Bankruptcy: Should I File?
To determine if you should file for bankruptcy protection under the US bankruptcy code, is a more difficult task than simply looking at some figures and determining if bankruptcy would wipe out your debts. The idea of having all your debts completely wiped out is a great idea, but there are some implications to bankruptcy which you also must consider. Bankruptcy will affect your credit score and in the short term make it more difficult to obtain a credit card or other forms of financing (although if you're considering filing bankruptcy, you are most likely already dealing with this situation). Although, those who file bankruptcy usually have their credit score increase within the first 15 months after filing bankruptcy. It may also make it more difficult for renting an apartment or buying a home or car. For these reasons you should always contact an experienced bankruptcy attorney to help you decide what your best options are. An experienced bankruptcy attorney will go over options such as mortgage modifications, credit card debt settlement, budgeting and foreclosure prevention. You should also contact experienced bankruptcy attorney to determine which type of bankruptcy you should file; either chapter 7 bankruptcy or chapter 13 bankruptcy.
Bankruptcy: How to File?
Before you file for bankruptcy there are two courses that you must take a credit counseling course and debt management course; both can be taken within six months before your bankruptcy filing petition. To file for Chapter 7 bankruptcy you must also satisfy the "means test" to determine that your financial situation is appropriate for chapter 7 bankruptcy and not an abuse of the bankruptcy laws. An experienced bankruptcy attorney can help you determine if you pass or fail the means test. Once you determine which form of bankruptcy you will be filing, next you must fill out the proper petition and documents for that particular bankruptcy, be it either chapter 7 or chapter 13. Although you do not need an attorney to file bankruptcy, as in any situation where you're dealing with the courts, it is highly advisable that you employ the services of an experienced bankruptcy attorney and do not attempt to file bankruptcy on your own. No amount of online self-education can give you the experience that a qualified bankruptcy attorney can bring to your case.
Bankruptcy: Which Type to File?
The type of bankruptcy petition you will file is really determined by a number of factors such as: do you have a steady form of income, the types of debt you have, your financial situation, your assets and the amount of money you have in equity on your home and sometimes other factors. After the changes to the bankruptcy code in late 2005, the trend has been to encourage people with a steady form of income to file for Chapter 13 bankruptcy, instead of chapter 7 bankruptcy. Chapter 13 bankruptcy, does give distinct advantages over chapter 7 bankruptcy, mainly keeping a home with a mortgage on it or keeping a car with a loan on it, which may have been lost in a chapter 7 bankruptcy case. In a chapter 13 bankruptcy case the court must first approve a repayment schedule, which uses part of your future income to pay some or all of the debt you owe back to the creditors, instead of liquidating your property, as in a chapter 7 bankruptcy. In return for not having your property liquidated certain debts must be repaid, such as: child support, taxes, car loans, home mortgage payments, school loans and in some cases, all of your debts.
Chapter 7 bankruptcy allows you to discharge most if not all of your unsecured debts. In a chapter 7 bankruptcy case a trustee is appointed to collect nonexempt property which will be liquidated to pay off your creditors. After your property is liquidated and bankruptcy is concluded your unsecured debts will be discharged, although this is not an absolute solution for all debts such as child and spousal support, taxes and school loans, to name a few. If you have transferred some of your property in an attempt to keep it from being liquidated during a chapter 7 bankruptcy, such transfers made be seen as fraudulent and undone. There is no repayment plan filed with the court in a chapter 7 bankruptcy, as in a chapter 13 bankruptcy.
Both chapter 7 bankruptcy and chapter 13 bankruptcy are administered by an official known as a US Bankruptcy Trustee. The bankruptcy trustee, which is appointed by the U.S. Bankruptcy Court, investigates the financial affairs of the debtor, sells nonexempt assets in chapter 7 cases, and convenes over the 341 meeting, also known as "meeting of creditors". A judge is appointed to proceed over the case if any rulings need to be made. Lawyers and attorneys are not required in the filing of a bankruptcy petition, but it is highly advisable to employ the services of an experienced bankruptcy attorney as the paperwork is complex and the process complicated.
A chapter 7 bankruptcy case usually takes around 4 to 5 months to complete and remains on your credit history score for 10 years. A chapter 13 bankruptcy case usually lasts anywhere from between 3 to 5 years, depending on the particulars of your case, and will remain on your credit score for up to seven years. Prior to receiving a discharge and either type of case, you must provide certification that you completed both the financial management and credit counseling courses, from an improved counseling agency.
Bankruptcy: When Isn't It a Good Option?
In some situations, bankruptcy is not the best choice. If the vast majority of your debts are not dischargeable, it is not advisable to file bankruptcy. Non-dischargeable debts include certain types of tax debts, child support, student loans and certain court judgments. If the majority of your debts are non-dischargeable, there is no reason to file bankruptcy in your situation. Bankruptcy may also not be the right choice for you, if it will cause you to lose property such as your car, home, insurance, or pension. These factors, along with the others mentioned in this article may not make bankruptcy the best option for your particular situation. This is why having experienced bankruptcy attorney could help you determine if other solutions such as a mortgage modification, credit card debt illumination or foreclosure prevention would be better suited to handle your particular situation. It's important to remember even if you do not employ the services of the bankruptcy attorney, they will most likely give you some advice as to the best course of action for your particular situation.
For more information on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Unsecured Debt Settlement or obtaining a Mortgage Modification please visit our website visit http://massachusettslawyeronline.com/
To determine if you should file for bankruptcy protection under the US bankruptcy code, is a more difficult task than simply looking at some figures and determining if bankruptcy would wipe out your debts. The idea of having all your debts completely wiped out is a great idea, but there are some implications to bankruptcy which you also must consider. Bankruptcy will affect your credit score and in the short term make it more difficult to obtain a credit card or other forms of financing (although if you're considering filing bankruptcy, you are most likely already dealing with this situation). Although, those who file bankruptcy usually have their credit score increase within the first 15 months after filing bankruptcy. It may also make it more difficult for renting an apartment or buying a home or car. For these reasons you should always contact an experienced bankruptcy attorney to help you decide what your best options are. An experienced bankruptcy attorney will go over options such as mortgage modifications, credit card debt settlement, budgeting and foreclosure prevention. You should also contact experienced bankruptcy attorney to determine which type of bankruptcy you should file; either chapter 7 bankruptcy or chapter 13 bankruptcy.
Bankruptcy: How to File?
Before you file for bankruptcy there are two courses that you must take a credit counseling course and debt management course; both can be taken within six months before your bankruptcy filing petition. To file for Chapter 7 bankruptcy you must also satisfy the "means test" to determine that your financial situation is appropriate for chapter 7 bankruptcy and not an abuse of the bankruptcy laws. An experienced bankruptcy attorney can help you determine if you pass or fail the means test. Once you determine which form of bankruptcy you will be filing, next you must fill out the proper petition and documents for that particular bankruptcy, be it either chapter 7 or chapter 13. Although you do not need an attorney to file bankruptcy, as in any situation where you're dealing with the courts, it is highly advisable that you employ the services of an experienced bankruptcy attorney and do not attempt to file bankruptcy on your own. No amount of online self-education can give you the experience that a qualified bankruptcy attorney can bring to your case.
Bankruptcy: Which Type to File?
The type of bankruptcy petition you will file is really determined by a number of factors such as: do you have a steady form of income, the types of debt you have, your financial situation, your assets and the amount of money you have in equity on your home and sometimes other factors. After the changes to the bankruptcy code in late 2005, the trend has been to encourage people with a steady form of income to file for Chapter 13 bankruptcy, instead of chapter 7 bankruptcy. Chapter 13 bankruptcy, does give distinct advantages over chapter 7 bankruptcy, mainly keeping a home with a mortgage on it or keeping a car with a loan on it, which may have been lost in a chapter 7 bankruptcy case. In a chapter 13 bankruptcy case the court must first approve a repayment schedule, which uses part of your future income to pay some or all of the debt you owe back to the creditors, instead of liquidating your property, as in a chapter 7 bankruptcy. In return for not having your property liquidated certain debts must be repaid, such as: child support, taxes, car loans, home mortgage payments, school loans and in some cases, all of your debts.
Chapter 7 bankruptcy allows you to discharge most if not all of your unsecured debts. In a chapter 7 bankruptcy case a trustee is appointed to collect nonexempt property which will be liquidated to pay off your creditors. After your property is liquidated and bankruptcy is concluded your unsecured debts will be discharged, although this is not an absolute solution for all debts such as child and spousal support, taxes and school loans, to name a few. If you have transferred some of your property in an attempt to keep it from being liquidated during a chapter 7 bankruptcy, such transfers made be seen as fraudulent and undone. There is no repayment plan filed with the court in a chapter 7 bankruptcy, as in a chapter 13 bankruptcy.
Both chapter 7 bankruptcy and chapter 13 bankruptcy are administered by an official known as a US Bankruptcy Trustee. The bankruptcy trustee, which is appointed by the U.S. Bankruptcy Court, investigates the financial affairs of the debtor, sells nonexempt assets in chapter 7 cases, and convenes over the 341 meeting, also known as "meeting of creditors". A judge is appointed to proceed over the case if any rulings need to be made. Lawyers and attorneys are not required in the filing of a bankruptcy petition, but it is highly advisable to employ the services of an experienced bankruptcy attorney as the paperwork is complex and the process complicated.
A chapter 7 bankruptcy case usually takes around 4 to 5 months to complete and remains on your credit history score for 10 years. A chapter 13 bankruptcy case usually lasts anywhere from between 3 to 5 years, depending on the particulars of your case, and will remain on your credit score for up to seven years. Prior to receiving a discharge and either type of case, you must provide certification that you completed both the financial management and credit counseling courses, from an improved counseling agency.
Bankruptcy: When Isn't It a Good Option?
In some situations, bankruptcy is not the best choice. If the vast majority of your debts are not dischargeable, it is not advisable to file bankruptcy. Non-dischargeable debts include certain types of tax debts, child support, student loans and certain court judgments. If the majority of your debts are non-dischargeable, there is no reason to file bankruptcy in your situation. Bankruptcy may also not be the right choice for you, if it will cause you to lose property such as your car, home, insurance, or pension. These factors, along with the others mentioned in this article may not make bankruptcy the best option for your particular situation. This is why having experienced bankruptcy attorney could help you determine if other solutions such as a mortgage modification, credit card debt illumination or foreclosure prevention would be better suited to handle your particular situation. It's important to remember even if you do not employ the services of the bankruptcy attorney, they will most likely give you some advice as to the best course of action for your particular situation.
For more information on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Unsecured Debt Settlement or obtaining a Mortgage Modification please visit our website visit http://massachusettslawyeronline.com/
SHARE
