One of the requirements when filing for bankruptcy is credit counseling with a government-approved counseling agency. You can do this any time up to six months prior to filing, so consider getting your counseling sooner rather than later.
The history of bankruptcy laws in England indicate just how much opinions about financial troubles have changed in modern times. Under Common Law, and for a time in America, people who went bankrupt were treated as criminals and even imprisoned.
Eliminate debt, keep your assets, and rebuild your credit. Both Chapter 7 and Chapter 13 bankruptcy can eliminate overwhelming debt. This can include unsecured credit card debt, bank loans, medical bills, most court judgments, and deficiencies on repossessed vehicles.
A visit with an attorney specializing in bankruptcy is the best first step. He or she will assess your situation, let you know if bankruptcy is the best option for you, and will discuss which chapter is the most appropriate.
In most bankruptcy cases, you are required to go to a proceeding called the “meeting of creditors.” Here, you and your attorney will meet with the bankruptcy trustee and any creditors who elect to attend this meeting.
Did you know that a Chapter 11 bankruptcy is the one most used by corporations and companies? However, it can also be effective for individuals who want to maintain some control in their own debts management and settle with creditors over time. In some cases, the debtor may even be allowed to be a “debtor in possession,” allowing for more freedom in his or her case.
When your business is in trouble, you need an attorney who is part of your professional team. Your accountant is probably a CPA. You may have a financial advisor who is a CFA. Your attorney is good at handling daily business matters. It makes sense, then, to hire an attorney skilled at bankruptcy proceedings.
In England, one of the first bankruptcy laws to protect the debtor was the Insolvent Debtors Act of 1813, which made it so that debtors could request release from jail after two weeks of time served. This, however could only be done if they swore under oath that their total assets did not exceed 20 pounds.
If your spouse or partner is considering bankruptcy, you might want to consult a bankruptcy attorney as well. Why? If they follow through, their action may affect future joint financial decisions and investments, such as purchasing a home or car.
After a bankruptcy, it typically takes people anywhere from one to three years if not longer to get their credit back on track. Fortunately, your attorney may be able to help you figure out ways to speed up this process.
Unfortunately, a failed business venture can sometimes leave your personal finances in shambles. If you’re still trying to work miracles to pay off the debts of a sole-proprietorship you were forced to close, bankruptcy could be an appropriate option.
Is it time to consult a bankruptcy attorney? The answer is yes if you’re three months behind on your mortgage payments. After three months of non-payment, most lenders deem mortgages in default and initiate foreclosure proceedings.
Rebuilding your credit after bankruptcy can be difficult, especially since filing for bankruptcy can knock your credit score down into the lowest rankings. Ask a bankruptcy attorney for advice on how to rebuild your credit after bankruptcy.
Although you may have a decent idea of which type of federal bankruptcy protection you want to file for, it’s always a good idea to talk it out with an experienced attorney. This can help you ensure that you don’t end up making a costly mistake that you won’t be able to undo.
In Chapter 13 bankruptcy, you can usually keep your property. You will just have to earn wages or have another source of income for your payment plan.
Can I repay a debtor even though the debt was discharged in bankruptcy? You can, but the key element here that may affect your relationship is that you are no longer legally required to make those payments. If you run into future financial trouble, that debtor has no legal recourse even though you chose to make some payments after the bankruptcy.
Chapter 13 bankruptcy works as a repayment plan that must be approved by the court. People usually file Chapter 13 bankruptcy if they’ve fallen behind in their mortgage or are facing foreclosure.
If after your initial bankruptcy filing, you and your attorney decide that you’re better off filing chapter 7 or chapter 13 respectively, then you can file a motion to convert. It’s important to understand that the trustee can likewise request a conversion.
We understand that a bankruptcy can have negative consequences on your credit rating. We’re always here to help you better understand the credit ramifications of a bankruptcy filing.
Chapter 13 bankruptcy allows you to repay your debts. Depending on the terms agreed upon, you typically get between three and five years to catch up.
There are four different kinds of bankruptcy: Chapter 7 (known as liquidation or straight bankruptcy), Chapter 11 (reorganization), Chapter 12 (reserved for family farmers and fishermen), and Chapter 13 (known as debt adjustment). A bankruptcy attorney will go over your options with you to select the right one.
One of the most difficult aspects of bankruptcy is deciding which bankruptcy chapter to choose. Consulting with an attorney can help you determine which chapter is most likely to work for your specific situation.
