Archives for May 2013

Who can file a Chapter13 bankruptcy?

A Chapter13 bankruptcy can be filed by an individual or a joint case husband and wife.  Chapter13 cannot be filed by a corporation.  In order to file for Chapter 13, an individual must complete several prefiling requirements.  The most important requirement is the taking of a credit counseling session.  The credit counseling session is a one hour session on the computer or over the telephone whereby you talk with a credit counselor in order to receive a certificate enabling you to file for bankruptcy. In addition to the credit counseling requirement, you will have a personal financial management instruction course which must be completed after your cases filed but before it goes to a + Read More

What are the most common causes of Chapter 13 bankruptcy?

Chapter 13 bankruptcy is reorganization through a Chapter 13 trustee.  The reason why many people will file Chapter 13 is to save a home that has gone into foreclosure.  Now, the reason why the home fell into foreclosure could be several; in many cases, someone has lost their job, fallen behind on their bills and now they are back employed.  In other cases, someone has had an illness which caused them to lose work and now they have recovered from illness and are back gainfully employed.  There are other situations such as divorce or straight job loss that can lead someone to fall behind on their bills and be in need of a Chapter 13. The most common form of Chapter 13 or reason for a + Read More

Do I have to hire an attorney to file for bankruptcy?

You do not have to hire an attorney to file for bankruptcy; however, I would strongly recommend that you do so.  You do have the ability to fill out forms online or from an office supply company, go down to the clerk’s office and attempt to handle a Chapter 7 or Chapter 13 bankruptcy case on your own. The problem with doing so is that the law has gotten very complex, especially since the law changed October 17, 2005.  It used to be that someone with a simple Chapter 7 case could technically do the case themselves with very little in the way of error except for possibly losing property.  Under the current law, there are all kinds of pre-filing requirements that must be satisfied before a + Read More

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy is one form of bankruptcy under the United States Bankruptcy Code whereby someone reorganizes their debt and pays back either all or a portion of the debt over a 3 to 5 year period.  Chapter 13 is most commonly used to save a home that’s in foreclosure.  In a Chapter 13, a debtor is able to make the regular mortgage payment on time once again and pay the part that they fell behind over the next 3 to 5 years.  The amount that they pay per month is dependent upon their income, their expenses, their assets and their liabilities. In a typical Chapter 13 bankruptcy case, there is a Meeting of Creditors, a confirmation hearing and then an amount that is solid in terms of + Read More

Can my student loans be discharged in bankruptcy?

Typically student loans are going to be non-dischargeable.  A non-dischargeable debt is a debt that is not going to be eliminated in a bankruptcy case.  Student loans are the type of debt that are typically non-dischargeable except for extreme hardship cases.  In my 21 years of practice, I have never had an extreme hardship case that was winnable before the court.  I did have a case where someone was schizophrenic and did not have the ability to work.  However, we could not prove that the schizophrenia occurred after the bankruptcy case was filed.  The threshold is very difficult and the burden is very difficult as well. The federal government and the private student loan carriers are + Read More

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