Bankruptcy Knoxville

By declaring bankruptcy a person often affects more than just himself or herself. Sometimes it can affect other family members who have financial dealings with the person filing. So how should you handle this situation? If you’re a private person, you may not want to disclose the bankruptcy if you can avoid it. The best thing to do is first figure out whether it’s even an issue.

The best way to do this (and yes, I know it sounds self-serving) is to speak to an experienced Knoxville bankruptcy attorney. Go in for the free consultation, explain your situation and any difficult issues such as family financial dealings, and get the advice you need. You may be able to avoid disclosing the bankruptcy or you may be able to avoid the bankruptcy altogether. But the bottom line is, you need sound professional advice and we’re here to provide it.

The Dallas News provides an interesting example of when bankruptcy can affect family members:

Question: Our daughter lives in California. She is POD on several of our CDs. Her financial condition is dire and she may have to declare bankruptcy. Would this affect our CDs? Could her bankruptcy have access to our CDS? –Carolyn

Answer: Carolyn, your question is unfortunately being asked more and more often. Pay on Death (POD) accounts do not convey ownership to your daughter until your death. Consequently, these assets should not be part of your daughter’s bankruptcy estate at this time. Once you have passed away, however, these assets would most likely be within the reach of her then creditors. I suggest you consult with your estate planning attorney and consider passing these assets to your daughter in trust. A properly drafted trust should allow you to accomplish your goals.

Bankruptcy is growing in every state of our Nation. But none more so than in Nevada at a rate of 10.49 filings per 1,000 people. That’s a full 1% of the population filing for bankruptcy. The national average is less than half that rate. And only one year ago Nevada’s rate was 6.39 per 1,000 residents. Nevada also leads the way with credit card delinquency rates of 1.98 per cent. The state is reeling from a housing bust and reduced travel to Las Vegas. It’s not surprising that their unemployment is at 13%. More from the Las Vegas Sun:

The Administrative Office of the U.S. Courts reported that nationwide, bankruptcies for the fiscal year ended Sept. 30 surged 34.5 percent to 1.4 million — with Nevada posting the highest rate in the nation.

Nevada led the nation in filings for the year with a rate of 10.49 per 1,000 people, well above the national rate of 4.52 filings per 1,000 people.

In 2008, Nevada was No. 2 in the nation with a filing rate of 6.39 per 1,000 people and the national rate was 3.38 filings per 1,000 population.

In Nevada in the 2009 fiscal year, bankruptcy filings totaled 27,560 — up 64.5 percent from 2008.

The numbers are in line with the state’s unemployment rate of 13 percent, which has soared from 7.7 percent one year ago as the recession reduced travel to Las Vegas and dramatically slowed the state’s construction and development industries.

Are you considering filing for bankruptcy? Call us today for a free consultation about your case. We can help you understand your options and get you back on solid ground.