Previously, I wrote about different individuals you’ll come across in your bankruptcy. Here, I want to discuss and provide common terms you’ll come across as well.
Chapter 13 bankruptcy, also known as a reorganization bankruptcy, offers a lifeline for individuals struggling with debt. Unlike Chapter 7, which involves liquidating assets to repay creditors, Chapter 13 allows you to create a structured repayment plan, typically spanning three to five years. An essential aspect of this plan is the minimum monthly payment, which is a required amount you must pay monthly towards your debts.
When you decide to file bankruptcy there are other individuals and terms that are used when describing the process and your case. Here are a few different parties you’ll come across during your bankruptcy.
Here is what CAN occur in a Chapter 7 Bankruptcy:
There are many options to try and resolve an abundance of debt. Many of our clients seek these options before filing bankruptcy and that’s okay, since bankruptcy can be an intimidating process. So, let’s breakdown your other options.
If you owe money to your credit card company, and if you stop paying them, they can sue you for the amount owed. If that same credit card company obtains a judgment from a court, they can take that judgment and garnish your wages.
One of the most important parts of filing a bankruptcy is the ability to get rid, or discharge your debts.
If you receive an inheritance before filing bankruptcy, whether it’s cash or physical property, then those items may become part of your bankruptcy.
Typically, you can’t get rid of tax debt in a Chapter 7 bankruptcy. But, if you can afford the payments, then a Chapter 13 bankruptcy is a great tool to help you with this type of debt. This is because you’re allowed to pay your tax debt through a Chapter 13 repayment plan, which lasts 3 or 5 years. Even if your tax debt is considerably large, filing a Chapter 13 may still make financial sense, since you’re not incurring interest and penalties during your bankruptcy. Plus, you’re not paying back your credit credits, unsecured loans, and medical bills, and those debts will go away once you’re finished with your Chapter 13 plan!
Your 341 Meeting or the Meeting of Creditors is the opportunity for your Trustee and creditors to ask you questions about your petition and schedules, while under oath.
A very common question I get when I speak to potential clients is – can I keep one credit card out of my bankruptcy? In short, no. This is due to the fact that you have to list all your debts. This includes unsecured debt, so all your credit cards, and unsecured loans, your tax debt, domestic support obligations, such as child support, and all secured debt, including your home and cars.
You may think that your credit union is the same as a typical bank, and in many respects, it is; but, there are some differences. For example, your credit union is a nonprofit, whereas a bank like Huntington Bank, is for profit.
Two common questions I get when I speak to clients are – what happens to my credit and how do I repair it after I file my bankruptcy? Bad news first, your credit will suffer negatively when you file. Now the good news, filing bankruptcy is often the fastest way to repair credit and obtain better financing.
When you file for bankruptcy, you’re seeking relief from your debts, but you’re also declaring and disclosing all your assets, liabilities and income. You must submit your petition and complete 10 different schedules, a complete statement of financial affairs and calculate a means test. The purpose of the means test is to see whether or not you can file a chapter 7 bankruptcy.
There are a number of parties when you decide to file for bankruptcy. There’s you, the debtor. Your attorney, if you choose to hire one, who represents you. There are your creditors, companies or individuals you owe money to. And, there’s a trustee. A trustee is an individual who reviews and investigates your bankruptcy petition and schedules. They are supervised by the courts and the United States Trustee Program, which is a part of the Department of Justice.
Within your bankruptcy schedules, there are two types of debt that the bankruptcy court require you to disclose – secured and unsecured. Understanding what type of debt a bankruptcy debtor has will help them understand their bankruptcy better and with their finances once they’ve completed their bankruptcy.
Previously, I wrote about different individuals you’ll come across in your bankruptcy. Here, I want...
Chapter 13 bankruptcy, also known as a reorganization bankruptcy, offers a lifeline for individuals...
When you decide to file bankruptcy there are other individuals and terms that are used when...
Here is what CAN occur in a Chapter 7 Bankruptcy:
There are many options to try and resolve an abundance of debt. Many of our clients seek these...
If you owe money to your credit card company, and if you stop paying them, they can sue you for the...
One of the most important parts of filing a bankruptcy is the ability to get rid, or discharge your...
If you receive an inheritance before filing bankruptcy, whether it’s cash or physical property,...
Typically, you can’t get rid of tax debt in a Chapter 7 bankruptcy. But, if you can afford the...
Your 341 Meeting or the Meeting of Creditors is the opportunity for your Trustee and creditors to...
A very common question I get when I speak to potential clients is – can I keep one credit card out...
You may think that your credit union is the same as a typical bank, and in many respects, it is;...
Two common questions I get when I speak to clients are – what happens to my credit and how do I...
When you file for bankruptcy, you’re seeking relief from your debts, but you’re also declaring and...
There are a number of parties when you decide to file for bankruptcy. There’s you, the debtor. Your...
Within your bankruptcy schedules, there are two types of debt that the bankruptcy court require you...
