Posts Tagged ‘Chapter 13 bankruptcy’

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Yes, You Can File Bankruptcy Again!

November 3rd, 2010

I, like many other Orlando bankruptcy attorneys, do not like repeat customers. Referrals are the backbone of my business, but a repeat customer is someone who, after receiving bankruptcy relief once, has met with financial troubles again. While I’m sorry to see them back in a difficult situation, I am happy to say, I can usually help my client get debt relief again.

Many people believe that bankruptcy is a “once-in-a-lifetime” deal. In other words, they think that once you have filed, you cannot file again. This is simply not the case. When a previous client calls me about possibly filing bankruptcy a second, or even a third time, I explain the following:

Since life can be “unfair” and it is impossible to predict a future financial disaster, bankruptcy laws do not prohibit you from receiving debt relief by filing bankruptcy again. In light of the recent economic downturns, people have lost their jobs, incurred medical bills or other unforeseen emergencies that put them in a position in which they again feel their best solution is to file bankruptcy.

So, let’s break it down. First, you may file a Chapter 7 bankruptcy once every 8 years. Section 727(a)(8) of the Code says as much.

If your last case was a Chapter 7, and you are within the 8 year window and cannot file another Chapter 7, then you may file a Chapter 13 bankruptcy if 4 years have passed from the time you filed the Chapter 7. See Section 1328(f)(1) for that one.

If your last case was a Chapter 13, then you must wait 6 years from the time you filed the Chapter 13 before you can file a Chapter 7. However, you can still get a Discharge from a Chapter 7 case filed within the 6 years from filing the previous case if the Chapter 13 payment plan paid either 100 percent of all allowed unsecured claims or paid 70 percent of such claims, was proposed in good faith, and represented your best efforts. Section 727(a)(9) is where to go for this.

If two years have passed since your last Chapter 13 case, you may file another Chapter 13 bankruptcy.

There are exceptions to the 2 year rule for Chapter 13 bankruptcies. In general, multiple filings occur in conjunction with avoiding home foreclosure. If you can show your circumstances have changed and that you could continue to make payments resulting in a successful outcome of your case and that the Judge rules in your favor, you may file a new Chapter 13 within the 2 years.

Navigating the timelines involved in these cases can be tricky and it is a good idea to talk to experienced Orlando bankruptcy attorneys about your specific situation before making a decision on whether you can file bankruptcy or not.


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If You Need Financial Help But Want To Keep Your Assets Consider Chapter 13 Bankruptcy

October 31st, 2010

Many people believe that filing for bankruptcy means losing any assets that you have. This is true when you file chapter 7 bankruptcy because it uses liquidation to turn your assets into cash which then goes to your creditors.

Without income coming in you may have no choice but to file chapter 7 bankruptcy. You would make this decision if you were fairly certain you can’t straighten things out on your own or with help.

There are circumstances where people are struggling with debt but still have income coming in and feel that there could be hope of getting back on their feet. This is the kind of person that is the best fit for chapter 13 bankruptcy.

When you file for chapter 13 bankruptcy you get a payment plan and have it approved by the court. Your payment plan will last for 3-5 years and be interest free. Once you have completed the payment plan you may be discharged of any remaining debt. Because you make payments for a long period you pay down enough debt yourself that you keep you assets.

Once you are in the process of chapter 13 bankruptcy creditors will no longer harass you for payments and they are not allowed to shut off any services such as electric or phone as long as you are making the agreed upon payments.

Should you stop making payments you may still have some options. They may allow you to restructure your payment plan or if there is no way you can pay you can change to a chapter 7 filing.

Chapter 7 bankruptcy stays on your credit score for 7-10 years. Chapter 13 typically stays for 2 years less.

It is very common for businesses to file for chapter 13 bankruptcy.

Bankruptcy proceedings are very complicated. It is best to enlist the help of a qualified bankruptcy attorney as soon as possible. They can walk you through the process and help you decide what is most realistic for you.

Looking to find the best bankruptcy lawyer, then visit www.changandcarlin.com to find the best advice on chapter 13 bankruptcy for you.


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Can Bankruptcy Eliminate IRS Debt?

September 24th, 2010

As an Orlando bankruptcy attorney, I know that my clients fear IRS debt over and above all other types of debt. That fear, in some respects, is justified given the unique powers the IRS has to collect on debt owed to it. However, in some cases, people who owe money to the IRS can obtain the same debt relief with the IRS that they can with their other creditors by filing either a Chapter 7 or Chapter 13.

Not all IRS debt is dischargeable in bankruptcy. However, with the help of an experienced Orlando bankruptcy attorney, it is possible to achieve the debt relief you seek when dealing with the IRS. Basically, it comes down to timing and meeting 5 general requirements.

1. The Three-Year Rule

Normally, tax debts are due April 15th of the year after the year for which the taxes are assessed. However, if an extension was filed or the return was filed late, that date is pushed back. Once three years have passed from the date the taxes were due, the IRS debt passes this qualification.

2. The Two-Year Rule

More than two years prior to filing bankruptcy, the tax return for the IRS debt in question must be filed with the IRS.

3. The Two-Hundred-Forty Day Rule

240 days must pass after the last assessment of the tax claim by the IRS prior to filing bankruptcy.

4. Non-Fraudulent Return

No fraud was involved in the filing of the tax return in question.

5. Willful Tax Evasion was not Present

There was no attempt by the taxpayer considered be willfully “cheating” or evading the tax.

These are very basic qualifications to determine whether IRS is dischargeable when filing bankruptcy. Only an experienced Orlando bankruptcy attorney can help you determine if your IRS debt can be eliminated by the filing of a Chapter 7 or Chapter 13 bankruptcy, and help your avoid any problems that could arise out of the given qualifications.

When my clients have IRS debt they would like to eliminate when filing bankruptcy, I advise them to file an Adversary Proceeding along with their bankruptcy case. This Adversary Proceeding allows a separate Order to be entered specifically stating that the IRS debt has been Discharged in the case. With this Order, there can be no question, once the bankruptcy is closed, that the IRS debt was eliminated in the bankruptcy.

As you can see, it is possible to eliminate money owed to the IRS when filing bankruptcy. Depending on when you file the case and how old the debt is, you may be able to Discharge all or most of the IRS debt you owe.

If you have questions about whether you can eliminate IRS debt, or when you are ready to speak to an experienced Orlando bankruptcy attorney to determine if you can indeed wipe out that debt, I hope you contact me.

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Chapter 7 Bankruptcy Is Not The Only Chapter

September 20th, 2010

Bankruptcy is the result of being unable to meet ones financial commitments.

Businesses and individuals are entitled to file for bankruptcy under chapter 7, which has the attraction of removing debt from the debtor at discharge.

The main drawback to chapter 7 is that, with a few exceptions, all personal assets are sold to provide funds for creditors in full or part payment. However, if an individual is under crushing levels of debt, losing everything and starting again can be an attractive proposition.

However, chapter 7 bankruptcy is not always an option, as a compulsory 2 stage means test has to be completed to ensure that the individual really does have no way of meeting his or her debts.

The way the means test works is to check and see if the debtor’s income is less than the median income for a same size family in the same state over the previous 5 months. If it is, the debtor can file under chapter 7. If not, a further test is applied, failure of which will result in a chapter 13 filing.

So, what are the alternatives to chapter 7?

First off, think about whether or not you really do need to claim bankruptcy at all? It can look like a simple option, and look very appealing when one is struggling to make ends meet, but the consequences are serious.

Perhaps the first thing an individual should seek to do, is to talk to those to whom they owe significant sums and see if any of these can offer a repayment holiday, or a deferral. Failing this, a simple rescheduling should be sought.

If a creditor is open to a revised payment schedule, then combine this with a debt counseling service to help formally arrange things. What you have then done is basically the same as a chapter 13 bankruptcy, but without the bankruptcy!

Chapter 11 is suited for businesses. If a case under chapter 7 has been dismissed, then that means that the court feels that the company has sufficient income to repay at least part of it’s debts. Chapter 11 allows the company to continue trading, thus generating income, whilst at the same time repaying its creditors by way of an agreed and enforced repayment schedule.

It might be that because of these harsh economic times you might be considering declaring yourself bankrupt. If you would like more free information about declaring yourself bankrupt, visit www.declaringyourselfbankrupt.net.


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Credit Repair Tips To Help You Avoid Bankruptcy

September 19th, 2010

Creditors have to determine what kind of a risk it would be to loan you money. All debtors are a risk to creditors however it is those they view as a good risk that will ultimately get the loan. In order to reach your goal of being seen as a good risk you need to first take action to raise your credit rating. A good credit score is the best way to be seen in a good light by a creditor. Use these tips below to start increasing your credit score. Keeping your credit score high is also a great way to keep bankruptcy from becoming your reality.

1. Get your hands on a copy of your credit report.

If your score is below 400 you really need to take steps to repair your credit quickly. Even a score below 500 would set of warning bells in the minds of creditors. 600 and below is acceptable but you ultimately want your score above 600 so that creditors will see you as a good debtor capable of paying them back their money. Your credit score is yours and there are many free credit reports available that will help you keep tabs on your score.

2. Consider loan consolidation

When you take your current debts and consolidate them into one loan you are likely to reduce your total monthly payment. It will also make it easier to pay off these debts.

3. Pay on or before the due date each month

Loan consolidation is a tool to help you. It is vital that once you consolidate you pay your monthly balance by the due date. You want creditors to notice you commitment to getting this debt paid.

4. Make bankruptcy a last resort

There is nothing worst that you can do to your credit score than file for bankruptcy. Having bankruptcy on your credit record means getting a small loan, buying a car or buying a home would be virtually out of reach. Bankruptcy stays on your credit report for 7 years and that is a very long time.

If your debt has become out of control and you are considering filing chapter 7 bankruptcy make sure you learn about what is involved in a bankruptcy proceeding and consult with a qualified bankruptcy attorney.

Learn more about chapter 7 bankruptcy. Stop by David Chang’s site where you can find out all about bankruptcy proceedings and what we can do for you.


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Filing Bankruptcy Under Chapter 13 May Wipe Out Your 2nd Mortgage

September 8th, 2010

It probably won’t surprise you, as an Orlando bankruptcy lawyer, I have seen it first hand: Orlando home values are on the decline, according to an article published recently in the Orlando Sentinel.

Unfortunately, the same can be said for real estate in almost all areas of Florida. It seems everyone is underwater on their homes. In the past few years, many of my Orlando bankruptcy clients have benefited from the ability, in a Chapter 13 case, for their Orlando bankruptcy lawyer to file a motion in their case which allows them to completely wipe out the balance owed on a 2nd mortgage.

To be eligible for this type of relief, you must be able show, through an appraisal of your property, that the value of the property is less than what is owed on the 1st mortgage. In a recent blog by a well respected Illinois and Wisconsin bankruptcy attorney, David Leibowitz, David points out the options available to people with regard to stripping of a lien (second mortgage) on their home.

Since the decline in the economy, there has been some question over whether a person filing bankruptcy under Chapter 7 could qualify to strip a 2nd mortgage. Recently, this question came before an Orlando bankruptcy Judge and she issued an opinion stating that lien stripping is only available under Chapter 13 bankruptcy. Just filing bankruptcy under Chapter 13 is not enough, you must also complete your Chapter 13 plan by making all payments due under the plan and have your Discharge Order entered by the Judge prior to the mortgage being eliminated.

With any luck, the Orlando housing market will rebound in the near future. At which time, once my Orlando Chapter 13 bankruptcy clients have finished making their payments under the plan, they will successfully strip away their 2nd mortgages and once again have equity in their homes.

By filing bankruptcy under Chapter 13, my clients can attain this goal, along with many others, including saving on their car loans and wiping out credit card debt. With the help of an experienced bankruptcy attorney, debt relief is possible.

If you are considering filing for bankruptcy, make sure you hire an experienced bankruptcy lawyer to work for you. Do you have more questions about filing for bankruptcy before you take the plunge? Check out K. Hunter Goff’s FREE eCourse.


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Chapter 7 Bankruptcy Now Has A Means Test

September 6th, 2010

Of all the various chapters for filing bankruptcy in the US, chapters 7 and 13 are the most popular. In fact 85% of all filings are under chapter 7, probably as this is perceived as the “best” type of bankruptcy, leaving the debtor free from any debt on discharge, unlike chapter 13 where debts have to be repaid under a repayment plan.

Even though all the individuals possessions are sold under chapter 7, the end result of freedom from debt makes chapter 7 the most popular for the debtor, but perhaps the least popular for the creditor.

This is because that although the debtor loses virtually everything, the creditor often recovers very little.

In the past, creditors lost out when sometimes they need not have done, as some people hid the true size of their wealth and used chapter 7 merely to get rid of debt that they could have afforded to repay, had their debts been restructured under a chapter 13 filing.

Therefore, 2005 saw the introduction of a compulsory means test for individuals seeking chapter 7 bankruptcy, failure of which would automatically push them into a chapter 13 filing, which is a 3-5 year repayment plan.

The means test has a number of stages, the first being a calculation of the debtor’s disposable income, based on their earnings over the previous 6 months and deducting various living expenses.

The first stage is to calculate what the applicant’s disposable income has been over the previous 6 months. In other words deducting what the court considers to be reasonable amounts for living expenses for example and seeing what’s left.

There are then two more steps. The first takes your previously calculated “disposable income” figure and compares this against the median income for a family of the same size in your state. If your income is less than this, you do not need to take part 2 of the test as you automatically qualify for chapter 7.

If you income is found to be greater than the median then you have to go through some complicated calculations. The problem an individual faces once they fail the first part of the test, is determining if your “disposable income” figure is sufficient, after paying monthly “allowed” expenses, to pay at least a proportion of your unsecured debts (credit cards for example).

The point is that you should really get professional legal advice before filing bankruptcy, so you can be properly prepared.

Bankruptcy is a drastic step, in spite of what other people may tell you. It can devastate your financial future as your credit score drops. Although chapter 7 is the most common form of bankruptcy, it may be worth looking at chapter 13 bankruptcy law. If you would like further free information and advice, visit www.chapter13bankruptcylaw.net.


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In Chapter 13 Bankruptcy, What’s The Plan?

September 4th, 2010

It helps to have a plan. In life. In business. In relationships. Plans are good things. So to, in Chapter 13 bankruptcy, having a plan is not only a good idea, it’s the law!

As an Orlando bankruptcy lawyer, I help my clients formulate a Chapter 13 payment plan to accomplish their financial goals. Depending on my client’s situation, through their payment plan, which can usually last anywhere from 36 to 60 months, I can help them catch up a mortgage payment, eliminate a second mortgage altogether, wipe out credit card debt, save money on a car loan, or handle IRS debt.

The Debtor, the person filing the Chapter 13 bankruptcy, has to file a payment plan at the outset of the case. The plan’s job is to tell everyone what goals the Debtor wants to achieve during the time the Debtor is in bankruptcy. The plan also instructs creditors how they will be dealt with, and tells the Chapter 13 Trustee who to pay and how much to pay each creditor.

The Debtor has several options to choose from when creating a chapter 13 plan. Too often in Court I see folks try to develop a plan with no idea how to express what they want to do in the plan in a way that can be understood by anyone. The result is that the plan gets objected to, or the Debtor’s case gets dismissed by the Trustee. This is bad because then the Debtor has filed bankruptcy and got nothing from it.

If you want a good result from your Chapter 13 case, hiring an experienced Orlando bankruptcy lawyer is a great place to start. In almost all of my cases, so long as my client keeps up with the Trustee payment during the plan, my client will never see the inside of the Bankruptcy Court. Even better, my clients will have met all of the goals they wanted to achieve when their case was filed.

In Chapter 13 cases, it’s all about having a plan. A plan that gets you through the Chapter 13 process and wipes out your debt is even better.

Learn more about Chapter 13 bankruptcy. Stop by K. Hunter Goff’s site where you can find an experienced Orlando bankruptcy lawyer and learn how he can help you.


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What Kinds Of Bankruptcy Exist In The United States?

August 23rd, 2010

U.S. Bankruptcy Code, through federal law, directs bankruptcy cases to all of the elements of bankruptcy related to supervised processes through Bankruptcy Rules, though, a lot of local judicial districts might have their very own rules. Over the land there’s at least ninety separate judicial districts, several states having more than others establishing varied types of procedures which are specific to each district.

Chapter 7, used by both individuals and businesses, can be an option that can offer rapid assistance for the debtor, making it possible for a halt to any course of action to pursue debt owed towards the financial institution, soon after relevant details, a “means test” plus a petition have already been recorded. By the act of the court, filing fees as well as related costs could possibly be amended, in certain conditions with time, approximately 180 days. Though the structure of Chapter 7 is needed to get help for a debtor, for his or her mounting financial obligations, they need to make note of that it also provides the creditor a much better return of money due, through liquidation of the borrowers estate assets, not really shielded by Chapter 7 exemptions. Much of the consumer’s debt should be expected to be discharged, however this method is not readily available to partnerships and corporations.

Chapter 13 is a bankruptcy option useful to debtors having sufficient income to ensure progress on the money they owe granted some support, for example respite from the particular procedures of lenders. A trustee is appointed then debtor needs to build a schedule in support of financial debt fulfillment inside a three to 5 year time period which will then be provided to the judge. To end up being allowed the plan needs to be in compliance with the Bankruptcy Codes, secured loan providers need to be provided for in comparison with the chapter 7 solution, and also the financial debt needs to be within precise boundaries. Furthermore, often the debts are not discharged until the plan payments are finished. The main advantage of Chapter 13 is the debtor won’t lose property and assets seeing that this is not some sort of liquidation method.

Chapter 12 features a equivalent process to Chapter 13, although is distinctly specific to farmers and fisherman, plus the supervision the substantial amounts of debt affiliated with his or her companies. This method allows the operation with the enterprise to carry on. Like Chapter 13, a the courtroom appointed trustee takes into account the normal earnings of the debtor, and assists with the making of the 3 to five year repayment schedule.

Chapter 11 is a reorganization course of action designed far more for firms compared to individuals. The procedure may become highly-priced along with lengthy. The judge possesses complete jurisdiction over the rejection or acceptance regarding the reorganization approach, though loan providers are continually offered the opportunity to assess the debtor’s problems. Employing Chapter 11, the debtor is permitted to make alterations to fortify their particular business to preserve trading by means of a combination of debt discharges and repayment of debt as recommended in the reorganization plan.

Chapter 9 provides relief to municipalities which are generally experiencing financial problems.

Chapter 15 can be described as bankruptcy selection to provide for the scenario in which a debtor or perhaps the debtors estate is managed under the jurisdiction with mutually United States law and those of some other country or countries.

Audus Zinkman has more San Antonio Bankruptcy articles on his personal site. If you would like to read more quality articles on bankruptcy check out his San Antonio Attorney site.


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Guidelines Of Chapter 13 Bankruptcy

August 21st, 2010

The framework of the Bankruptcy Code regarding Chapter 13 is actually specifically designed for a person that can make regular repayments having a constant necessary cash flow to be able to lower or eliminate his or her debt commitments via the accepted payment regimen. The judge allows for a 3 to 5 year time period pertaining to repayments, giving individuals with a greater cash flow a lengthy time-frame. After a petition is filed, the court assigns a stay for any loan creditor’s procedures, preventing foreclosure procedures on any of the debtor’s assets. However any kind of asset that belong to the consumer which has previously happen to be foreclosed on, the property is in no way protected by all the Bankruptcy Rules.

When the borrower intends to file the petition with bankruptcy court, they definitely will often be expected to be involved in debt counseling. When completed, the judge is likely to order from the borrower a full disclosure of all papers and records relevant to virtually all of their earnings as well as loans. The judge appointed trustee would be presented, by the debtor, all facts regarding the consumer’s status of taxes. Wives and husbands are usually able to file together or separately. If either individual file exclusively, the spouse’s earnings and debts shall being disclosed to ensure that the judge can certainly ascertain all debt facts on every legal responsibility and income readily available. Usually created through debt counseling appointments, the repayment strategy is usually filed together with the petition or within fourteen days after. Repayments will start inside of thirty days of the filing.

Lenderswhich have recently been acknowledged by the debtor can be present at the conference planned through the trustee. The particular consumer is going to be obligated under oath, to reply to all kinds of inquiries by the trustee as well as loan companies in order to ascertain the actual situation regarding the borrower’s financial situation as well as his or her capability to pay back the actual financial debt within the time frame. After all of the participants were listened to, repayments might be modified while in the meeting or maybe later on. This particular borrower could be permitted to reduce any payments connected with certain debt using a property performing as a security that may possibly have a valuation a reduced amount of than the actual debt.

Distribution of repayments towards lenders, by means of the trustee, follow an arrangement involving hierarchical structure using the measure regarding priority; secured debt then followed by unsecured. By way of this particular framework, lenders lower in hierarchy may well not attain the total amount on their own claims. Lenders having a priority claim and secured debt have to be provided for, to keep hold of property. Virtually any difficulty relating to unsecured debt repayment amounts about the need in order to ensure these claims acquire no less of which would certainly have been given under Chapter 7 liquidation of the actual borrower’s assets.

Confirmation involving any kind of settlement approach is made by the court, nonetheless this undoubtedly might be rejected. In these cases, the borrower is usually commanded to make specific alterations which they’ll have to resubmit to the judge. Should all or any creditor have any sort of arguments with the approach, it is usually based on the knowing that the lender may possibly be given a shortfall of capital, which may not have materialized had the borrower filed a Chapter 7 asset liquidation petition. Though when the program has been verified, the debtor as well as loan companies are bound to it, and also the consumer is actually then compelled to maintain its procedures.

Many times Chapter 13 is noticeably a lot more helpful with regard to individuals than Chapter 7. It guards any sort of co-debtor from steps by loan companies in order to accumulate jointly held debt, and retention of any kind their property. Under specified conditions, hardship discharges may well be decreed, nevertheless an individual needs to consider that Chapter 13 is complicated, and any discharge will never include any kind of familial support nor any kind of outstanding tax commitments. The consumer may be expected to go through finance managing courses.

Need some more articles on someone that knows San Antonio Bankruptcy. Look no further and go to Audus Zinkman’s homepage called San Antonio Attorney


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