Not everyone qualifies for Chapter 7 bankruptcy. If your income is above the median for your state or if you have disposable income after living expenses, you may fail the means test. This test is a mathematical formula used to determine whether you have the ability to repay your debts. If you are deemed […]
Under the U.S. Bankruptcy Code, you can file for Chapter 7 bankruptcy and receive a discharge every eight years. However, if you’re seeking to repay debt rather than eliminate it, you can file for Chapter 13 at any time in between. But for another fresh start under Chapter 7, you must wait eight years from […]
After your Chapter 13 consultation, here are the key steps to take if you’re considering moving forward with your case. Gather the most recent two months of proof of income and the last four years of federal tax returns. Once you have these documents, contact your attorney, and they will send you the necessary […]
After your Chapter 7 bankruptcy consultation, there are a few key items to remember. First, gather proof of income for the past two months from any source. Next, locate your most recent two years of federal tax returns. Once you have these documents ready, reach out to your attorney, and they will send you […]
While Chapter 7 bankruptcy can eliminate many debts, there are certain types that are typically not discharged. These include student loans, recent taxes, parking tickets, child support, maintenance payments, debts incurred by fraud, and criminal restitution. However, debts like credit card balances, medical bills, personal loans, and auto repossession deficiencies can often be fully […]
After filing for Chapter 7 bankruptcy, there’s typically a two-year waiting period before you can qualify for a mortgage. The key to improving your chances of financing is to avoid incurring any negative credit after your bankruptcy. If you can maintain good standing with existing obligations, you’ll be in a better position to secure […]
A Chapter 7 bankruptcy stays on your credit report for 10 years from the date of filing. This is the maximum amount of time that a Chapter 7 bankruptcy can be reported by credit bureaus under the Fair Credit Reporting Act (FCRA). Here’s a breakdown of what this means for your credit: Impact of Chapter […]
Before filing for bankruptcy, there are several important steps to take. First, create a list of all your creditors, as some, like medical bills, may not appear on your credit report. Second, gather your most recent tax returns for the past year or two. Lastly, collect proof of income, such as paycheck stubs, for […]
Reaffirming a debt in Chapter 7 bankruptcy means agreeing to remain liable for a specific debt, such as an auto loan, even after filing. This is common when a debtor wants to keep their vehicle and continue making payments. The lender sends a reaffirmation agreement, which, when signed, keeps the debt in good standing […]
As a bankruptcy attorney, the most rewarding part is witnessing the positive change in clients’ lives. Many come in stressed, overwhelmed by lawsuits, and harassment, but through the right bankruptcy chapter, their financial futures can be transformed. Eliminating debt doesn’t just clear financial burdens—it improves productivity, work performance, relationships, and overall life satisfaction. […]
Chapter 7 bankruptcy allows for the liquidation of a debtor’s non-exempt assets to pay creditors. However, certain types of property are exempt from liquidation, allowing the debtor to keep these assets. The specifics of these exemptions can vary by state, but they generally cover essential personal property, household items, and certain other types of assets. […]
A Chapter 7 bankruptcy will remain on your credit report for up to 10 years, while Chapter 13 stays for up to 7 years. However, this doesn’t mean you won’t be able to get credit. The bankruptcy record simply indicates that your debts were either discharged (Chapter 7) or reorganized (Chapter 13), but you can […]
The filing fee for Chapter 13 bankruptcy is $313. In addition to this, attorney fees apply, which can vary by jurisdiction. In Illinois, for example, the flat attorney fee is $4,500, approved by the court, and paid over the life of the case. This fee covers attorney services throughout the duration of the Chapter […]
Filing for Chapter 7 bankruptcy involves a court filing fee of $338, though waivers may apply in some cases. Attorney fees are separate and vary based on the complexity of the case. Most attorneys offer payment plans for both the filing fee and legal services. Consult with an experienced bankruptcy attorney to understand the costs […]
While medical debt is often cited in bankruptcy cases, credit card debt remains the primary driver behind Chapter 7 filings. High-interest credit cards can quickly lead individuals to a point where they can’t escape their debt, making them the biggest reason people turn to bankruptcy for relief, whether through Chapter 7 or Chapter 13.
After filing Chapter 13 bankruptcy, the automatic stay halts creditor actions. You’ll attend a Meeting of Creditors via Zoom about four weeks later, with the Chapter 13 trustee and your attorney present. Additionally, you’ll complete a two-hour financial management course. As your case progresses, there will be confirmation hearings, but typically, your attorney will represent […]
After filing Chapter 7 bankruptcy, the automatic stay immediately halts creditor actions. You’ll attend a Zoom-based Meeting of Creditors about four weeks later and complete a mandatory two-hour financial management course. These steps help you progress toward a fresh financial start under the U.S. Bankruptcy Code.
Struggling with wage garnishment? Filing for bankruptcy can provide relief. Chapter 7 offers a fresh start by halting garnishments through an automatic stay, while Chapter 13 allows you to repay the debt over a 3-5 year period under a reorganization plan. Consult an experienced bankruptcy attorney to explore which option is best for your […]
Filing for Chapter 13 bankruptcy? Be prepared to attend the Section 341 Meeting of Creditors via Zoom, typically held about four weeks after filing. During this 5-10 minute session, the Chapter 13 trustee will verify your financial information and confirm the feasibility of your repayment plan. Your attorney will also be present to guide […]
Filing for Chapter 7 bankruptcy? You’ll need to attend a brief Zoom meeting with your trustee, typically held about four weeks after filing. During the 5-10 minute session, the trustee will ask simple yes-or-no questions based on your submitted schedules and petition. This meeting ensures there are no assets to administer for unsecured creditors, […]
Facing car repossession due to financial hardship? Chapter 13 bankruptcy can help you restructure your auto loan and other debts into an affordable five-year repayment plan. This solution lets you keep your vehicle while catching up on payments. Not everyone qualifies, but it’s a powerful option to regain financial control and protect your property.
Struggling to keep up with your mortgage? Chapter 13 bankruptcy can help you catch up on missed payments by spreading the arrearage over a five-year repayment plan while maintaining your regular monthly payments. This approach provides breathing room, stops foreclosure immediately, and helps you stay in your home.
Planning to file for Chapter 7 bankruptcy? Protect your financial future by avoiding common mistakes, like withdrawing funds from protected retirement accounts or transferring property for less than fair market value. These actions could jeopardize your case. Consult with an attorney to ensure your steps are legal and in your best interest. Proper guidance […]
Thinking about filing for Chapter 13 bankruptcy? Before starting this reorganization plan, ensure you meet the pre-filing requirements. These include providing proof of income from the past two months, ensuring federal tax returns for the last four years are filed (if required), and completing a 90-minute credit counseling session with an approved provider. Proper preparation […]
Considering filing for Chapter 7 bankruptcy, also known as the “fresh start” option? Learn about the essential pre-filing requirements, including providing proof of income, submitting recent federal tax returns (if applicable), and completing a mandatory 90-minute credit counseling session. This preparation ensures eligibility and sets the foundation for a successful Chapter 7 case.
Learn how Chapter 13 bankruptcy helps individuals with disposable income create a repayment plan for their debts over a 60-month period. This option can provide relief while repaying creditors fully or partially, depending on assets, liabilities, and financial circumstances. Discover how Chapter 13 offers a structured alternative to liquidation under U.S. bankruptcy law.
Your credit report will not be perfect after filing for bankruptcy. There will still be negative items on your report. However, it should indicate that certain debts were included or discharged in the bankruptcy filing.
A non-filing spouse can often be affected when one spouse files for bankruptcy relief. This is especially true with regard to joint debt. The creditor can pursue the non-filing spouse when only one spouse files.
Although you have the right to file for bankruptcy relief without an attorney, I would not recommend such a practice. There are simply too many hurdles to successfully get over and way to many risks of going it alone.
You may think that bankruptcy takes care of all debt. However, there are some debts that are non-dischargeable. They will survive a bankruptcy filing. Child support, parking tickets and most student loans and some examples on such debt.
All creditors must be listed when filing for bankruptcy protection. You may have the opportunity to keep and pay for your home, vehicle or other secured debt. However, plan on losing all of your unsecured debt which includes credit cards.
After filing for Chapter 7 bankruptcy, the negative items on a credit report are not simply removed. Instead, the report should indicate that the debt was discharged in a bankruptcy case.
A typical Chapter 7 bankruptcy case can last for three to four months. However, that time can extend out if there are issues with either the Trustee or creditors. Call to learn more.
Your spouse’s credit in not typically affected. The exception would be if you and your spouse have joint debt. In that case, a creditor can pursue the non-filing spouse and the credit report can indicate that a bankruptcy was filed.
When only one party to a debt files for Chapter 7 bankruptcy, the creditor can pursue the non-filing signer. The rules are somewhat different in a Chapter 13 bankruptcy case if the plan provides for 100% repayment of a consumer debt.
For the most part, bankruptcy court and related matters are being held on Zoom video. This means that Debtors will not likely have to travel to the required meeting of creditors.
You can protect or keep a certain amount of property when declaring personal bankruptcy under Chapter 7. The amount of equity protected will depend upon the state in which you live. Contact a bankruptcy attorney to see how much property you can protect.
In most cases, your 401(k) retirement is going to be protected when going through the Chapter 7 bankruptcy process.
You can get credit after filing for bankruptcy. It may take some time depending upon the type of credit sought.
Your employer will not typically find out about your bankruptcy filing. An exception would be if notification was necessary to stop a current or pending wage garnishment. Additionally, in a Chapter 13 repayment plan, wages may be utilized to fund the plan through a payroll control order.
Yes, credit is available after filing for bankruptcy. It will depend upon the type of credit as well as other factors.
Who Finds Out About Your Bankruptcy Filing?