Serious Debt Problems Only | Live Q&A

TL;DR

Consumer Warrior YouTube channel host answers viewer questions related to debt issues, bankruptcy, and defending debt collection lawsuits.

Transcript

hey everybody john skiba here is thursday night let's get started all right everybody welcome to thursday this thursday uh as always they seem to sneak up on me a bit but welcome to uh the consumer warrior youtube channel where each every thursday night we do a live q a on debt issues related to bankruptcy defending debt collection lawsuits we go o... Read More

Key Insights

• 💳 Credit availability and reporting are not determinants of the validity of a debt.
• 👪 Payments to friends and family before filing for bankruptcy may be considered preferences and subject to scrutiny.
• 👽 Judgment liens can potentially be avoided by filing a motion in a Chapter 13 bankruptcy.
• 💌 Hardship letters may be requested by creditors as part of settlement negotiations.
• 💄 The decision to negotiate debts while making regular payments is at the discretion of creditors.
• 👶 Child support and alimony may limit the available funds for repaying debts.
• 💼 Bankruptcy and immigration cases are generally separate legal matters.
• 🧑‍🏭 Homeownership is possible during bankruptcy, with certain exemptions and factors taken into account.

Questions & Answers

Q: Can a debt be considered invalid if it is not listed on a credit report?

No, creditors are not required to report information to credit reporting agencies, and a debt's absence from a credit report does not determine its validity. Credit reports should not be the sole basis for evaluating the validity of a debt.

Q: Is there a petty amount that can be disregarded when repaying debts to friends or family prior to filing for Chapter 7 bankruptcy?

While there is no specific threshold, smaller amounts are less likely to be pursued by the bankruptcy trustee as preferences. However, larger amounts, such as $5,000, may raise concerns and be subject to scrutiny.

Q: How long does it take for the IRS to make a decision on an installment plan request?

The timeframe for the IRS to make a decision on an installment plan request can vary, and it is best to consult with a tax professional who can provide guidance specific to your case and the procedures in your jurisdiction.

Q: Can filing for bankruptcy affect an immigration case?

Filing for bankruptcy does not generally impact immigration cases, but it is advisable to consult with an immigration attorney who can provide guidance based on your specific circumstances.

Summary & Key Takeaways

• The host, a licensed attorney in Arizona, provides insights and answers to common questions about debt issues, bankruptcy, and defending against debt collection lawsuits.

• A debt not appearing on a credit report does not make it invalid, as creditors are not required to report information to credit reporting agencies.

• If a person has made payments to friends or family members before filing for Chapter 7 bankruptcy, it may be considered a preference and be subject to scrutiny by the bankruptcy trustee.

• The judgment liens in bankruptcy may be removed when filing for Chapter 13 bankruptcy by filing a motion to avoid the lien.