Bankruptcy Means Test If you're trying to file a chapter 7 bankruptcy, you must first qualify. One of the qualifications is that you must pass the means test. The means test is a mathematical formula designed to prohibit those from filing a chapter 7 bankruptcy if they have the ability to repay a portion of their debt over time. If you are making under the state median based on your household size, then you will automatically pass the means test. However you must not have available money per month from your budget from which to pay a repayment plan. If you are over the state median for your household size, then you must submit to the bankruptcy means test. How The Test Works The + Click Here For Read More
Can My Bankruptcy Petition Be Amended After Filing?
May 31, 2014 by
Bankruptcy Petition Can Be Amended Your bankruptcy petition can be amended after you file. This is often the case when someone forgets to list a particular creditor. The creditor may not have shown up on the credit report or the debtor simply misplaced a bill from that creditor. In a chapter 13 case, the bankruptcy petition often has to be amended to make changes to the budget. Additionally, secured creditors are going to object to the number that is listed in the plan since they are never exactly correct. For chapter 13 bankruptcy cases in Chicago, attorneys will estimate what the secured debt is on a vehicle or a mortgage. The creditor will file an objection to confirmation whereby they + Click Here For Read More
Credit Unions And Your Bankruptcy Case
May 30, 2014 by
Credit Unions If you are a member of a credit union and you have debt with that credit union, you need to be aware of certain circumstances as they relate to your bankruptcy case. Credit unions operate under different rules than ordinary banks. When you place money in a credit union account it is known as a share account. When your credit union becomes your lender, it usually contains language within the loan whereby your share account and other collateral can be secured. This means that if you do not pay back the loan the credit union has a right to offset whatever funds are in your share account to satisfy the debt. Additionally, if you have a vehicle financed through a credit union and + Click Here For Read More
Filing Bankruptcy Before You Get Married Is Typically Best
May 29, 2014 by
Should You File? Let's talk about a bankruptcy scenario that comes up from time to time. Let's say you're someone who is struggling with debt, you're single, and you finally found someone you want to marry. Your future spouse does not have any debt and he or she has a very good income. The question is should you file for bankruptcy prior to getting married? The answer is a little bit complex. It used to be that if one party to a marriage had debt, that party could file a chapter 7 bankruptcy and get a fresh start. This could be done regardless of what the non-filing spouse earned per year. The old law basically said that just because you are married, the non-filing spouse's income is not a + Click Here For Read More
Converting Your Bankruptcy Case From Chapter 13 To Chapter 7
May 28, 2014 by
When It Makes Sense There are circumstances where it makes perfect sense to convert a chapter 13 to chapter 7. One of the reasons why someone would want to convert their bankruptcy case is due to an inability to make chapter 13 payments. This can happen when someone loses their job, gets a divorce, becomes ill or injured, or simply does not wish to retain the property that was being reorganized in a chapter 13. Let's look at an example of a homeowner who's trying desperately to save a home from being foreclosed upon. The homeowner files a chapter 13, begins to make monthly payments to the trustee and begins to make the regularly scheduled mortgage payment once again. Well at some point + Click Here For Read More
Curing Your Mortgage Arrears With Chapter 13
May 27, 2014 by
The Best Way To Cure Mortgage Arrears There is only one way that you can cure or catch up on mortgage arrearages with the help of the bankruptcy system. That way involves the filing of a chapter 13 bankruptcy case. Chapter 13 bankruptcy is a unique way to save a home that's either in foreclosure, heading into foreclosure, or on the eve of a Sheriff sale. Filing a chapter 13 will allow you to make the regular mortgage payment directly to the lender as well as a separate payment known as a trustee payment which will cure your mortgage arrearage over a three to five-year period. How It Works Here is how chapter 13 works. A petition under chapter 13 is filed with the clerk of the United + Click Here For Read More
To File Bankruptcy Or To Not File Bankruptcy?
May 24, 2014 by
Not An Easy Decision To File Bankruptcy For many people filing bankruptcy is not an easy decision. Even though people struggle with debt for years and years, they are reluctant to actually pull the trigger on a bankruptcy filing. It could be due to pride. It could be due to the uncertainty of life after filing. It could be the fear of not getting future credit. It could be a combination of all these factors and more. Look At Your Total Financial Picture When considering whether to file bankruptcy or not, one has to look inward at their overall financial picture to get an idea of whether or not it makes sense to file or not. If you are someone who has very little in the way of income and + Click Here For Read More
Do Most Bankruptcy Lawyers Accept Payment Plans?
May 23, 2014 by
Most Bankruptcy Lawyers Accept Payment Plans Most bankruptcy lawyers accept payment plans because they know that clients are struggling financially. Bankruptcy attorneys understand that clients are overwhelmed with debt. It is only when one stops paying minimum payments on credit cards, medical bills, personal loans and other debts whereby he or she will be able to make payments towards their bankruptcy attorney. The real question is whether or not the bankruptcy attorney is going to file your case prior to being paid in full. Most Bankruptcy Lawyers Want To Be Paid In Full The typical bankruptcy attorney is going to want to be paid in full prior to filing your bankruptcy case. This fee + Click Here For Read More
Bankruptcy Trustee Searches For Assets
May 23, 2014 by
In every Chapter 7 bankruptcy case, there is a Trustee appointment by the court to oversee the administration of your case. In most cases, there are no assets to be administered. However, the Trustee still needs to do an investigation to make certain. The investigation typically involves him asking several questions at the 341 meeting of creditors. The Trustee will also review the schedules to see if there is any item that needs further explanation. Provided there are no assets, the Trustee will quickly adjourn the meeting and move on to the next case. The narrative below talks about the Trustee's search for assets in greater detail. David Siegel: Why is the trustee engaging in a search for + Click Here For Read More
Bankruptcy And Foreclosure: Can I Save My Home?
May 22, 2014 by
Chapter 7 & Foreclosure Filing bankruptcy can go a long way toward saving a home that's in foreclosure. Each chapter of the bankruptcy code will affect the outcome or the continuation of a foreclosure case differently. Under chapter 7 bankruptcy law, and automatic stay will kick in which will temporarily halt a foreclosure case. In a chapter 7, the creditor will bring a motion to modify the automatic stay and will be able to proceed where it left off in the foreclosure process. This delay can last anywhere from one month to four months depending upon the timing and conduct of the creditor. Chapter 13 & Foreclosure Under chapter 13 bankruptcy law, the foreclosure case may possibly + Click Here For Read More
