Filing a petition for bankruptcy will help debtors clear unsecured debts from their life, allowing them to make a fresh start. Court-ordered liens are generally orders that relate to secured debts, not unsecured debts. Bankruptcy can still help debtors in these situations, although the debt itself will not be cleared by the bankruptcy process. Court [...]
A lawyer is a lawyer and it could be argued they are prepared to handle any case if there is a dollar in it for themselves. In practice, lawyers prefer to specialize in areas where they feel the most comfort. One misconception of a bankruptcy lawyer is that they only handle bankruptcies. This is far [...]
Deficiency judgments are relatively rare these days, but they do occur from time to time, and they do leave debtors in a great deal of distress and financial hardship. One reason for claiming a deficiency judgment is when a creditor feels that a debtor is in a position to pay – this can often be [...]
Filing a petition for bankruptcy set in motion processes that may see some or all of your unsecured debts eliminated. Mortgages, whether first or second, are considered to be secured debts so in most cases they cannot be eliminated through bankruptcy. I say “in most cases” because there is one exception to this rule. If [...]
There are many people who are in financial difficulty who are in a position to choose between a Chapter 7 and a Chapter 13. The Chapter 7 bankruptcy is also referred to as a liquidation bankruptcy because you are required to liquidate a range of assets to help pay your debts. The Chapter 13 is [...]
Most debtors are unaware that a statue of limitations exists for debts. A statute of limitations is a set time period after which creditors can no longer collect on a debt – the debt is said to be stale. Each state has its own time period and it can range from three to six years. [...]
If you are going to file for bankruptcy, then in most situations you are going to have to pass a means test to see whether or not you qualify for a Chapter 7 petition. The means test is based on the state’s median income and while your income can be discounted for various factors, many [...]
There are times when people confuse the words “reject” and “object” when it comes to dealings with the bankruptcy court. Under a Chapter 13 bankruptcy petition, the debtor must include a repayment proposal that has a value equal to their disposable income after normal living expenses. Creditors can object to this repayment plan. They cannot [...]
When it comes to bankruptcy, there are two myths that stand out that should really be exploded. The first relates to how much debt you have with bar room lawyers often claiming you have to have a minimum amount debt before you can file for bankruptcy. The second myth is the biggest, and this myth [...]
Filing your bankruptcy petition is the first step in what may be either a very quick process, or a long drawn out process that can take from three to five years to complete. A Chapter 7 bankruptcy petition is by far the fastest and can be completed within four months. A Chapter 13 bankruptcy petition [...]
Bankruptcy law is designed to allow debtors relief from burdensome debts, especially when that debt has become burdensome through no fault of the debtor. Sudden and unexpected unemployment, illness, and marital separations are common areas that create problems for debtors. Bankruptcy law is also designed to provide creditors with as much protection as possible. For [...]
Bankruptcy is one tool that debtors who are swamped in debt and who are being harassed constantly by creditors can access for consumer protection. The single act of filing for bankruptcy brings instant relief from harassment while the process of filing can reveal interesting facts. This is one of the main reasons why it is [...]
A lot of people worry about their social security benefits so they are reluctant to undertake actions such as filing for bankruptcy. If you compare what happens with social security benefits before, during, and after bankruptcy, your fears should be allayed. To begin with, your social security benefits are better protected during bankruptcy than they [...]
Chapter 7 bankruptcy is the category of bankruptcy that allows debtors to liquify their assets under certain conditions. Here are five essential facts to know before you apply for Chapter 7 bankruptcy. Current monthly income is defined as the average income over the six months previous to the commencement of the bankruptcy case. This includes [...]
There are a lot of people in our community who wouldn’t have any credit at all if it wasn’t for a parent, friend, or relative who agreed to be a cosigner. For most of us, we got our first start along the credit highway by having a parent cosign our first loan. What happens to [...]
There are some groups within our community that often struggle financially. Single parents are one group that can find expenses suddenly getting out of hand. This is particularly true when their children start school, and becomes even harder once they enter high school. Bankruptcy is no different for single parents than any other group within [...]
If you seek debt relief through a Chapter 13 petition, then you will be required to enter into a debt repayment plan. This repayment plan is designed to pay off as much of your debt as possible over a three- to five-year period. Where a Chapter 7 petition seizes assets and sells them, the Chapter [...]
Bankruptcy is a serious process that generally involves creditors losing large sums of money. The Bankruptcy Act was created in such a way that both consumers and creditors receive as much protection as possible – for the debtor that means having their debts discharged with the least pain possible while for creditors this means receiving [...]
Going through bankruptcy will open a whole new vocabulary for you. This is one of the reasons why it is so advisable to engage an attorney, they can translate the legal language into a more acceptable daily language. One term you may come across is that of a burdensome asset. A burdensome asset is simply [...]
Bank accounts have a unique place in bankruptcy petitions because they are always in flux. If you are working, money is regularly coming in – and just as regularly leave as you continue to pay for day-to-day expenses. When it comes to bankruptcy proceedings, you need to be very careful what you do with your [...]
In the majority of cases, bankruptcy petitions are handled with only minor issues. These are generally worked through with the trustee, and the bankruptcy petition works its way to a satisfactory conclusion. Occasionally, the bankruptcy process can be disrupted by what is known as an Adversary Proceeding. For those who have filled in all their [...]
Generally speaking, retirement plans such as 401K are fully protected when it comes to a bankruptcy petition. While many assets can be seized under a Chapter 7 petition, for example, the 401K remains untouched. However, for some people, that 401K protection can be a real trap. When money is tight and lenders reluctant to extend [...]
In most cases, debtors petition the court as a means of obtaining relief from burdening debts. In rare cases, creditors can force an individual into bankruptcy. This will most often occur when the debtor has been operating a small business as an unincorporated sole trader. Involuntary bankruptcy can also occur to corporate entities, when creditors [...]
A Chapter 13 bankruptcy petition allows a debtor to submit a repayment plan that fully covers all secured loans. The trustee will do everything possible to ensure that the amount you pay each week, fortnight or month also covers part payments to your unsecured creditors. One difficulty that debtors face is not having sufficient funds [...]
Bankruptcy provides a pathway for debtors to clear their debts and make a fresh start. There are times when a creditor is making claims that a debtor has refuted. These debts must be included in the schedule of debts that is submitted to the court. While the debtor may be disputing these debts, failing to [...]
Many view bankruptcy as an easy path to debt avoidance. However, if you value your financial reputation, then this process should be at the end of your list of options, not at the top. Bankruptcy can often be avoided if you are prepared to work at it. If you can successfully work your way out [...]
Under a Chapter 7 bankruptcy petition, the trustee will assess all the assets of a petitioner and classify them as either exempt from seizure or available for seizure and sale. In recent years, we have seen people around the country trying to survive without having to file for bankruptcy. In many cases, they have sold [...]
Many people have the mistaken view that bankruptcy is designed to squeeze as much as possible from debtors and that creditors have all the rights. That view is far from what is day-to-day fact. Most creditors will tell you they have few rights and that thy have to accept what the court decides the debtor has [...]
Most bankruptcy petitions are fairly straightforward. The petitioner presents their case to the court, the trustee reviews all the information and, depending on the Chapter filed under, a discharge of unsecured debts ordered. Once a petitioner’s debts have been discharged, the bankruptcy petition is concluded. The petitioner cannot have the case reopened at all. However, [...]
There are several stages involved in any bankruptcy petition. The first stage involves the debtor collecting all the information required and filling out all the forms. The second stage is the actual filing where all the documents are lodged at a local courthouse. The third stage is the the one that interests us in today’s [...]
