Posts Tagged ‘Chapter 7 Bankruptcy’

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Bankruptcy Lawyers In Massachusetts – How They Can Assist You To Get On Your Feet Again.

April 30th, 2010

If you are being overwhelmed by debt, if your credit card payments are becoming too much to handle and your medical bills are on their way to drive you out of your mind, you might have no other choice but to submit an application to the courts to be declared bankrupt. For those of you who live in Michigan: there are many excellent Bankruptcy Lawyers in Massachusetts that are eager to assist you.

What is bankruptcy? It is a way to get legal protection against your creditors if you are unable to meet your debts for valid reasons. Reasons that can be put forward during the application include large medical expenses, losing your job and the loss of an income earning partner.

It is highly advisable to call in the services of a legal expert during the application process. Unless you want to walk out without a dime in your pocket.

When an application for bankruptcy is submitted to the court by your lawyer, the court will let all your creditors know about this. A meeting (‘first meeting of creditors’) will then be set up. This normally takes place 30 or 40 days after the application has been filed.

At this meeting you have to provide information about all your assets and liabilities as well as income and expenses to the presiding officer. From there on your lawyer will deal with your creditors. If a creditor should therefore turn up at your front door, you can safely refer him to the lawyer.

Should your application be approved, you will no longer have to pay the majority of your creditors. The bad news is that everything you own will become part of the insolvent estate. You will only be allowed a couple of things, normally that needed to carry on working.

Bankruptcy Lawyers in Massachusetts are law experts. They know bankruptcy law like few people know the Bible. They are also totally familiar with the whole application process. It’s therefore in your own interest to use one of them to represent you during the application and afterward.

Filing for bankruptcy is an important and difficult decision. Speaking with a Arlington Heights Bankruptcy Lawyer can help you to make a sound decision for you and your family. Speaking with a qualified Massachusetts Bankruptcy Lawyer will help you understand your options.


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Chapter 7 Vs. Chapter 13 Bankruptcy: Which Is Best For Your Situation?

April 16th, 2010

When considering the very difficult option of bankruptcy, one of the first decisions to make is whether to file for Chapter 7 or Chapter 13. Although the rules differ from state to state, the basic differences between the two are the same everywhere, as filing always takes place in Federal Bankruptcy Court.

A little Internet research will give you the basic rules in your state, but in general, there are two major categories of bankruptcy: Chapter 7 and Chapter 13. The former is the more traditional type, usually referred to as “liquid” or “straight” bankruptcy. Filing for this ensures that all debts, except child support, student loans, alimony and taxes are forgiven.

One of the most common reasons for selecting this option is losing long-term employment. In the current economy, someone who has recently lost a job often struggles to obtain a comparable job and turns to credit cards and savings to pay bills – which leaves someone with little to no options. Other instances such as death of the family bread winner, divorce and high medical bills are also common reasons for someone to consider or follow through with Chapter 7. Needless to say, although it’s possible for a layman to deal successfully with the complicated paperwork and legalities involved in the process, consulting with a bankruptcy attorney is highly advisable before filing, if only to ensure not losing more than is absolutely necessary.

Chapter 7 involves the debtor selling their nonexempt assets and utilizing the proceeds from the sales to repay debts. It is important to note that in order to qualify for this option, you must calculate your “current monthly income,” which is actually the applicant’s average income over the last six months. If this number is higher than the median income for a family of your size in your state, you will not be eligible to file.

A Chapter 13 bankruptcy, on the other hand, does not require that you relinquish anything. Instead, you will be expected to repay your debts through use of a structured plan which must be approved at a bankruptcy court hearing, attended by your creditors. This option is advised if you’ve simply fallen behind and your debt has overwhelmed your available funds. This kind of bankruptcy is basically a promise to pay your creditors according to a schedule agreed upon at the hearing.

If you are employed and can depend on a regular income, Chapter 13 is probably the best way to go. In most states, if things take a turn for the worst down the road, you can always resort to Chapter 7 if you have been unable to meet the repayment schedule within five years after filing.

Again, keep in mind that your state may have more or less restrictive laws concerning the details of either type of filing, so although it’s possible to wend your own way through the maze of legalities, you are always much better served by consulting with an attorney rather than trying to do it yourself.

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In the Detroit metro area, if you are considering bankruptcy, call on A Better Way Bankruptcy. With nearly three decades of collective experience in bankruptcy law, their friendly, helpful and compassionate attorneys and professionals can help you obtain relief from debts, stop calls from creditors and get you moving toward a fresh start. Distributed by SEO 2.0 Services


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Chapter 13 Bankruptcy In Chicago – An Overview

March 31st, 2010

One particular question that the majority of consumers deliberating on filing for consumer bankruptcy in Cook County, Illinois frequently will wish to ask a Chicago bankruptcy lawyer is: “What’s the distinction between Chapter Thirteen and Chapter 7?” While Chapter Seven is basically a “liquidation” – the use of your present interest in property to pay back your lenders – Chapter Thirteen bankruptcy is designed to provide you an opportunity to reorganize your fiscal state of affairs in a way which will let you pay some or all of your debts while using the money you make in the future. Although a lot of assets can be shielded from being sold pay off creditors in Chapter Seven , if ever the value of your interest in any asset exceeds the federal or state exemption amount, that property may be sold with the proceeds applied toward your debts.

Possessions are not liquidated in a Chapter 13 bankruptcy. Rather, you’ll be able to keep and still make use of all your assets regardless of if it is protected with an exemption. Your obligations are paid for via a bankruptcy plan that has been accepted by the court. When you complete the plan, you obtain a discharge like the discharge in a Chapter 7.

There are exceptions to your Chapter 13 discharge. For example, longer term financial obligations with last installments due subsequently after the plan is concluded which are “cured” in the plan are not discharged. Specified tax debts aren’t discharged. Neither are any debts incurred by means of fraud, those not listed in the bankruptcy, most student loans, or drunk driving debts along with criminal penalties or civil penalties.

Even if a discharge couldn’t end up being granted in your specific circumstances, there are instances when it could be in your best interest in any event. Whether or not a discharge is not available under Chapter 13, if you’re behind on your house loan and at risk of losing your house to the mortgage lender, Chapter 13 Bankruptcy can help you to avoid a foreclosure and get caught up on your mortgage payments over the course of plan.

A great number of people today assume that if perhaps they need to file for bankruptcy that they’ll lose almost everything they’ve got. This, though, is not so. While both Chapter 7 and Chapter 13 have their particular benefits,Chapter 13 bankruptcy is usually the preferred chapter for those wishing to save their homes from foreclosure.

Chicago bankruptcy attorney, and publisher of Chicagoland Bankruptcy Help, John Kunes works hard to be the bankruptcy attorney Chicago can depend on.


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Filing for Bankruptcy – When Is It The Right Choice?

March 27th, 2010

There are many reasons why people may get overwhelmingly behind on their bills with little hope of catching up. Whether due to a mistake somewhere along the way or circumstances beyond the individual or family’s control, sometimes filing for bankruptcy is the best possible choice – but it is not a decision to be taken lightly.

When considering this important issue, keep in mind that there are two different types of filings. Chapter 7 is generally for people who don’t have assets they need to protect, such as a house, or for those who don’t have enough money to pay their current bills. Chapter 13, by contrast, can restructure past due debt to help people keep their house and car. However, it is only appropriate for those who can afford their current bills plus a little extra to get caught up on back payments over time. Only you and your lawyer can decide if either type is right for you, but here are some common reasons for bankruptcy filings.

1. Loss of employment. Those who lose their jobs may find it very difficult, if not impossible, to make ends meet. In the current economic climate, it can be challenging to find another job soon enough to keep all the bills caught up. When things fall hopelessly behind, it may be time to consider this incredibly difficult option.

2. High medical bills. Serious injury or illness can cause huge medical bills that the average family or individual won’t be able to pay. When this happens, filing for Chapter 7 or 13 may be the only option to get relief from burdens of medical debt.

3. Death of wage earner. When one of the primary wage earners in a family passes away, bills that were perfectly manageable can suddenly become much too high for the family’s diminished income. Bankruptcy can give those who are in this difficult situation the fresh financial start that they need.

4. Preventing foreclosure on a home. When a foreclosure is looming and can’t be otherwise avoided, Chapter 13 can stop the process and help families and individuals keep their homes while restructuring debt to make catching up on late payments possible. Likewise, Chapter 13 will stop utilities from getting turned off.

5. Preventing a car or other assets from being repossessed. Chapter 13 bankruptcy also can restructure debt on a car or other possessions by consolidating late payments. This can allow those who are filing to keep their cars and other possessions.

6. Stopping wage garnishments. Wage garnishments can decrease a paycheck to the extent that it is hard to get by. Bankruptcy will halt most wage garnishments, with the exception of garnishments ordered by the court for child support.

It’s important to remember that bankruptcy doesn’t wipe out all debt (student loans, child support, and some taxes are examples of debt that will generally remain). Filing is extremely complicated, and bankruptcy laws vary from state to state. The consequences of a botched or ill-advised filing can haunt you for many years to come, so it’s best to not attempt it by yourself.

Hiring a local lawyer who specializes in this sensitive issue is highly recommended to ensure that the filing is done correctly and that you and your assets are protected to the fullest extent of the law. Fortunately, many lawyers offer free consultations to help you decide whether either chapter 7 or 13 could be the right choice for you. Quite a few will submit your filing for a reasonable flat fee.

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If you need a Portland, Oregon bankruptcy lawyer, call on Aurora Law Office. With a reputation for honesty and integrity and over 25 years experience, they have focused only on divorce and bankruptcy since 1996. They provide a friendly environment, free initial consultations, payment plans and flat-fee charges available for uncontested divorces and bankruptcies. Distributed by SEO 2.0 Services


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Chapter 7 Bankruptcy Information: Learn About Your Fresh Start

January 29th, 2010

From the beginning of America’s recent recession through the present day, there has been a lot of talk about debt and bankruptcy. Since it is perhaps the clearest way for debtors to get a clean slate and get on with their lives, there is a lot of Chapter 7 bankruptcy information that is helpful to know. Anyone in serious financial trouble, however, should definitely consider seeing a lawyer that specializes in bankruptcy law. That being said, what does Chapter 7 bankruptcy mean for debtors and who can apply for it?

A Chapter 7 bankruptcy is one way of getting clear of insurmountable debts. With a Chapter 7 filing, all property not exempted under federal or state law is subject to liquidation. Those assets are sold to reimburse creditors, and then the remainder of the debts is erased. Under Chapter 7, debtors do not have to repay their creditors under a repayment plan beyond what occurs in the liquidation phase.

There are only two initial requirements to file a Chapter 7 claim. The first is that the debtor, whether it is an individual or a business entity, meet with a credit counselor up to 180 days before the claim is filed. The debtors record must also be clear of malfeasance with the bankruptcy court system for 180 days or more, otherwise they may be disqualified. Not taken into consideration are the amounts owed by the debtor(s), nor their financial solvency. In other words, Chapter 7 does not require that someone be destitute to qualify for a clean debt slate.

Of course, the court system isn’t about to let someone clear their debts if they are clearly capable of paying them but refusing to do so. Thus, the federal government developed a ‘means test’ to figure out whether or not someone is trying to abuse the system with his or her petition.

The first part of the test depends on how much an individual has earned monthly over the past five years in comparison to the median income of the state they’ve resided in during that period. Unsecured debt, or debt that isn’t secured by some form of collateral, is key to understanding the second part. Usually, credit card debt is unsecured debt. Your expenses cannot go beyond twenty five percent of their unsecured debt, otherwise the court perceives that the debtor is filing an abusive claim. At that point, the debtor will either have his case dismissed or have to file for Chapter 13.

A Chapter 13 claim is very different from a chapter 7 claim. Under Chapter 13, a debtor is placed under a five-year repayment plan to his creditors. The amount left over after that period is dismissed under Chapter 7, and no property is liquidated.

Since the exemptions to what is liquidated under Chapter 7 don’t include very much at all, those debtors wishing to keep the majority of the property that either has a lien on it or is the cause of debt would probably seek an alternative route to repayment. Likewise, Chapter 7 probably isn’t right for those who wish to keep their business going. Another alternative, of course, is coming up with a repayment plan outside of court and avoiding the fees of filing for bankruptcy.

Armed with Chapter 7 Bankruptcy information, it’s clear that your finances are going to be subject to intense scrutiny by the bankruptcy process. This is so that Chapter 7 can do exactly what it is meant to do: provide a means by which honest debtors can get their lives back on track.

Anyone in serious financial trouble should definitely consider seeing a lawyer that specializes in bankruptcy law. That being said, what does Chapter 7 Bankruptcy Information and Chapter 13 Bankruptcy Rules mean for debtors and who can apply for it?


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