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If you’re a Chapter 7 debtor intending to reaffirm your debt, bankruptcy law requires you to file your reaffirmation agreement either before your debts are discharged or before the end of the 60-day period following your 341 meeting. The 341 meeting is the mandatory hearing where the bankruptcy trustee asks you to provide sworn testimony about your bankruptcy petition. It's possible to ask the court to extend the deadline for filing your reaffirmation agreement; however, you’re not guaranteed to have your request granted.
Once a Chapter 7 bankruptcy is filed, it creates a special set of tax circumstances. Bankruptcy trustees are trained to assist with the process of the actual bankruptcy but it is helpful to know what is required by the IRS when filing taxes, and what debts are not removed from a Chapter 7 bankruptcy.
Events can happen in your life that you can’t control, such as experiencing a prolonged medical problem that prevents you from working or losing your job and being unemployed for a great length of time. Such circumstances can quickly drain any monetary resources you have, and in a worse case scenario, you may have to declare bankruptcy.
Chapter 13 bankruptcy restructures debt and put a trustee between you and your creditors. A payment plan is arranged, but if you are unable or unwilling to comply with payments you can request a bankruptcy conversion to Chapter 7. This bankruptcy allows you to walk away from most debts, but you must give up most assets to do it. Under certain circumstances, however, you will be allowed to keep your house in a Chapter 7 conversion.
Getting overwhelmed with debt without the means to pay it can force you into filing for bankruptcy. Chapter 7 bankruptcy liquidates any assets the petitioner has in order to pay what debt it can with those funds. Chapter 13 bankruptcy reorganizes the finances of the petitioner, using future earnings to pay debts in a modified payment plan. Should you, as the petitioner, get a better paying job, come into a large sum of money to satisfy debts or decide to otherwise withdraw your petition, carefully consider all ramifications prior to withdrawing.
Chapter 7 bankruptcy is an effective method for eliminating unsecured debt such as credit card debt. It is one of the fastest forms of bankruptcy, and it eliminates unsecured debt in three or four months. A person filing for Chapter 7 gains immediate protection from the federal bankruptcy courts. Once the protection begins, creditors must end all debt collection efforts. However, collection efforts can resume after denial or dismissal of the Chapter 7 petition. A creditor with a lawsuit against the debtor can proceed without filing a new lawsuit.
If your wages are being garnished in Georgia, you want to stop this as soon as possible. One of the quickest ways to legally stop garnishment would be for you to file for Chapter 7 bankruptcy. The federal Bankruptcy Code incorporates a provision that automatically stops your creditors from collecting once you file your case. Once the garnishment has stopped, you can pay your debt in other ways.
If you have defaulted on your mortgage payments and your home is in foreclosure, filing a Chapter 7 bankruptcy petition may be able to help you save your home by entering into a reaffirmation agreement with your lender; however, a Chapter 7 filing is unlikely to provide you with the opportunity to redeem your home if it has already been sold through a foreclosure auction.
Chapter 7 is considered liquidation bankruptcy because it quite literally sells off your non-exempt possessions to pay your debts, like mortgages and liens. Other debt is discharged, and creditors are prohibited from trying to collect on debt discharged by the bankruptcy.
If you are a homeowner who is in so much debt that you are unable to make payments on it and still pay your living expenses, you can file Chapter 13 bankruptcy. Filing this type of bankruptcy allows you to restructure your debts and pay them off over time, rather than having your assets liquidated to pay off your debts as in a Chapter 7 bankruptcy. The primary purpose of a Chapter 13 bankruptcy is to protect your home from foreclosure. You can file Chapter 13 bankruptcy in Washington state on your own, without a lawyer, which will save you…
Redemption in a Chapter 7 bankruptcy is a process that allows debtors to keep secured property for a reduced payment amount. To redeem means to pay off a creditor who has a secured interest in a piece of the debtor's property. Typically, redemption occurs at an amount that is less than the total amount actually due on the piece of property.
When individuals or corporations can no longer pay their creditors, the options dwindle and bankruptcy sometimes becomes the only alternative. Debt forgiveness is not new and goes back to biblical times. Bankruptcy laws were first enacted in the U.S. in the early 1800s.The current U.S. Bankruptcy Code provides different options for filing, but all offer an opportunity for the debtor to re-organize and start afresh.
Chapter 13 bankruptcy is a legal remedy available to debtors who have an income source from which to repay their debts, either in whole or in part. The result of a Chapter 13 bankruptcy proceeding is the creation of an all-encompassing debt repayment plan. Under the repayment plan, the debtor makes a single monthly payment to a trustee appointed by the bankruptcy court. The trustee then uses that money to pay the debtor's creditors.
Chapter 7 bankruptcy is also known as a liquidation bankruptcy. The bankruptcy filing will stay on your credit report for up to 10 years, so the first thing you should consider when contemplating bankruptcy is whether it is your only option. Once that is determined, you need to consult a bankruptcy lawyer. The attorney will tell you to bring all of your financial information with you to the office. You'll need: bills, bank statements, check stubs, assets, tax returns and any outstanding loans.
