What Percentage Gets Paid Back In A Chapter 13 Bankruptcy?

The Percentage Will Depend Many clients want to know what percentage is going to get paid back to creditors if they file chapter 13 bankruptcy. The answer to this question depends on a number of different factors. First, the debtor's income is factored into the equation right from the start. Second, we have to take a look at the debtor's monthly expenses or budget items. The difference between the income and expenses is typically what is paid back through a chapter 13 repayment plan. That difference is known as disposable monthly income or DMI. How The Percentage Is Calculated Now the amount that needs to get paid is the disposable monthly income over a period of anywhere from 3 to 5 + Read More

How long does a Chapter 7 bankruptcy case take?

A Chapter 7 bankruptcy case can take can take anywhere from 3 to 4 months if someone moves very quickly.  Allow me to explain.  Chapter 7 involves the filing of a bankruptcy petition.  The bankruptcy petition has to be prepared, signed by the client; the client must then take credit counseling and provide the most recent federal tax return and the most recent two months of paycheck stubs.  If the client is able to do all of this relatively quickly, then we can file the case within a matter of a few days or a week.  From that filing date, the statutory timeframe is approximately 110 days.  So if somebody really wants to get the process going and they are really prepared, we can file quickly + Read More

When To Apply For Credit After Filing Bankruptcy?

Immediately after filing a bankruptcy case you have the ability to apply for credit. Most lenders are going to want to have you wait approximately 6 months to two years before extending you any kind of unsecured credit. You can apply for auto financing immediately after a bankruptcy filing. This is known as open bankruptcy financing and it could happen immediately upon filing. The more common approach is to wait until your discharge, and then apply for an auto loan. My recommendation is to apply for a secured credit card after your bankruptcy case is filed. A secured credit card is issued by a bank utilizing money that you put on account at that bank. Thus, you have the convenience of + Read More

What Is Involved In Preparing The Bankruptcy Petition?

The bankruptcy petition is the document that gets filed with the clerk of the United States bankruptcy court. The petition is basically everything about you financially. It encompasses all of your assets, your liabilities, your income, your expenses and your statement of financial affairs. The bankruptcy petition is what the chapter 7 trustee is going to examine to determine whether or not you are entitled to a bankruptcy and whether or not you are going to have to give up any assets as part of your liquidation, fresh start. The petition starts with general information such as your name, your address, your Social Security number, the county that you live in, and whether or not you have + Read More

I Am Considering Filing Bankruptcy, When Should I Take The Pre-Filing Credit Counseling?

A credit counseling session must be taken prior to a bankruptcy case being filed. You want to make sure that you do not take the credit counseling too far in advance of your bankruptcy filing. The bankruptcy code mandates that the credit counseling session must be completed within 180 days prior to your actual filing. I have come across clients who jump on the credit counseling early only to find out that they have to take it a second time. The typical scenario is that someone will come to me for chapter 7 or chapter 13 bankruptcy relief.  I will inform them and advise them about the pre-filing credit counseling requirement. I will also advise them to not take the pre-filing credit + Read More

Case Study For Santana From Chicago, Illinois

This is a case of Santana Magentey who comes to me from South Ellis Ave., Chicago, IL. Santana is coming to me for a free, initial consultation regarding bankruptcy. She basically wants to know if she can re-file a chapter 7 bankruptcy case to obtain a new start. Let's take a look at the facts of her case. She did file a chapter 7 bankruptcy back in 2011.  However, she did not receive a discharge. She did not receive a discharge because she never completed the two hour financial management class. Plus, she is eligible for a discharge because she has not received one in the past. Assets In terms of real estate property, she has no real estate. She is currently renting an apartment and + Read More

Should I Be Reaffirming On My Car If I’m Upside Down?

When you file for chapter 7 bankruptcy and you have a secured vehicle, you have three choices which you can make. You can either reaffirm on the debt, you can redeem on the debt or you can surrender the property in full satisfaction of the debt. If you decide to reaffirm the debt on your vehicle, then you are basically agreeing to be bound by the terms of the agreement going forward. This means that if you fall behind on that vehicle in the future, the lender can repossessed the vehicle, sell it at auction, and come after you for the deficiency even though you filed the chapter 7 bankruptcy. Thus, you want to make certain that if you reaffirm your vehicle debt, that you are making a wise + Read More

Do I have to go on payroll control for Chapter 13?

Chapter 13 Bankruptcy - Payroll Control In some jurisdictions, payroll control is mandatory.  This is where the money to pay your Chapter 13 trustee is deducted by court order out of your pay.  Now, payroll control can only work if you have a job.  If you are self-employed, or if you are on unemployment, if you are on Social Security disability or if you have rental income or other types of income when you are not employed, payroll control cannot kick in.  However, if you are someone who gets a paycheck, whether it’s weekly, biweekly or any other frequency, then payroll control can help you and I recommend it. Payroll Control Upsides The great thing about payroll control is that as long + Read More

In My Bankruptcy Case, Why Do I Need To Reaffirm On A Car But Not On My House?

The Code Dictates The bankruptcy code is what governs every issue of a bankruptcy filing. Under chapter 7 bankruptcy law, the bankruptcy code dictates as to what must be done with regard to particular, secured property. For example, if you have a financed vehicle in a chapter 7 bankruptcy case, the bankruptcy code mandates that you make an election. You can either reaffirm the debt on that vehicle, redeem the debt on that vehicle or surrender the vehicle in satisfaction of the debt. You simply only have those three choices with regard to a secured vehicle debt in a chapter 7 bankruptcy case. You no longer have the ability to simply continue to make monthly payments without a valid + Read More

What Are The Advantages Of Filing Bankruptcy With An Attorney?

If you file bankruptcy with an attorney, you're going to get assistance throughout the process. Your attorney is going to know exactly what needs to be done with your case. This all starts with the very first consultation. The attorney is going to be able to interview you, advise you, and notify you of potential issues with your case. If you are trying to file bankruptcy on your own, you are not even going to be aware of specific issues that you need to be aware of. For example, your attorney is going to be looking for assets much in the same way that the chapter 7 trustee is going to be looking for assets. Your attorney wants to make sure that you have a smooth and efficient chapter 7 case. + Read More

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