Bankruptcy Advice

Question:
I'm not american, I liive in Italy thus I'm not familiar witth your laws and your terminnology but I've been reading the NG and the PDF file that Brett posted few days ago and I think I have an overview of how your BK works. I have an american gf which has several debts (car loan, student loan, credit cards and other general loans), we would like to get married and finally live together since the long distance relationship has been going on for too long but with all her debts this is not possible at the moment neeither in the near future this is why she was considering the possibility to file for BK. She has 2 jobs: a full thime one and a part time one, thus she has a regular income, but all her salary goes to the creditors and sometimes she gets to the end of the month with no money at all. This is the situation (if you need more details please ask) now I have several questions: 1. for what kind of BK she is eligible? 2. In a CH7 BK which goods from your personal property are used to pay the creditors? She has an engagement ring worth several bucks, will they take it too? She doesn't have any estate just the car (which she's still paying) 3. Which goods are exempted? 4. Which are the conseequences of this BK procedure? 5. When she'll move to Italy will this BK thing come out?

Answer:
The bankruptcy laws vary depending on which of the 50 states your girlfriend lives in. The only real way for your girlfriend to know where she stands in terms of a possible bankruptcy would be for her to talk with a bankruptcy attorney in the state where she lives. Many provide free initial consultations. Since you said your girlfriend lives in Maryland, one obvious choice would be for her to contact Brett Weiss who apparently practices bankruptcy in Maryland. > 1. for what kind of BK she is eligible? It's impossible to say without a lot more detailed information. Most individuals file either for Chapter 7 or Chapter 13. > 2. In a CH7 BK which goods from your personal property are used to pay the > creditors? In most Chapter 7 cases, people keep everything they have. It depends on the details of their case, which state it is filed in, and what exemptions are available to them. > She has an engagement ring worth several bucks, will they take it too? > She doesn't have any estate just the car (which she's still paying) See above. > 3. Which goods are exempted? See above. > 4. Which are the conseequences of this BK procedure? I'm not sure what you mean by "consequences." Assuming she receives a discharge (which is the whole purpose of filing), her debt is wiped out. > 5. When she'll move to Italy will this BK thing come out? If you're referring to the new bankruptcy bill (BARF), provided she files before its effective date, it won't affect her. I have written a Bankruptcy FAQ which should answer many of your questions about what is involved--it may be found at http://users.erols.com/lawyer/FAQ/br_faq.htm. I strongly recommend that your girlfriend speak with a local bankruptcy attorney. Most offer free initial consultations and he or she should be able to review your specific situation and let you know what you can and can't do. If she's in Maryland, DC or Virginia, please let me know--we may be able to help.





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