Credit card debt, medical debt, personal loans and debts for past-due utilities are some of the most common debts that are easily eliminated in a Chapter 7 bankruptcy case. However, not all debt is discharged. Talk with an attorney to see if your debts qualify.
Determining whether you’re eligible to file for bankruptcy, and which type of bankruptcy you should file, depends on several factors related to your income, assets, debts, and financial goals. Below is a breakdown to help you assess your eligibility and decide which type of bankruptcy (Chapter 7 or Chapter 13) may be appropriate for you. […]
Unsecured debt is debt that is not secured by property. This means that if the debt is discharged in a bankruptcy case, there is no property for the creditor to take back or recover. The most common form of unsecured debt is credit card debt.
In a Chapter 7 bankruptcy, medical debts are generally treated as unsecured, non-priority debts. This means they are similar to credit card debts or personal loans in that they are not tied to any specific collateral and don’t receive special treatment under bankruptcy law. Here’s a breakdown of how medical debts are handled in Chapter […]
Is Chapter 7 bankruptcy a better option than Chapter 13 bankruptcy? The answer will depend upon a number of factors including your assets, liabilities, income and expenses. An experienced attorney will be able to assist you in choosing the right Chapter.
This segment takes a fact pattern and determines the best Chapter to file under the United States Bankruptcy Code. Will it be Chapter 7 or Chapter 13?
Lucky Chapter 7 is the thought of getting out of debt once and for all. No more struggling to make minimum credit card payments. No more deductions coming out of your check. No more bill collector harassment. Imagine a better future now.
Filing for bankruptcy is not the end of your financial life. In fact, you can start to rebuild some forms of credit once your bankruptcy case is filed. There are auto dealerships that specialize in financing those that have just filed for Chapter 7 bankruptcy. It is often called open bankruptcy financing.
You can file a Chapter 7 bankruptcy case every eight years. You can also file a Chapter 13 depending upon your income, expenses, assets and liabilities. Each case is difference so I would suggest that you speak with or consult with an experienced bankruptcy attorney.
Secured debt is debt secured by property. So if you file for bankruptcy under Chapter 7, you will have to make an election with regard to your secured property. Do you wish to keep the property and continue to pay on the debt? Alternatively, you can surrender the property and eliminate the debt.
Chapter 7 bankruptcy is a way to eliminate most credit card debt, personal loans, past-due utility bills and much more. There are some limitations however. These include most student loans, recent tax debt and child support obligations as well as some others.
Yes, it is true that you can keep a significant amount of property and still get out of debt under Chapter 7. In Illinois, you can keep up to $4,000.00 worth of miscellaneous property. You can keep $15,000.00 of equity in a home and $2,400.00 of equity in a vehicle.
In a Chapter 7 bankruptcy case where only one co-signer files for bankruptcy relief, the non-filer is still on the hook for the debt. The debt is only eliminated against the person who files. Thus, in many cases, it makes perfect sense for both parties to file.
There are tricky rules with regard to discharging tax debt when filing for personal bankruptcy under Chapter 7 or Chapter 13 of the United States Bankruptcy Code. The type of tax and the tax year are two critical areas that need to be explored when filing for tax relief.
Medical debt is easily eliminated in a Chapter 7 bankruptcy case. There is no need to feel overwhelmed due to high medical debt. In fact, it may be the perfect time to put an end to all of your debt, including your medical debt.
What good is it to worry about your credit score if you are burdened by too much debt? The real issue is the debt, not the actual score. The goal is to get out of debt. Only then can you begin to rebuild your credit. It will all happen, but it takes time.
You can save your home from foreclosure in many instances. It depends upon whether or not you have the ability to make your current mortgage payments as well as repay the arrears over a 3-5 year period. If you can do that, then Chapter 13 is the key to success.
The biggest difference between Chapter 7 & Chapter 13 bankruptcy is the nature of the relief. Chapter 7 provides for a fresh start where Chapter 13 allows for a consolidation or repayment of the debt over 3-5 years. Talk with an attorney to see if you qualify.
There can be a slight credit hit on a non-filer when another co-signer files for bankruptcy protection. The degree of negative effect is relatively low and it can be explained away since the non-filer can prove that he or she did not file. Be cautious when co-signing in general.
You can protect a certain value in assets when filing for Chapter 7 bankruptcy protection. The amount and nature will depend upon the State in which you reside and ultimately file within. Contact an attorney to see how much of your property is safe.
The bankruptcy means test is a mathematical formula to determine if you qualify for Chapter 7 relief or if you should be required to consolidate and repay over time in a Chapter 13 bankruptcy case. The IRS guidelines are key to making that determination.
If you are struggling with debt, help is available. Consider Chapter 7 or Chapter 13. You may be able to either eliminate your debt or consolidate your debt. Speak with an experienced bankruptcy attorney to see if you can qualify.
You will need to gather some documents when filing for bankruptcy. These include proof of income, recent Federal tax returns and information concerning who you owe. Some of this information can be obtained from your credit report, but not all. Your lawyer will assist in many cases.
Bankruptcy is a complex set of laws and regulations. Although the area is underserved by highly skilled attorneys, there are specialists that deal in bankruptcy on a daily basis. That is who you should seek to hire when considering filing for bankruptcy relief.
If you are only making minimum payments on your credit cards, then you are certainly in a trap. This type of payment will only favor the credit card companies and will keep you in debt for years, even decades depending upon the amount of debt and the interest rate.
Is there still a stigma to filing for bankruptcy? In most cases and under these difficult times, the stigma has mostly been eliminated. It is a personal decision to file for bankruptcy. In most cases, people are relieved to start fresh or to repay over time through Chapter 13.
You may wonder if you can afford to hire a bankruptcy attorney when thinking about filing for bankruptcy. If you are no longer going to be paying on your outstanding debt, you should be able to make good on a payment plan with a bankruptcy attorney.
You can stop a lawsuit or Judgment dead in its tracks by filing for Chapter 7 bankruptcy. Although there are some debts that are not eliminated in bankruptcy, the majority of debts, including credit card debt and personal loans are eliminated when filing.
High-Interest loan debt as well as other debt can cause extreme financial hardship. One way to stop the debt and get control is to file for Chapter 7 bankruptcy relief. It can change your total financial picture in a matter of days or weeks.
You can eliminate most unsecured debt when filing for Chapter 7 bankruptcy protection. Debts such as credit cards, medical bills, personal loans and debt for most services are easily eliminated when filing for Chapter 7 bankruptcy protection.
Do you qualify for Chapter 7 bankruptcy relief? It depends upon a number of factors. The most important being whether or not you have received a prior discharge under Chapter 7 within the past eight years. If so, you are not eligible for another discharge yet.
One of the biggest mistakes is waiting too long to file. This leads to unnecessary stress, loss of wages due to garnishments and sometimes depletion of otherwise protectible assets. Don’t wait too long to get the help that you need.
Secured creditors are creditors that can recover an item of property if the debt is not paid. This would commonly include mortgage lenders, auto lenders and jewelry/electronic items lenders. Talk with an attorney to see if your property is secured or not.
If you are struggling with debt, there is help available. You may qualify for a Chapter 7 bankruptcy which will end unsecured debt such as credit cards, medical bills and personal loans. In other cases, Chapter 13 bankruptcy is going to allow you to consolidate.
In this case study, we talk about whether or not the person should file for bankruptcy based upon the facts of the case. In most cases, there is a bankruptcy option. It may be a Chapter 7 or a Chapter 13. Each Chapter has it’s distinct advantages.
If your wages are currently being garnished and you can’t make ends meet, consider filing for Chapter 7 bankruptcy. The garnishment will cease immediately upon filing. You will have more income and less stress. If you can’t take it anymore, take action.
If your retirement account is ERISA qualified, then it is likely protected when going through a bankruptcy process under Chapter 7. All of your property is protected when reorganizing or consolidating under Chapter 13. Contact an attorney to learn more.
If you repossessed car has not yet been sold at auction, you may be able to recover it by filing Chapter 13 bankruptcy. This will allow for you to pay the entire auto financing debt as well as other debt over a 3-5 year period. Contact a bankruptcy lawyer to see if you qualify.
Not all tax debt can be eliminated in a Chapter 7 bankruptcy filing. It will depend upon a number of factors, including the tax year, nature of the tax, filing date, assessment date and more. Consult with an experienced bankruptcy attorney to learn more.
Many people falsely believe that they cannot file for bankruptcy relief because they own a vehicle or even a home. This is simply not accurate. The ability to file and keep property will depend upon the equity in the property as well as state exemptions.
If you are overwhelmed with the thought of bankruptcy, you need not be so overwhelmed. In fact, your attorney will guide you through the process and will do much of the major work on your case. If you follow the simple instructions, you will have success.
Prior to filing for Chapter 7 bankruptcy, gather your recent two months of pay advices, 2 years of Federal tax returns and complete a pre-filing, credit counseling session. Your attorney will guide you through this process and describe in detail as to what is needed.
The filing of a Chapter 7 bankruptcy case will likely end a lawsuit that is pending against you. Although not all collection activity is stopped by bankruptcy, the majority of activity is stopped. Speak with a local bankruptcy attorney to see if you qualify for help.
In most cases, you do not have to attend a physical court date. You will have to appear at a meeting of creditors that takes place four weeks after the case is filed. The Trustee assigned to your case will ask “yes/no” questions regarding your financial situation.
Not all debt can be eliminated in a Chapter 7 bankruptcy case. Debts for child support, spousal support, recent taxes, most student loans and debts incurred through fraud will not be discharged in most cases. Talk with an attorney to see if you qualify.
Falling Behind On Your Mortgage?
Evidence of a chapter 7 bankruptcy filing will stay on a credit report for up to 10 years. Evidence of a Chapter 13 bankruptcy filing will stay on a credit report for up to 7 years. However, credit can be obtained prior to those time frames.
You will be able to get credit after filing for bankruptcy. Some forms of credit will take longer than others. Auto financing can be obtained once you have a case number. A mortgage will take at least 2 years from filing.
In many cases, you can file for Chapter 7 bankruptcy and keep your home. It will depend upon the equity or ownership that you have in the property. Each state has exemption laws which apply to home ownership. Speak with a bankruptcy lawyer near you for more info.
Medical bills are easily eliminated in a Chapter 7 bankruptcy case. They are unsecured debts that are dischargeable in both a Chapter 7 and a Chapter 13 bankruptcy case. Speak with an experienced bankruptcy attorney to see if bankruptcy is right for you.
If you have a pending lawsuit, it will keep going until such time that a bankruptcy case is officially filed. Until that happens, the creditor can pursue a judgment and then attempt to collect on that judgment through citations, garnishments, bank seizures and levies.
If you have lost your job and are suffering financial stress, there is help available. In extreme cases, you may consider filing for Chapter 7 bankruptcy. This will depend on the type and amount of debt that you are carrying. It may be the best idea to start fresh.
If you have struggled to make mortgage payments in the past due to an illness, injury, job loss or other financial setback, Chapter 13 could be the answer to save your home. Arrears can be paid back over a 3-5 year period while making regular monthly payments.
Provided the home has not already been sold at auction, a Chapter 13 bankruptcy filing will stop a foreclosure on a home. This will allow for the homeowner to repay the arrearages over a 3-5 year period while making the regular mortgage payment on time.
In most cases, your employer will not find out that you have filed for bankruptcy relief. The exception would be if there is a current garnishment proceeding that needs to be halted. In such a situation, your employer will need to know about the filing.
Whether or not you should file bankruptcy with your spouse will depend mostly upon whether or not your spouse has debts as well as you. Since the total household income and expenses are already a factor, it pays to file together if there is joint debt.
You can prevent your car from being repossessed by filing for Chapter 13 bankruptcy. This will allow for you to repay the debt over a 3-5 year period, often at a reduced interest rate. Speak with an experienced bankruptcy attorney to see if you qualify.
In order to prevent financial problems after filing for bankruptcy, you have to solve the issues that lead to a bankruptcy in the first instance. Some spending habits likely have to change. Sound decision making is the key to success after filing bankruptcy.
Chapter 13 bankruptcy will allow you to repay mortgage arrears over a three to five year period. It will effectively stop a foreclosure case dead in its tracks. The Chapter 13 case must be filed prior to a sale or auction of the real estate being saved.
If you personally guaranteed business debt, then creditors can pursue you for the debts of the business. Depending upon the amount and nature of the debt, this could lead to a personal, Chapter 7 bankruptcy filing. Check your loan documents to see if you personally guaranteed the debt.
Divorce, debt and bankruptcy can get very tricky. Some debts such as child support and spousal support are not discharged in bankruptcy. Additionally, a divorce Judge can order a spouse to pay otherwise dischargeable debt. Proceed with caution when divorcing.
In most cases, your employer will not find out that you have filed for Chapter 7 bankruptcy. The exception would be if a garnishment is pending and proof of the bankruptcy filing is needed to stop it. Absent that scenario, your employer does not need to know.
If a debt is co-signed and only one debtor files for Chapter 7 bankruptcy relief, the creditor can pursue the debtor who did not file. I see this often with vehicle debt. The debt will be co-signed and the person driving the vehicle stops paying. The co-signer is liable.
If your budget is dependent upon having two incomes, then divorce or loss of one of the incomes can lead to bankruptcy. We often see divorce or separation as a common cause of debt problems. Over half of the country is living paycheck to paycheck. It doesn’t take much to fall behind.
The filing fee for Chapter 7 bankruptcy at the time of this video is $338.00 and the filing fee for Chapter 13 bankruptcy is $313.00. Attorney’s fees are an additional expense that has to be contracted between the client and the bankruptcy attorney. Fees will vary.
The Chapter 7 bankruptcy discharge is the proof that your case has gone through to completion. At that point, all debt that could have been discharged should, in fact, be discharged. Consult with your attorney to see if any of your debt will remain.
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different types of relief. Chapter 7 is known as the fresh start where Chapter 13 is a consolidation or repayment plan. Your income, expenses, assets and liabilities will dictate the best Chapter.
Pundits will state that medical debt is a major cause of having to file for bankruptcy. I find this statement to be mostly untrue. In many cases, medical debt does not reach the lawsuit stage. Usually, it consists of constant collection letters and calls.
The automatic stay in bankruptcy is the protection that kicks in once a case is filed. Although not absolute, the automatic stay will apply to most forms of collection efforts. Speak with a bankruptcy attorney to see if your debt qualifies for the protection.
Filing for bankruptcy should not be construed as a failure. Instead, bankruptcy can be seen as a fresh start. It is a new opportunity to start over and correct whatever problems caused the filing in the first place. Most people wish that they had made the decision to file sooner.
After filing for bankruptcy relief, you can still get medical care. This is true even if medical providers were included in your bankruptcy case. Providers know that future services completed after the date of filing are not discharged in bankruptcy.
Whether or not to file for Chapter 7 bankruptcy is a personal choice. If you are overwhelmed with unsecured debt and you do not feel that you can pay off the debt within a six month period, then considering Chapter 7 may be a very good idea. Speak with an attorney to see if […]
Not all debt is eliminated in a Chapter 7 bankruptcy case. These include most student loans, recent tax debt, child support, spousal support, traffic fines and debts incurred through fraud. Contact a local bankruptcy attorney to see if your debt qualifies for discharge.
Chapter 13 bankruptcy can allow you to recover your repossessed car back provided that it has not yet been sold at auction. Chapter 13 allows you to repay the entire vehicle debt over a five year period. In many cases, the interest rate and total amount owed will decrease.
Child support and spousal support are not affected in a Chapter 7 bankruptcy filing. They are known as nondischargeable debts and they are not eliminated. Arrearages can be repaid over time under Chapter 13 of the U.S. Bankruptcy Code.
You can file for bankruptcy when you own a business. However, it will depend upon the value and assets of the business to determine whether or not a Chapter 7 Trustee will seek an interest in the business or not. Talk with an experienced bankruptcy lawyer to learn more.
You can prevent your car from being repossessed if you file Chapter 13 bankruptcy and provide a payment plan to pay the car off within 60 months. You can also get a car back after it has been repossessed provided it has not yet been sold at auction.
During the Zoom meeting for Chapter 7 bankruptcy, the Trustee is going to ask you a series of questions pertaining to the documents that were filed in your case. Specifically, the Trustee is going to ask about income, expenses, assets and liabilities. Your attorney will be present with you.
If your car was recently repossessed, you may be able to get it back by filing Chapter 13 bankruptcy. You can attempt to pay the entire auto debt back over a five year period at an often reduced interest rate. Speak with an experienced bankruptcy attorney to see if you qualify.
Not everyone should file for Chapter 7 bankruptcy. It really depends upon the total financial situation for the individual case. My rule of thumb is that if a person can get out of debt within 6 months without having to file, then perhaps go that route. If not, the fresh start provided under Chapter […]
Not all debt is discharged when filing for Chapter 7 bankruptcy. There are certain debts that are known as exceptions to discharge such as recent taxes, child support, spousal support, most student loans and debt incurred through fraud. Talk with an attorney to learn more.
Before a Chapter 7 bankruptcy case is filed, you will have to complete a credit counseling session. After the case is filed, you will have to complete a 2-hour financial management class. There is also a meeting of creditors that you must attend via Zoom.
You should not liquidate assets prior to filing Chapter 7 bankruptcy. These are potential mistakes that could have a negative impact on your case.
Mistakes happen in bankruptcy cases. However, you have a much better chance of success if you have an experienced bankruptcy attorney represent you. There are pre-filing requirements as well as post-filing requirements. You simply don’t know what you don’t know. Be prepared.
Chapter 13 Bankruptcy Filing Requirements.
After your Chapter 13 bankruptcy case is filed, there will be a meeting of creditors that takes places approximately four weeks later. This is the opportunity for the debtor to be examined under oath with regard to assets, liabilities, income and expenses.
A major mistake when considering filing for bankruptcy is waiting too long to file. People struggle for months even years before getting the relief that is needed. In some cases, protectible assets are squandered in an effort to get out of debt without bankruptcy.
Credit came courtesy of Capital One after filing for bankruptcy. Other forms of credit are also available such as auto financing and even a mortgage after two years from the date of filing. Pay on time after filing and your score will start to rise.
No matter what causes a person to have to file for bankruptcy, there are lessons that can be learned through the process. The best advice is to cure whatever caused the bankruptcy in the first place so that it doesn’t repeat itself in the future.
What Is Chapter 13 Bankruptcy?
Credit card debt was the cause of having to file for bankruptcy. This is the number one reason why someone would have to choose to file for bankruptcy protection.
You may be surprised to learn that most people can bounce back from a bankruptcy filing in short order. Vehicle financing is available immediately after filing for Chapter 7 bankruptcy. Other forms of credit can take 6 month to two years depending upon a number of factors.
The costs to file for bankruptcy will depend upon the type of case and the complexity of the case. However, the constant expense will be the filing fee or court costs. At the time of this video, the Chapter 7 filing fee is $338.00 and the Chapter 13 filing fee is $313.00.
Taxes can be discharged in bankruptcy in certain cases. It will depend upon the type of tax, the year the tax return was filed, who filed the return, when the tax was assessed and other important rules in determining whether or not a tax debt can be discharged in bankruptcy.
When you file bankruptcy, the IRS will cease to engage in any payment plans or workouts until such time that the bankruptcy case has gone to discharge. Some clients like the arrangement in place with the IRS and are concerned that filing bankruptcy will quash the payment plan.
Have you thought about getting out of debt? Are you unsure as to which chapter of the Bankruptcy Code is best for you? Do you struggle to understand whether or not you qualify for bankruptcy? Talk with an attorney that handles bankruptcy every day. You will become well versed on the topic