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.
Why would anyone file for Chapter 13 over Chapter 7? Perhaps the major reason is an inability to qualify for Chapter 7. You must earn at or below the median income in your state to qualify for a Chapter 7 bankruptcy. There are no qualification requirements for a Chapter 13 bankruptcy.
Chapter 13 is typically a reorganization bankruptcy typically for consumers, although it can be used for sole proprietorship businesses. A repayment plan is filed and, if approved, debts will be paid back based on earnings, debt, and property owned. If personal assets are tied to the business, the right attorney can help you avoid calamity.
There are numerous myths surrounding bankruptcy, such as claims that individuals will go years or longer without the ability to buy a car or home on credit after filing bankruptcy. However, bankruptcy experts say that’s incorrect. In some cases, it’s possible to qualify for a car loan – although at a higher interest rate – shortly after a bankruptcy filing.
What property will I lose in a bankruptcy? In the majority of Chapter 7 cases, debtors don’t lose any property. That’s because of state and federal exemptions that cover personal property and even a vehicle or some equity in a home. If you had significant equity in your home, you could be forced to sell it to pay off your creditors. However, if that was the case, you could also get a home equity loan or line of credit to try to improve your financial situation before turning to bankruptcy.
Surprisingly, bankruptcy doesn’t always affect credit as negatively as many people believe. Of course, this all depends on the level of your financial difficulties and the status of your credit score before you file. Talk to your attorney to see how this might affect you.
Can I protect bank accounts or other property by giving it away before I file for bankruptcy? A bankruptcy trustee has the power to undo contracts and negate gifts or donations if it is determined that the activity was only intended to protect assets from being seized during bankruptcy.
Making a mistake in bankruptcy court can have serious consequences, including dealing with the court throwing your case out entirely. A bankruptcy attorney can ensure everything runs as smoothly as possible in bankruptcy court.
It’s important to remember that there are some types of debt that cannot be wiped out with a bankruptcy. For instance, student loan debt cannot be added to a Chapter 13 repayment plan, and you will likely be unable to make payments on the account until your bankruptcy is discharged.
Any friends or relatives who helped you get financing by cosigning a loan agreement will be protected from your debt if you file Chapter 13. However, if you file Chapter 7, they may be liable for any debts you don't pay.
There are so many myths associated with bankruptcy. For example, rebounding from bankruptcy is possible and often can happen more quickly than people realize. In some ways you aren’t that great a risk because there are rules that prohibit people from filing a second bankruptcy too quickly.
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.
What happens if the bankruptcy trustee decides I have committed some type of fraud? That can depend on what you have done, but the trustee has the power to void contracts and agreements and to throw out your case depending on the fraud involved.
If you earn more than the median income for residents in your state, you may not be able to qualify for a Chapter 7 bankruptcy. There is, however, a way for even high-income debtors to qualify under Chapter 7.
You may need to file a chapter 13 bankruptcy if you have valuable property that’s not covered by an exemption, such as a home or car that you want to keep. This type of filing will allow you to make up these payments over time.
Why consult a bankruptcy attorney? According to some studies, those who work with an expert attorney are able to retain more personal property and maximize the exemption provisions to preserve items deemed to be “essentials of modern life.”
It is true that a bankruptcy can seize the property of a debtor to sell and divide to creditors. However, in nearly nine out of ten cases, a personal bankruptcy has no seized property.
We recognize that the typical American may not know much about how bankruptcy works when they’ve never gone through it before. Working with a skilled bankruptcy attorney can help you ensure you’re following all the proper steps.
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.
Is your financial stress starting to affect your family? Whether it’s adding stress to the family or making it hard to care for them, bankruptcy can help. It can either dissolve your debt or give you a workable repayment plan to remove the stress.
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.
Once you enter into bankruptcy, that does not mean you will be denied credit or have to pay exorbitant interest rates for the rest of your life. If you are responsible with your finances after bankruptcy, it is possible to achieve interest rates comparable to those who have never filed.
The bankruptcy laws in some states include a homestead exemption. This means that even in a Chapter 7 bankruptcy, where your assets are being liquidated to pay off creditors, you can still keep your home if your equity in it is below a certain threshold.
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.