do I need to Know Before Filing Bankruptcy
you in financial trouble? If you are
experiencing financial issues and are considering bankruptcy here are a few
things that may be helpful in your search for a competent bankruptcy attorney.
is the difference between filing a bankruptcy chapter 7 or chapter 13
the United States Bankruptcy court there are 2 types of bankruptcy filings that
usually occur. Chapter 7 is liquidation
and Chapter 13 is reorganization.
Whether you file a chapter 7 or chapter 13 depends on your financial
7 bankruptcy is a liquidation of all your assets. After the 2005 New Bankruptcy
rules they developed the means test.
This test qualifies you and is based on the medium income of the county
you are filing.
13 bankruptcies are reorganization bankruptcy designed for debtors with an
income to pay back a percentage of your debts through a repayment plan. If you do not pass what is call a means test
in chapter 7 you may decide to file a chapter 13 to reorganize you debts. There are other benefits for filing a chapter
13, it could help you catch up on your arrears or you may qualify to strip your
unsecured junior liens from you home.
Check with your local bankruptcy attorney for answer to your particular
Test is used to assist a debtor filing for bankruptcy chapter 7 to determine if
they are eligible to file under the chapter 7 guidelines. This is determined by the medium income in
debtors county and state.
You Will Want To Know When Talking To A Bankruptcy Attorney
you own that has value. An asset can be
something as simple as tools you use to work on you home, a security deposit
with you landlord, or a 401 plan with your employer or more complex asset is
your home, timeshare and car.
the moment that a bankruptcy clerk from the court stamps you petition all you
creditors activity to collect debts, obtain judgments, or obtain your property
are put on hold. This is the protection
provided to you as a person or company under the Bankruptcy law in the United
is a notice you received from the bankruptcy court court letting you know your
case is ended. A bankruptcy can end
because the Trustee files a motion to either dismiss the case or convert it to
another Chapter, or the Judge discharges the debts and/or approves the Chapter
13 plan of repayment or Chapter 7 filing.Conversion
conversion occurs when you file one Chapter of bankruptcy and convert over the
another Chapter after you have filed.
bankruptcy case can be dismissed at anytime if you fail to follow bankruptcy law
federal and local rules and/or fail to file any required documents.
debtors are afraid to file bankruptcy because they think they may lose
everything they own. There are what is
called “exemption” that allow you to keep some of your property. Each state has own exemption allowance. (see you local bankruptcy attorney for your
property is everything else you own that is not real property.
plan is a plan that shows the court how the debtor wants to repay his/her
is an agreement filed with the Bankruptcy Court when you want to continue paying
the debt and the creditor agrees to the payment terms.
Property is considered anything that is attached to God’s green earth. A mobile home is usually not attached to the earth
because it sits on wheels. Therefore, a
mobile home is considered personal property, unless the wheels have been remove
and it physically sits on the earth.
from Automatic Stay
is a court order requested by the creditor to lift the “automatic stay” that
was put on the property when debtor filed the bankruptcy petition.
is a debt you owe for an item that could be taken away from you if you don’t
pay the bill for instance. If you don’[t
make your house payment the creditor you owe can repossess it.
is a real “live” person that works for Bankruptcy Court. When you attend the Trustee assigned to your
case. He/she will review your bankruptcy
petition, ask you some questions, ask questions of any creditors who may be
present, and then tell you if he/she will review you bankruptcy petition.
is a debt you owe a creditor that cannot be taken away from you. For instance anything you charge on a credit card
is an “unsecured debt” If you don’t pay
your credit card this month they cannot come and take anything you bought with
the creditor card. All they can do is harass you to pay your bill.