Posts Tagged ‘Chapter 13 bankruptcy’

Before You Go into Foreclosure, Consider Hiring a Bankruptcy Attorney

Wednesday, April 28th, 2010

Did you know you can avoid or delay foreclosure by working with an attorney?

Filing bankruptcy can be scary. It sounds like throwing in the towel. Yet no matter how the economy is doing, no matter if you’re employed or unemployed, and no matter the size of your family, things happen. That may be a simple way of putting it, but when a $10,000 medical bill comes in, you fall behind on mortgage payments, or you lose your job, there is nothing easy about it.

What are your options if you fall behind in bills or lose your job?

Depending on your situation, you may be eligible to file bankruptcy.

Why bankruptcy? Technically, Chapter 7 bankruptcy can eliminate the majority of your debts. But this guide isn’t about eliminating debts, but helping you save your home from foreclosure.

You can, in fact, hire a bankruptcy attorney to save your home from foreclosure. If the lender on your home offers no way out, if they make it clear they won’t or can’t work with you, you might have to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy includes in it the “automatic stay,” whereby you can save your home from foreclosure. This may sound too good to be true, and there is some fine print.

If you wait too long to file for Chapter 13 bankruptcy and hiring an attorney, technically the lender can file for a motion to lift the stay. Meaning: the automatic stay will be invalid. Also, they can appeal directly to the court to lift the motion at some point during the Chapter 13 bankruptcy. In both cases, you still have a very good chance of saving your home, especially if you have an experienced bankruptcy attorney.

What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is different than the more common Chapter 7 bankruptcy. Usually, filers have more in the way of assets. If you file for Chapter 13 bankruptcy, as long as you stay current on bills and the debt repayment plan, you can keep all of your assets.

While Chapter 7 is a liquidation where assets are sold to pay back debtors and your debts are discharged, Chapter 13 bankruptcy buys you time to pay back assets and can delay foreclosure proceeding — effectively saving your home.

How do you file Chapter 13 bankruptcy?
Chapter 13 bankruptcy can be very simple, especially if you hire an experienced bankruptcy attorney. You will have to appear before court in a Chapter 13 bankruptcy, but in a limited way.  Prior to the bankruptcy, you will have to take credit counseling with an approved agency. Once this is done, you pay the fee of $274 and file forms.

Hiring an  Attorney
Before even thinking of all the advantages of saving your home from foreclosure via Chapter 13 bankruptcy, you should query experienced bankruptcy attorneys in your area. This is simply a must. And when you hire one, make sure they are affordable, experienced, and not overloaded with clients.

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Eligibility for Chapter 13 Bankruptcy and How to Fund It

Monday, April 5th, 2010

If you need of time to pay back bills, if you face possible foreclosure, or if you’re considering Chapter 7 bankruptcy, you may in fact need to file for Chapter 13 bankruptcy in your state. Chapter 13 bankruptcy is a good option for many individuals, but that’s the only people who can file Chapter 13, as businesses cannot file for it.

With bankruptcy law changes, if you make too much money you may be forced to file for a Chapter 13 bankruptcy repayment plan instead of filing for Chapter 7 bankruptcy. If you’re unsure, hire a professional bankruptcy lawyer in your state today.

So when is Chapter 13 bankruptcy a good option? How are you eligible? And how can you fund the repayment plan? Let’s go over these questions.

When Chapter 13 Bankruptcy is a Good Option
Chapter 13 bankruptcy does have advantages over Chapter 7 bankruptcy, but clear disadvantages as well. This is again a case where professional counsel, a bankruptcy lawyer, can help.

In essence, Chapter 13 bankruptcy does not liquidate your assets and discharge certain debts like Chapter 7 bankruptcy does. You are not free and clear a few months after filing. Chapter 13 bankruptcy is about getting more time to pay back debts; it’s often a solution for those who earn a lot of money but still cannot pay all their bills. Also, rich or not, if you fear your house will go into foreclosure, Chapter 13 bankruptcy and the court can grant you an “Automatic Stay” to buy you several months time. You still have to make your initial mortgage payment, but the repayment plan grants you several years to catch up in a fair way.

Eligibility for Chapter 13 Bankruptcy
As noted earlier, businesses are not eligible to file for Chapter 13 bankruptcy. Businesses typically file for Chapter 11 bankruptcy. However, business owners can file for Chapter 13 bankruptcy as an individual.

For individuals, the key to Chapter 13 bankruptcy filing is to show the court you have enough disposable income for the repayment plan. This means that after your allowed expenses and secured debts, you can still have enough money to complete the 3-5 year repayment plan. Your repayment plan must show how you will pay all these debts back in full, or the court will deny the filing.

Funds You Can Use for Repayment Plan
There is a variety of income you can use to fund your Chapter 13 plan. These can get complex, and that’s where professional bankruptcy lawyers can help you. You can definitely use regular wages or income from self employment, for example, and also Social Security benefits.

Other Rules of Chapter 13 Bankruptcy
You cannot owe too much money and file for Chapter 13 bankruptcy. The number changes every few years, but if you have over one million dollars in debt you might have too much to file. You also must be current on income tax filings.

Hiring Counsel
Hiring a professional bankruptcy lawyer can help you navigate all these laws with ease, save your home from foreclosure, grant you time to pay back debts, and give you a fresh start.

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Student Loan Debt Help – From Types of Loans to Attorneys

Wednesday, March 24th, 2010

Student loan debts vary in terms of repayment plans. For the purposes of this article, we’ll discuss the more common federal student loans, how you can handle repayment, and what happens if you cannot pay or file for bankruptcy.

Kinds of Federal Loans
The two kinds of federal loans are FFEL(Federal Family Education Loans) and Federal Direct Loans. FFEL loans are made by private lenders and guaranteed by the government. In this case, if you default or file bankruptcy, the lender is reimbursed by the government. “Federal Direct Loans” pretty much speak itself: they are direct loans from the U.S. government.

Other Loans
There are also school federal loans, where the school issues a federal student loan. Repayment plans depend on the school. Lastly, there are private loans, which are made with federal funds and come with the least options for repayment. You typically need to discuss with the lender repayment options, along with what happens if you default or file bankruptcy.

If You Think You’ll Default on the Debts
If you do default, it’s best to find out in advance. For repayment plans, you don’t want to wait until you’re far behind on payments, as many of the following options will not be available to you. Also, you are not locked into any plan, typically being able to switch your plan once a year.

Repayment Plan Forms
Standard repayment plans are offered by your lender, where you make payments for up to 10 years. You pay less interest here, but your monthly payments are higher.

Graduated repayment plans are common too, mainly because you can start small (when you’re in school) and start paying more over time (as you get work).

An extended repayment plan allows you to pay smaller amounts for up to 25 years. You need to have a balance of more than $30,000.

Last, income-based repayment plans are unique in that, as it sounds, you can pay based on how much money you are making. If you had a job but lost it, the income would go down, and therefore the monthly payments would go down.

Default and Bankruptcy
If you think you’ll fall behind in payments and might default, it’s best to act early. If you fall far behind, the government can take money from your income tax return, garnish your wages, or even take back federal benefits (if you’re on social security, for example).

The best move is to hire professional counsel if you fall far behind and cannot catch up. In most cases, you cannot file Chapter 7 bankruptcy and get your student loans discharged. This is where a professional bankruptcy attorney can help you.

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How to File Chapter 13 Bankruptcy in San Diego

Thursday, March 11th, 2010

The news is bad. You might lose your home through foreclosure, or you lost your job, or a loved one was in the hospital and the bills are piling up.

It doesn’t always work out that way, as each person’s reasons for filing any kind of bankruptcy are rarely the same. There are ways to 1) buy yourself some added time to pay back bills and 2) save your home from foreclosure. It’s file for Chapter 7 in San Diego, right?

That’s a decision this guide is going to help you make, along with how to file for Chapter 13 bankruptcy. If at the end of this post you think Chapter 7 bankruptcy is your only option, it’s time to call a professional bankruptcy attorney in San Diego. If you feel Chapter 13 bankruptcy is best, hiring professional bankruptcy lawyers is just as important.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy in San Diego
This blog goes over these topics a lot, but all you need to know is where you’re at financially. If you face foreclosure of your home and want to keep it, filing for Chapter 13 bankruptcy in San Diego buys you years to pay back debts in installments and keep your home. If you feel you need to be rid of all your debts immediately, that 3-5 years just isn’t enough, filing for Chapter 7 bankruptcy in San Diego may be the best choice.

How  to File for Chapter 13 Bankruptcy
You file a petition with the bankruptcy court in the San Diego area where you reside.

You must file, according to the US Courts: “a schedule of assets and liabilities;  schedule of current income and expenditures;  a schedule of executory contracts and unexpired leases; and a statement of financial affairs.

There is more to it than that, because after you must also file a certificate of credit counseling and a copy of a debt repayment plan you created through credit counseling. That means you need to show the court proof you’re actively working on creating a feasible budget to pay back assets, as no debts are being eliminated.

Next, you need to show evidence of payment from employers if you have any, within 60 days before filing. The last three steps are to show a statement of monthly net income,  note any expected increase in income, and any records you have in Federal or California (or your state) education accounts.

The Next Steps in Filing for Bankruptcy
There are more steps. The problem with filing Chapter 13 bankruptcy by yourself becomes clear here. It can be done and has been done, but hiring professional bankruptcy attorneys in San Diego can save you from making mistakes in documentation and at the hearing.

So you need to follow these steps too.
-Create a list of credits, debt amounts, and nature of their claims
-The source, amount, and frequency of your income
-A list of all your property, such as homes and vehicles
-A detailed list of all your monthly living expenses, from food to rent

Hire Professional Bankruptcy Attorneys in San Diego
Filing Chapter 13 bankruptcy is now more common than ever, though still most debtors try to file Chapter 7 bankruptcy, a liquidation. How to choose between types of bankruptcy, how to file all documentation, and how to handle creditors are all complex tasks. With the right bankruptcy lawyer in the San Diego area, you can focus on the future instead of the past.

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6 Things You Need to Know About Chapter 7 Bankruptcy Discharge

Monday, March 8th, 2010

You get a fresh start with bankruptcy, but as with most court cases, there’s fine print you must know.

Chapter 7 bankruptcy is essentially a fresh start financially. Typically, most debts are discharged, you’re given a chance to get back on your feet, and you won’t be harassed by creditors.

However, there is the “fine print” part to a Chapter 7 bankruptcy hearing. This article highlights 6 things you need to know about Chapter 7 bankruptcy discharge. Professional counsel, a bankruptcy attorney in your area, can help with more than documentation and filing: they can also explain all the fine print in simple language.

1-What Discharge Means for Liability and Creditors
A Chapter 7 bankruptcy discharge releases you the debtor from liability for most of your debts, while also stopping collections against you by creditors. If you owe a creditor a large amount of money, they may still get some money, but only via the trustee selling nonexempt assets you have. They will have no basis for collecting past debts.

2-What Debts are Discharged
Typically, you need to talk with professional bankruptcy attorneys to help you with this part of Chapter 7 discharge. You can expect the majority of your debts to be discharged, but some of your assets may be too valuable and could be sold. For instance, if you live alone in your home valued well over $100,000, you lose it. There are ways around that, especially if you work with professional bankruptcy attorneys.

3-How Fast the Discharge Occurs
You can expect a fast discharge in most cases unless a party of interest–someone you owe money–objects to the discharge. This process is usually 60-90 days after filing Chapter 7 bankruptcy and meeting with the court.

4-Grounds for Rejection of Chapter 7 Bankruptcy
You can be rejected for discharge in Chapter 7 bankruptcy via a variety of means, depending on your particular situation. If you, for instance, failed to keep adequate financial records, couldn’t explain your loss of assets, or committed perjury, you can be denied discharge.

5-Secured Creditors
Secured creditors may still have the right to seize property in some cases. This is where counsel is most important. It gets complicated, but if you bought a car and made an outside agreement that you wanted to keep it, you could make payments on the debt. The creditor would have the right to repossess the car if you failed to make payments, even with the discharge.

6-What Debts Aren’t Discharged
You can’t be discharged of all outstanding debts. This includes alimony, child support, some taxes, debts for education or loans, debts for death or personal injury causes by by your motor vehicle, debts for injury to another person, and others.

As you can see, there’s a lot more that goes on in and out of the courtroom when it comes to certain laws involving Chapter 7 bankruptcy discharge. The best thing you can do is hire a professional Chapter 7 bankruptcy attorney in your state who can clear up all the fine print, protect you from failing to meet requirements, and help you get a fresh start.

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Basic Rules on Exempt and Nonexempt Property When Filing Bankruptcy in New York

Thursday, March 4th, 2010

If you’re filing Chapter 7 or Chapter 13 bankruptcy in New York or any state in the US, there are some basic rules of law and thumb you should follow. After all, your financial future is at stake. If you make mistakes, the process can drag on, fees will go up, and property will be lost. It’s not meant to scare you, but everything from documentation to planning need to be good.

Your best bet is professional counsel, bankruptcy attorneys specializing in Chapter 7 and Chapter 13 cases in New York.

So why include Chapter 13? Technically, you may not lose any property. Chapter 13 bankruptcy in New York buys you time to pay back debts over 3-5 years in monthly installments. However, if you fail to pay, you may lose property.

Chapter 7 bankruptcy is the most common bankruptcy form used. Let’s go over the basics of what Chapter 7 bankruptcy is in New York, and then go over exempt and nonexempt property.

What is Chapter 7 Bankruptcy?

It’s a liquidation proceeding. You are discharging debts, giving property to a trustee, and paying back what you can. It’s a fresh start for you economically. So why a trustee? Technically, your creditors still have rights to some of your property. Your property can be used to pay them back in some cases. The good news is you have the option of buying back property from the trustee after you lose it.

Exempt Property in Chapter 7 Bankruptcy

There are many exemptions which work to your benefit, namely big items like homes and cars. What’s exempt depends on the price of your items. The more it’s worth, the more chance you may lose it after filing Chapter 7 bankruptcy in New York. If, for example, you are single and own a home valued over $100,000, that property is not exempt. Most states in the US draw the line around $100,000 for both families and individuals, sometimes even if your retired or disabled. If you are retired or disabled, you have a better chance of keeping valuable property.

One benefit of hiring bankruptcy attorneys in New York is the expertise you receive for the process. For example, tax refunds and earned income credits are not exempt. However, the time at which you file for Chapter 7 bankruptcy comes into effect here–you may be able to keep these if you file later.

There are other ways to save money on nonexempt property. If you have nonexempt property, you can actually sell it for items which are exempt, such as food, furniture, or clothing.

That isn’t to say you should buy an expensive couch or diamond rings, but if you’re frugal in spreading your money out you can save some of your money.

Other Rules on Exempt Property for Chapter 7 Bankruptcy

There are other rules when filing for bankruptcy you should be aware of before making big decisions. While hiring professional bankruptcy attorneys in New York is a must, be clear on what you expect and what the attorney wants in terms of fees.

You should also not try hiding money. If you give valuable property to family members of friends within 1 year of filing, you might end up losing this in bankruptcy court and being charged with a crime.

When It’s Time to File for Chapter 7 Bankruptcy in New York

Filing bankruptcy is a big decision, so don’t make all your choices alone. Hire professional bankruptcy attorneys who can walk you through documentation, exemptions, filing, and beyond.

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Welcome to the Price Law Group Blog!

Wednesday, June 17th, 2009

Thank you for your interest in our Web site and our services. We are Price Law Group. With attorneys in California, Nevada and New York, and a network of attorneys across the country, we are dedicated to serving our clients’ needs whenever they need legal representation.

The Price Law Group logo is an image of a person moving from the dark and into the light. This symbol illustrates how we think about the services we offer, and the whole experience of being a client at our firm.

We will use this blog to provide you with updates and news about bankruptcy, debt and building a life after debt. At Price Law Group we are dedicated to helping people in financial trouble understand their options, make choices and take actions that will help put their debt problems behind them. We are optimists, because we know that no matter how much financial trouble you may be in, there is a way out. There is a healthier financial life in your future.

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