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When you file for bankruptcy in Illinois, the court may discharge most of your debts. If you wish you keep your home and improve your credit after bankruptcy, you can apply for a mortgage reaffirmation. However, you may wonder what will happen to your home if the lender denies your mortgage reaffirmation.
A Chapter 13 bankruptcy is a lengthy process. After you file your initial petition, it may take more than five years to get your discharge, as you must first complete a creditor repayment plan. At the conclusion of your case, you may have to wait years before you can repair your credit, obtain new credit, or file bankruptcy again.
In Florida or elsewhere, before your receive your Chapter 13 discharge, liens against your property can be removed by filing a motion with the court. The motion asks the judge to "void" them when you complete your bankruptcy repayment plan, because once you pay off the attached debt and it is discharged, the lien no longer serves a purpose. If you neglect to do this, however, the lien still exists after your discharge, even if the debt doesn't. You must take extra steps to remove it.
If you have large amounts of debt and you can't afford your payments, you may consider filing bankruptcy. There are two chapters of bankruptcy for individuals, but they both include similar stages, one of which is active bankruptcy. During active bankruptcy, you must work with your trustee and creditors to reach an agreement for discharging your debts.
The state of Colorado follows the "lien theory" of mortgages as opposed to the "title theory," which is used in many other states. Under the lien theory, a mortgage holder is entitled to place a lien on the property until the mortgage is satisfied rather than holding the title to the property. In the event that homeowners fail to satisfy the terms of their mortgage agreement, a lien holder who provided a mortgage for the property may initiate foreclosure proceedings to satisfy the mortgage. However, in some cases, a homeowner may have taken out subsequent mortgages on the home. These…
In a Chapter 7 bankruptcy, a debtor is "released from personal liability" for most debts, according to the U.S. Court's website. The culmination of the filing process for a Chapter 7 bankruptcy is the discharge hearing, where a trustee appointed by the court will perform a final review of the information submitted by the debtor and his attorney.
Once damp sets in, a house can become uninhabitable in a few years. Dampness and the mold that results from it can also lead to a number of medical conditions, including respiratory infections, such as pleurisy and bronchitis, as well as rheumatic fever and phthisis, all of which relate directly to a chilled, damp environment. A number of lending institutions and government departments offer low-interest loans for home improvements and repairs, but only one grant is available for home repairs such as damp proofing.
A homeowners association, often referred to as an HOA, is an organization that enforces covenants, conditions and restrictions within a subdivision or condominium complex. The HOA is comprised of residents and enforces rules relating to common, or shared, areas such as pools and parking lots. HOAs impose fees, and which type of bankruptcy you file in Colorado determines whether those fees are unsecured and whether you are responsible for payment.
Homeowners' association (HOA) fees are generally used for the maintenance and repair of common areas within an association community. It is likely when you bought your home, the homeowners' association agreement you signed included a provision giving the HOA the right to place a lien against your property for unpaid HOA fees, making them a secured claim in a Colorado Chapter 13 bankruptcy.
Any kind of foreclosure often spells trouble for tenants -- in California and elsewhere. That is because many of the busiest lenders routinely evict tenants after foreclosure so they can sell the vacant property. The only good news about homeowners association foreclosures in California is that HOAs don't foreclose that often and many cities maintain eviction protection ordinances.
Bankruptcy filings do not occur in a vacuum. Oftentimes, they occur in the midst of pending business transactions that need to proceed in spite of a party's financial difficulties. Sometimes, these contractually agreed-upon transactions pass through bankruptcy unaffected. Other times, however, the bankruptcy trustee chooses to take over the contracts. When this happens, the contracts, and the parties to them, can experience a shakeup.
A homeowners association in Georgia has the ability to record a lien on a homeowner's home and then collect by garnishing wages and bank accounts or foreclose. Georgia is not one of the so-called "HOA super lien" states -- the HOA lien does not have priority over earlier recorded liens. For this reason, HOAs in the state typically avoid foreclosure in favor of other collection means.
A homeowner's association, sometimes abbreviated as an HOA, is a compact made by a group of individuals who live in a community. This legal agreement obliges each signatory to the compact to follow certain rules, usually designed to maintain the value of the community. Yet, like all legal agreements, sometimes members of the HOA may choose to contest it. If a title company erred in a way that affected the HOA, then it may be liable for damages and attorney's fees.
In every state, a homeowners association, or HOA, has the right to record a lien against a property associated with unpaid HOA fees. About 20 states use a "super lien" law. Normally, an HOA lien would be junior to a first mortgage lien -- meaning the mortgage lender receives payment first in the event of foreclosure. The super lien legislation gives the HOA lien priority over a first mortgage. Colorado is one of the super lien states.
Executory contracts are a factor in Chapter 11 bankruptcies more often than in Chapter 13 bankruptcies. A Chapter 11 involves a corporation entering into a payment plan to satisfy outstanding debts over a period of years, rather than ceasing operation. A Chapter 13 is the same sort of plan, but designed for individuals and small, sole-proprietor businesses. An executory contract obligates the debtor, the creditor or sometimes both to exchange money for services.
Foreclosure laws vary from state to state, but in all states foreclosures are undertaken by either a judicial or nonjudicial process. In most states, most lien holders, including a homeowners association, can foreclose when the property owner fails to live up to his obligation to pay a debt associated with a lien. HOAs do not always foreclose to collect a debt; however, because liens filed on the property before theirs must be paid from the foreclosure auction before the HOA debt.
The "Sun Sentinel" reports that in December 2010, a Boca Raton man lost his home at a foreclosure auction. The reason for the foreclosure was failure to pay HOA fees. Many Florida homeowners are unaware that state laws allow homeowners associations to foreclose on a home when the HOA fees become delinquent. When homeowners start experiencing financial difficulties, they sometimes stop paying association fees in an effort to concentrate on making their mortgage payments. When this happens, the HOA suffers because it will have a shortage of funds. These funds usually cover things such as community lawn and pool maintenance,…
A Chapter 13 bankruptcy in Colorado allows you to reorganize your debts, including unpaid homeowners association fees, into a three- to five-year repayment plan to prevent consequences, such as foreclosure. The plan allows you to pay the overdue HOA fees in monthly installments until the account is in good standing. The Chapter 13 plan payment requirements and calculations can be complex; hire an attorney who has experience with Colorado Chapter 13 bankruptcies to create a Chapter 13 plan.
Chapter 13 bankruptcy is designed for debtors who have a regular source of income. It allows debtors to keep valuable assets, such as their home, and helps them set up a plan that repays their creditors over time. It generally takes Chapter 13 filers three to five years to pay off their debts. One thing debtors may ask as they file Chapter 13 is whether their Home Owner Association fees are considered secured or unsecured debt.
Although the issuance of a permanent spousal support award, or alimony, is discretionary, many factors are taken into consideration. The length of a marriage is one key factor, as a long-term marriage can lead to a long-term spousal support award. There are procedures available to modify a spousal support award.
An executory contract exists when parties to an agreement must fulfill obligations in the present and future. Someone may agree to retain possession of property or expect to receive a service in exchange for submitting a payment to another person. Common types of executory contracts that appear in bankruptcy cases are cell phone contracts, rental agreements and car leases. When a debtor files a bankruptcy case, there are ways to reject an executory contract.
Residents of New York have two options for filing consumer bankruptcy: Chapter 7 or Chapter 13. Chapter 7 allows you to eliminate your liability for certain debts in exchange for liquidating your nonexempt assets. Chapter 13 allows you to keep your property and repay your debts over time. If you're considering filing bankruptcy in New York, it's important to understand what the guidelines are for determining your eligibility.
Homeowners associations (HOAs) receive funds from the fees homeowners pay to cover community maintenance. When homeowners fail to contribute their share of the HOA's only income source, the HOA may fail. Lack of funds prevents HOAs from doing their job, forcing the neighborhood's common property into disrepair.
When you declare bankruptcy, you are essentially telling creditors, through the court system, that you are unable to pay your debts as scheduled, because the assets simply aren't there. The law considers certain categories of assets to be exempt from consideration in bankruptcy, however. Among these exempt categories is money held in a 401(k) or other qualified workplace pension program. If you are involved in a bankruptcy, think long and hard before taking out a loan against an exempt asset.
Getting your mortgage discharged can be a moment of celebration or disappointment, but either way, will probably result in a feeling of relief. When a mortgage is discharged, the lender is acknowledging that the loan is paid---although it may not be paid in full, depending upon your personal financial situation. If your mortgage discharge occurred because of a bankruptcy or foreclosure, be sure to secure a lien release.
The bankruptcy court allows you to keep all of your property in a Chapter 13 bankruptcy case if you successfully complete the case and receive a discharge. No one can predict the future; therefore you may run into problems before completing the years-long process of Chapter 13 bankruptcy. If circumstances beyond your control prevent you from completing your Chapter 13 bankruptcy case, you may ask the court to grant you a hardship discharge.
When businesses file for bankruptcy, employees may wonder what's going to happen to their wages, if not their jobs. If a business files for bankruptcy without paying employees everything it owes, the employees become creditors. Employee wages and other money owed to employees may or may not be a priority claim. Depending on circumstances, employees may get all, some or none of the money owed to them after a business files for bankruptcy.
Traditionally, the courts ordered alimony for a married woman. However, as the roles of women changed over the years from domesticity to the workforce, courts started ordering the wife to pay alimony to the husband. Not only did the traditional roles of husband and wife change, but also the family unit. Many times, unmarried couples live together as if they are married -- this makes it difficult to get the court to order alimony, but not impossible.
While homeowners associations (HOAs) are formed to promote the best interests of the individuals who own property in a certain neighborhood or condominium complex, they sometimes enact policies or fees that homeowners do not agree are necessary or appropriate. Writing a letter of refusal to increasing condo fees is a good way to make your voice heard and can be an effective blockade to the fee increase when more than one party participates. Whether you want to write a refusal letter to the HOA as an individual or a group, the tone and structure should remain professional and nonthreatening.
Obtaining money subsequent to a bankruptcy filing but before your receive your discharge can have various results depending upon the bankruptcy chapter that you chose. The vast majority of individuals will choose either a Chapter 7 or Chapter 13 bankruptcy. Nevertheless, certain debtors may find a Chapter 11 advantageous if they have millions of dollars in debt. Thus, you must be vigilant regarding the differing requirements of each chapter in relation to post-petition money.
If you gamble online or at a casino that takes credit cards, you might run up a large credit card balance that you cannot afford to pay back. In extreme cases, you might have to file for bankruptcy to wipe out your gambling debts and start again. In Ohio, debtors can file for bankruptcy even if their debts are mainly due to gambling. However, you should consult an attorney to make sure the debt is valid and that bankruptcy is your best option before filing.
If you have broken a lease, then you may be liable to your former landlord for the payment of money damages. Bankruptcy, however, can help reduce or eliminate the amount of money that you must pay to your former landlord. Broken lease damages are a form of debt that are generally subject to discharge under Chapter 7 bankruptcy or repayment under Chapter 13 bankruptcy.
Bankruptcy laws are in place to allow an honest debtor who is in over his head with debt that he is unable to pay to receive a second chance, and a fresh financial start. Over 1 million people each year in the United States take this step and wipe out eligible debts. Child support and alimony obligations are handled differently than other debt, depending on the circumstances.
A home equity line of credit, or HELOC, is a financial product that allows a homeowner to borrow against the equity he has built in his home. A HELOC uses the value of the home to secure the money borrowed, just like a mortgage. Filing for bankruptcy is a common way that debtors seek relief from debt, but bankruptcy may not discharge secured debts like HELOCs.
Chapter 13 bankruptcy is a tool that a homeowner can use to save his home from foreclosure. In addition, a Chapter 13 bankruptcy also has some unique benefits concerning first and second mortgages. This type of bankruptcy filing has advantages for a homeowner who is looking for a way to keep his home and discharge other types of debts.
Before renting an apartment, you must first sign an apartment lease. This legally binding agreement is a contract between you and the apartment owner on the terms of the rental. The terms of this contract must be followed and will be enforced in municipal housing court. Thus, there are some basic contents of an apartment lease that you should familiarize yourself with before signing a lease.
Protection from legal maneuvers by your creditors is granted on a temporary basis while you're going through a bankruptcy. Whether this protection continues depends on which debts are expunged through the bankruptcy process and which debts you make court-approved arrangements to repay. Creditors falling outside these parameters may be free to pursue you for debts owed.
Bankruptcy is a last resort for many consumers over their heads in debt, but it can provide much needed relief when collections and threats of lawsuits become too much to endure. A bankruptcy court can exonerate you of your contracts with lenders but will not erase any liens held against your property. Unfortunately, second mortgages use your home as collateral to secure the loan in case of default, meaning in most circumstances, you will lose your home if you discharge your second mortgage in bankruptcy.
By filing for bankruptcy, you can erase many of your debts. The bankruptcy court grants you a discharge, and this discharge prohibits your creditors from coming after you to collect on debts you had formerly owed to them. A discharge by way of bankruptcy cannot rescue you from obligations associated with all of your debts, however. Priority unsecured debts, such as alimony obligations, must be paid whether or not you receive a discharge under the Bankruptcy Code.
If you owe more debt than you can possibly pay, you may consider filing for bankruptcy. Bankruptcy discharges your debts; however, it leaves a negative mark on your credit report for seven to 10 years. You cannot legally remove a bankruptcy from your credit history earlier than this, and your credit history may still contain other negative information such as history of delinquency. However, if your credit is shot because of bad debt, bankruptcy may make you more creditworthy even though you will still have negative information on your credit report.
Chapter 7 bankruptcy is an effective solution for credit card debt, and eliminates the debts in just months. A bankruptcy trustee oversees the process as nonexempt assets, such as expensive jewelry or collectibles, are sold to pay off credit card and other debt. The quick liquidation and elimination of credit card debt allows for a fresh start. Credit card accounts that continue to show a balance after the bankruptcy require attention, but the problem is easily solved.
Each state's tax laws determine how the state will treat alimony payments for income tax purposes. The federal government requires the spouse receiving alimony to declare the payments as income on his federal tax returns. However, his former wife can deduct her payments on her federal tax returns. To qualify for the deduction, taxpayers must be required to pay alimony through a written court order or valid separation instrument.
Being judgment proof may get you out of paying your debts in the short term, but it comes at a price. Bankruptcy is an attractive financial solution even if you're considered judgment proof by the court because it can offer a more long-term solution to your financial troubles. The best legal path to settle your debts may be based on how many collection calls a day you can handle.
Immediate help with a bankruptcy requires fast action. The Federal Trade Commission recommends people carefully consider the advantages and disadvantages of bankruptcy before making a decision. However, people facing foreclosure, wage garnishment or some other pressing financial problem often feel they have to act immediately. Same-day help is available although there are consequences for a hasty decision. Bankruptcy information remains on credit reports for 10 years, even if the filing is later withdrawn.
Filing for personal bankruptcy is not a decision to be made lightly. Anyone considering this drastic financial move should become completely familiar with all the advantages, disadvantages and long-term consequences. While personal bankruptcy can help you eliminate certain types of debt, secured debt such as mortgages and car loans will likely remain. A lawyer can help you navigate the complexity of bankruptcy law.
Bankruptcy can help you start over if you are overwhelmed by the amount of debt you have to pay back. However, bankruptcy is not a get-out-of-debt-free card. Some debts cannot be discharged, or erased, via Chapter 7 bankruptcy, and if the court thinks you are abusing the bankruptcy system to get out of paying debts, it can dismiss your case.
Alimony is a financial payment from one spouse to another during a separation or after a divorce. The legal community bases alimony on the premise that each party to a marriage has a duty to support the other party. Thus, although women are thought to be the only recipients of alimony, men can also receive alimony in Georgia.
Discharged bankruptcy relieves a debtor of many financial burdens and ruins the debtor's credit score. The only way to rebuild a damaged credit history is to demonstrate positive repayment habits in the future. Unfortunately, it is difficult to qualify for credit cards after a discharged bankruptcy is reported to credit bureaus. Knowing which credit cards are post-bankruptcy friendly will increase your chances of getting a fresh financial start after bankruptcy.
Condominium buildings usually charge the residents in their apartments a regular maintenance fee to cover the common expenses of the entire complex. These expenses go toward building amenities, such as heat, hot water, sewer service, garbage pickup, building insurance and electricity. A foreclosure usually affects the payment of condo fees badly.
Foreclosures in Indiana, like in all states, are regulated by state law. Any person or entity with a valid lien on the property, such as a lender having a mortgage lien or a home owners association having a lien for unpaid home owners association fees, can foreclose on the property if the property owner does not live up to his agreement to make payments.
The discharge date in a bankruptcy case is the date on which the court declares that you are no longer obligated to pay the debts included in your bankruptcy, thus closing your case. However, the exact meaning of a discharge and the discharge date vary depending on the type of bankruptcy for which you file.
Certain situations can arise in a person's life that can make it difficult for him to sustain his current lifestyle. Job loss, financial debt and sudden illness are just a few of the reasons why a person may consider bankruptcy action to avoid financial ruin. Deciding to file for Chapter 13 bankruptcy is often a difficult decision to make; however, situations arise when Chapter 13 claim is not discharged.
When you file for bankruptcy and the court accepts your petition, a period of time starts in which the court analyzes your case and all of your documents to decide whether you qualify for a discharge. Most court-approved cases result in discharge. How long it takes for you to receive a discharge depends on the type of bankruptcy for which you file.
When recovering from bankruptcy, many debtors look for new ways to refinance. They may want to open new credit cards, finance a house or buy a new car. Others prefer to refinance a mortgage to create an easier payment system to avoid the chance of addition debt problems. Bankruptcy has several negative effects on credit, but with time and work most debtors can refinance even after a bankruptcy has been completed.
A HELOC, or home equity line of credit, is a second mortgage secured against the value of the equity in your home. The line of credit usually features low, tax-deductible interest rates attractive to homeowners who need access to cash. However, if a loss of income or increase in bills leaves you unable to maintain payments on your HELOC, bankruptcy may or may not help you eliminate the debt.
A Chapter 13 bankruptcy allows you to protect certain assets and shields you from your creditors' collection efforts. You submit a plan to the court to repay your debts, or a portion of them, over a three- or five-year period. Once you have completed your payment plan, you receive a discharge from the court, which will include the unpaid portions of the debts approved by the court. You may, however, experience changes in your circumstances that make it impossible to fulfill the terms of your plan. If this happens, you may be eligible for a Chapter 13 hardship discharge.
The date of your bankruptcy discharge is a monumental date in your case. When you receive your discharge, you no longer have to worry about paying your debt. After the date of your discharge, it becomes illegal for your creditors to have any contact at all with you regarding your debt. The court will inform you as to the date of your discharge.
A Chapter 13 bankruptcy is often known as the wage-earners bankruptcy. It available to people whose income level disqualifies them from filing under Chapter 7. Chapter 13 includes a five-year repayment plan to pay back most of your debts. However, it is sometimes possible to get rid of a second mortgage under a Chapter 13 filing.
The debtor's intentions and the facts of each case determine how executory contracts are handled in a Chapter 13 bankruptcy. Bankruptcy provision 11 U.S.C. §365 grants debtors the right to either assume or reject executory contracts in a Chapter 13 case. The type of executory contract the debtor has and the terms of the Chapter 13 plan determine the amount of the creditor's claim that is eligible for discharge.
Whether you choose to file bankruptcy on your own or with the help of a qualified attorney or paralegal, you probably have a lot of questions. While bankruptcy court staff can't give you legal advice, you can take advantage of a number of online educational resources to receive bankruptcy filing assistance. But complex cases may require the help of a bankruptcy attorney.
Though almost anyone can acquire a secured credit card, these types of cards are most useful if you are re-establishing your credit -- particularly following a bankruptcy. A bankruptcy has a detrimental impact on your credit score and can remain on your credit report for up to 10 years. You can apply for and use a secured credit card both prior to and after a bankruptcy, as the secured debt is not eligible for discharge in bankruptcy court.
Bankruptcy leaves a seemingly indelible stain on credit histories, making it difficult to land apartments, get jobs, apply for credit cards or obtain a home loan. Setting goals to fix credit after bankruptcy is a good indicator that you're ready to start fresh and avoid financial mistakes from the past. Fixing credit after bankruptcy isn't impossible, but it takes some time and discipline.
The decision to file for bankruptcy is very difficult and very personal. Each consumer considering bankruptcy should have answers to the basic legal questions regarding personal bankruptcy. Once you have the general legal information, you can make the decision regarding whether bankruptcy is right for you.
Gambling can seem fun and lighthearted; a casual way to add spice or competition to everyday life. The pipedream that a small bet can transform ordinary citizens into millionaires typically lures gamblers into betting increasing amounts of money. But gambling debt can become dangerous, financially and otherwise. Learning the dangers of gambling debt can help you steer clear of irresponsible wagering.
A consumer in the United States is usually able to file Chapter 13 or Chapter 7 bankruptcy when attempting to discharge debt. Each chapter has its own strengths and weaknesses depending on the type of debt the consumer is saddled with. Chapter 7 bankruptcy is geared more toward consumers without assets like a home, while Chapter 13 bankruptcy works better for a consumer with assets or a private business.
Filing chapter 7 bankruptcy and receiving the subsequent discharge releases you from liability associated with most debts. The discharge prevents creditors from pursuing you after the fact. Although most personal debts are considered eligible for discharge in a chapter 7 action, exceptions do apply.
The bankruptcy system was created by U.S. federal law to balance the interests of creditors with the interest of debtors in obtaining a fresh start. Bankruptcy protection is available to individuals and companies. Four types of bankruptcy are possible: Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Bankruptcy clears some or all of your debt, but not your credit rating. The Federal Trade Commission (FTC) website advises that most people file bankruptcy as a last resort, after seeking other assistance like credit counseling, because the black mark stays on their credit reports for a long time after discharge. Bankruptcy affects credit applications, particularly in the initial years after discharge, before a new, positive payment history is established.
Under California's Family Code Section 4320, the state's family law judges must consider 14 factors when determining whether a spousal support award is appropriate. If the court orders support, judges must decide whether to award permanent or temporary support. Generally, California awards spousal support with the ultimate goal of helping the receiving spouse achieve self-sufficiency within a reasonable time, unless the spouses were married for a considerable length of time.
Some states bar alimony payments to spouses who were responsible for terminating the marriage or causing the marriage to end. Most states award two types of alimony, temporary or permanent. Pennsylvania courts, however, recognize a third type of alimony award: compensatory. Pennsylvania's domestic relations law allows for automatic termination of alimony awards if the receiving spouse remarries, begins living with another opposite sex nonrelative or gets married or if either spouse dies.
Most bankruptcy cases are open and shut. A debtor files a bankruptcy petition, takes all the necessary steps to comply with the Bankruptcy Code and then receives a discharge under Chapter 7 or Chapter 13 bankruptcy. A creditor may challenge the discharge of a debt that a bankruptcy filer owes to him. In that instance, the creditor would file an adversary proceeding. Either party may move for summary judgment.
People filing under a Chapter 7 bankruptcy must include civil judgments in the case. The U.S. Bankruptcy Code in 2011 requires full disclose of any outstanding debts that exist as of the date the bankruptcy case is filed. The type of debt associated with the civil judgment will determine if it can be discharged in the bankruptcy. Speaking with a bankruptcy attorney can help a debtor determine exactly how a civil judgment will be treated in his bankruptcy case.
A second mortgage can be part of a responsible borrowing plan, providing the money you need to pay off other debts, fund home improvements or pay for a child's college tuition, among other things. But second mortgages add another monthly bill to your household budget. If you fall behind on either of your mortgages, you face the possibility of foreclosure. Bankruptcy is one way to discharge your second mortgage debt and, in some cases, reorganize your debts to allow you stay in your home.
Bankruptcy offers immediate relief against civil judgments. Judgments allow creditors and bill collectors to possibly garnish your wages and bank account as they attempt to collect from you on an unpaid debt, such as a credit card. However, filing for bankruptcy ends the threat by forcing creditors to end all collection efforts while the bankruptcy court reviews your finances.
Bankruptcy is a federal proceeding designed to help people, businesses and even municipalities crawl out from under debt and receive a fresh start. Several misconceptions exist regarding which debts are dischargeable and which are not. A civil judgment may or may not be dischargeable depending on the circumstances for the judgment.
Apartment leases are a type of executory contract; therefore, if you file a Chapter 7 bankruptcy and decide to reject the lease, you can discharge your back rent that you owed at the time you filed.
Michigan residents who find themselves suffering under tremendous debt may be able to turn to bankruptcy for a way out of their financial pressures. Filing for bankruptcy carries serious consequences, particularly for your credit rating, but these consequences are not permanent. If you are at the point of being unable to pay your bills, consider bankruptcy as a way to get back on your feet financially.
Judgments occur when a creditor files a lawsuit for an unpaid debt and the court rules in its favor. There are different types of judgments people may have against them prior to filing for bankruptcy. Judgments may exist for credit card debt, student loans, child support, taxes or fines issued by the government. Whether bankruptcy can help a person eliminate a judgment depends on the type of debt associated with the judgment.
Filing for Chapter 13 bankruptcy, known as a reorganization bankruptcy, involves the formation of a plan to pay your creditors over a three- to five-year period. In some cases, you may be able to reduce principal in Chapter 13 bankruptcy with a "cram down" or "lien stripping." A cram down entails reducing your debt to the fair market value of an asset (even if you owe more), with the balance treated as unsecured debt, which is usually discharged in a Chapter 13 case. Lien stripping involves the complete removal of a second or third mortgage.
College students face challenging financial situations while in school. The reality of juggling living costs with tuition and other financial responsibilities creates the potential for monetary difficulty, sometimes leading to overwhelming debt. In turn, this makes it harder for college kids to venture into the world living on modest post-college salaries while making giant payments toward debt obligations. In some cases, declaring bankruptcy might seem like the most viable option for moving forward.
Filing bankruptcy is not inevitable if you've misused your credit cards, but for many who rack up debt that it is simply impossible to pay, it's the best solution. Using credit cards recklessly can often end in bankruptcy, but don't expect all your bad credit card decisions to be erased by bankruptcy -- some of your purchases and cash advances may not be eligible for bankruptcy protection.
Both men and women can receive alimony as part of a divorce or legal separation in California. Alimony payments are made from one spouse to another, and California courts do not give preference to either spouse in alimony calculations. California alimony laws are complicated, so talk to a qualified attorney if you need legal advice.
Bankruptcy, a legal process, can help you get out from overwhelming debt. Not only can your credit cards, personal loans, auto loans and mortgage be listed in a bankruptcy, but so can judgments. As with all bankruptcies, there are limitations to the types of debt that can be taken care of.
Prior to 2005, almost anyone could file for either a Chapter 7 or a Chapter 13 bankruptcy in Florida. However, new legislation in that year implemented a series of tests that you must complete if you wish to file for Chapter 7 bankruptcy, which is often more advantageous than Chapter 13. The Bankruptcy Abuse Prevention and Customer Protection Act of 2005, or BAPCPA, defines a median income test and a means test for qualification. Debt limits are also a consideration. (see Resource 3)
Filing for bankruptcy can be devastating for your credit score. Even after you've paid off your debts, Chapter 13 bankruptcy will stay on your credit report for seven years. As time passes, it will affect your score less and less. While you wait for it to be erased from your records, you can take control of your finances and raise your credit score. By staying out of the red, you can eventually erase all traces of Chapter 13.
The Federal Bankruptcy Code determines and regulates bankruptcy rules and processes. When you file for bankruptcy, if your case is approved, the court will discharge some of your debts. Depending upon your chapter filing, the court will either wipe these debts away or provide a period of reprieve in which you do not need to make payments. You might have several types of debt you would like to restructure or eliminate, such as your home mortgage, credit card debts, child support or alimony. However, even under a bankruptcy filing, not all debts are dischargeable.
If you are considering filing for bankruptcy to avoid a judgment, considering the consequences of each path is crucial to making the correct financial decision. Both a judgment and a bankruptcy damage your credit rating but, depending on your circumstances, a judgment may hurt you less over the long term.
Managing debt and personal bankruptcy are traumatic realities faced by millions of Americans. It is estimated that only a small fraction of affected people are aware of agencies that can assist them either manage their debt or file for bankruptcy.
Delinquent homeowners association fees do affect the sale or foreclosure of a condominium when the owner defaults. The fees are the responsibility of the unit owner and continue to accrue even if the mortgage is not being paid or the unit is empty.
Filing a Chapter 13 bankruptcy reduces your credit score, and because you need help managing your outstanding debts, future lenders reviewing your credit applications may feel hesitant to extend a line of credit. While a Chapter 13 bankruptcy hurts your overall credit rating, bureaus delete this negative mark from your credit report after seven years. In the interim, it's best to take steps to improve your unfavorable credit rating.
When filing bankruptcy, you are required to answer an extensive amount of questions and provide accurate and verifiable information to back up your claims. Though only your attorney can tell you everything you need to know and provide for a successful bankruptcy, knowing the answers to some basic bankruptcy interview questions can help move the process along more efficiently.
Bankruptcy can have a big effect on your finances, which means it affects your taxes. You don't have to contact the IRS when you file, but depending on your situation, they may require you to provide certain information. You'll wind up in trouble if you ignore the rules: If you're filing for Chapter 13 bankruptcy, for instance, and you don't provide the IRS with what it needs to know, you may not get the bankruptcy you need.
If you have one or more court judgments against you, bankruptcy can offer some protection against your judgment creditor or creditors. While bankruptcy cannot remove a judgment from public records or your credit report, it can, in some cases, discharge the debt and restrain your creditor's collection efforts.
Not paying homeowner dues can result in a homeowner's association filing a foreclosure against a home, and it can be over a relatively low amount. In many cases, according to experts at Fox Business, homeowners in default on HOA dues are normally also in default on a mortgage. In some cases, a homeowner can defend a HOA foreclosure, even when he admits to being deficient in payments.
Obtaining credit after your Chapter 13 bankruptcy is discharged may not be difficult. With your bankruptcy completed, you're free to make a fresh start, and many creditors may be willing to help, according to the MSN Money website. The site says you could start qualifying for certain kinds of credit right away, and qualify for competitive rates on all types of loans after about two years. Initially you may have to accept small credit lines as you rebuild your credit.
Alimony refers to support payments which one former partner must provide to the other partner. It is usually a man who has to pay a woman alimony, although it is possible for a woman to owe alimony if she has a much higher income than her former husband. A civil union can also create an alimony obligation. Alimony only refers to spousal support and does not include other payments. A divorce agreement, separation agreement or court order establishes the alimony obligation.
If you successfully file bankruptcy, you can get most if not all of your debts discharged. However, you may not qualify for bankruptcy if your income is above the median income in your state for a household of your size.
Bankruptcy courts either discharge your debt entirely or supervise its repayment. Most types of debt can be included in both Chapter 7 and Chapter 13 bankruptcies, including court judgments. In fact, many people file for bankruptcy specifically because they are on the losing end of one or more lawsuits and cannot pay their judgments.
Filing for bankruptcy is not an easy process. If you are contemplating it, you may have many questions about your rights and about how bankruptcy can benefit your situation. While some aspects of bankruptcy in the United States are the same for every individual who files, you should consult with a bankruptcy lawyer regarding technical questions specific to your case.
Bankruptcy carries a number of consequences both personal and public. The process of discharging debt through Chapter 7 or 13 filing comes with many strings after the judge clears the debt. A bankruptcy is a life-changing event that changes the way a person borrows money, finds a job and rents a residence.
For individuals who have substantial debt, sometimes claiming bankruptcy can help you to reset your financial life. However, be aware that not all debts are automatically erased by a bankruptcy and that a bankruptcy on your financial record or credit report can adversely affect your ability to qualify for home, vehicle, or personal loans, and credit cards or other financial benefits. Additionally, it is advisable for individuals considering bankruptcy to consider professional legal counsel or the assistance of a licensed attorney.
A bankruptcy case can last anywhere from 6 months to 5 years depending on which chapter of the bankruptcy code you file. Creating a bankrutpcy petition requires a lot of documentation that must be gathered before your case can be filed.
Both forms of personal bankruptcy, Chapter 7 and Chapter 13, help debtors with the aid of the courts. You may include your gambling debt in either type of bankruptcy, but the court will handle your debt differently depending on the type of bankruptcy you file.
Finalizing your Chapter 13 bankruptcy can lift a huge burden. On the downside, filing bankruptcy has a major impact on your personal credit score, and after the discharge, it becomes extremely difficult to acquire financing. While some lenders will not approve your loan applications, it's imperative to obtain credit after a Chapter 13 bankruptcy in order to rebuild your credit. Fortunately, there are ways to acquire credit and undo past mistakes.
Indiana residents considering bankruptcy for debts they can't pay have two basic options under the law. They can pursue Chapter 7, which permanently forgives many debts, or repay a portion of the debt load through a court-supervised Chapter 13 plan. Not every debt can be discharged, however.
Bankruptcy fails to ever be described as a pleasant experience to go through, and having a homeowner's association (HOA) pestering you for member fees in the meantime can add to your financial frustration. The bankruptcy process does give you some temporary protection from such payment demands, but not completely.
The impact of bankruptcy on alimony owed by an ex-spouse is primarily an issue for the paying ex-spouse rather than the receiving one. However, the recipient ex-spouse should be aware of the possibility and loopholes that exist so as not to be surprised if the issue arises. For the most part the law is fairly clear that specific family obligations have protections from bankruptcy filings, but there are legal areas where such rules do not apply.
There are times when a credit card is needed even though a person might have a pending bankruptcy. A common reason a credit card is needed during this time is to rent a car. Some utility and cable providers might also require a credit card as opposed to a debit or prepaid card. Most car rental companies will not accept debit and prepaid cards and those that do require that a charge of $250 to $500 be assessed against the card during the period of the rental, and even after the return of the rental car, it may take up…
If a lender is unable to sell a home for enough money to cover the balance of the borrower's loan after a foreclosure or short sale, the difference between the sale price and the loan amount is known as the "mortgage deficiency."
When you file for a Chapter 13 bankruptcy, you will be required to adhere to a repayment plan that will last anywhere from three to five years. During this time you will be expected to make regular payments to the bankruptcy trustee. The payments you make will then be applied to your debts. If you successfully complete your repayment plan, your Chapter 13 bankruptcy will then be discharged. In some cases, the court neglects to report the fact that the bankruptcy is no longer in effect to the credit bureaus. If this occurs, you can update the information within your…
A chapter 13 bankruptcy allows you the opportunity to restructure your mortgage for a certain length of time while you get back on your financial feet. But what happens after the time has passed for your lower payments under the Chapter 13 settlement? How do you permanently refinance your loan so that you can keep your mortgage payments as low as possible well into the future? The answer may be a Chapter 13 "buyout," also known as a Chapter 13 refinance.
Bankruptcy is a method of eliminating or reducing debt that is available to individuals, corporations and municipalities. Different types of bankruptcies have varying eligibility requirements. Not everyone will qualify to file for bankruptcy.
Bankruptcy is a legal process designed to help overwhelmed consumers manage or eliminate their debts. You must strictly adhere to the rules of the bankruptcy court to avoid having your bankruptcy dismissed.
Bankruptcy discharge absolves the debtor of liability for some debt. The debtor is no longer required to repay any debt that is discharged, and creditors are not allowed to take action to recover such debt. Individuals and businesses use bankruptcy as the last resort when faced with overwhelming debt. It helps them repay their debt in a more manageable and orderly way through reorganization, liquidation of assets or an affordable payment plan. The rules that apply depend on the type of bankruptcy filed.
The recent economic downturn has caused many of us to reevaluate our personal finances. With job losses and mounting bills, many are turning to chapter 13 bankruptcy for some sort of economic relief. Chapter 13 Bankruptcy itself can be a daunting task even with the help of an attorney. If you choose to save some money by filing chapter 13 bankruptcy yourself, you should know a few things first.
There are two forms of bankruptcy for individuals. These are Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. They each have their own regulations as to who can file.
