Chapter 7s are used to eliminate unsecured debt: credit cards, medical bills, personal loans, mortgage deficiencies, car repossession deficiencies etc. The process is quick, and the relief is dramatic. The means test determines whether you qualify for Chapter 7 relief or not. The means test is broken down into two parts. If you are below…
DetailsIn Chapter 7 cases, you generally have the following four choices: If the collateral is real estate and your payments are current on the date that you file the Chapter 7, and your equity in the collateral is covered under the exemptions, you may keep the property so long as you continue to make the…
DetailsGenerally, I do not recommend hiring a company to help “repair your credit report.” Many of these companies operate as scam artists which are a waste of money. The Fair Credit Reporting Act gives you the right to challenge information which you believe is inaccurate. The standard is that if the reporting agency cannot verify…
DetailsPart of my practice is designed to make filing for bankruptcy as easy as possible for clients. Helping those clients get their information organized is something I do on a daily basis. One obstacle in getting clients a full discharge is making sure all debts are disclosed to the court so creditors get notice of…
DetailsGenerally speaking, borrowing money to solve debt problems is a bad idea. It is very unlikely that taking on debt will solve debt problems unless you are virtually certain that extra income is on the way in the very near future. Paying back relatives within one year of filing a bankruptcy case causes problems. In…
DetailsOne of the most common questions I get asked is: “Will filing for bankruptcy stop a foreclosure?” Generally speaking, a Chapter 7 bankruptcy will not stop a foreclosure from proceeding for very long. If you have stopped paying the mortgage bill, filing a Chapter 7 case will allow you a couple months to delay the…
DetailsFor some clients, the worst part of their experience when making a bankruptcy filing is organizing and gathering their documents. It’s similar to doing your taxes each year. Here is a summary of the main documents needed before I can prepare a petition for you: Tax Returns for the past 2 years Bank Statements from…
DetailsBankruptcy makes sense for many people who need to make a fresh start financially. Some clients I meet with had known that they needed to do something for a long time. Others never realized the positive effects of a bankruptcy filing until they were sitting across the table from me. Here are some things which…
DetailsYes. Generally speaking, conversion becomes necessary when a change in circumstances makes owning a home or car impossible because the Chapter 13 plan payments are too high. A very typical reason for conversion is when somebody in the household loses their job or has their hours cut at work. The bankruptcy code specifies that you…
DetailsMany clients let fear or guilt cloud how they react to financial trouble. They let their past mistakes influence how things go moving forward. The bankruptcy court does not penalize your financial miscues. Instead, it rewards people who can own up to their mistakes with honesty. The essential bankruptcy bargain to remember is that the…
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