How Filing A Bankruptcy Can Be The Best Decision

Posted on May 26, 2016 by admin in Bankruptcy

Bankruptcy can have a lot of negative connotations in the mind of the layperson, but in all actuality, it can be one of the best decisions that you have had made in your life, if not the best.

Knowing which bankruptcy you qual for is an important factor when it comes to making this decision, so let’s take a closer look at how Chapter 7 and Chapter 13 bankruptcies and how they can help you to get your life back on track.

Why a Chapter 7 Bankruptcy Is Best

Chapter 7 bankruptcy filings are the best decision for a person who does not possess the income that is required to pursue a Chapter 13 bankruptcy. For Chapter 7 filers, they are able to decide between surrendering assets that they no longer wish to pay for each month, while also shedding a significant amount of unsecured debt.

This includes any expenses that are related to medical bills, as well as their credit card debts and any personal loans that have been defaulted on. Chapter 7 bankruptcy is a great decision, since it allows a debtor to move much more quickly than they would be able to under normal circumstances.

During a Chapter 7 proceeding, the debts can be wiped away within a mere three months of filing, offering the debtor a new lease on life from a financial standpoint. In most instances, they’ll wish that they had filed sooner instead of later.

Why A Chapter 13 Bankruptcy Is Best

 If you are a debtor who has the means to make your way out from underneath your financial obligations and all you need is a little bit of extra time or to restructure your debt, then a Chapter 13 bankruptcy is your best possible decision.

Are you at risk of losing your home or you car, after you have already sank a great deal of your personal income into your past payments? Worried about surrendering the equity that you’ve built in your home? Filing for a Chapter 13 bankruptcy lets debtors rehabilitate their credit, by adhering to a court approved payment plan.

Best of all, a credit score is not severely affected by filing for a Chapter 13 bankruptcy. While public perception of these bankruptcies dictates that you will never be able to receive credit again, those who are in a position to file a Chapter 13 bankruptcy probably did not have a great credit score.

By filing, you can begin the process of restoring your good standing with creditors and be in position to receive loans and financing again within three to five years.

Filing bankruptcy can be incredibly stressful during the short term, but it can be the best decision that you’ve ever made when you take a moment to consider the long term benefits. You are able to start the process of restoring your financial solvency and receive a much needed reprieve from creditors’ harassing phone calls. If you’re willing to exchange short term comfort for long term stability, filing for bankruptcy is the best choice you can make.

What Is The Role Of A Bankruptcy Attorney?

Posted on May 26, 2016 by admin in Bankruptcy

While the vast majority of us are not well versed in the role that a bankruptcy attorney plays during a filing, there are a number of different duties that they can be fulfill and a variety of areas where their input is helpful. Deciding to file for bankruptcy can be a stressful and these are the responsibilities that an attorney can handle on your behalf.

Initial Assessment and Consultation

At the initial assessment, a bankruptcy attorney looks over the particulars of your financial situation and provides additional insight about your options. There are a variety of debt relief solutions available to you and the attorney determines whether bankruptcy is a viable choice. Your payment plan and their fees are also discussed during this initial meeting.

Speaking With Your Creditors

Once you’ve decided to hire a bankruptcy attorney, they will become the buffer between you and your creditors. They are no longer able to contact you directly and while they are still legally allowed to do so, they will typically wait until the outcome of your bankruptcy procedure has been decided to resume their collection calls.

Bankruptcy Petition Filing and Preparation

This is one of the most important duties that a bankruptcy attorney fulfills, as they will type, prepare and file your bankruptcy petition on your behalf. Filling out these forms is a long and arduous process, as they can range anywhere from 30 to 60 pages. The attorney allows you to look over the documents before they are submitted to the court and once they have been filed in court, an automatic stay is granted.

341 Meeting of the Creditors

This a meeting that takes place with your bankruptcy trustee and you’ll need to have your questions ready before attending. The attorney will have a meeting with you beforehand, so that any potential issues are able to be discussed out in the open.

Chapter 7 Bankruptcy: Reaffirmation Agreements and Motions
The bankruptcy attorney’s first order of duty during a Chapter 7 bankruptcy is to negotiate the reaffirmation agreement, which allows you to keep secured property, while maintaining the terms and conditions of your original contract. A large number of Chapter 7 filers will try to keep their homes and cars and the dallas chapter 7 bankruptcy attorney negotiation skills are what enable them to do so.

Chapter 13 Bankruptcy: Confirmation Hearing and Related Motions

Depending on the rules of your particular state, you may need your attorney to appear in court on your behalf during a Chapter 13 bankruptcy. Additional paperwork may also need to be filed. When the confirmation hearing takes place, the attorney will attend, in order to receive the court’s approval of your plan. If there any extra motions that need to be filed or defended, the bankruptcy attorney also handles these duties.

Will Bankruptcy Wipe Out All That?

Posted on May 26, 2016 by admin in Bankruptcy

While bankruptcy will eliminate some debt, it won’t eliminate all forms of debt. Before filing for bankruptcy, you need to know the kind of debts that will be wiped out and those that will remain. You can eliminate credit card debt for the most part through Chapter 7 and 13 bankruptcy. But for some debt you won’t be able to eliminate, including alimony, student loans, child support, secured debts and most tax debts. In certain situations, Chapter 13 may help whilst Chapter 7 may not.

What Bankruptcy Can Do for You

If you are faced with serious problems of debt, bankruptcy can serve as an effective remedy. Here’s what filing for bankruptcy may do:

Eliminate credit card debt and other forms of unsecured debt: Filing for bankruptcy can help you get rid of credit card debt. Unless you’ve got a “secured” credit card, then your credit card will be an unsecured debt – meaning, the creditor won’t have any lien on your assets and will not be in a position to repossess any of your items in the event you default. This is the kind of debt bankruptcy can eliminate. Apart from credit card debt, you may also have other forms of unsecured debt which bankruptcy can wipe out.

If you file for Chapter 13 bankruptcy and not Chapter 7, you may be required to repay a certain amount of your unsecured debt. However, any unsecured debt that remains after you complete your repayment plan will be discarded.

Stop creditor collection activities and harassment: Filing for bankruptcy may stop harassments from creditors, but if these harassments are just letters and phone calls, then there are much simpler ways of stopping them. However, if harassments are more serious – for example, the creditor wants to repossess your vehicle or looking to foreclose your mortgage, then bankruptcy can help you.

Eliminating certain liens: This is another thing bankruptcy can help with. A lien is the right a creditor has to repossess some or all your assets, and will be able to survive bankruptcy unless invoking certain procedures is done on your part during the bankruptcy case.

What Bankruptcy Cannot Do for You
Certain types of debt cannot be wiped out when you file for bankruptcy, and you’ll still continue owing them just as if you never filed for bankruptcy. Such debts include, alimony, child support and other forms of tax debt. Student loans on the other hand won’t be wiped out unless you can prove that repaying them would be a serious burden on you, which can be a difficult standard to meet. Other forms of debt may also not be wiped out if the creditor is able to convince the court that your debt should survive the bankruptcy.

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