Showing posts with label bankruptcy chapter 13. Show all posts
Showing posts with label bankruptcy chapter 13. Show all posts

Saturday, July 8, 2017

Bouncing Checks: 4 Ways to Make Bankruptcy Easier to Manage



bankruptcy law
Bankruptcy can have a profound effect on your finances both now and over the next several years. While it may help you get out of debt, it can also make it harder to get credit for the two to three years that follow. 

The bankruptcy will also stay on your credit report for up to 10 years. What steps can you take to best manage bankruptcy?


Know Your Rights


It is important that you learn as much as possible about your rights as it relates to filing for bankruptcy. During a bankruptcy case, creditors are generally unable to contact you or move forward with a repossession or a foreclosure. 




If you get any demand for payment from a creditor, contact your attorney, the case trustee or the bankruptcy court immediately. Doing so may prevent you from making payments or otherwise enduring harassment that you don't need to go through.

Know What Type of Bankruptcy to File For


Chapter 7 bankruptcy is ideal for those who have unsecured debts and few assets. Chapter 13 bankruptcy is best for those with secured debts or debts that can't be discharged. 

Professionals, like those at Demers Gagnier Inc., may be able to help you understand your options and which type of protection from creditors is right for you.

Know the Requirements before You File


When you file for bankruptcy, you will be required to provide information about your income, assets and liabilities. 

You will also be required to go through credit counseling within 180 days of filing. Taking the process seriously and providing any information asked of you in a timely manner may prevent your case from being dismissed or rejected.

Stick to the Repayment Plan


If you file for reorganization bankruptcy, you will be required to make payments on some or all debts for three to five years. Payments will be made according to a plan that is approved by the bankruptcy court. 

Making your plan payments as required may avoid challenges from creditors or other problems that could result in your case being dismissed. If you have trouble making payments, get in touch with the case trustee as soon as possible.

`Bankruptcy is ideally a last resort for dealing with debt after all other options have been exhausted. However, when done correctly, bankruptcy may help you get a handle on your finances both today and in the long run. 

If you are thinking about filing, make sure to do so with the help of an attorney or financial adviser to make it easier to manage the process.


Tuesday, August 6, 2013

Is there a difference between Chapter 7 and Chapter 13 Bankruptcy?

Declaring bankruptcy is an upsetting time for anyone. You never want to be placed in this position. In the US, there are two major types of bankruptcy you might file for if your personal debts have grown out of control: chapter 7 and chapter 13 bankruptcy. A lot of people confuse these two types, and when you are facing serious financial debt, it can be very difficult to know which route to take.

Here are the major differences between chapter 7 and chapter 13 bankruptcies, so you’re aware of your options if you face insurmountable debt.

Chapter 7 Bankruptcy Explained


Chapter 7 bankruptcy is where you admit to the court you have no chance of paying off your debts, and the court discharges your debts. You’ll be completely free from debt, but the catch is your belongings and property can be distributed to creditors to pay off your debts. There are items exempt from this, but in extreme situations where you owe large amounts of money, you could lose everything.

This is the end of the line for most people. The bankruptcy mark will remain on your record for a number of years, making it almost nearly impossible to take out credit.

Chapter 13 Bankruptcy Explained


Chapter 13 bankruptcy isn’t bankruptcy in the conventional sense. While you agree you can’t pay off your debts, you don’t necessarily discharge the debts. Instead, you broker a deal in the courts between you and your creditors where you’ll create a repayment plan. Usually, you’ll have your wages garnished every month until the debt is repaid. The difference is you aren’t putting your belongings at risk unless you specify that in the terms of repayment. In some cases, you might have some of your debt discharged.

Like chapter 7 bankruptcy, the mark of a chapter 13 bankruptcy remains on your credit score for several years, making it difficult to take out new lines of credit.

What Can They Take?


In chapter 13 bankruptcy they can’t take a thing. This isn’t where you admit you have to make a fresh start. It’s simply admitting you need legal intervention to help you pay off your debts. You can agree to sell something, like a car or furniture, to make the deal better for yourself, but it isn’t always necessary.

In the case of a chapter 7 bankruptcy, they can take anything of sufficient value. A bank could seize property, but in many states your primary residence is protected. Despite the equity, it’s likely the bankruptcy could still force a sale of your home so the creditors can recover their money.

You can lose your vehicle unless the court deems it essential to your livelihood. You can also keep trade tools for your work, but this only applies to a certain value. Anything above this value can be sold.

Your furniture and personal belongings are normally exempt from being sold off to collect a debt. Expensive jewelry and large items like plasma televisions and high-tech computers can be sold if they’re worth enough.

If you’re filing for either type of bankruptcy, it’s strongly recommended you employ a bankruptcy lawyer to help with the process. Through professional legal guidance, you can get you a more favorable deal and potentially help you retain many of your possessions.

About the Author:
Ashley Parker has worked with many bankruptcy lawyers and financial advisors over the years. She regularly educates people on the differences between chapter 7 and 13 bankruptcies. As one of many chapter 7 attorneys, she recommends her clients try to opt for chapter 13, if at all possible.


Tuesday, April 23, 2013

When To File For Bankruptcy - Seven Tips

Bankruptcy is a last resort for many people. Debt is sometimes quite difficult to get out of, and no amount of saving or investment is going to help you in this regard. If you are thinking of filing for bankruptcy, however, it is important to take a few things into consideration. 

Bankruptcy is essentially a legal status that you will take when you are unable to pay debts to your creditors. A lot of the time, bankruptcy is usually going to be imposed on an individual via a court order. Some people may see that it is best for themselves to take bankruptcy on their own in order to avoid having to pay off the large debts that they have acquired.


Creditors' Legal Rights


Bankruptcy does not mean that you can completely avoid your debts. It means that you can only make them wait for you to pay back your debts over time. Essentially, this is a way of buying you time.


Your Co-Signer


The co-signer to any loans that you have taken out is still going to be held responsible for anything that you cannot pay back. This is something that bankruptcy is not going to cover, so remember this.


Debt Collection


If you can go for bankruptcy, then you will be able to stop debt collection harassment. This is often one of the many reasons why many people will seriously consider taking this particular path.


Types


There are different types of bankruptcy that you can choose. If you want to find out more about them, then you are going to have to speak with your lawyer. He or she will be able to run you through the details so that you can make an informed choice when it comes to your financial decisions.


Discrimination


According to the law, you cannot be discriminated against by employers or other institutions just because you are bankrupt. This means that you will have legal protection and be able to get other work.


Cost


There are going to be costs involved when it comes to declaring yourself bankrupt. Each case is going to have a different cost attached to it, though most of the time these are going to be the same. The fees usually fall between $150 and $200.


Your Credit Rating


Your filing for bankruptcy is something that is going to remain on your credit rating for at least ten years. This is why it is important to take everything into account when you decide to file for bankruptcy. If you are looking to buy a property within the next ten years, then this is going to end up being very difficult no matter how much money you have.

Make sure to keep all of these points in mind before you decide to take that step. This will ensure that you can make a proper, informed decision.

Author Bio:
Ashley is a professional writer. She is interested in writing finance, Money saving related articles.This is one such article which explains on how You can Avoid bankruptcy with Debt Management Counseling & Learn to control your finances by Credit card debt management programs.



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