What does bankruptcy affect?

[enufsanuf]

This might seem like an oversimplified question but I was wondering what all filing BK would affect. Here's what I gathered (I'm referring to CH 7):

I own a home that I assume I would be able to keep (no equity).

I wouldn't be able to buy a house for at least 2 years (I have mid 700's credit score before filing). How do the interest rates compare with good credit rates?

Would it affect getting or keeping professional licenses such as a real estate license?

What about getting a new checking/savings account?

How are future cash windfalls dealt with (company bonuses, tax refunds, etc)?

Can you open investment accounts soon after filing?

Are you being looked at once the filing is over? What I mean is does the trustee have any access to your private info?

What about renting a house/apartment? Possible?

Utilities such as water/electricity/phone? What about cable or satellite TV service?

That's it for now .

Thanks

[keepmine]

[anonymuse]

Would it affect getting or keeping professional licenses such as a real estate license?

Do you have to be bonded to be a realtor? Sorry, don't know the answer to that one.

What about getting a new checking/savings account?

You usually only have problems getting checking accounts if you have previously had problems with overdrawn/bounced checks.

How are future cash windfalls dealt with (company bonuses, tax refunds, etc)?

When you are filing a Ch 7, they will ask for your tax refunds.

Are you being looked at once the filing is over? What I mean is does the trustee have any access to your private info?

1 of 250 cases are auditted.

What about renting a house/apartment? Possible?

Yes, sounds like your credit scores won't take as big a hit as others. Just be ready with first month, last month, and security deposit to plop down at the beginning.

Utilities such as water/electricity/phone? What about cable or satellite TV service?

If you haven't kept current in the past, you may have to put down deposits to maintain these accounts.

[enufsanuf]

How long for the tax refunds?

How long do they get to keep your tax refunds? What if you can keep them to minimum or break even point?

Here's a different question. What if I need a new vehicle but also need to file for bk? Should I try and get the vehicle first? It would be a low cost used vehicle. I currently own a 2 seater vehicle and have a wife and 2 kids. We drive around in our other vehicle 90% of the time, but I really need to have something everyone would fit in. I would be able to afford the payments after bk if someone will finance for me. I fully plan to pay it off so it shouldn't be considered shady. THanks.

[keepmine]

Yes, get a new car prior to filing. You'll get a better interest rate than post bk.
As to the the refund question. The later in the year you file, the more interest the trustee will have. A rule of thumb is the month you file divided by 12 is the percent the trustee will want. Ex. File in June-6/12-the trustee will keep half of the refund.

[anonymuse]

How long do they get to keep your tax refunds? What if you can keep them to minimum or break even point?

Their "reasoning" is that if you have a tax refund, then you could have had more disposable income each month. Therefore, just work out your taxes and adjust your deductibles to break even.

[SinkingFast]

Trustees seem to be interested in Refunds of people who file during tax time and late in the year. Some Trustees will go after all refunds. But tax time and late in the year are prime just about anywhere in the country.

[enufsanuf]

Refunds???

Do you mean just the first year's refund after you file, or every year for a set amount of time? If so, how many years do they get your refunds? Thanks for the help!

[SinkingFast]

For Ch 7, it's the refund the next year after you file. In Ch 13, it's every refund you receive while you're in the plan.

Likely your insurance rates and interest rates on loans will increase.

Some larger apt complexes will not even consider you as a tenant. Ask Credit Check policies prior to paying an application fee. You don't wanna be out $25 here and $35 there if they are just gonna deny your application. The farther down the road you get from your BK, the less and less of a concern that will be.