Under Chapter 13 bankruptcy, basically the trustee designs a repayment plan for the debtor, with the goal being that within 2 to 3 years they’re able to repay their debts. This repayment plan is made affordable so that you are able to pay off the owed amount.
How do I choose a bankruptcy attorney? You want someone with plenty of experience handling individual bankruptcies. That familiarity with the forms and procedures in bankruptcy court, as well as the normal requirements of the bankruptcy trustee, can be invaluable in assisting your filing.
When a business files for Chapter 7 bankruptcy, a trustee is appointed by the court to take possession of the assets and distribute them among creditors. After the distribution, and once the trustee is paid, the sole proprietor will receive a “discharge” at the end of the case, meaning they are released from any obligation for the debts.
There is a lot of false information floating around about bankruptcy, much of it generated by lending agencies and banks since it is in their interests to discourage people from filing for bankruptcy. Only a qualified bankruptcy attorney can be counted on to tell you exactly what your rights are and what you can do.
We recognize that many people aren’t simply looking for a way to walk away from their debts. When you have a steady income, it may be possible to use bankruptcy proceedings to renegotiate your payments so that you can pay back a portion of your debt at more affordable levels.
What is the Means Test? If an individual wants to file for Chapter 7 bankruptcy, he or she must first pass the Means Test. The test is designed to determine if a debtor has sufficient disposable income to make monthly payments to creditors. The Means Test compares a debtor’s income to expenses based on the region of the country where the debtor lives.
If you and your spouse are considering both bankruptcy and a divorce, we can explain your options. Often, it is a better idea to handle the bankruptcy before the divorce, but every situation is unique and must be assessed separately.
Are you falling behind on your home or auto payments? Or do you find yourself constantly paying them on the last day you can? You don’t have to live with this stress. Bankruptcy can help you get out from underneath the debt and give you a fresh start.
In ancient times, many cultures practiced bonded labor to pay back money owed. Bonded labor, where a man and his family worked to pay off a debt owed (until it was entirely paid off), was a way a man could pay off his debts through work, usually physical labor.
Are you always paying the minimum payment on credit cards, even if you’d like to pay more and pay them off? Unfortunately, this can leave you drowning in debt. Bankruptcy can help you either cancel those debts or work out a workable payment plan for them.
The most noticeable difference between Chapter 13 bankruptcy and Chapter 7 is that Chapter 13 creates a repayment plan to resolve outstanding debt. Chapter 7 requires paying off what can be paid, and then discharging the remaining debt.
Some debtors max out credit cards in the weeks and months before filing for bankruptcy, thinking it's their last chance to use the cards. However, a debtor who does that within six months of filing for bankruptcy risks losing the chance to file.
Your free credit report is a good way to get an accurate list of all of your creditors. Even if a debt collector has stopped calling or a bank has charged off your debt, you should still include them in your bankruptcy filings.
Filing for bankruptcy should put an end to debt collection calls and letters. You should inform any collectors who contact you that you have filed for bankruptcy, and provide them with the name of the attorney handling your case.
If you can afford to continue making payments on your liens and mortgages, a chapter 13 bankruptcy may be your best option. One of the advantages of a chapter 13 plan is that you’re able to keep property such as your home.
Many bankruptcy attorneys offer a free first-visit consultation. This can be a great opportunity to weigh your options and determine whether or not bankruptcy is your best option. You can also find out how much the attorney will charge to represent you.
Few things are as embarrassing and distracting as receiving collection calls at your office. Let us help you put your financial house in order so you can get on with your life.
What should I expect from my Chapter 7 bankruptcy case? As long as you qualify for a Chapter 7 filing, the entire case should last between four and six months. Because of state and federal exemptions, about 90 percent of all debtors are able to discharge all of their unsecured debt without losing any personal property.
How often are debt collectors calling your house? No one wants their dinner or family time interrupted by collectors. Filing for bankruptcy can put an end to debt collection harassment.
You may have heard that personal bankruptcy is an opportunity for debtors to get a fresh start. However, that thinking wasn't present in Colonial America, when debtors were treated harshly and commonly put in prison.
It’s important to remember that it can take a little while for the bankruptcy court to notify your creditors of the situation. If you’re still getting harassing collection calls, simply tell them the account is part of a bankruptcy filing.
Changes to the bankruptcy law in 2005 have made filing for bankruptcy not only more expensive, but also more complicated. A qualified bankruptcy attorney can ensure your financial situation is evaluated correctly, as well as help schedule all court appearances and complete all documentation correctly.
One reason that people file for bankruptcy is that it can give you relief from your creditors and help you and your family get a fresh start.
Have recent changes in health insurance laws left you without insurance and unable to afford it on your own? The problem might actually be with your existing debt. Bankruptcy can manage or eliminate that debt so you can get health insurance again.