Chapter 7 or Chapter 13: Your Bankruptcy Options
Sunday, December 26th, 2010sundarsing1 asked:
information-get.com information-get.com
Bankruptcy Lets You Keep Personal Possessions
Monday, July 12th, 2010TheLeadFrog asked:
www.legalhelpers.com - In most bankruptcy cases you can keep most of your personal possessions. That includes your car, house, and many household goods. For a free bankruptcy evaluation visit Legalhelpers.com or call 1800-260-1402. … personal finance bankruptcy bankrupcy filing Chapter “13 Chapter” “debt consolidation” att
Fill This Out For Free Bankruptcy Evaluation!
Saturday, July 10th, 2010
Mercy Maranga asked:
When you realize that your debts are becoming too difficult to handle, you as an individual can choose to file for personal bankruptcy. This situation can weigh you down, but it is a good way to get a fresh start. This is an option that is looked into especially when an individual’s debt is accumulating faster than they can pay it off. When you decide to file for bankruptcy it is always safer to choose a qualified professional who will look into all the other alternatives. If they assess the situation and advice that bankruptcy is the only choice then, you can file your petition which should have a list of your creditors, as well as a list of your assets and liabilities.
Personal bankruptcy filings are normally supposed to eliminate debts that are unplanned. This means that creditors like friends, credit card companies will have to wait patiently to get any repayment from the debtor. Privileged creditors get first priority, while the general ones have to wait to get repayments from the personal bankruptcy sell offs.
There have been new changes to the personal bankruptcy laws. It has become more difficult to declare Chapter 7 bankruptcy which is more popular than the Chapter 13 alternative. Under Chapter 7, most of the unsecured debts are written off, in comparison to Chapter 13 which requires the debtor to reimburse part or all their debt within a span of three to five years.
Personal bankruptcy can be a major block for a debtor’s financial status for a long time to come and can make it difficult for them to go back to their way of life. This option is designed to give debtors a clean start and who knows, you can rebound to an even bigger and better financial position.
Bankruptcy Questions
When you realize that your debts are becoming too difficult to handle, you as an individual can choose to file for personal bankruptcy. This situation can weigh you down, but it is a good way to get a fresh start. This is an option that is looked into especially when an individual’s debt is accumulating faster than they can pay it off. When you decide to file for bankruptcy it is always safer to choose a qualified professional who will look into all the other alternatives. If they assess the situation and advice that bankruptcy is the only choice then, you can file your petition which should have a list of your creditors, as well as a list of your assets and liabilities.
Personal bankruptcy filings are normally supposed to eliminate debts that are unplanned. This means that creditors like friends, credit card companies will have to wait patiently to get any repayment from the debtor. Privileged creditors get first priority, while the general ones have to wait to get repayments from the personal bankruptcy sell offs.
There have been new changes to the personal bankruptcy laws. It has become more difficult to declare Chapter 7 bankruptcy which is more popular than the Chapter 13 alternative. Under Chapter 7, most of the unsecured debts are written off, in comparison to Chapter 13 which requires the debtor to reimburse part or all their debt within a span of three to five years.
Personal bankruptcy can be a major block for a debtor’s financial status for a long time to come and can make it difficult for them to go back to their way of life. This option is designed to give debtors a clean start and who knows, you can rebound to an even bigger and better financial position.
Bankruptcy Questions
Seattle Bankruptcy Attorney Chapter 7 13 Lawyer Washington
Thursday, July 1st, 2010FindLaw asked:
www.engelatlaw.com (206) 625-9800 Engel Law Group keeps up on the current changes in bankruptcy laws. Attorney Eric Engel handles chapter 7 and 13 bankruptcy matters. Call the firm in Seattle, Washington for representation.
Thursday, June 17th, 2010
Harrine E. Freeman asked:
One of the biggest myths is that if you file for bankruptcy you will be financially free and no longer have debt problems. Wrong! Bankruptcy is not the cure-all for getting out of debt. Over 1 million Americans file for bankruptcy every year. One in every 73 households files for bankruptcy. In 2005, 2 million Americans filed for personal bankruptcies.
Millions of Americans are in debt and get in debt every year. Many people think that filing for bankruptcy will solve all of their debt problems. On the surface it seems that if you file for bankruptcy all of your debt will be eliminated and you can start with a clean slate. Actually it is not that simple.
To file for personal bankruptcy you must reside in a state for 90 days prior to filing and have a total unsecured debt less than $290,525 or secured debt less than $871,550. The new bankruptcy law that went into effect in October 2005 states that debtors (consumers) who earn less than the median income in their state - about 80 percent of those who file for bankruptcy - still would be entitled to file under Chapter 7. But those who earn more than that and who have the ability to repay at least $6,000 over five years would have to file under Chapter 13, which requires a repayment plan.
Although it is true that after you file for bankruptcy you can purchase a house or a car, what people don’t realize it that the interest rate that you will be given will be very high. Also, based on the new bankruptcy law implemented in October 2005, it is harder to file for bankruptcy and depending on the type of bankruptcy granted, it will remain on your credit report for seven to ten years. This greatly lowers your credit score and it will probably take about 3 to 5 years before you score increases due to the bankruptcy filed, and provided that you don’t get into any further debt.
When you have financial problems and can’t see any way out, bankruptcy looks like the best option, but there are many other options available to you. If you have a house you can take out an equity loan to pay your debts, you can reduce your expenses and create a budget for yourself, you can get a part-time job, go to school and further your education and get additional training related to your particular job, setup payment plans with your creditors or sell some of your assets if you have any.
The best consumer is an educated consumer. If you find yourself in financial troubles, the first and best thing to do is do research and find out the options available to you. Next you want to identify your assets and liabilities. Your assets are anything that you do not owe money on such as stocks, bonds, 401(k), retirement plans, etc. Your liabilities are anything you owe money on such a house, investment property, boat, car, etc. This will help to determine if you have any assets that can be sold or money borrowed against to pay off your debts. Next you need to create a budget for yourself to identify how much money you have coming in (how much you get paid each week) and how much money you have going out (how much you pay each month in bills and expenses).
If you have very little or no assets then you will need to do some quick fixes such as cutting back on expenses including: bringing your lunch to work, carpooling, catching the subway or bus to work, riding your bike or motorcycle to work, eating breakfast at home, renting videos instead of going to the movies or cutting back on how often you go to the movies, canceling your pager or cell phone service or switching to the cheapest plan available.
These things will provide extra money in a short period of time until you develop a plan for paying off your bills. If you have researched all options that are available to you and are unable to use any of them then bankruptcy should be your last resort, not your first option.
Getting in debt is the worst place to be but with time you can overcome this obstacle. Think long and hard before filing for bankruptcy. It may not be worth the headache.
Bankruptcy Questions
One of the biggest myths is that if you file for bankruptcy you will be financially free and no longer have debt problems. Wrong! Bankruptcy is not the cure-all for getting out of debt. Over 1 million Americans file for bankruptcy every year. One in every 73 households files for bankruptcy. In 2005, 2 million Americans filed for personal bankruptcies.
Millions of Americans are in debt and get in debt every year. Many people think that filing for bankruptcy will solve all of their debt problems. On the surface it seems that if you file for bankruptcy all of your debt will be eliminated and you can start with a clean slate. Actually it is not that simple.
To file for personal bankruptcy you must reside in a state for 90 days prior to filing and have a total unsecured debt less than $290,525 or secured debt less than $871,550. The new bankruptcy law that went into effect in October 2005 states that debtors (consumers) who earn less than the median income in their state - about 80 percent of those who file for bankruptcy - still would be entitled to file under Chapter 7. But those who earn more than that and who have the ability to repay at least $6,000 over five years would have to file under Chapter 13, which requires a repayment plan.
Although it is true that after you file for bankruptcy you can purchase a house or a car, what people don’t realize it that the interest rate that you will be given will be very high. Also, based on the new bankruptcy law implemented in October 2005, it is harder to file for bankruptcy and depending on the type of bankruptcy granted, it will remain on your credit report for seven to ten years. This greatly lowers your credit score and it will probably take about 3 to 5 years before you score increases due to the bankruptcy filed, and provided that you don’t get into any further debt.
When you have financial problems and can’t see any way out, bankruptcy looks like the best option, but there are many other options available to you. If you have a house you can take out an equity loan to pay your debts, you can reduce your expenses and create a budget for yourself, you can get a part-time job, go to school and further your education and get additional training related to your particular job, setup payment plans with your creditors or sell some of your assets if you have any.
The best consumer is an educated consumer. If you find yourself in financial troubles, the first and best thing to do is do research and find out the options available to you. Next you want to identify your assets and liabilities. Your assets are anything that you do not owe money on such as stocks, bonds, 401(k), retirement plans, etc. Your liabilities are anything you owe money on such a house, investment property, boat, car, etc. This will help to determine if you have any assets that can be sold or money borrowed against to pay off your debts. Next you need to create a budget for yourself to identify how much money you have coming in (how much you get paid each week) and how much money you have going out (how much you pay each month in bills and expenses).
If you have very little or no assets then you will need to do some quick fixes such as cutting back on expenses including: bringing your lunch to work, carpooling, catching the subway or bus to work, riding your bike or motorcycle to work, eating breakfast at home, renting videos instead of going to the movies or cutting back on how often you go to the movies, canceling your pager or cell phone service or switching to the cheapest plan available.
These things will provide extra money in a short period of time until you develop a plan for paying off your bills. If you have researched all options that are available to you and are unable to use any of them then bankruptcy should be your last resort, not your first option.
Getting in debt is the worst place to be but with time you can overcome this obstacle. Think long and hard before filing for bankruptcy. It may not be worth the headache.
Bankruptcy Questions
Tuesday, May 4th, 2010
Pasch Consulting Group asked:
I, Robert Manchel, Esq. am the author of this article and Certified as a Consumer Law Bankruptcy Attorney by the American Board of Certification, which is accredited by the American Bar Association. If you wish to obtain additional information about bankruptcy, please call my toll free number 1(866) –503-5655 or visit my web site at http://www.bankruptcylawyer-nj.com.
An obligation to pay debt is based on an agreement between the individual(s) and the creditor. A spouse is not responsible for the debt of the other spouse solely because of the marriage. If only one spouse contracted to pay a debt, than only that spouse is responsible for the debt. If both spouses are obligated and have contacted to pay the debt, than both spouses are responsible for 100% of the debt. If both spouses contracted to pay the debt, the creditor may pursue and collect any percentage of the debt from either spouse, but never in excess of the total amount due. In other words, the creditor may get 60% from one and 40% from the other, or 20% from one and 80% from the other spouse.
If two people wish to file for bankruptcy together, the two individuals must be married. In general, it is not necessary for both spouses to file for chapter 13 or 7 protection. When evaluating whether one spouse should file individually or jointly, each person should carefully consider their entire financial circumstances, independently, and together with the other spouse.
In a chapter 7, if the filing party meets all of the bankruptcy code criteria, the filer will eliminate “certain” dischargeable debt. If the non filing spouse, owes a joint debt with the filing spouse, the non filing spouse will not eliminate or discharge any of his/her debt. This means that the creditor may pursue the non filing joint debtor spouse for all of the debt, which he/she is responsible to pay.
Immediately upon a chapter 7 or 13 bankruptcy filing, the “bankruptcy stay” prohibits any and all creditors from commencing or pursuing any action against the filing party. In a chapter 7, the court will typically permit the creditor to pursue the non filing joint debtor spouse in connection with any balance due.
New Jersey residents can obtain answers to questions regarding foreclosure resolution and bankruptcy laws by visiting http://www.bankruptcylawyer-nj.com
Unsecured debt is debt that is not secured by property, such as the following: credit card debt; personal loan; and, health care debt, etc.
The following pertains to a chapter 13. In a chapter 13, the filing party must make monthly payments to a trustee. The amount and number of the payments are based on numerous factors. Also, the determination as to which creditors are entitled payment of funds from the monthly trustee payment, is based on numerous factors. In certain circumstances, the filer must or may pay all or a portion of the unsecured debt, through the monthly trustee payments (bankruptcy plan).
In a chapter 13, the filing party is required to treat all unsecured creditors equally. Therefore, a spouse filing individually, may not decide to pay 100% of the debt to one credit card company and 5% to another credit card company. Typically, if one unsecured creditor is paid 100%, than all unsecured creditors must be paid 100%. If the unsecured creditors are receiving less than 100%, each creditor must be paid on a pro rata basis.
Immediately upon the filing of a chapter 13, the “stay” and “co-debtor stay apply. The “co-debtor stay” initially prevents any creditor from pursuing the non filing spouse, who owes a joint debt with the fling spouse. However, the court will permit a creditor to pursue the non filing joint debtor spouse, if the filing spouse does not pay 100% of the debt to the unsecured creditor. In other words, if a chapter 13 Joint debtor spouse, who files individually, pays less than 100% to an unsecured creditor, the creditor can apply to the court for permission to proceed against the non filing joint debtor spouse, for the balance that will not be paid through the trustee payments.
An individual would file a chapter 13 for the purpose of saving a house from foreclosure. Typically, if the mortgage(s) and note(s) are in the name of both spouses, and they are unable to modify any mortgage and/or note, only one spouse need file to save the house from foreclosure. Typically, if the mortgage and note are in the name of one spouse, only that spouse would need to file to save the house. This interpretation may vary.
Typically, an individual would file a chapter 13 for the purpose of saving an auto from repossession. Generally, if the financing, is in the name of both spouses, and they are unable to modify the financing agreement, only one spouse would need to file to save the auto from repossession. If the financing is in the name of one spouse, typically only that spouse would need to file to save the auto.
Disclaimer: The bankruptcy laws are complex and may be applied differently, in each case, and State. There may be numerous exceptions and variations for each law and rule. Do not rely on the information provided in this article. If you are considering filing for bankruptcy protection or have foreclosure issues, you should consult with an experienced lawyer. We are a debt relief agency. We Help people file for bankruptcy relief under the bankruptcy code.
© 2008 Robert Manchel
Bankruptcy Questions
I, Robert Manchel, Esq. am the author of this article and Certified as a Consumer Law Bankruptcy Attorney by the American Board of Certification, which is accredited by the American Bar Association. If you wish to obtain additional information about bankruptcy, please call my toll free number 1(866) –503-5655 or visit my web site at http://www.bankruptcylawyer-nj.com.
An obligation to pay debt is based on an agreement between the individual(s) and the creditor. A spouse is not responsible for the debt of the other spouse solely because of the marriage. If only one spouse contracted to pay a debt, than only that spouse is responsible for the debt. If both spouses are obligated and have contacted to pay the debt, than both spouses are responsible for 100% of the debt. If both spouses contracted to pay the debt, the creditor may pursue and collect any percentage of the debt from either spouse, but never in excess of the total amount due. In other words, the creditor may get 60% from one and 40% from the other, or 20% from one and 80% from the other spouse.
If two people wish to file for bankruptcy together, the two individuals must be married. In general, it is not necessary for both spouses to file for chapter 13 or 7 protection. When evaluating whether one spouse should file individually or jointly, each person should carefully consider their entire financial circumstances, independently, and together with the other spouse.
In a chapter 7, if the filing party meets all of the bankruptcy code criteria, the filer will eliminate “certain” dischargeable debt. If the non filing spouse, owes a joint debt with the filing spouse, the non filing spouse will not eliminate or discharge any of his/her debt. This means that the creditor may pursue the non filing joint debtor spouse for all of the debt, which he/she is responsible to pay.
Immediately upon a chapter 7 or 13 bankruptcy filing, the “bankruptcy stay” prohibits any and all creditors from commencing or pursuing any action against the filing party. In a chapter 7, the court will typically permit the creditor to pursue the non filing joint debtor spouse in connection with any balance due.
New Jersey residents can obtain answers to questions regarding foreclosure resolution and bankruptcy laws by visiting http://www.bankruptcylawyer-nj.com
Unsecured debt is debt that is not secured by property, such as the following: credit card debt; personal loan; and, health care debt, etc.
The following pertains to a chapter 13. In a chapter 13, the filing party must make monthly payments to a trustee. The amount and number of the payments are based on numerous factors. Also, the determination as to which creditors are entitled payment of funds from the monthly trustee payment, is based on numerous factors. In certain circumstances, the filer must or may pay all or a portion of the unsecured debt, through the monthly trustee payments (bankruptcy plan).
In a chapter 13, the filing party is required to treat all unsecured creditors equally. Therefore, a spouse filing individually, may not decide to pay 100% of the debt to one credit card company and 5% to another credit card company. Typically, if one unsecured creditor is paid 100%, than all unsecured creditors must be paid 100%. If the unsecured creditors are receiving less than 100%, each creditor must be paid on a pro rata basis.
Immediately upon the filing of a chapter 13, the “stay” and “co-debtor stay apply. The “co-debtor stay” initially prevents any creditor from pursuing the non filing spouse, who owes a joint debt with the fling spouse. However, the court will permit a creditor to pursue the non filing joint debtor spouse, if the filing spouse does not pay 100% of the debt to the unsecured creditor. In other words, if a chapter 13 Joint debtor spouse, who files individually, pays less than 100% to an unsecured creditor, the creditor can apply to the court for permission to proceed against the non filing joint debtor spouse, for the balance that will not be paid through the trustee payments.
An individual would file a chapter 13 for the purpose of saving a house from foreclosure. Typically, if the mortgage(s) and note(s) are in the name of both spouses, and they are unable to modify any mortgage and/or note, only one spouse need file to save the house from foreclosure. Typically, if the mortgage and note are in the name of one spouse, only that spouse would need to file to save the house. This interpretation may vary.
Typically, an individual would file a chapter 13 for the purpose of saving an auto from repossession. Generally, if the financing, is in the name of both spouses, and they are unable to modify the financing agreement, only one spouse would need to file to save the auto from repossession. If the financing is in the name of one spouse, typically only that spouse would need to file to save the auto.
Disclaimer: The bankruptcy laws are complex and may be applied differently, in each case, and State. There may be numerous exceptions and variations for each law and rule. Do not rely on the information provided in this article. If you are considering filing for bankruptcy protection or have foreclosure issues, you should consult with an experienced lawyer. We are a debt relief agency. We Help people file for bankruptcy relief under the bankruptcy code.
© 2008 Robert Manchel
Bankruptcy Questions
First Steps To Understanding The Bankruptcy Code
Thursday, November 19th, 2009
Bowe Packer asked:
Becoming bankrupt is not something that many people think about. There are occasions when this will happen and these individuals will need to file for bankruptcy. The assorted chapters of bankruptcy like chapter 13, and chapter 11 are taken from the bankruptcy code. This code was established by the US congress.
Believe it or not, much of these laws are in place to protect the individuals who are having financial problems. Below we will outline what the bankruptcy codes are and what they mean to you.
These laws were put in place so that there was a uniform law about bankruptcy that could be found throughout the US. These laws from the bankruptcy code are designed to protect the person who is in debt from further problems.
There are currently four main types of bankruptcy laws that are taken from the bankruptcy code. You will recognize these bankruptcy laws as chapters. Chapter 11 is one of the bankruptcy laws that can be found in the bankruptcy code under the heading chapter 11.
The different chapters inside the bankruptcy code provide info for people who are in debt. The various ways that the law can work to keep you safe from unreasonable hassles can be found inside the pages of the bankruptcy code chapters.
As a citizen you have the right to view and read these laws. The only problem that we see is it is typically to late for most people. Meaning they are already in financial trouble, so reading about the laws to stop the bankruptcy may not work. However, you will still want to understand the rights you have being in a bankrupt state of affairs.
While the US government has provided the framework for these laws of the bankruptcy code each state has the right to pass other laws that will work in accordance with the bankruptcy code. They don’t have the right to change the law, just factors that pertain to their specific state can they add.
The states can only provide other laws that are compatible with their state’s laws. Otherwise the states themselves don’t have the power to govern how the bankruptcy code works.
There are many dissimilar and new laws that you can find when you look through the bankruptcy code. One of the new laws that you will find is the altered state of the debtor-creditor relationship.
While the different states can’t vary the basic rules of the bankruptcy code they do have the right to interpret how these bankruptcy claims are filed and acted on in their respective states.
If there is a major change to the bankruptcy code this change will be passed by congress. One such change that has taken effect alters the rules of bankruptcy for chapter 7. In this part of the bankruptcy code all debtors must prove that they have the right to file for bankruptcy.
The bankruptcy was established and put into place to address those that are in financial trouble and for creditors to get their money back. This of course if a very general definition, but will serve the point. So be responsible and spend less than you make.
They will be allowed to file for bankruptcy only if these people have fulfilled a counseling session. This step has been taken to hold that the bankruptcy code is not being misused by the assorted individuals who want to avoid paying their various debts. As the bankruptcy code has been placed for our shelter it is best if you handle these laws with respect.
Remember, bankruptcy is here to help and if you respect the laws of the code then it can be used as a tool if you are every in the need.
Add a link here 1
Becoming bankrupt is not something that many people think about. There are occasions when this will happen and these individuals will need to file for bankruptcy. The assorted chapters of bankruptcy like chapter 13, and chapter 11 are taken from the bankruptcy code. This code was established by the US congress.
Believe it or not, much of these laws are in place to protect the individuals who are having financial problems. Below we will outline what the bankruptcy codes are and what they mean to you.
These laws were put in place so that there was a uniform law about bankruptcy that could be found throughout the US. These laws from the bankruptcy code are designed to protect the person who is in debt from further problems.
There are currently four main types of bankruptcy laws that are taken from the bankruptcy code. You will recognize these bankruptcy laws as chapters. Chapter 11 is one of the bankruptcy laws that can be found in the bankruptcy code under the heading chapter 11.
The different chapters inside the bankruptcy code provide info for people who are in debt. The various ways that the law can work to keep you safe from unreasonable hassles can be found inside the pages of the bankruptcy code chapters.
As a citizen you have the right to view and read these laws. The only problem that we see is it is typically to late for most people. Meaning they are already in financial trouble, so reading about the laws to stop the bankruptcy may not work. However, you will still want to understand the rights you have being in a bankrupt state of affairs.
While the US government has provided the framework for these laws of the bankruptcy code each state has the right to pass other laws that will work in accordance with the bankruptcy code. They don’t have the right to change the law, just factors that pertain to their specific state can they add.
The states can only provide other laws that are compatible with their state’s laws. Otherwise the states themselves don’t have the power to govern how the bankruptcy code works.
There are many dissimilar and new laws that you can find when you look through the bankruptcy code. One of the new laws that you will find is the altered state of the debtor-creditor relationship.
While the different states can’t vary the basic rules of the bankruptcy code they do have the right to interpret how these bankruptcy claims are filed and acted on in their respective states.
If there is a major change to the bankruptcy code this change will be passed by congress. One such change that has taken effect alters the rules of bankruptcy for chapter 7. In this part of the bankruptcy code all debtors must prove that they have the right to file for bankruptcy.
The bankruptcy was established and put into place to address those that are in financial trouble and for creditors to get their money back. This of course if a very general definition, but will serve the point. So be responsible and spend less than you make.
They will be allowed to file for bankruptcy only if these people have fulfilled a counseling session. This step has been taken to hold that the bankruptcy code is not being misused by the assorted individuals who want to avoid paying their various debts. As the bankruptcy code has been placed for our shelter it is best if you handle these laws with respect.
Remember, bankruptcy is here to help and if you respect the laws of the code then it can be used as a tool if you are every in the need.
Add a link here 1
Thursday, November 19th, 2009
Muna wa Wanjiru asked:
From time to time someone may become bankrupt. As there are different forms of bankruptcy the person will need to decide what type of action to take. For the person who is unsure about the type of bankruptcy filing action to take they need to discuss with their lawyer all of the different courses and options that can help. One type of bankruptcy that is well known is that of the chapter 7 bankruptcy.
This bankruptcy claim deals with consumer bankruptcy. In consumer bankruptcy you don’t have enough money to pay off your creditors. To give you some time to recover from this problem and to help appease your creditors you can file for a chapter 7 bankruptcy claim.
In this claim all of your property that is not exempt from credit payment will need to be turned over to the bankruptcy trustee. This person will proceed to convert this property into cash. Once all of your property has been liquidated into cash it will be distributed among your creditors.
There are certain people who can file for a chapter 7 bankruptcy claim. These people are those who live or have a residence in the US. People who work, own property in the US or a municipality of the US.
You can also file for chapter 7 bankruptcy if you have not filed for a chapter 13 plan or you have not had a chapter 7 bankruptcy filed during the last 6 years. On the other hand if you have had a bankruptcy claim dismissed with a reasonable reason and cause then you will need to wait for 180 days before you can file for chapter 7 bankruptcy.
When you decide to declare that you are bankrupt this fact must be verified by your lawyer. A means test will be used to prove that you are in fact in financial trouble which can only be solved by a chapter 7 bankruptcy declaration.
The means test that you will have to undergo will see if your monthly earnings are more than what is the norm for your state. Your cost of food, rent, mortgages and other living expenses are deducted from your monthly income.
If the IRS finds that your monthly salary is $100 less than your state’s median wages then you have the right to claim chapter 7 bankruptcy.
With chapter 7 bankruptcy almost all of your debts will be erased and you have the chance to start your life and business matters up again. You will however need to rebuild your credit reputation.
As chapter 7 bankruptcy can remain on your public record for more than 10 years you might want to think about using this bankruptcy filing only as a last resort.
Bankruptcy Questions
From time to time someone may become bankrupt. As there are different forms of bankruptcy the person will need to decide what type of action to take. For the person who is unsure about the type of bankruptcy filing action to take they need to discuss with their lawyer all of the different courses and options that can help. One type of bankruptcy that is well known is that of the chapter 7 bankruptcy.
This bankruptcy claim deals with consumer bankruptcy. In consumer bankruptcy you don’t have enough money to pay off your creditors. To give you some time to recover from this problem and to help appease your creditors you can file for a chapter 7 bankruptcy claim.
In this claim all of your property that is not exempt from credit payment will need to be turned over to the bankruptcy trustee. This person will proceed to convert this property into cash. Once all of your property has been liquidated into cash it will be distributed among your creditors.
There are certain people who can file for a chapter 7 bankruptcy claim. These people are those who live or have a residence in the US. People who work, own property in the US or a municipality of the US.
You can also file for chapter 7 bankruptcy if you have not filed for a chapter 13 plan or you have not had a chapter 7 bankruptcy filed during the last 6 years. On the other hand if you have had a bankruptcy claim dismissed with a reasonable reason and cause then you will need to wait for 180 days before you can file for chapter 7 bankruptcy.
When you decide to declare that you are bankrupt this fact must be verified by your lawyer. A means test will be used to prove that you are in fact in financial trouble which can only be solved by a chapter 7 bankruptcy declaration.
The means test that you will have to undergo will see if your monthly earnings are more than what is the norm for your state. Your cost of food, rent, mortgages and other living expenses are deducted from your monthly income.
If the IRS finds that your monthly salary is $100 less than your state’s median wages then you have the right to claim chapter 7 bankruptcy.
With chapter 7 bankruptcy almost all of your debts will be erased and you have the chance to start your life and business matters up again. You will however need to rebuild your credit reputation.
As chapter 7 bankruptcy can remain on your public record for more than 10 years you might want to think about using this bankruptcy filing only as a last resort.
Bankruptcy Questions
Monday, November 16th, 2009
The CreditLawGroup asked:
Bankruptcy is an individual’s legally declared inability to pay back debt owed to creditors. There are several different types of bankruptcies. Most are voluntary where the individual files themselves because they are no longer able to pay back debts that they owe. Another type is involuntary bankruptcy where the creditors file a petition against the debtor to try and receive some of the money owed to them.
What are the different types of bankruptcies?
There are six types of bankruptcies in United States law and they are broken into six different chapters (7, 9, 11, 12, 13, and 15). The most common chapters filed are chapters 7 & 13. Almost 65% of all bankruptcies filed are chapter 7.
What is the outcome of a bankruptcy?
In most cases, filing for bankruptcy will stop creditors from calling, at least until all your debts are sorted out in accordance with the law. Most times filing for bankruptcy can relieve an individual from temporarily getting their home foreclosed, getting wages garnished and getting automobiles repossessed. Chapter 7 bankruptcy is the most common and it allows you to discharge most of your debts with your creditors. However, you have to liquidate your assets to be auctioned off. Some things you normally are allowed to keep are: your primary residence, car, clothing, work related tools, and basically necessities. Chapter 13 is basically a court organized payment plan and usually does not require you to liquidate your assets.
How does bankruptcy affect my credit and credit score?
Bankruptcy does not look very favorable on your credit report and should be considered a last resort for overcoming your debt. In most situations, bankruptcy will damage your credit rating so severely that you may not be get approval for credit for many years. It is one of the few items that will stay on your credit report for 10 years. All other items such as late payments and delinquent accounts stay on your credit report for only 7 years. Having a bankruptcy on your credit report for 10 years will most often than not prove to be a severe burden for most people. The severity of the damage a bankruptcy does to your credit score is right up there with foreclosure.
How we can help you
CreditLawGroup.com provides low cost legal representation in disputing inaccurate, incorrect or unverifiable information contained on credit reports from the three major credit bureaus, Equifax®, Experian® and TransUnion® and their affiliates. You can monitor your progress online, as well as speak to your Paralegal whenever needed by phone or email. We have excellent customer service, and are always there to meet your needs! Speak to a credit repair analyst today!
Bankruptcy Questions
Bankruptcy is an individual’s legally declared inability to pay back debt owed to creditors. There are several different types of bankruptcies. Most are voluntary where the individual files themselves because they are no longer able to pay back debts that they owe. Another type is involuntary bankruptcy where the creditors file a petition against the debtor to try and receive some of the money owed to them.
What are the different types of bankruptcies?
There are six types of bankruptcies in United States law and they are broken into six different chapters (7, 9, 11, 12, 13, and 15). The most common chapters filed are chapters 7 & 13. Almost 65% of all bankruptcies filed are chapter 7.
What is the outcome of a bankruptcy?
In most cases, filing for bankruptcy will stop creditors from calling, at least until all your debts are sorted out in accordance with the law. Most times filing for bankruptcy can relieve an individual from temporarily getting their home foreclosed, getting wages garnished and getting automobiles repossessed. Chapter 7 bankruptcy is the most common and it allows you to discharge most of your debts with your creditors. However, you have to liquidate your assets to be auctioned off. Some things you normally are allowed to keep are: your primary residence, car, clothing, work related tools, and basically necessities. Chapter 13 is basically a court organized payment plan and usually does not require you to liquidate your assets.
How does bankruptcy affect my credit and credit score?
Bankruptcy does not look very favorable on your credit report and should be considered a last resort for overcoming your debt. In most situations, bankruptcy will damage your credit rating so severely that you may not be get approval for credit for many years. It is one of the few items that will stay on your credit report for 10 years. All other items such as late payments and delinquent accounts stay on your credit report for only 7 years. Having a bankruptcy on your credit report for 10 years will most often than not prove to be a severe burden for most people. The severity of the damage a bankruptcy does to your credit score is right up there with foreclosure.
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Bankruptcy Questions
Monday, November 16th, 2009
Legal Helpers asked:
Since federal law governs bankruptcy, it does not matter where someone lives, the procedures will all be the same. If a person live for example in Illinois bankruptcy proceedings will be the same as those living in California. An attorney is always recommended for those contemplating going through the process, as they can make sure the petitioner qualifies for the type of bankruptcy for which they file.
Even as the changes in the bankruptcy code affected filings across the nation, for those filing for bankruptcy relief in the Windy City the timed release from debt is sometimes a bitter pill. Seeing many Chapter 7 applications switched over to a Chapter 13 debt adjustment instead, there is some question as to whether filing for Chapter 13 Chicago debtors seek timed release or are simply doing the best they can with what is offered to them.
The fresh start that used to be the hallmark of a bankruptcy filing is not open to such debtors, yet at the same time they do not stand to lose their homes and assets either. Even if they are behind in mortgage payments, they will still have the option of curing that deficit and thus holding on to the family home, offering stability to their families rather than the fire sale of the primary residence that will result in having to move into a potentially less desirable neighborhood and home.
The biggest selling point Chapter 13 Chicagoans realize is the fact that debts may be restructured to suit the needs of the payer, not the payee. In addition to the foregoing, remember that a Chapter 13 filing - although negative on the credit report - will not be as bad on paper as a Chapter 7 filing. Sure, you are stuck making payments, but all in all you can point to the good faith effort you have made at meeting your financial obligations. Additionally, the extra time that you buy by filing for this bankruptcy protection is often enough to ensure that your family is not forced to involuntarily relocate to a neighborhood or home that does not fit your needs.
There are two types of personal bankruptcy, Chapter 7 and Chapter 13 that offer debtors protection from unruly creditors or collectors. There may some key points about the person’s state of residence that is pertinent to filing bankruptcy, even though it is a federal court procedure. There are exemption limits to some personal possessions, meaning that the petitioner can protect certain assets from liquidation. Depending on length of residency in Illinois bankruptcy attorneys can help determine if they should use state exemptions or federal exemptions.
When contemplating bankruptcy an experienced attorney can help debtors sift through the paperwork quickly and easily and make sure that everything the petitioners puts into their petition is true and accurate. Today’s bankruptcy judges will hold attorneys responsible for false statements made by the petitioner they represent to make sure that the debtor and creditor are both treated fairly under the new laws.
Additionally, persons petitioning the courts for protection under federal bankruptcy laws will have to attend counseling sessions from firms approved by the court to help keep them financially healthy in the future. By preventing repeated bankruptcy not only are the credit companies made more healthy, but the debtor learns to be more responsible with their credit.
Bankruptcy Questions
Since federal law governs bankruptcy, it does not matter where someone lives, the procedures will all be the same. If a person live for example in Illinois bankruptcy proceedings will be the same as those living in California. An attorney is always recommended for those contemplating going through the process, as they can make sure the petitioner qualifies for the type of bankruptcy for which they file.
Even as the changes in the bankruptcy code affected filings across the nation, for those filing for bankruptcy relief in the Windy City the timed release from debt is sometimes a bitter pill. Seeing many Chapter 7 applications switched over to a Chapter 13 debt adjustment instead, there is some question as to whether filing for Chapter 13 Chicago debtors seek timed release or are simply doing the best they can with what is offered to them.
The fresh start that used to be the hallmark of a bankruptcy filing is not open to such debtors, yet at the same time they do not stand to lose their homes and assets either. Even if they are behind in mortgage payments, they will still have the option of curing that deficit and thus holding on to the family home, offering stability to their families rather than the fire sale of the primary residence that will result in having to move into a potentially less desirable neighborhood and home.
The biggest selling point Chapter 13 Chicagoans realize is the fact that debts may be restructured to suit the needs of the payer, not the payee. In addition to the foregoing, remember that a Chapter 13 filing - although negative on the credit report - will not be as bad on paper as a Chapter 7 filing. Sure, you are stuck making payments, but all in all you can point to the good faith effort you have made at meeting your financial obligations. Additionally, the extra time that you buy by filing for this bankruptcy protection is often enough to ensure that your family is not forced to involuntarily relocate to a neighborhood or home that does not fit your needs.
There are two types of personal bankruptcy, Chapter 7 and Chapter 13 that offer debtors protection from unruly creditors or collectors. There may some key points about the person’s state of residence that is pertinent to filing bankruptcy, even though it is a federal court procedure. There are exemption limits to some personal possessions, meaning that the petitioner can protect certain assets from liquidation. Depending on length of residency in Illinois bankruptcy attorneys can help determine if they should use state exemptions or federal exemptions.
When contemplating bankruptcy an experienced attorney can help debtors sift through the paperwork quickly and easily and make sure that everything the petitioners puts into their petition is true and accurate. Today’s bankruptcy judges will hold attorneys responsible for false statements made by the petitioner they represent to make sure that the debtor and creditor are both treated fairly under the new laws.
Additionally, persons petitioning the courts for protection under federal bankruptcy laws will have to attend counseling sessions from firms approved by the court to help keep them financially healthy in the future. By preventing repeated bankruptcy not only are the credit companies made more healthy, but the debtor learns to be more responsible with their credit.
Bankruptcy Questions
