Chapter 7 Bankruptcy Discharge There are certain eligibility requirements in reference to getting a discharge under the bankruptcy code. Let's begin with the most common form of bankruptcy which is a chapter 7 fresh start. Chapter 7 is when someone, an individual typically, has very little in the way of personal assets but has a ton of debt. This person is seeking a fresh start under chapter 7 of the United States bankruptcy code. A person can receive a discharge under chapter 7 bankruptcy once every eight years. This basically means that once you file a chapter 7 bankruptcy, you are not eligible for that relief again for eight years. Timing Here's where the math changes. If you are + Click Here For Read More
Archives for 2014
Filing Bankruptcy: The Initial Consultation
April 25, 2014 by
The most important thing about filing bankruptcy is the initial consultation with a bankruptcy attorney. It is not the price. It is not the location of the office. It is not the number of cases that the attorney has filed over the year. It is not whether that attorney is advertising on television. It is not whether that attorney has a Facebook page. The most important item is the knowledge, experience, and the ability to spot issues at the initial consultation stage. The In-Take Questionnaire Most bankruptcy attorneys utilize an in-take questionnaire. This is a document the clients fill out which lists all kinds of information including their name, address, employment, assets, + Click Here For Read More
Is Filing Bankruptcy A Form Of Failure?
April 25, 2014 by
Not A Failure Filing bankruptcy does not have to be looked upon as a failure. Bankruptcy can be looked upon as an opportunity to get a fresh start or to reorganize debt under existing federal bankruptcy laws. I don't believe anyone sets out to file for bankruptcy. However, certain events happen in life that leads to that result. For example, if you are someone who did not have health insurance and then had a catastrophic illness or injury, without bankruptcy you would likely never be able to get out of that debt. Perhaps you are someone who lost a job through no fault of your own and simply was not able to find adequate replacement work within a reasonable period of time. During the + Click Here For Read More
How Often Can You File Chapter 7 Bankruptcy?
April 24, 2014 by
There are specific time restrictions on when you can file certain bankruptcy cases. For Chapter 7, you can only receive a discharge of certain debts every eight years. There are also complex rules for filing Chapter 13 subsequently to a Chapter 7. In the video below, we talk about Chapter 7 in particular and how you should not have to file repetitive cases. Jesse Barrientes: But after you file a Chapter 7, when can I file a Chapter 7 again? David Siegel: You can only file a Chapter 7 and receive a discharge every eight years. Jesse Barrientes: So if I get my discharge, they’re good for eight years. So I’m not going to be able to discharge everything until eight years and a + Click Here For Read More
Is My Life Insurance Policy Protected IF I File Bankruptcy?
April 23, 2014 by
Protecting Life Insurance When filing a chapter 7 bankruptcy, you are allowed to protect a certain amount of personal property. One of those items of personal property is life insurance. Life insurance is treated two different ways when filing bankruptcy. The first involves term life insurance. Term life insurance provides for a death benefit. What this means is that the policy has no cash value while you are living, however, upon your death, a beneficiary will receive a death benefit. Because there is no cash value while you are alive, this is technically not an asset that can be administered by the chapter 7 trustee. Let's contrast this with whole life insurance. Whole life insurance + Click Here For Read More
Bankruptcy Filing & Your Utility Services Such As ComEd
April 22, 2014 by
Chicago clients are concerned about utility bills and how a bankruptcy filing affects their services. They are happy to know that they can get service to continue to or have it turned back on if it was disconnected. The video below talks about ComEd in particular, but it applies to gas service and telephone service as well. Jesse Barrientes: So what happens then if I owe Com Ed a chunk of cash and so now with automatic stay, they are prohibited from collecting the past due amount. Are they going to unplug me? Are they going to turn off my services? David Siegel: They’re not going to turn off your services but what they are going to do is they are going to wipe out the debt from the + Click Here For Read More
Chapter 13 May Pay Back At 100%
April 21, 2014 by
Depending on the budget, you might have to pay back 100% to your unsecured creditors in a chapter 13 bankruptcy case. The trustee appointed for your case is going to interview you at a 341 meeting of creditors. One of the main purposes of this meeting is to determine whether or not you are putting all of your disposable income towards your repayment plan. If the amount of your disposable income is enough to pay off your creditors in full within 36 or 60 months, then you are likely going to have to pay back 100% to your unsecured creditors. Disposable income is determined by IRS standards as well as local standards as to how much you can allocate for housing, transportation, food, and + Click Here For Read More
What Debts Are Eliminated With Chapter 7 Bankruptcy?
April 17, 2014 by
The typical debts that are eliminated with Chapter 7 bankruptcy include credit cards, medical bills, personal loans and more. The transcription and video below explain what is eliminated in greater detail. Jesse Barrientes: What debts are typically eliminated with the Chapter 7? David Siegel: Well, a Chapter 7 is going to eliminate typical unsecured debt such as credit cards, medical bills, personal loans, past due utility bills, auto repossession deficiencies, foreclosure deficiencies. The majority of someone’s debt under Chapter 7 is going to be eliminated. Now, there are some exceptions; student loans, recent taxes, parking tickets, child support, maintenance payments, debts + Click Here For Read More
Filing Bankruptcy And The Creation Of The Automatic Stay
April 14, 2014 by
The automatic stay in the most powerful tool when filing bankruptcy. The automatic stay provides a shield of protection against most collection efforts. In the video below, we discuss just how powerful the stay is when filing a bankruptcy case. David Siegel: Let’s talk about what’s created the minute a bankruptcy case under Chapter 7 is filed and that’s the automatic stay. What is the automatic stay and how does it benefit the debtor? Jesse Barrientes: Oh, yes. The automatic stay. It’s a really great tool because when you have all these creditors and I just want to tell our viewers at home. You can’t ignore the problem. If you ignore the problem, it’s not going to go away. It’s just + Click Here For Read More
Your Monthly Income Is A Factor In Qualifying For A Chapter 7 Bankruptcy
April 11, 2014 by
There are income qualifications for filing Chapter 7 bankruptcy. If you are over the median for your state then you are subject to a means test. If it is determined that you have the ability to pay back at least 25% over the next three to five years, then you will not qualify for Chapter 7 relief. The narration below talks about how it all works. Jesse Barrientes: Can I make too much money to file a Chapter 7? David Siegel: You can’t make too much money. If you are over the median for your family size and your locality, then you have to submit to a means test. The means test is basically a determination as to whether or not you have the ability to pay back a portion of your debt + Click Here For Read More
