Some great advice for those who are struggling financially…
NEWSDAY.COM
Start thinking bankruptcy now, not later
It’s important to remember that a bankruptcy isn’t a "get out of jail free" card with your creditors. In addition to the laws governing bankruptcy filings, there can be consequences to filing.
Federal bankruptcy laws allow local governments to file for bankruptcy under Chapter 9 of the Bankruptcy Code, and a few dozen have done so, many since 2000. Orange County in 1994 was one of the first cities to turn to bankruptcy and was later followed by San Bernadino and Stockton – all in California. In July 2013, Detroit filed for bankruptcy, becoming the largest city in the U.S. to seek that protection.
Do you want to retain some of your property after filing for bankruptcy? Chapter 7 bankruptcy allows you to keep some of your property, depending on the law regarding which types of property you’re allowed to keep for a fresh start.
If you’re a business owner, filing for bankruptcy can be a little trickier. Whether you need to file bankruptcy for yourself or your business, we’re here to facilitate things for you.
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.
If you file for a Chapter 7 bankruptcy, there's a good chance you'll never see the bankruptcy judge and only have to appear in federal court once. That's standard procedure in an uncontested bankruptcy filing.
Bankruptcy proceedings are designed to help you regain your financial footing. To accomplish this, the courts allow you to keep life and work essentials such as a functional car, necessary clothing, essential household goods, furnishings, retirement accounts, earned wages, etc.
During Chapter 7 bankruptcy, a key part is gathering all of the data of your property’s current values and comparing it against legal exemption amounts. It can get pretty complicated, but a bankruptcy attorney will be able to help you through it.
The problem with many kinds of revolving debt is that even making regular payments above the minimum amount due can still lead to substantial monthly interest charges. If you need a fresh financial start that won’t keep you crushed under interest and finance charges, a bankruptcy could be the answer.
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.
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.
What happens if my income is higher than the median state income? Am I limited to a Chapter 13 reorganization filing? Not necessarily, according to bankruptcy experts. There is an additional complicated analysis, called the “means test,” that makes it possible for some high-income filers to still qualify for a Chapter 7 filing. A bankruptcy attorney can help with this extremely complicated process.
Did you know that hiring an attorney for Chapter 13 bankruptcy can help you keep your property? Attorneys experienced in dealing with Chapter 13 cases can also help you work with mortgage and car companies.
When going through bankruptcy, it’s important to know that public utilities (like the electric or water company) cannot legally refuse or cut service. Speak to your bankruptcy attorney so you know your rights.
It’s important to remember that a bankruptcy can have lasting effects on your credit report, even after it’s been discharged. While bankruptcy can be a good tool for people struggling under the weight of their debt, it’s definitely worth a serious discussion with an attorney before filing to ensure it’s really the best option for you.
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.
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.
Did you know that bankruptcy can be a way to protect your home or car from being repossessed? A Chapter 13 plan can include the cost of any missed payments and fees and stop a creditor from taking you to court for falling behind on payments.
Perhaps the true beauty of spending time without credit accounts during your time in a bankruptcy is that you’re able to reteach yourself how to spend and save wisely. Ultimately, this can lead to making better choices if you later decide to open new credit accounts.