Tag Archives: #BankruptcyDosAndDonts

Should I File for Chapter 7 or Chapter 13 Bankruptcy?

When bankruptcy is filed in the U.S., it is typically one of two types: Chapter 7 or Chapter 13. How does one decide which to file for? Chapter 7 bankruptcy can be thought of as a liquidation bankruptcy. Chapter 11 can be thought of as a reorganization bankruptcy. Under Chapter 7, individuals and business entities are able to file. Under Chapter 13, only individuals, including sole proprietors, are able to file. Benefits of Chapter 7 Over Chapter 13 Typically, Chapter 7 is the quicker option. Under Chapter 7, you are able to keep most of your property, and you aren’t locked into a long-term repayment plan. If you don’t have a lot of property you wish to keep, or you have a lot of credit card, medical or personal loan debt and your family income doesn’t exceed the state median for a family the same size as yours, Chapter 7…
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Can I Post on Facebook During Bankruptcy?

Social media accounts, particularly Facebook, have changed the way pretty much everyone lives and works. While there are some hold-outs, many people use the platform to share pictures and updates with friends and family. However, there are others out there (you know who you are) who post pretty much everything in their lives to social media: What they wore to work this morning, what they ate at lunch and their ever-changing relationship statuses. However, there’s a golden rule for people involved in any type of civil or criminal case, including being involved in a bankruptcy case: Stop posting things on Facebook during bankruptcy. While most bankruptcy cases are relatively simple processes, certain cases get more complex. If a creditor in your bankruptcy case wants to investigate your life and finances, there is nothing stopping them from going through your public social media accounts. Many times, people might exaggerate their lifestyles…
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Bankruptcy and Social Media: Step Away from the Computer!

Social media has become key evidence in almost all civil and criminal cases. What many people do not know or realize that is if they are a party to a lawsuit, including a bankruptcy case, their Facebook or other accounts will likely be scrutinized by an investigator, attorneys, a trustee or creditor. A recent article in the Wall Street Journal highlighted this phenomenon regarding people bragging on social media during a bankruptcy proceeding. Although bankruptcy fraud is uncommon, many trustees and creditors do basic research about a person filing bankruptcy to look for undisclosed assets. If a person is posting pictures of themselves in nice cars, on a boat, traveling on luxurious vacations or wearing expensive jewelry, this will likely raise some eyebrows. A recent and well-publicized case involved rapper 50 Cent, who was in the middle of his bankruptcy case when he posted on Facebook pictures of himself with…
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