertise on tv or radio who do a good job of credit card negotiating. I know a few that have gone out of that line of work, but none that are good at it.
If you find one, let me know!
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