The first step in filing a Chapter 13 Bankruptcy is to find a competent and local bankruptcy attorney who can represent you in your Chapter 13 Bankruptcy case. There are two major pitfalls to avoid in searching for competent instate licensed and local bankruptcy attorney.
If you were to file a Chapter 7 Bankruptcy and you had transferred an asset to anyone within two years prior to the time you filed the Chapter 7 Bankruptcy, you are going to run into Section 548 of the Bankruptcy Code and you will not like it.
We have discussed what the two most common types of preferences are previously. In consumer debtor cases, a preference is typically a payment of $600 or more to a general unsecured creditor made within 90 days prior to filing the Chapter 13 Bankruptcy. It is also considered a preference to pay a family member or business associate $600 or more within the previous one year period prior to filing a Chapter 13 Bankruptcy.
Section 547 of the Bankruptcy Code covers preferences. Think of a preference like this- on the eve of filing bankruptcy, you preferred one creditor over another by paying one creditor and not the others. There are, generally speaking, two types of preferences.
The bills are piling up, and creditors are knocking at your door, so you’ve decided to file for bankruptcy. Because you’re already in a financially difficult situation, you don’t want to take on more debt, and you’ve heard that attorneys are expensive. As a result, you’ve decided to file your bankruptcy petition on your own, which is referred to as proceeding “pro se.” You’ve started filling out the forms and assembling the documents, and the process seems pretty straightforward. While it’s true that you don’t have to have an attorney handle your bankruptcy case, very few pro se bankruptcies are successfully completed. In this post, we’d like to discuss how an experienced bankruptcy attorney can be a tremendous help.
No one likes to think about losing their home to foreclosure. It’s a scary time - not only are you looking at the possibility of losing your home and having your family displaced, but foreclosure can also be financially disastrous. Aside from the damage to your credit, it also wipes out any value you have paid into the house such as your down payment and monthly mortgage payments. If you’re facing foreclosure, filing for Chapter 13 bankruptcy can help you avoid foreclosure and maybe even keep your home.
It’s that time of the year! The holidays are upon us, which of course includes holiday shopping. It’s no secret that Americans like to shop, and we do the bulk of our shopping in the days leading up to Christmas. The National Retail Federation reports that we will each spend an average of $1,007.24 this year, a significant amount of money. Most of this will be on gifts for others, but let’s be honest - some of it will be spent on gifts for ourselves. And let’s not forget the money spent on gas, parking, and dining out while shopping. If you host parties, travel out of town for the holidays, or have college kids that need airfare, all of it adds up to a pretty hefty expense that can hit you like a pile of bricks in the very near future.
It’s widely known that overwhelming medical debt pushes many Americans into bankruptcy, even if the specific percentage of bankruptcy cases is hotly debated. If you’re recovering from a major illness, the overall numbers don’t matter - the important fact is that you’re drowning in medical debt. Maybe you’ve lost income, or maybe you’re now partially or totally disabled as a result of your medical condition. Whatever your situation, you’re probably extremely anxious about your future and understandably so.
The ultimate goal of a consumer bankruptcy case is the discharge of debts. While a discharge can greatly improve your financial situation, it is not a magic eraser that wipes out all types of debts. The following are some frequently asked questions about the debt discharge at the end of a bankruptcy case.
So, you are thinking about filing Chapter 7 Bankruptcy and you say to yourself, I don’t want to lose my Harley Davidson Some folks are a lot like me, they have high anxiety and want to know who exactly is involved in this process and what do they do?
In an earlier post, I wrote about the decision-making process that our clients go through in determining whether to file a bankruptcy case. The last post dealt in large part with the advisability of thinking through the financial problems carefully, and involving friends and relatives to get a sense of whether these supporters think the bankruptcy option is a good one. At the end of the post I wrote that seeing an attorney is essential to good decision-making regarding the wisdom of filing a bankruptcy case.
Instead of liquidating assets, Chapter 13 bankruptcy requires you to make monthly payments for three to five years before you can receive a discharge. The court will want to make sure you have enough regular income to make reasonable payments toward your debts. If you don’t have enough income, you may have to file for Chapter 7 bankruptcy instead of Chapter 13. The following is some additional information about how repayment plans work in a Chapter 13 case.
In an earlier post, I started writing about a common issue in chapter 13 bankruptcy cases: a change in income experienced by the debtor while the chapter 13 plan is open. The last post looked at why this is an issue - namely, the 2005 revision of the bankruptcy law that required chapter 13 bankruptcy debtors to annually send the chapter 13 trustee copies of filed state and federal income tax returns. It’s from that tax information that a chapter 13 trustee can ask individuals already in confirmed chapter 13 plans to adjust their income and expense schedules to more accurately reflect the debtor’s month-to-month financial situation.
The goal in consumer bankruptcy cases is the discharge of debts. Both a successful Chapter 7 and Chapter 13 bankruptcy will end with the court discharging a debtor’s qualified debts, which releases their obligation to pay those debts. It is important to understand what happens when you file bankruptcy,when a discharge occurs and how it works to improve your financial situation.
