Bankruptcy in 2023 | Live Q&A with Arizona Attorney John Skiba

TL;DR

Consumer advocate and attorney addresses common questions about credit reporting, bankruptcy, debt collection, and more.

Transcript

hey everybody John skiba here from the consumer Warrior YouTube channel and it is Thursday night hey everybody welcome back to the channel welcome to Thursday night we're making it we're almost through the work week it's Thursday evening that means it's all downhill from we just got Friday left and we're good to go uh I'm Jen skiba I am the founder... Read More

Key Insights

• 🥳 Credit reports may not immediately reflect changes after filing for bankruptcy, and it is advisable to check them 30 to 60 days after receiving the discharge order.
• 😨 The automatic stay triggered by bankruptcy stops all collections, including repossession of cars.
• ❓ Discharged debts in Chapter 7 bankruptcy are not taxable, unlike debts forgiven through debt settlement.

Questions & Answers

Q: What will happen to my credit report after filing for bankruptcy?

When you file for bankruptcy, the bankruptcy filing will show up in the public records section of your credit report. However, the individual creditors listed on your credit report will likely not change until the discharge order is entered, which takes about four to five months.

Q: Will bankruptcy stop repossession of my car?

Yes, filing for bankruptcy triggers an automatic stay that stops all collections, including repossession. Chapter 7 bankruptcy may delay repossession for a few months, while Chapter 13 allows you to keep the car and catch up on missed payments over a period of up to 60 months.

Q: Do I have to pay taxes on discharged debts in Chapter 7 bankruptcy?

No, you do not have to pay taxes on discharged debts in Chapter 7 bankruptcy. The IRS distinguishes between debts forgiven through bankruptcy and debts forgiven through debt settlement, with only the latter being considered taxable income.

Q: Can I cancel my Chapter 7 bankruptcy if I discover I may be over the income limit?

Cancelling a Chapter 7 bankruptcy after it has been filed is difficult, as it requires approval from the court and may face objections from creditors. Converting to a Chapter 13 bankruptcy may be a viable option if your income exceeds the means test.

Summary & Key Takeaways

• The video features a consumer advocate and attorney discussing strategies and tactics to deal with aggressive debt collectors and debt problems.

• The attorney explains the connection between credit reporting and filing for bankruptcy, including how your credit report may appear after filing.

• He advises checking credit reports 30 to 60 days after receiving a discharge order in a bankruptcy case, as it may take a few reporting cycles for the information to update.

• The attorney also addresses questions about car payments, creditor proof in vehicle ownership, taxes on discharged debts, student loans, and more.