Rising Costs Of Living Getting You Down? Why Chapter 7 Might Be Right For You

Posted by on August 27, 2015 in Uncategorized | Comments Off on Rising Costs Of Living Getting You Down? Why Chapter 7 Might Be Right For You

It seems that prices are going up on everything. The monthly news about the costs of gas, groceries, or other goods is rarely one that benefits consumers. Many people with financial stability can take these kinds of gradual hikes in stride, but if you are already operating in the red due to excessive credit card debt, a few more dollars at the grocery store can have a big impact on your family. Because you are the provider for your children, they look to you to care for them. Do they too often see anxiety in your face as you approach the checkout line? If so, you are probably tired of living hand to mouth and carrying the heavy weight of credit card debt around your neck. Chapter 7 bankruptcy might just be the choice that frees you from this kind of desperate living. What is Chapter 7? Many people hear about the two most common forms of bankruptcy, Chapter 7 and Chapter 13, but don’t know the difference between them. Chapter 13 is a restructuring of a person’s debt, on which he/she makes monthly payments for several years before having the bulk of it forgiven. It works well for those who have steady incomes but can only pay part of their overwhelming debt. Chapter 7, however, is known as “straight” bankruptcy; in other words, you are declaring that you can not pay your debts at all. This is probably your scenario if you cannot accommodate small increases in the cost of living. How can Chapter 7 help me? Chapter 7 bankruptcy wipes your financial slate clean. The moment your attorney files the case, your creditors must stop contacting you. During the next three to six months, a bankruptcy trustee will review your financial affairs, and you will appear in court to answer questions about them. At the end of the bankruptcy process, your debts are discharged and you have a brand new financial start. Will I lose my house? This may be the most common question asked by people considering bankruptcy. Theoretically, your assets can be sold to offset your debts. It is true that, in some cases, those filing Chapter 7 will have to forfeit their homes. However, if you do not have much equity in your house, it will not make financial sense to the court to seize and sell it, as the profit made on the sale would not pay down your debt significantly. Your attorney can advise you about the particulars of your circumstances. Where do I start? If you think Chapter 7 might be the solution for you, contact a bankruptcy attorney in your area and schedule a free consultation. He/she will review your total financial situation and then offer the best legal advice for you and your family. For more information, contact Licata Bankruptcy or a similar...

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3 Things to Know About Filing Chapter 7 Bankruptcy

Posted by on August 10, 2015 in Uncategorized | Comments Off on 3 Things to Know About Filing Chapter 7 Bankruptcy

It’s not always easy getting your bills paid on time. The challenges and demands of life can result into financial problems. If you find yourself in a financial bind that you simply can’t seem to dig your way out of, you may want to consider filing for a Chapter 7 bankruptcy. However, before doing so, there are certain things you should know about filing for this status. The Fees When you don’t have a lot of money on hand to pay your bills or your debt, the last thing you want to be faced with is high court fees to file for this legal status. The good news is that the total administrative and court fees for filing for this type of bankruptcy is $335 as of June 2014. The Forms It’s a great idea to know the types of forms you will need to complete to qualify legally for this status. There are several forms that the court system will ask you to complete and these are listed below: Debt—You must have the exact amount of debt you owe and who it’s owed to when filing for this type of legal assistance. It’s ideal to have the full name of your lender, the address and phone number listed, as well. Income—The amount of your income will need to be confirmed by you and listed on one of the bankruptcy forms. You should attach a copy of a past W-2 to this form. Expenses—It’s necessary for you to list the precise amount of what it costs you to live each month. This should include your rent, clothing and other costs for your monthly survival. The Time It’s ideal to know how long it will take for your bankruptcy to be completed. It’s typical for you to only have to wait 90 days before this entire process is complete, and you will be free of debt. However, once you have filed for bankruptcy, you’re creditors will be unable to contact you or harass you in any way. Dealing with a serious financial problem can be very devastating and cause you a great deal of stress. The best way to handle this issue may involve taking the necessary steps to complete this legal process. Be sure to rely on the expertise of a local law firm like Wiesner & Frackowiak, LC that will know how to advise you correctly and help you navigate the...

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2 Reasons To Hire A Bankruptcy Lawyer

Posted by on June 24, 2015 in Uncategorized | Comments Off on 2 Reasons To Hire A Bankruptcy Lawyer

A bankruptcy lawyer is going to be your best resource if you are dealing with too much debt for you to handle, mostly because of the many ways in which he or she can assist you. A bankruptcy attorney can deal with aggressive creditors and help you choose the best type of bankruptcy for your situation. Creditors One of the worst parts about falling behind on your debts is having to deal with creditors and collection agencies. While many of the creditors and collection agencies will be quite professional and polite while trying to collect, there are some that can become very aggressive and threatening. Your attorney can help you eliminate all contact with your creditors. The reason for this is that once your attorney files your bankruptcy case, a notice is sent to all of your creditors ordering them to cease all phone calls, mailing, and other collection activities. If any creditors continue contacting you, you can simply inform your attorney and he or she will contact the creditor or collection agency and order them to stop. Type Of Bankruptcy A difficult part of the bankruptcy process is trying to decide which type of bankruptcy to file, with chapter 7 and 13 being the two most common types of personal bankruptcy. If you are unemployed or completely unable to pay your debts while still paying for your basic living expenses, an attorney will recommend a chapter 7 filing. This is because a chapter 7 filing will completely discharge almost all types of debts so that you can start over with a clean slate. A chapter 7 bankruptcy is not going to be able to assist you with discharging any debts to the IRS, student loan debts, or alimony/child support payments. In addition, a chapter 7 bankruptcy is often going to require that you surrender some property, such as any cash that you may have in your accounts, investments, or vehicles. A chapter 13 is the type of bankruptcy that your attorney will recommend if you are in a position to pay back your debt, but only if the debt is restructured. A chapter 13 bankruptcy will create a payment plan that will lower the overall amount of debt that you will pay, while also lowering your monthly debt payments. The great part about this type of filing is that it will not require you to surrender property, as you will still be paying your debts. Speak to a bankruptcy attorney today in order to discuss the many ways in which he or she can help you out. A bankruptcy attorney like Arthur M Richard can help you determine the best type of bankruptcy for your particular financial situation, while also providing you with relief from creditors and collection...

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What You Need To Know About Bankruptcy Exemptions

Posted by on June 18, 2015 in Uncategorized | Comments Off on What You Need To Know About Bankruptcy Exemptions

When you declare chapter 7 bankruptcy, you may understand that in return for having the vast majority of your debts forgiven, you must surrender your personal property so that the bankruptcy court can re-pay some of your debt. You will be allowed to keep some of your property, however, and these provisions are called exemptions. Read on for more information about exemptions and how they affect your chapter 7 bankruptcy case. Each state has their own specific exemption rules, so you can check here to see how each state handles exemptions. Some states allow you to chose between federal exemptions or that state’s exemptions. In these cases, you must choose one or the other, not a mixture of both. Can You Keep Your Home? States usually employ a homestead exemption in an effort to allow you to keep your home. As with most homesteading rules, you must reside in the home full time, so rental properties and vacation homes would not be exempted. The homestead exemption amount reduces your equity amount. For example, if your home is worth $250,000 and your homestead exemption for your state allows you $25,000, your home’s adjusted worth would be $225,000. If you owe more than the adjusted amount on your mortgage, you can keep your home. Some states allow married couples filing for joint bankruptcy to double up on their homestead exemptions, so in the above example the adjusted value would be $200,000, thus allowing you a greater chance of keeping your home. Home equity lines of credit loans are considered (second) mortgages for the purposes of evaluating the adjusted equity. The determination of whether or not you can keep your home is related to how much equity you have built up, in other words the amount of the mortgage minus the value of the home. If you own a property worth $250,000 and you only owe $50,000 more on the mortgage, the bankruptcy trustee could seize your home and sell it to help pay your debts. Keep in mind that the amount of your bankruptcy debt is an important factor in whether or not they decide to seize your home. Can You Keep Your Personal Property? Households good such as furniture, tools, and artwork are usually exempt, unless you have very valuable belongings. Resale value for common household goods is very low, so it’s unlikely to be of interest to the bankruptcy court. Every state has very specific rules that must be followed in regard to exemptions, with additional provisions for  vehicles, wildcard exemptions, work-related property, bank accounts and retirement accounts, so a careful interpretation by a bankruptcy attorney like Michael D Hart PC is vital to help you determine what you may...

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