Contemplating Filing for Bankruptcy?
Author: babwebstar
Bankruptcy has many reputations, some people think that bankruptcy will take care of all their debts and life will be good. Some people file as often as they can, they have made it a way of life. Some people should file and don’t because of what other people will think.
Filing for Bankruptcy does not get rid of all debts. Some of those debts include but are not limited to: Alimony, Child Support, Back Taxes, Student Loans, and Fraudulent debts, and recent large purchases of more that 0 for luxury item purchased within 90 days of filing.
There are two different kinds of bankruptcy a consumer can file for Chapter 13 and Chapter 7. Chapter 7 is total liquidation it is the quickest. Federal bankruptcy laws provide a “means test” to determine eligibility. Also beginning October 17, 2005, you must obtain approved credit counseling before you can file bankruptcy. Another new federal bankruptcy requirement is that you must file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy. Under Chapter 7 bankruptcy there are certain items that can be kept but have limits. There are State exemptions and Federal exemptions and rules that go with them. Another thing to consider is Chapter 7 will not fix is your credit score. If you are behind on your bills your credit may already be bad and bankruptcy cannot fix it. If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.
Chapter 13 is a reorganization of debt. While many think that they will have to pay the entire amount of outstanding debt, under Chapter 13, individuals literally pay pennies on the dollar and work through a repayment plan that helps them achieve freedom from their debt in a period of between three and five years. There are many steps to filing Chapter 13. Many assets can be kept and protected under Chapter 13. Like Chapter 7 there are also qualifications that need to be met before filing Chapter 13.
There are alternatives to filing bankruptcy. Bankruptcy should be the last resort. There are many attorneys that specialize in this area. Each state has its own rules along with many federal rules and regulations. An attorney can help decide whether or not someone should or can file for bankruptcy, which kind of bankruptcy, and whether or not they are eligible.
Article Source: http://www.articlesbase.com/bankruptcy-articles/contemplating-filing-for-bankruptcy-717488.html
About the Author
Please visit Great Lakes Bankruptcy Center,PLLC We can help!
Bankruptcy Filing info?
I am doing some research into bankruptcy filing in the state of Michigan, specifically in the automotive industry.
Anybody knows where I would find records of companies filing for chapter 7 and chapter 11 bankruptcies in the state of michigan? Thank you.
Payday loans right before Chapter 7 Bankruptcy filing?
I got two payday loans right before filing chapter 7 bankruptcy to help with the court chapter 7 filing fee. I filed Pro Se. The loans both totaled $500 dollars . Do I have to repay (or reaffirm )them since they were less than the $750.00? .Also taking the loans less than the 70 days of filing the bankruptcy . I did not know this before I filed . Only after doing research did I discover this.
My ex-wife is filing bankruptcy. To challenge this, do I need a divorce lawyer or a bankruptcy lawyer?
My ex-wife just told me that she is filing chapter 13. From the research I’ve done online, it looks like I have to prepare for the debt that she was assigned in the divorce decree to come back to me. Q1) Is this how it works? Q2) What kind of lawyer do I need to hire to challenge this? Q3) What are my rights and obligations? It’s hard to find information about bankruptcy if you’re on the receiving end. Where can I get more information???
when filing for bankruptcy what happens to joint things i have with family or friends?
i have a vehicle that has me and someone else and then credit cards as well. Will this be included? Also what happens tax season, will i get my refund or does the state keep it? I did some research and i couldnt find answers on this.
YES bankruptcy is my only option so please dont lecture on finding other means….i ve been trying for 6 years and this is and will be my last resort.
I have four rental properties that are going into foreclosure and I’m considering filing bankruptcy.?
However, I need to know whether it matters if I file bankruptcy before or after they foreclose to ensure I can exclude the income from the 1099′s i will receive? Also, I was told that I have 6 months to file bankruptcy before the 1099′s can’t be included in the bankruptcy. Is this true? Where can I look to research this information/rules?
This is one of the dangers of filing Pro Se. If something is done wrong you are in danger of having your bankruptcy dismissed.
When you talk about the loans do you mean that they both were $500($1000 total), or that together they were only $500. As long as the total of the loans(not individually) was under $750 they can be discharged. Once you are above $750 you can not get them discharged. But if you wanted to you can still reaffirm the debt. That is as long as you did list them on your Bankruptcy Petition.
If you did not list them on your petition, then you need to get it added. If you do not add them and the trustee finds out about the loans you will have some serious explaining to do. It could just mean that they disallow that debt, or they could dismiss the entire bankruptcy.
Yes, the US Dept of Justice tracks all of these statistics. Paste the following link and you’ll see statistics per bankruptcy court.
http://www.uscourts.gov/bnkrpctystats/statistics.htm#june
By the way, there is more than one BK district in Michigan, so you may have to add more than one column in the table of statistics to cover the whole state.
You might consult a bankruptcy attorney, but if the debt is discharged, the creditor can come after you. The poster was correct, in that the divorce agreement assigned responsibility to the debts, the decree does not relieve you of the debt you incurred during your marriage. Another tactic that you might have, depending on your jurisdiction, is a motion to modify your divorce agreement, since there has been/ will be a change in circumstances, perhaps based on fundamental fairness the court may allow you to offset this new burden in some form. Since the new Bankruptcy code, the rules are confusing to even attorneys that formerly practiced in this area, in fact, many attorneys now longer practice in this area due to the attorney now being responsible if their client hides assets or does not provide accurate information on the schedules.
You should definitely speak to a bankruptcy attorney (and maybe an accountant as well) in your area. Generally, however, the advice is that the best way to show insolvency is by declaring bankruptcy BEFORE the homes are foreclosed upon. My understanding is that if you wait until after they are foreclosed it is too late.
First..the last 2 posts, I don’t know where they got there information..but way off….First post..right on the money! Adding to that….If and I say if you qualify, you will need to speak to a qualified bankruptcy attorney in your area and most do see you first time free or first free hour consultation. Second…If you have a vehicle and you still owe on it, and are current on the notes, you can re-affirm (continue to pay) even if you’re filing, that’s how the secured debt works in a chapter 7…If you don’t qualify for the 7..you can go into a chapter 13 , and the vehicle payments do not have to be current, and go into what they call a payment plan…it is derived of your total income, debts, assets and a good attorney will be able to tell you how much you’ll pay per month…it’s based on how you get paid, weekly, bi-weekly…and it is garnished from your check, but not really a garnishment, they call it a wage order…The money goes to the US Bankruptcy Trustees and there is a trustee that handles your bankruptcy throughtout the time frame of the bankruptcy, usually 5 years, sometimes 3, it depends on how much income and if they feel you can handle paying back in the smaller time frame. The only way someelse will be affected by your filing for bk is if you let it go into repossession and then the creditor goes after them. In a chapter 13, and the payment plan, they secured debts are paid first, like the vehicle, then the credit cards, which would be at a very small %….Your taxes won’t be touched unless you owe the IRS money..that’s when they will get your refund. Check this website out…..www.bcsalliance.com…Someone on this site gave me the website, it’s awesome…great info on debt, statue of limitations, bankruptcies…browse around it and you’ll learn more about what a bankruptcy entails….Good Luck!! If you have questions, feel free to email me…I used to work for a bk attorney, so I can try and be of some help….