I am in default and filing for bankruptcy

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BillCooper

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I am in default and filing for bankruptcy

Postby BillCooper » Mon Sep 12, 2016 1:03 pm

I didn't score high enough to get admitted in jurisdiction I took the UBE, but did score high enough to get admitted in many other states. However, I have run out of money and can no longer pay debts (consumer credit card debt from law school). The only out is bankruptcy. If I file a bankruptcy petition and having it pending while trying to x-fer my score, am I screwed?

I also wanted to re-take in my jurisdiction. Am I screwed on that as well?

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jess

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Re: I am in default and filing for bankruptcy

Postby jess » Mon Sep 12, 2016 1:40 pm

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Last edited by jess on Wed Oct 25, 2017 5:57 pm, edited 1 time in total.

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kellyfrost

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Re: I am in default and filing for bankruptcy

Postby kellyfrost » Tue Sep 13, 2016 12:22 am

Based upon my understanding, an old bankruptcy on your CF record will probably be ok if your properly disclose.

However, a pending bankruptcy while you are applying will likely cause more problems and may potentially keep you from being admitted.
Last edited by kellyfrost on Sat Jan 27, 2018 3:37 pm, edited 1 time in total.

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robinhoodOO

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Re: I am in default and filing for bankruptcy

Postby robinhoodOO » Tue Sep 13, 2016 3:59 pm

kellyfrost wrote:Based upon my understanding, an old bankruptcy on your CF record will probably be ok if your properly disclose.

However, a pending bankruptcy while you are applying will likely cause more problems and may potentially keep you from being admitted.


Just to add onto this, it entirely depends on the state. In CA, you're required to disclose delinquent debts, judgments, and past bankruptcies, etc. Further, you have an ongoing obligation to update the State Bar of any of changes to those items, so long as your application is pending. For example, you'd have to advise the state bar if you filed for BK, even if it was after you submitted your application.

In my experience, failure to report information is a much bigger deal than a bankruptcy or delinquent debt--in and of itself. That said, you'll want to make sure you've at least tried to keep up with your financial obligations, and that filing bankruptcy is really your last out. You'll likely have to provide an explanation as to why you filed, etc., but they're mostly going to be looking for fraud, as opposed to mere delinquencies. Some states are, of course, more strict than others.

If you could at all possibly wait until after you're admitted, that would be the safest way to avoid the issue. An experienced BK attorney could provide you with information on temporarily avoiding BK.

AspiringCALawyer

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Re: I am in default and filing for bankruptcy

Postby AspiringCALawyer » Tue Sep 13, 2016 9:22 pm

jessuf wrote:You have to pass c&f whether you retake or transfer. I'm sure people with bankruptcies have passed c&f before, but I don't know of any anecdotes.


Under the old regime (before credit counseling), I filed for bankruptcy in 1989 (no money/not fraud). Details were disclosed when I took exam/applied for admission in PA (1998) and NY (2000). Was admitted without issue.

Currently, my c&f application for CA is under review (took July 2016 bar). Of course, I had to disclose the bankruptcy and was required to submit the filing, schedules, discharge etc. (You'd think after 27 years it would no longer be relevant). The only uncertainty is the fact that I only had copies to submit rather than a certified copy from the court. If the latter is needed, I'll have to get it from court storage.

I echo the sentiment about trying to avoid bankruptcy, if possible. Keep in mind it could impact getting a job--not just admission to the bar.

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homestyle28

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Re: I am in default and filing for bankruptcy

Postby homestyle28 » Tue Sep 13, 2016 9:46 pm

Lots of times you can get a credit card company to close your account and put you on a repayment plan. You're credit will take a ding with a charged-off account, but it probably won't tank any c&f like a pending bankruptcy can.

BillCooper

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Re: I am in default and filing for bankruptcy

Postby BillCooper » Tue Sep 20, 2016 11:28 am

Update

I called the NM and NY bar and they said bankruptcy will not be a DQ. They even said it was a Constitutional right and that they would rather see me using a legal remedy instead of just letting the debt sit in default. They pretty much made it sound like as along as I wasn't ripping people via fraud, and I kept them up to date and fully disclosed, I should be fine.

We will see.



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