Information About Chapter 13 Bankruptcy
This chapter bankruptcy is the second most common form of bankruptcy in the United States. Chapter 13 refers to the 13th chapter of the federal bankruptcy code where all of the laws and rules about chapter 13 bankruptcies are written. In a chapter 13 discharge the debtor and the bankruptcy court together with the creditors will establish a debt repayment plan. In a chapter 13 bankruptcy the court will set up a reorganization plan where the filer only has to pay back a small percentage of the total amount owed. With a chapter 13 discharge the filing party is not required to liquidate any of their assets. In most cases the creditors will be happy to get some of the debt back instead of none. Most reorganization plans are setup to allow the bankruptcy filer to pay back the debts in 3-5 years.
A chapter 13 bankruptcy is not quite as quick and easy at the chapter 7 but it usually allows the filing party to receive a more favorable credit status after the bankruptcy repayment plan is completed. In order to be eligible to file for a chapter 13 you must be able to prove to the court that you have enough income to meet your repayment obligations. For those with little or no income a chapter 7 bankruptcy is usually a better option. In order to quality for a chapter 13 bankruptcy you also cannot have over $1,010,650 in secured debt and $336,900 in unsecured debt. If you have over these amounts you are automatically ineligible to file a chapter 13 per the United States bankruptcy code. Chapter 13 bankruptcies cost $274 for the filing fee and attorney fees can range from $1500-$4000 depending on the complexity of your situation.
In order to file a chapter 13 bankruptcy you will first need to setup a meeting with a lawyer. We do not recommend that you try to file on your own. The complexity of a chapter 13 is far to great for someone without prior knowledge to try to do it on their own. The best way to find a bankruptcy lawyer is to check online.
The first step in filing is to receive credit cousenling from a company approved by the United States Trustee's Office. These companies will charge a fee seperate from the bankruptcy fees however these fees can be waived for people who cannot afford them.
After going through credit counseling you will need to file your petition for bankruptcy. With your petition you must include forms that describe all of your assets and liabilities, your current income, your current living expenses, any contracts that require you to pay 3rd parties, and a statement of financial affairs. Other things you might also be required to do include preparing a budget, dealing with secured debtors, and attending meetings with creditors.
After filing for your chapter 13 bankruptcy a trustee will be assigned to your case to help everything move forward correctly. In most chapter 13 cases the amount that the filer is required to repay varies greatly based off of their income. Each situation is very unique and specific number cannot be given. Employing a bankruptcy attorney is always a good idea because they might be able to get you the most favorable outcome here.
If you cannot make the payments on your repayment then then there are often several options that you have. Sometimes the court will completely discharge your bankruptcy if you experience some sort of hardship (like a loss of your job). If the court refuses to do this you can look into converting your chapter 13 bankruptcy into a chapter 7 bankruptcy.
In nearly all cases a chapter 13 bankruptcy will be completely wrapped up within 5 years so long as you make all of your payments and make them on time. A chapter 13 bankruptcy is a great opportunity for individuals that have accumulated to much debt to handle at once but still have enough income to pay them off over time. When deciding whether to file a chapter 13 bankruptcy the most important thing to do is find out whether it is really necessary. If it is at all possible to pay off your debts without a bankruptcy you will be significantly better off in the end. The best thing you can do to determine the right choice for you is to contact a local bankruptcy attorney for a free consultation.
Thursday, August 7, 2008
Wednesday, August 6, 2008
What is a Chapter 7 Bankruptcy?
Information about Chapter 7 Bankruptcy
This chapter bankruptcy is the most common form of bankruptcy in the United States accounting for 65% of all filings. Chapter 7 refers to the specific chapter of the federal bankruptcy code where the laws about it are written. In a chapter 7 discharge filing the debtors non-exempt assets are liquidated and the proceeds are then distributed to the creditors as determined by the bankruptcy court. After distribution to creditors the remaining debt is wiped clean and the filer is no longer obligated to pay its debts. In most cases the filing party does not have any assets to liquidate and the creditors do not get any repayment.
Chapter 7 bankruptcies are the quickest and easiest form to file for and are available to individuals, corporations, and married couples. In order to be eligible to file a chapter 7 bankruptcy you must pass the means test as established by bankruptcy laws. A means test is a simple test that compares a persons income to average income with their state and also their ability to repay debts. If you do not qualify based on the means test this probably means that you are better suited for a chapter 13 bankruptcy. In order to file a chapter 7 bankruptcy you also cannot have already filed for a bankruptcy within the last 6-8 years. If you have already filed with this time period you will also be ineligible for a chapter 13 in most situations. The cost for a chapter 7 includes a $299 filing fee and about $1000 for a lawyer.
In order to file this type of bankruptcy you will be required to fill out and submit some bankruptcy forms. Chapter 7 bankruptcy forms include forms describing your property, current income, living expenses, debts, assets that you believe are exempt from liquidation, all property owned, all money spent during the last two years, and any property you sold or gave away over the last two years. When filing these forms you need to be sure that you include as much information as possible because the court can reject your bankruptcy filing if they determine that you did not provide adequate records.
You will also be required by the courts to go through a credit/debt counseling class before you file your official paperwork. After you go through counseling and determine that you still want to file for bankruptcy and file your paperwork you will be required to sit down at a meeting with your creditors.
After filing a chapter 7 bankruptcy a trustee will be assigned to your case and they will be responsible for selling all of your non-exempt assets and distributing the proceeds to your creditors. Generally cars and homes are exemption assets and the filer is able to keep these so long as they continue to make payments and sign a reaffirmation agreement.
In most cases a chapter 7 bankruptcy will be completely finished within 60 days of filing your initial petition. A chapter 7 bankruptcy is a great opportunity for those that are way to far into debt and have no possible way of working down the debt by themselves. When deciding whether to file for a chapter 7 bankruptcy the most important thing to do is find out whether or not you really need to file for bankruptcy. If you can find a way to pay off your debts on your own then you will be better off doing that. The best thing you can do to determine whether or not a bankruptcy is the right thing to is to contact a local bankruptcy attorney for a free consultation.
This chapter bankruptcy is the most common form of bankruptcy in the United States accounting for 65% of all filings. Chapter 7 refers to the specific chapter of the federal bankruptcy code where the laws about it are written. In a chapter 7 discharge filing the debtors non-exempt assets are liquidated and the proceeds are then distributed to the creditors as determined by the bankruptcy court. After distribution to creditors the remaining debt is wiped clean and the filer is no longer obligated to pay its debts. In most cases the filing party does not have any assets to liquidate and the creditors do not get any repayment.
Chapter 7 bankruptcies are the quickest and easiest form to file for and are available to individuals, corporations, and married couples. In order to be eligible to file a chapter 7 bankruptcy you must pass the means test as established by bankruptcy laws. A means test is a simple test that compares a persons income to average income with their state and also their ability to repay debts. If you do not qualify based on the means test this probably means that you are better suited for a chapter 13 bankruptcy. In order to file a chapter 7 bankruptcy you also cannot have already filed for a bankruptcy within the last 6-8 years. If you have already filed with this time period you will also be ineligible for a chapter 13 in most situations. The cost for a chapter 7 includes a $299 filing fee and about $1000 for a lawyer.
In order to file this type of bankruptcy you will be required to fill out and submit some bankruptcy forms. Chapter 7 bankruptcy forms include forms describing your property, current income, living expenses, debts, assets that you believe are exempt from liquidation, all property owned, all money spent during the last two years, and any property you sold or gave away over the last two years. When filing these forms you need to be sure that you include as much information as possible because the court can reject your bankruptcy filing if they determine that you did not provide adequate records.
You will also be required by the courts to go through a credit/debt counseling class before you file your official paperwork. After you go through counseling and determine that you still want to file for bankruptcy and file your paperwork you will be required to sit down at a meeting with your creditors.
After filing a chapter 7 bankruptcy a trustee will be assigned to your case and they will be responsible for selling all of your non-exempt assets and distributing the proceeds to your creditors. Generally cars and homes are exemption assets and the filer is able to keep these so long as they continue to make payments and sign a reaffirmation agreement.
In most cases a chapter 7 bankruptcy will be completely finished within 60 days of filing your initial petition. A chapter 7 bankruptcy is a great opportunity for those that are way to far into debt and have no possible way of working down the debt by themselves. When deciding whether to file for a chapter 7 bankruptcy the most important thing to do is find out whether or not you really need to file for bankruptcy. If you can find a way to pay off your debts on your own then you will be better off doing that. The best thing you can do to determine whether or not a bankruptcy is the right thing to is to contact a local bankruptcy attorney for a free consultation.
Monday, August 4, 2008
How To File Bankruptcy?
Information About How To File Bankruptcy
The first step in filing a personal chapter bankruptcy is to make sure that there are no other alternatives to filing for bankruptcy protection. If there are other suitable alternatives then it is wise to sit down with a financial expert and explore all possible avenues for improving your financial situation. Bankruptcy is a very serious thing and can set you back for years and years financially so it should only be used as a last resort when it is simply not possible for you to handle your debts by yourself.
If you determine that you must file for personal chapter bankruptcy you need to contact a reputable bankruptcy lawyer. The best way to find one is by looking up reviews online, asking family and friends, and contacting your state bar association.
After finding a lawyer you need to get together with him/her and decide which chapter bankruptcy is right for you. As an individual you have several different options with the most commons ones being the Chapter 7 and Chapter 13 bankruptcies. The most popular chapter bankruptcy, the chapter 7, involves the bankruptcy court doing a straight liquidation of the filers debts and wiping the slate clean for them. The Chapter 13 on the other hand, establishes a repayment plan for the filer. A chapter 7 bankruptcy use to be the most popular but with recent changes in the bankruptcy laws it has become a lot harder for people to qualify for a chapter 7 filing.
After consulting with your lawyer and determining which chapter bankruptcy is the best for you then need to move forward with the actual filing process. If you want you can choose to pay your attorney to do most of the work for you but if you do not have the money to do that you can do quite a bit of it on your own. Usually the filing fee is about $1,700 if you use a lawyer and $299 if you do it on your own. We highly recommend using a lawyer so that you do everything correctly and get the best possible outcome. If you make certain mistakes in filing your bankruptcy case could be dismissed.
The first step in filing bankruptcy is to give your attorney all of your outstanding bills, bank statements, and pay stubs from the last six months. You also want to give him/her copies of bills you may have paid in the last six months. This can include anything from an electric bill to a car payment. Finally, you will need to provide him/her with a list of all assets that you have.
After turning overall all of this information your lawyer will help you file your petition for bankruptcy. On this bankruptcy paperwork you are required to list every single debt that you have. If you fail to list all of them the bankruptcy judge/court can dismiss your petition for bankruptcy and you could also be jailed or fined. It is a federal offense to lie on your petition. At this point in the filing process you can begin referring all calls from creditors to your attorney.
After your bankruptcy case has been filed the court will send out letters to all of your creditors notifying them of your intent to declare bankruptcy. Once they receive this notice they are required by law to stop all collection attempts. At this point you should also discontinue the use of any credit services or it could make it impossible for you to get some of your debts discharged.
The next step involves a meeting between you and your creditors. Here they will discuss all of the information on your bankruptcy petition to make sure that it is accurate and correct. This meeting generally lasts about 10 minutes.
After going through all of this your creditors will have 60 days to file any challenges to your bankruptcy or any lawsuits against your filing. After the 60 days if there are no challenges you will get a notice stating that your debts have been discharged and you are no longer obligated to pay them (If you filed a Chapter 7). If you filed a chapter 13 you will get detailed report of your scheduled repayment plan. In your repayment plan you will be required to make a monthly payment to the bankruptsy court and they will disburse it among your creditors. At this point you will be done with your bankruptcy.
Above we have given you a short explanation of the process of petitioning for a bankruptcy. If you are interested in more information about filing for bankruptcy take a look around our blog or make a call to a bankruptcy lawyer in your area.
*This information should not be considered legal advice and should not replace the work of an actual attorney
The first step in filing a personal chapter bankruptcy is to make sure that there are no other alternatives to filing for bankruptcy protection. If there are other suitable alternatives then it is wise to sit down with a financial expert and explore all possible avenues for improving your financial situation. Bankruptcy is a very serious thing and can set you back for years and years financially so it should only be used as a last resort when it is simply not possible for you to handle your debts by yourself.
If you determine that you must file for personal chapter bankruptcy you need to contact a reputable bankruptcy lawyer. The best way to find one is by looking up reviews online, asking family and friends, and contacting your state bar association.
After finding a lawyer you need to get together with him/her and decide which chapter bankruptcy is right for you. As an individual you have several different options with the most commons ones being the Chapter 7 and Chapter 13 bankruptcies. The most popular chapter bankruptcy, the chapter 7, involves the bankruptcy court doing a straight liquidation of the filers debts and wiping the slate clean for them. The Chapter 13 on the other hand, establishes a repayment plan for the filer. A chapter 7 bankruptcy use to be the most popular but with recent changes in the bankruptcy laws it has become a lot harder for people to qualify for a chapter 7 filing.
After consulting with your lawyer and determining which chapter bankruptcy is the best for you then need to move forward with the actual filing process. If you want you can choose to pay your attorney to do most of the work for you but if you do not have the money to do that you can do quite a bit of it on your own. Usually the filing fee is about $1,700 if you use a lawyer and $299 if you do it on your own. We highly recommend using a lawyer so that you do everything correctly and get the best possible outcome. If you make certain mistakes in filing your bankruptcy case could be dismissed.
The first step in filing bankruptcy is to give your attorney all of your outstanding bills, bank statements, and pay stubs from the last six months. You also want to give him/her copies of bills you may have paid in the last six months. This can include anything from an electric bill to a car payment. Finally, you will need to provide him/her with a list of all assets that you have.
After turning overall all of this information your lawyer will help you file your petition for bankruptcy. On this bankruptcy paperwork you are required to list every single debt that you have. If you fail to list all of them the bankruptcy judge/court can dismiss your petition for bankruptcy and you could also be jailed or fined. It is a federal offense to lie on your petition. At this point in the filing process you can begin referring all calls from creditors to your attorney.
After your bankruptcy case has been filed the court will send out letters to all of your creditors notifying them of your intent to declare bankruptcy. Once they receive this notice they are required by law to stop all collection attempts. At this point you should also discontinue the use of any credit services or it could make it impossible for you to get some of your debts discharged.
The next step involves a meeting between you and your creditors. Here they will discuss all of the information on your bankruptcy petition to make sure that it is accurate and correct. This meeting generally lasts about 10 minutes.
After going through all of this your creditors will have 60 days to file any challenges to your bankruptcy or any lawsuits against your filing. After the 60 days if there are no challenges you will get a notice stating that your debts have been discharged and you are no longer obligated to pay them (If you filed a Chapter 7). If you filed a chapter 13 you will get detailed report of your scheduled repayment plan. In your repayment plan you will be required to make a monthly payment to the bankruptsy court and they will disburse it among your creditors. At this point you will be done with your bankruptcy.
Above we have given you a short explanation of the process of petitioning for a bankruptcy. If you are interested in more information about filing for bankruptcy take a look around our blog or make a call to a bankruptcy lawyer in your area.
*This information should not be considered legal advice and should not replace the work of an actual attorney
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