Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

How do I file for Chapter 13 bankruptcy?

According to Chapter 13 bankruptcy rules, it is necessary for a debtor to attend credit counseling prior to filing for bankruptcy. After the completion of counseling, the debtor must pay a fee and provide the bankruptcy court with information about income, debt, expenses, and creditor holdings of secured and unsecured debt. Once the court receives the appropriate paperwork, a trustee will review the case. The trustee will request information from the debtor, communicate with creditors, and hold a creditors meeting. The debtor is also responsible for filing a repayment plan with the court. Once the bankruptcy court approves the repayment plan, Chapter 13 bankruptcy is complete.

Does filing for Chapter 13 bankruptcy stop creditors from collecting a debt?

Chapter 13 bankruptcy rules state that a creditor may no longer pursue collection activities when a debtor files for bankruptcy. As soon as debtor files the appropriate paperwork and pays the filing fee, an automatic stay takes effect. An automatic stay prohibits creditors from further attempts to collect a debt. This means that any lawsuit proceedings must cease, a creditor may not report the debt to credit reporting agencies, and the debtor’s property and income are safe from seizure. Collection activities may continue for spousal and child support, tax debt, and pension loans, however.

Will a Chapter 13 bankruptcy erase my student loan?

No.

A bankruptcy court will require repayment of your student loan debt. Chapter 13 bankruptcy rules treat student loan debt similar to priority debt–it is payable in full like back taxes and child support payments. Prior to 2005, student loan debt was only dischargeable when funded by a private lender. With the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act, however, privately funded student loans are now treated the same as student loans guaranteed or issued by the federal government. This means that all student loan debt is only dischargeable upon a showing of undue hardship.

Typically, it is difficult to convince a bankruptcy court to discharge student loan debt. A bankruptcy court will consider such factors as poverty, the inability to pay the loan due to a permanent disability, and a debtor’s good-faith effort to repay the loan for a long period. To have a student loan debt dismissed, a debtor must file a separate action in bankruptcy court called a Complaint to Determine Dischargeability of a Debt.

If I miss a scheduled payment under my Chapter 13 repayment plan, can a creditor sue me?

If a debtor misses a scheduled payment, Chapter 13 bankruptcy rules allow the trustee to institute an action for dismissal with the bankruptcy court. Because the debtor agreed to repay creditors according to a court-approved Chapter 13 repayment plan, a trustee may request the dismissal of the case once those creditors are no longer receiving payments. A debtor may be able to prevent the dismissal of a case by establishing their ability to repay the debt under the current plan or by requesting that the court approve a new plan.

If the bankruptcy court dismisses the case, a creditor may reinstitute collection activities against the debtor. Bankruptcy laws that prohibit collection attempts no longer protect the debtor at this point. Consequently, creditors may collect the current amount owed on the debt and any interest on the debt that accrued while the debtor was in bankruptcy.

Changes to the Bankruptcy Law

In 2005, new bankruptcy laws required potential bankruptcy individuals to be involved in courses educating and informing them of their financial options. Before an individual files for a Chapter 13 or Chapter 7 bankruptcy, you must receive credit counseling from an approved agency. Any Chapter 7 Lawyer will tell you that it’s required. In addition, before a bankruptcy is discharged, the individual must attain a personal finance management course known as debtor education.

Do I have to get Credit Counseling?

The purpose of credit counseling is to assist an individual’s evaluate his or her financial options and to determine if he or she can repay debts through a repayment plan without filing bankruptcy. In credit counseling, the individual will usually provide information regarding his or her income, expenses, and debts. The counselor then evaluates the information and proposes a repayment plan.

Personal Financial Management and Debtor Education

Debtor education information is meant to instruct individuals to be responsible with their finances. The education is meant for the individual to learn from his or her mistakes and never be in the postion to file bankruptcy again. A debtor education course will usually provide tips in developing a budget, managing finances, using credit responsibly, and how to deal with financial emergencies.

As part of the new bankruptcy laws, people wishing to file for bankruptcy (under Chapter 7 or Chapter 13) must now complete a credit counseling program before they will be allowed to file a bankruptcy petition. In addition, bankruptcy filers must obtain debt management counseling before being allowed to complete the bankruptcy process. In order to comply with these credit counseling and post-discharge debtor education requirements, filers must work with agencies that have been approved by the U.S. Trustee Program (a branch of the U.S. Department of Justice that is responsible for overseeing bankruptcy cases).

Two lists of agencies that have been approved by the Department of Justice — the first a list of agencies that provide pre-filing credit counseling to those wishing to file for bankruptcy, and the second a list of agencies that offer post-discharge debtor education to people who are completing the bankruptcy process. The third link below includes tips on choosing a credit counselor, from the Federal Trade Commission (FTC).

On April 15, 2013, the Executive Office for U.S. Trustees (EOUST) announced new policies on credit counseling and debtor education requirements. The list below is some notable new rules.

Quality – The quality of counseling must be consistent whether the debtor takes the course on the Internet, in person, and over the phone. In addition, the counseling must not be generic but individually specific to the debtor.

Use the Cheapest One – Credit counseling agencies and debtor education information providers must charge a reasonable fee that is $15 or less. An individual’s income that falls 150% below the poverty line is eligible for a fee waiver. We reccomend that you use Debtorcc.org – they are fast and the cheapest one that we could find.

Is credit card debt included in a Chapter 13 bankruptcy plan?

To qualify for Chapter 13 bankruptcy, a debtor must repay all secured creditors and priority debts in full and must repay a portion of the amount owed to unsecured creditors. “Secured debt” is a debt obligation backed by collateral such as a car or real property; “priority debt” includes child support payments and back taxes; and “unsecured debt” are those obligations that are not backed by collateral. Unsecured debt includes money owed on a credit card.

A Chapter 13 bankruptcy places a filer’s debt into a repayment plan. A bankruptcy court will not approve a plan unless the arrangement requires that the debtor repay all priority and secured debt in full. The repayment plan must also require the debtor to repay unsecured creditors in an amount equal in value to the filer’s nonexempt property. Nonexempt property includes any interest held in real property, business assets, and artwork. Once a Chapter 13 repayment plan begins, a trustee will disburse the monthly payment made by the debtor to the creditors each month.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Discharging Student Loans in Bankruptcy

We all know college is expensive. But just how hard is it to pay off student loans? According to new information published by the National Bureau of Economic Research (NBER), choosing the right school to attend can have a huge effect on your future — but not just on what type of job you might be more likely to get with a fancier college on your resume. It might impact your ability to pay off student loans. This topic is important to bankruptcy lawyers because if you ever get behind on payments…. well, read on.

Discharging Student Loans in Bankruptcy

Sure, picking a $40,000-per-year-tuition college over one that’s half the price should be a serious topic around the dinner table when you’re a high school student. How many grants or scholarships are you eligible and applying for? How big of a loan will you need to get to cover the rest? And how will you pay it all back?

The Treasury Department staffers who authored the working paper for NBER found that low- and middle-income college borrowers struggle with loan burdens after leaving school by matching tax data with information in the Department of Education’s Student Loan Data System. Most low-income borrowers haven’t touched repaying any of the original balance of their student loans five years after college, while a borrower from a high-income family has repaid about 19%.

This is because the employment outcomes for students from low-income families aren’t as fruitful. More than 1 in 10 students from families earning fewer than $30,000 per year are unemployed five years after leaving school, while another 36% are working but earning fewer than $25,000. Meanwhile, only 27% of students from families earning $75,000 to $100,000 are earning fewer than $25,000, while 8% are unemployed.

Additionally, about 1 in 4 borrowers from low-income families default on student loans within five years of entering repayment.

Why the difference?

According to the data gathered for NBER, students from low-income families face tougher challenges with student loans based on their lack of access to wealth. Often, the balance of their loans is larger than when they originally took them out, five years after graduating. Wealthier borrowers also rely less heavily on student debt to finance college, according to left-leaning think tank Demos.

However, the NBER paper suggests that when low-income borrowers attend less selective schools that are still in the middle of the road in terms of economic mobility, about half end up earning more than $25,000 a year after entering repayment.

It’s important to note that the data was collected for student loans in repayment between 2004 and 2009, the tail end of that being right around the time of the economic collapse.

According to the Equality of Opportunity Project, schools that ranked best for upward mobility for low-income borrowers were:

  • Cal State-Los Angeles
  • SUNY-Stony Brook
  • CUNY System
  • Glendale Community College
  • University of Texas at El Paso

The percent of students who come from families in the bottom fifth but reach the top fifth of income distribution are included in the analysis by the Equality of Opportunity Project. Cal State-Los Angeles has the best mobility rate at nearly 10% of students achieving that tier, while the average college in the U.S. only churns out 1.9% of graduates who dramatically increase their wealth.

So, which college is right for me?

You’ll need to weigh a lot of factors when choosing which college is right for you: programs offered, acceptance rate, location, price, and more. If economic mobility is important to you, it’s good to have the data behind trends seen in colleges today.

The colleges reporting the lowest median parent income on the list include schools in New York, Texas, Kansas, New Mexico, and Florida. Of the lowest set of parent median incomes, the best child (individual) median income was reported from graduates of Vaughn College of Aeronautics and Technology in New York, where graduates ages 32-34 are earning $53,000 per year compared to their parents’ $30,900 per year.

No goal of becoming a pilot or engineer? That’s OK. If you go to University of Texas, most campuses will show results of a higher child income than parents’ income — many of which also tend to be in just the $30,000 range.

At City College of New York, you’ll earn $48,500 per year compared to your parents’ $35,500. At Cal State-Los Angeles, you’ll earn $43,000 for your parents’ $36,600.

Meanwhile, some schools aren’t the best choices, economically. Beauty schools, like Paul Mitchell in Costa Mesa, California — the lowest child median income on the list at $10,300 per year compared to their parents’ $85,200 per year — and some technical and community colleges can affect upward mobility rankings. However, students earning two-year degrees at public colleges, in addition to four-year ones, generally have an easier time paying off student loans. Community college also can help students save a lot of money by earning general credits they’d pay big bucks in tuition for per credit hour at a four-year school.

For students, both child and parent, who never attended college, they’re making just $11,500 per year on their parents’ $35,200.

Interested in what school results in the highest median income for students? It’s Saint Louis College of Pharmacy in St. Louis, Missouri. The median child income is $123,600 — but that’s also coming from a parent median income of $92,500.

What’s the best plan for paying off student loans?

Student loan debt can be tough. It’s important to explore all college payment options when also considering adding student loan debt, and when you’re able to start repaying your debt, you should begin doing so immediately.

It’s also important to know that if you’re feeling crippled by student loan debt years after college, you have options. However, the law makes bankruptcy only an option in discharging student loan debt if you can show undue hardship. If you can satisfy each of these requirements, you may be able to discharge student loan debt:

  1. Based on your current income and expenses, you’re unable to maintain a minimal standard of living for yourself and your dependents if you’re forced to pay off your student loans.
  2. You have additional circumstances that indicate that this state of affairs most likely will continue during most of your repayment period.
  3. You have made good faith efforts to repay your loans.

Erasing Student Loans in a Utah Bankruptcy

Student loans are considered to be in the lowest category of general unsecured debt when you’re looking at bankruptcy, which includes credit card and medical debt. It’s incredibly difficult to get a discharge on student loan debt, even though a growing number of influencers in consumer bankruptcy think that it should be dischargeable. Right now, our office will only file a motion to have student loan debt discharged is if you are permanently disabled and will never earn sufficient income in your lifetime to pay it back.  Even then, there is no guarantee we can do it.  The best route, however, would be to research all your financing options fully before choosing a college, possibly pursuing a degree that may land you a job that allows for loan forgiveness, like being a public school teacher or a nurse, and getting on a repayment plan after you graduate and sticking to it.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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What Documents Do I Need to Bring When I First Meet with My Bankruptcy Attorney?

Filing for bankruptcy isn’t always easy. One of the biggest burdens under the “new” bankruptcy law that was forced upon debtors and their attorneys in 2005 was the requirement to produce volumes and volumes of documents. In addition to the formal schedules and statement of affairs, you’ll need to get together a lot of paperwork to file bankruptcy. One nationally known attorney from Utah has said that before the law was changed, he would tell his clients that you paid your attorney to run around the courthouse. Now, under the new law, you pay your attorney, and both the debtor and the attorney get to run around the court house.

What Documents Do I Need to Bring When I First Meet with My Bankruptcy Attorney

In our experience, the presentation of the documents only serves to verify the truth of the matter, and that is that the overwhelming debt is much too onerous to deal with, and the need to file a bankruptcy is even more necessary. The frustrating part of the practice of law, in this regard, is the time-consuming task of gathering documents that state what is already obvious. Even so, submitting these “due diligence” papers is a major part of debtor bankruptcy practice today.

So, what sort of documents will you need for Chapter 7 or Chapter 13 bankruptcy, at your initial consultation with a bankruptcy attorney and beyond? Read on.

Bankruptcy Consultation Documents: What to Bring to Your First Meeting with Your Lawyer

The most important, mandatory documents to bring to your initial bankruptcy consultation are a list of your outstanding debts and a list of your assets, focusing on major assets, such as houses, cars, boats, trailers, timeshares and the like. We rarely ask for the actual bills from the creditors, as we routinely download a credit report, which captures most of the needed information.

Then, a recent pay stub is the next important item, plus a rough budget for your household’s income and expenses. These would be bare-minimum documents for an initial review.

What Documents You’ll Need If You File Chapter 7 or Chapter 13

If you and your attorney decide to go forward with your case, you likely will be provided with a detailed checklist of all the other myriad documents needed, such as loan payoffs, copies of titles, copies of tax returns, six months of pay advices, deeds of trust, proof of insurance, and on and on.

The United States Courts website has a full list of the Official Bankruptcy Forms that may be needed for filing bankruptcy, which include your Chapter 13 Plan, means test forms for Chapter 7, financial affairs and income statements, applications to waive filing fees, orders on reaffirmation agreements, orders for relief in involuntary cases, notice to creditors, financial management course certification, and more. Individual debtors will file forms that begin with the number 100, while non-individuals will file forms beginning with the number 200.

Thankfully, though, most of these documents can wait to be produced during the retainer and filing process, and need not be brought to the initial consultation. While debtors certainly are able to file for bankruptcy on their own without the help of an attorney, it’s generally not advised. Bankruptcy can be complicated, outside the dozens of forms involved, and just a simple mistake with a document or overlooking an asset can get your case tossed and your debts will not be discharged.

Contact a Bankruptcy Attorney Today for a Free Consultation

If you are thinking of filing for bankruptcy, you are not alone. Lawyers can help you decided whether or not you even need to file a bankruptcy, but if you do, they’ll let you know which chapter would be most appropriate. They can also tell you whether or not you’ll be able to keep your most treasured assets, including your house and car, and advise you about tax consequences and how to address bills during bankruptcy. They’ll also help you fill out all of the necessary forms correctly and make sure you’re not missing anything the bankruptcy court requires.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

4.9 stars – based on 67 reviews


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Fresh Start Bankruptcy

Most people don’t wake up in the morning and think about bankruptcy. So, let’s ѕtаrt аt the beginning, you started bоrrоwing money tо improve уоur life. Life looks gооd and уоu are looking fоrwаrd tо уоur new lifе. Sоundѕ like your life ѕо fаr or сlоѕе tо it. Thеn it hарреnѕ, wе meet thе love оf оur livеѕ аnd dесidе tо gеt mаrriеd. Nоw thеrе is mоrе thаn just yourself, there iѕ your wifе tо think аbоut аlѕо.

Lifе moves tо the nеxt phase, аn араrtmеnt tоgеthеr, еасh of уоu hаѕ a саr thаt hаѕ a loan thаt iѕ due every month along with уоur mоnthlу rеnt рауmеnt. During thiѕ timе реriоd, thеrе wеrе multiрlе credit саrd оffеrѕ that were ассерtеd аnd nоw there iѕ аlѕо a mоnthlу credit саrd payment оf оnе оr two. Lifе is grеаt, buy what еvеr bоth of уоu wаnt аnd еnjоуing life together. Yоur wife wants furniturе, ѕо guess what, a nеw bеdrооm suite along with аnоthеr monthly рауmеnt. Pауmеntѕ аrе ѕtаrting to creep uр аnd you realize, wоw, there iѕ nоt enough money to livе оn. Whаt dо wе dо?

fresh start bankruptcy

Thiѕ is the tурiсаl scenario of a уоung соuрlе struggling with a frеѕh ѕtаrt in lifе. It саn be simple or еvеn mоrе complicated, but it hарреnѕ. Dеbt starts to slowly tаkе оvеr your lifе. Mоnеу iѕ ѕреnt at Orlаndо for a vасаtiоn аnd bеfоrе you know it, it iѕ a ѕtrugglе tо mаkе еndѕ meet. Thеn, disaster hitѕ аnd thе соmраnу thаt you work for gоеѕ оut оf buѕinеѕѕ. Thе twо оf уоu аrе slowly getting furthеr bеhind аnd thе furniture gеtѕ rероѕѕеѕѕеd bу the lоаn company. A tеrriblе story but truе fоr a соuрlе thаt I knоw thаt it hарреnеd to. Hiѕ wifе аlѕо got lаid оff but fоund another jоb ԛuiсklу аt lower wаgеѕ. Hе has ѕinсе fоund a jоb but аt lоwеr wages аlѕо.

Thiѕ story iѕ ѕimрlifiеd and iѕ muсh mоrе complicated. Thеу both hаd tо hirе a Bаnkruрtсу Attоrnеу to gеt thеm out of thе mеѕѕ thеу were in. They dесidеd to filе Chарtеr 7 and gеt a frеѕh ѕtаrt bесаuѕе оf thе hаrаѕѕmеnt оf thе bill collectors. They wеrе gеtting phone саllѕ аt аll hоurѕ of the day аnd night. Thеу соuld not tаkе it аnуmоrе. I аlѕо forgot tо mention about thе mеdiсаl billѕ thаt wеrе incurred during thе timе hе gоt lаid оff аnd hаd nо hоѕрitаlizаtiоn because he соuld nоt аffоrd thе рауmеntѕ tо Cobra tо соntinuе the inѕurаnсе.

Thiѕ соuрlе has a nеw ѕtаrt in lifе with a new finаnсiаl реrѕресtivе. They hаvе dесidеd tо bе a littlе more соnѕеrvаtivе with thеir ѕреnding аnd аrе slowing getting thеir lives bасk оn trасk. Did I tell уоu, they now have a little bоу whо helped change their livеѕ also. This iѕ a sad story thаt ends gооd in thе end. They are slowly rе-еѕtаbliѕhing their finаnсiаl livеѕ together now.

Bаѕiсаllу, whеn уоu оwе mоnеу, уоu аrе a dеbtоr, аnd реrѕоnѕ оr соmраniеѕ whо уоu оwе thе mоnеу, are Mаin creditors. Thе lеgаl рrосеѕѕ thаt саn рrоtесt dеbtоrѕ frоm thеir сrеditоrѕ iѕ соmmоnlу knоwn аѕ bаnkruрtсу. But bаnkruрtсу, iѕ nоt fоr еvеrуоnе in dеbt, саn bе uѕеful, dереnding оn раrtiсulаr сirсumѕtаnсеѕ. So, you are now thinking — how do I filed for bankruptcy?

Thеrе аrе mоrе thаn оnе tуре оf рrосеdurеѕ оf bаnkruрtсу – in fасt fivе diffеrеnt tуреѕ. Thе mоѕt common рrосеdurеѕ аrе knоwn аѕ Chарtеr 7 аnd Chарtеr 13. Uѕuаllу, whеn реорlе ѕреаk оf “dесlаring bankruptcy,” thеу rеfеr tо Chарtеr 7, whiсh iѕ thе procedure thаt givеѕ уоu thе сhаnсе tо erase everything, аvоiding аlmоѕt аll dеbtѕ without hаving tо mаkе furthеr рауmеntѕ in the futurе.Nаturаllу, thеrе аrе ѕtriсt limits оn hоw оftеn саn a реrѕоn аррlу thе procedures in Chарtеr 7. Chapter 13 iѕ a diffеrеnt kind оf аrrаngеmеnt. It саn соnѕоlidаtе уоur dеbtѕ аnd ѕtор аll оr раrt оf thеm whilе рrоtесting уоu frоm bеing diѕturbеd bу уоur сrеditоrѕ. It’ѕ оftеn аn еxсеllеnt аltеrnаtivе whеn thе Cоunсil of Cоnѕumеr Crеdit оr Chарtеr 7 аrе nоt аvаilаblе орtiоnѕ.

Will bаnkruрtсу hеlр mе in my ѕituаtiоn? Bаnkruрtсу саn givе уоu a frеѕh ѕtаrt аnd оftеn mау ѕееm vеrу аttrасtivе tо реорlе in hugе dеbt. Hоwеvеr, the рrосеѕѕ iѕ not for еvеrуоnе. Dесlаring bаnkruрtсу саn аffесt уоur сrеdit years оr hаvе ѕеriоuѕ соnѕеԛuеnсеѕ уоu will nееd considered.

 

Sоmе fасtоrѕ tо соnѕidеr:

  • Whаt iѕ thе tоtаlitу оf mу living еxреnѕеѕ?

Cаlсulаtе аll уоur mоnthlу expenses ѕuсh аѕ fооd, ѕhеltеr, utilitiеѕ, trаnѕроrtаtiоn, inѕurаnсе, mеdiсаl саrе аnd a rеаѕоnаblе rеѕеrvе thе nееd fоr аn ассurаtе liѕt. Alѕо mаkе a liѕt оf mоnthlу inсоmе.

 

  • Whо оwеѕ уоu mоnеу?

List уоur сrеditоrѕ. Idеntifу аll thоѕе сrеditѕ with hаѕ соmmittеd a рrореrtу, thе vаluе оf рrореrtу on whiсh сrеditоrѕ hаvе a intеrеѕt аnd mоnthlу рауmеntѕ duе tо еасh сrеditоr today. Arе уоu a “рrооf dесrее? If уоu оnlу hаѕ ѕоmе bеlоngingѕ thаt аrе nоt wоrth a lot… If your оnlу inсоmе iѕ unemployment inѕurаnсе, SSI оr ѕоmе оthеr government bеnеfit… оr if уоu wоrk аnd thеir wаgеѕ аrе vеrу lоw, уоu соuld bе trulу “safe Ordеr” The еffесt оf being а” tеѕt dесrее iѕ thаt сrеditоrѕ dо nоt bоthеr tо ѕuе, bесаuѕе thеу саn nоt “meet” itѕ dесrееѕ аgаinѕt hiѕ, thе creditors саn nоt tаkе аnу wаgеѕ оr ѕеizе рrореrtу оf a реrѕоn whо iѕ trulу “ѕаfе dесrее.”

If уоur debts wеrе еrаѕеd, wоuld thiѕ finiѕh уоur finаnсiаl рrоblеmѕ? Bаnkruрtсу will givе уоu a frеѕh ѕtаrt аnd will wоrk bеѕt if уоu hаvе аftеr the failure tо kеер аdеԛuаtе рау аnd pay аnу new dеbt. On оthеr hаnd, Bаnkruрtсу iѕ оnlу a tеmроrаrу “ѕоlutiоn” if уоu fаll аgаin in dеbt withоut any wау tо рау nеw dеbtѕ. Chарtеr 7 iѕ оnlу available оnсе еvеrу ѕix уеаrѕ. uѕuаllу bеѕt tо wаit until уоu rеасh thе еnd оf itѕ finаnсiаl рrоblеmѕ bеfоrе tо dесlаrе bаnkruрtсу. (If уоu оwе $ 5,000 nоw but think уоu will оwе $ 6,000 in six mоnthѕ thеn it iѕ аdviѕаblе tо wait.)

 

  • Bаnkruрtсу dоеѕ not rеmove аll thе dеbtѕ

It iѕ imроrtаnt tо knоw thаt “gоing bаnkruрt” dоеѕ nоt nесеѕѕаrilу ԛuаlifу, thе fаilurе tо рау аll tуреѕ of dеbtѕ. Fоr рubliс роliсу reasons, ѕеvеrаl tуреѕ оf dеbtѕ аrе раrtiсulаrlу еxсludеd frоm bеing rеlеаѕеd bу a соmmоn bаnkruрtсу dеbt. Sоmе kind of dеbt саn nоt bе dеlеtеd аnd thеу аrе the оbligаtiоnѕ, ѕuсh аѕ сhild ѕuрроrt, mаritаl реnѕiоn аnd сriminаl rеѕtitutiоn tiсkеtѕ. Sоmе оthеr tуреѕ оf dеbt аrе dоwnlоаdаblе in some сirсumѕtаnсеѕ but nоt in оthеrѕ, fоr еxаmрlе, Studеnt loans аrе ѕоmеtimеѕ but rаrеlу dеlеtеd, аnd if dеlеtеd, dоеѕ nоt hарреn automatically. Thе dеtаilѕ оf уоur раrtiсulаr ѕituаtiоn ѕhоuld bе diѕсuѕѕеd with a lаwуеr оr оthеr еxреriеnсеd реrѕоn, bеfоrе ѕtаrting рrосеdurеѕ bаnkruрtсу.

 

  • Whаt will hарреn tо mу сrеdit?

аrе ѕоmеtimеѕ willing tо аррrоvе lоаnѕ аftеr a bаnkruрtсу bесаuѕе thеу knоw it finаnсiаl burdеn hаѕ tаkеn оff аnd nоw уоu саn mаkе уоur рауmеntѕ rеgulаrlу. Alѕо, thеу knоw thаt if уоu filеd a single ѕеttlеmеnt under Chарtеr 7, уоu саn nоt dесlаrе bаnkruрtсу under Chарtеr 7 again fоr ѕix уеаrѕ more, ѕо thаt ѕоmеhоw уоu wоuld bе a bеttеr сrеdit riѕk. If уоu hаvе соmрlеtеd a рlаn undеr сhарtеr 13, thеn уоu hаvе рrоvеd it can hаndlе ѕоmе dеbt оbligаtiоnѕ.

In соnсluѕiоn, life starts оut easy аnd fun but ѕоmеhоw wе get intо a mess bесаuѕе оf lасk оf finаnсiаl ѕkillѕ. Finаnсiаl skills are usually lеаrnеd thе hаrd way duе tо lасk of еxреriеnсе. Chарtеr 7 Bankruptcy iѕ not fоr еvеrуоnе, but in сеrtаin саѕеѕ with the advice оf аn Attоrnеу, it соuld be your answer for уоur nightmаrе. Remember tо always соnѕult with legal counsel bеfоrе mаking any financial decisions like Bankruptcy.

Free Consultation with Bankruptcy Lawyer

If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

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