Many retired Americans are swamped in consumer debt, and many are forced to file for bankruptcy as a result. How do senior citizens who have always paid their bills on time, and have taken pride in having an excellent credit records get to the point that they need bankruptcy protection?
One big concern for senior adults are skyrocketing ...
Continue Reading
The most important part of the bankruptcy process is to make sure that your paperwork is complete. Your bankruptcy lawyer is not a mind reader, she does not have a crystal ball and she does not know who your creditors are. If you don’t list your debts on your bankruptcy petition, then there is a good chance that ...
All Chapters under the Bankruptcy Code are a complicated processes. An individual contemplating bankruptcy should consult and retain an experienced bankruptcy attorney to handle their case.
Debtor’s attorney’s fees are also considered priority debt. Most attorneys will include a portion of your fees to be paid under your Chapter 13 Plan. With a few exceptions, the attorney fees will ...
Continue Reading
In Chapter 13, there is a calculation prepared called a Current Monthly Income that determines if a Debtors has to pay back anything to the unsecured creditors (called “Unsecured Creditors Pool”). The calculation takes into account the Debtor’s current gross income and subtracts from that the allowed expenses as determined by the IRS standards.
Chapter 13 Bankruptcy allows a Debtor to get current on their IRS debt through their Chapter 13 Plan. Penalties and Interest stop accruing while the Debtor is in bankruptcy and, if they complete their plan payments, the IRS debt will be paid without further interest and penalties. However, if a Debtor fails to complete their plan and get ...
Chapter 13 allows a Debtor to pay an IRS tax lien. The Debtor will pay the secured portion of an IRS Proof of Claim at the current rate of interest. The lien amount is determined by the equity a Debtor has in both real and personal property. If a Debtor completes his/her plan, the lien will be ...
CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy discharges most unsecured debt with a few exceptions. The most common exceptions are Child Support, certain IRS Debt, and Student Loans. Chapter 7 will not allow a Debtor to become current on secured and priority debt. Therefore, when a Debtor completes her/her Chapter 7 and receives their discharge, the secured lien holder still has lien against the collateral for the loan and ...
CHAPTER 11 BANKRUPTCY, although seldom filed by an individual, is an alternative for an individual to Chapter 13 Bankruptcy if that individual is over the debt limit to file for Chapter 13 reorganization. Like Chapter 13, it allows the individual to reorganize their debts under a plan approved by that individual’s creditors. It is a very expensive and time consuming process and is normally used by business entities.
Continue Reading
Chapter 13 stops mortgage companies from foreclosing on real estate and allows the debtor to become current on the mortgage by paying that arrearage back over 36 to 60 months through their Chapter 13 Plan. The Debtor will start making their regular mortgage payment after their Chapter 13 Bankruptcy is filed and make their Trustee payment to bring the arrearage current. After the Chapter 13 Bankruptcy is filed, ...
Did you know that a Chapter 13 bankruptcy will stop pending lawsuits and in most cases void judgment liens?
Continue Reading