Exploring Car Loans, Bankruptcy and Debt Discharge

How To Use An Automatic Stay To Your Advantage

Posted by on Aug 14th, 2015 in Uncategorized | Comments Off on How To Use An Automatic Stay To Your Advantage

Filing for bankruptcy is a big deal. However, it can also help you get your finances in order and allow you to stay in your home. When you file for bankruptcy, the judge puts an automatic stay on your property and assets. This puts a pause on any lawsuits filed against you, specifically by creditors. The best way you can use the automatic stay in a bankruptcy case is to help you keep your home and avoid being evicted. If you are renting: If you are renting an apartment or a home, filing for bankruptcy will not help you stay in the home longer. The landlord can file a notice for eviction through the courts, and that will take precedence over your bankruptcy. It does not matter whether you filed for bankruptcy before the eviction notice or after. You will still have to leave the home. If facing eviction is the only financial problem you are having, it may not be in your best interest to file for bankruptcy. You should talk to a lawyer to see what is best in your situation. If you have a mortgage: An automatic stay does temporarily stop eviction and foreclosure proceedings on a home with a mortgage. If the mortgage is underwater, meaning you owe more money than the house is worth, or you do not have any equity built up in the home, the mortgage company will file a brief with the court asking for the stay to be lifted on the eviction and foreclosure process. You have a chance to dispute this action if you are filing Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. Chapter 7 is about liquidating your assets and paying off or writing off your debts. Chapter 13 bankruptcies are about paying off your debts so that you can keep your assets. In order for the judge to keep the stay on your home, you will need to prove that you have enough income that you will be able to pay the regular mortgage payments as well as extra income to pay the debts that are in arrears. Ask the judge for time to get your financial house in order so that you can meet your obligations.  Stipulations to the Automatic Stay: The bankruptcy court will help you come up with a plan with your mortgage company. However, there will be stipulations made through the court about your obligations, specifically in paying off the debt. If you are unable to meet these stipulations throughout their entire term, the mortgage company can file a motion to complete the foreclosure process and you may still lose the house.  For more information, contact a bankruptcy lawyer like Michael D Hart...

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Is Your Bankruptcy over after the Discharge?

Posted by on Jun 25th, 2015 in Uncategorized | Comments Off on Is Your Bankruptcy over after the Discharge?

It can take months from the time you first file for bankruptcy until the case is closed. In that period, you could face a number of legal issues, depending on your particular financial situation. If you have filed and are waiting for the official close of your bankruptcy, here is what you need to know.  Is Your Case Closed after the Discharge? The discharge typically occurs after your trustee has a chance to review your assets and debts and steps are taken to reduce the amount of debt that is owed to your creditors. When you receive the discharge, you might think that marks the end of the bankruptcy process for you. However, this might not necessarily be true.  In some cases, the judge will officially close your bankruptcy case and issue a final decree at the time the discharge is ordered. If this occurs in your case, you can then focus on rebuilding your finances. This typically occurs in a Chapter 7 bankruptcy.  If you filed for Chapter 13 or there were extenuating circumstances in your Chapter 7 bankruptcy, your case will remain open for a period of time determined by the court.  Why Does a Chapter 13 Remain Open? The main component of a Chapter 13 bankruptcy filing is the repayment plan. The repayment plan takes between three to five years to complete. If you have filed Chapter 13, the judge will not close your case until after you have finished all of your payments. Since the bankruptcy trustee is still involved in your case because he or she is accepting your payments and paying the funds out to your creditors, your case has to stay open.  Why Would a Chapter 7 Remain Open? Even if you have received a discharge from the court in your Chapter 7, there are factors that could influence whether or not a judge is willing to issue a decree to close your bankruptcy. For instance, if the trustee has still not decided what to do with the assets taken to help pay off your debts, your case can stay open.  Once the trustee has made a decision on what to do with the assets, your attorney can ask that the case is closed. The trustee can choose to turn the assets back over to you or sell them to help pay off your debts to your creditors.  Your bankruptcy attorney, one like Legal Clinic Of Jerry Paeth, can help ensure that your case is being handled properly and that it is not being unfairly kept...

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Now Is the Time to File for Bankruptcy

Posted by on Jun 1st, 2015 in Uncategorized | Comments Off on Now Is the Time to File for Bankruptcy

If you’re considering filing for bankruptcy, do it now and start getting the benefits. You’re tired of receiving calls and notices from creditors and bill collectors. Give yourself a break from that and get in touch with a bankruptcy attorney. They will walk you through the steps and you’ll start feeling some relief. Here are some good reasons to stop waiting and file right now. You Can Stop Worrying about the Actual Filing If the legal process of a bankruptcy has you anxious, you can relax. Your attorney and their staff will do the filing for you. All you have to do is provide them with the information they request. This will include information about all sources of income information about assets such as your home, cars, properties, and investments bank account numbers, balances, and contact information creditor information such as account numbers, amount owed, and contact information All of the information is important, but the creditor information is critical to taking the pressure off of you. Some creditors you may have not heard from for several months. You need to give the information about any creditor to whom you owe money to your attorney so they can include them in their notification of your bankruptcy filing. If you forget a creditor, you may be able to add them on later, but it will delay the process. You Can Start to Relax When the Filing Is Done The date of the filing is an important one because you are protected from various actions after that. The sooner you get your information to your attorney, the sooner they can file and you’ll start seeing these benefits: Calls and notices from creditors must stop: Creditors must stop making attempts to collect from you. They must stop any bill collector activities and put any legal actions against you on hold. Late fees added to your accounts must also be stopped. Your income and assets are protected: Creditors can’t garnish your wages once you have filed for bankruptcy. Vehicles you own can’t be repossessed. Once you file, the bankruptcy court will decide what happens to your assets, so creditors must wait until the outcome of the process. Your primary residence is protected: Any foreclosure actions on your home must be put on hold. The court will assign a trustee to your bankruptcy case and they will determine how best to handle the house. They may decide that selling the house is a better option than letting it go through foreclosure. Until that final decisions, you can continue to live in the house. If you’ve been reluctant to follow through with your bankruptcy, consider these benefits and contact a bankruptcy attorney like Young Wooldridge. You’ll gain some breathing room as you begin to put your financial life back...

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Automactic stays: What they can and cannot do for you

Posted by on May 20th, 2015 in Uncategorized | Comments Off on Automactic stays: What they can and cannot do for you

While many people see bankruptcy as a careless disregard for financial responsibility, in reality it is more an act of sheer desperation. This is not a decision to be taken lightly, and you are likely in dire straits to consider bankruptcy as a solution. Being threatened with the loss of basic human necessities such as housing, home heating and transportation can be a major motivational factor for filing bankruptcy.  Bankruptcy is the hoped-for relief when you are about to lose almost everything, and an efficient and effective method of holding off the creditors who are hounding you night and day. The automatic stay becomes a virtual stop sign from the moment you file your bankruptcy paperwork with the court. Read on for what an automatic stay can and cannot do. What an automatic stay can do: It will stop wage garnishments completely. With the exception of child-support payments, you will now be able to take home your entire paycheck. Some of the debts that initially caused the garnishments may not be dischargeable in your bankruptcy, but you can temporarily halt the garnishment actions. It will stop foreclosure proceedings against your home. You may still lose your home, but for the time-being you have time to make other living arrangements without fear of being tossed into the street. It will keep your gas, water, telephone and electricity from being disconnected for at least 20 days. If you file a chapter 13 bankruptcy, you will be given help to develop a plan to repay all or part of your debts. What an automatic stay cannot do: It won’t help you if you owe child support or alimony, and it won’t stop any wage garnishment associated with that debt. If you owe the IRS, you will still need to make any tax payments that are owed or continue paying your installment plan as agreed. It will stop a lien from being placed on your property, however. If you owe money to the courts for a criminal act, you must still pay the fees and fines. While an automatic stay cannot completely keep all financial obligations on hold, it will help you to maintain a place to live and give you some breathing room. You need time to make a plan for a fresh start, and your bankruptcy attorney can work with you to make sure that you can do so without being harassed by creditors. If you have decided that bankruptcy is the best option for you, consult with your attorney for more details and to begin your new financial life....

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Deeply In Debt? 4 Reasons You Should Hire An Attorney Before Filing For Bankruptcy

Posted by on Apr 20th, 2015 in Uncategorized | 0 comments

Filing for bankruptcy may seem like a pretty easy task. You fill out a few forms, submit them to the courts, and then your debts are forgiven. Unfortunately, it’s not quite that simple. The bankruptcy laws have changed so much that filing without an attorney can end up costing you dearly. Here are just a few of the reasons why filing for bankruptcy without an attorney may be a big mistake. No One to Speak On Your Behalf In the bankruptcy court, which operates at a federal level, have a responsibility to protect the creditor. In fact, the trustees, the bankruptcy panel, and the judge will work to ensure that the creditor receives a fair settlement through the discharge of your debt. If you have questions about the proceedings, they will not provide you with the answers you need. Home May Not Be Protected If you own a home, you owe it to yourself to hire an attorney. Just because you’re filing for bankruptcy, you don’t necessarily have to lose your home. In fact, the homestead exemption may allow you to keep your home. However, if you attempt to file for bankruptcy without an attorney, you might not understand the laws that apply to you or the rights that you have regarding your property. You Can’t Dismiss Your Case If You Make a Mistake Unlike some legal proceedings, you can’t have your bankruptcy case dismissed once it’s been filed. So if you file for a chapter 7 bankruptcy without legal representation, and you realize you’ve made a mistake on the paperwork, you’re going to be stuck with the outcome. Sadly, this may mean that you lose out on assets that you might have been allowed to keep if you’d had a lawyer. It also means that you might be responsible for larger bankruptcy payments. Confusion Over Bankruptcy Chapters According to bankruptcy laws, there are four different types of bankruptcies that might apply to consumers. Those are: Chapter 7 – individuals with minimal assets and income Chapter 13 – individuals with assets and verifiable income Chapter 12 – family farmers and fishermen Chapter 11 – corporations and individuals with large mortgages Filing the wrong paperwork, or applying for the wrong type of bankruptcy, protection can leave result in additional charges or debts that cannot be discharged. In addition, the creditors will continue to hound you until your case is filed properly. If you’re in debt and need bankruptcy protection, be sure to speak to an attorney. With proper legal representation, you can get the fresh start you need to get your finances back on the right track. For more help, contact a company like Morrison &...

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Ask Your Trustee To Extend Your Payment Plan When Your Car Breaks Down

Posted by on Mar 31st, 2015 in Uncategorized | 0 comments

The terms of a chapter 13 bankruptcy agreement will have a strict repayment schedule that you’ll need to adhere to, and they’ll have potentially severe consequences should you fail to make your required monthly payments. Making each payment can be difficult, however, especially when you face an unexpected expense, like a major car repair. There may be hope, despite what the terms of your bankruptcy state, however. If your automobile breaks down and you won’t be able to pay your creditors, talk with your trustee and see if the payment schedule can be extended. Chapter 13 Bankruptcy Repayment Plans Debts that are included in chapter 13 bankruptcies must usually be paid off within three to five years of the bankruptcy, according to United States Courts. For debtors who already have a five-year repayment plan, the law leaves little room for making adjustments. If your repayment schedule is only three or four years, though, your trustee may be able to extend it up to a maximum length of 60 months. This flexibility can give you a cushion to help manage paying for a major car repair without defaulting on your repayment plan. Your Trustees’ Decision People sometimes avoid talking with their bankruptcy trustee when an unexpected expense suddenly arises. While a desire to avoid further financial discussions may be understandable, not communicating with your trustee will only hurt you. For, they have the power to extend your repayment plan if they deem it appropriate and wise. When your car breaks down, you should let your trustee know as soon as you have an estimate for the repair. If it’s an unmanageable expense, you can talk with them about delaying some payments or, if your car is totalled, taking on an additional car loan. Once they hear your circumstances and understand how you’re handling your finances, they may decide to approve one of the two options. There’s no guarantee that they will approve extending your repayment plan or taking on an a car loan, but they certainly won’t if you don’t share your struggles with them. If you’re uncomfortable talking directly with your chapter 13 bankruptcy trustee, you can ask your lawyer at a place like Howard S. Goodman Bankruptcy Attorney for help. They can talk with your trustee, if you’d like, or they can help you draft a letter. Whether they communicate in-person, over the phone, by email or through a letter, your bankruptcy attorney will know what details the trustee will need and how best to persuade the trustee to approve an extension or additional loan. The entire process starts with you, though. You must let your trustee know about the auto repair or ask your lawyer for...

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3 Things To Know About Filing For Chapter 13 Bankruptcy

Posted by on Mar 25th, 2015 in Uncategorized | 0 comments

If you want to adjust the amount of your loan by restructuring it, one way to do so is with a Chapter 13 bankruptcy. There are many benefits to selecting this type of legal status to make changes in any loans that you currently owe. It is critical to your success to know certain things about what this bankruptcy is and what is involved in the filing process. What is Chapter 13 Bankruptcy? This type of bankruptcy is referred to as the wage earner bankruptcy because you must be employed to qualify for it. When completing the paperwork, it is necessary for you to list the amount of your income and to provide verification for it, as well. You could use an old W-2 to prove how much you earn or a past pay stub or even your previous year’s tax return if you have it on hand. Forms you must Complete In order to fully qualify for a Chapter 13 bankruptcy, there are a number of forms that you must fill out beforehand. This will show that you are eligible for this type of assistance and you should be eligible for it. Listed below are some of the forms you may be asked to complete: 1. You must list the amount of your debt and the creditor it is owed to 2.  You should include all of your monthly living expenses which may include rent and food, plus any additional costs 3.  You must include the property that you currently own 4. Your employer and the amount of your income will be necessary All of this information must be detailed and accurate in order for you to qualify for a Chapter 13 bankruptcy. The Time of the Loan You may want to restructure your current loan for two common reasons. These may include lowering the amount of your monthly payments and having more time allowed for you to repay the loan. The court will allow you up to five years to pay back any money that you have borrowed if you qualify for this type of bankruptcy. Finally, if you want to make significant changes to any of the loans you are currently indebted for, this may be the best type of bankruptcy for you to choose. Be sure to speak to a bankruptcy attorney who can guide you through the legal process and help you get this done with ease. Have more questions? Contact a company like Wiesner & Frackowiak, LC to learn...

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Should You File For Chapter 13 Bankruptcy Instead?

Posted by on Mar 20th, 2015 in Uncategorized | 0 comments

In some instances, filing for a Chapter 13 bankruptcy makes more financial sense than filing for a Chapter 7. There are many factors that dictate which filing is available to you, but sometimes, you have more than one option. Here are some situations in which a Chapter 13 filing might be best.  You Want to Repay Your Creditors If you have a personal desire to repay your creditors instead of having the debts discharged, a Chapter 13 is the best option. The bankruptcy would help protect you from financial consequences from your creditors while you pay off your debts.  The Chapter 13 would also give you the ability to pay off your debts over time instead of being overwhelmed with payments now. The debts would be restructured and consolidated into a simple monthly payment that you would pay to your bankruptcy trustee.  Your Home Mortgage or Car Loan Is Behind If you still owe on your home mortgage or car loan, you could possibly lose them in a Chapter 7 filing. However, if you want to keep your home and car and are behind on the payments, a Chapter 13 could allow you to do so.  Your bankruptcy attorney can have your mortgage and car loan arrears calculated into your repayment plan so that you can catch up. Not only will you keep your home and car, but you could walk away with a new agreement with your lenders that could reduce the amount of interest you are paying.  Someone Else Is Also Responsible for Your Debts A co-signer for loans or other debts you have incurred would still be legally liable for the debts even if you have a Chapter 7 filing. Once you have been cleared of responsibility for the debts, the creditors most likely will go after the co-signer.  Instead of allowing your creditors to go after someone who was trying to help you by co-signing for your debts, you can file a Chapter 13 and still continue to pay them off. When you make payments through your repayment plan, your co-signer is left unbothered. Other factors could influence which type of bankruptcy you should file. Talk to your bankruptcy attorney about the best option for your particular situation. Remember, your goal is to get a fresh start in your economic life. To do this, sometimes you have to make decisions, such as filing for a Chapter 13 bankruptcy. For more information, talk to resources like Baxley Law Firm LLC and tell them about your situation. They will further advise you on the next course of...

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Four Steps To Take When Potential Employers Check Your Credit

Posted by on Mar 13th, 2015 in Uncategorized | 0 comments

You applied for the perfect job and the employer even called you in for an interview. Everything was going along swimmingly until the hiring manager mentioned the next steps, including a check of your credit. Increasingly more employers are performing credit checks in addition to traditional background checks on potential new hires. In some cases, the employees may be required to handle money directly or even indirectly. In other situations, employers may look at credit history as an indicator of responsibility, integrity and reliability–or a lack thereof. Whether your credit report has a few minor blemishes or shows major damage, you can do more than simply sit on your hands and wait for a rejection letter. Learn how you can assess, clarify and resolve the money issues that might keep you from landing the position of your dreams. Check your own credit first. You can request a free copy of your credit report from each of the three credit reporting companies every year. Knowing exactly what prospective employers will be looking at will help you know how to proceed. Dispute any errors you discover. A government study estimates that there are inaccuracies on 1 in 20 consumers’ credit reports. Send a written letter disputing any mistakes to the credit reporting company or companies listing the account. The company will investigate your claim and correct the information if they agree with your statement. Be honest and upfront. If you are aware that your credit is less than stellar, revealing this information along with your plans to rectify the situation shows a potential employer that you take ownership for your mistakes and take action to resolve them. Be prepared to respond and explain. In some instances, poor choices result in bad credit, but more often than not, circumstances led to your flawed report. For instance, when you share with a hiring manager that you filed for Chapter 13 bankruptcy following a divorce or have outstanding bills from a medical emergency, he may be more willing to work with you than he would if you left your credit woes to his imagination. Work on cleaning it up. If you don’t secure the position, consider it a chance to improve your credit and impress a future employer. Seek help from a credit counselor, financial advisor or bankruptcy attorney if you feel overwhelmed by the task. You’re not alone and professionals are there to help you...

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Is Surrendering Your Home In Bankruptcy A Good Move?

Posted by on Mar 10th, 2015 in Uncategorized | 0 comments

Surrendering your home is an option if you plan to file for Chapter 7 bankruptcy. There are various reasons and benefits for taking this action. Before you make a decision as to whether or not surrendering your home is best for you, consider the following. What Is Surrendering Your Home? The loan that you have from your mortgage lender is considered to be secured debt. This basically means that your lender has a lien against the home until you have completely paid off your mortgage loan. If you fail to meet your financial obligation to the lender, your home can be foreclosed. In a Chapter 7 bankruptcy, you have the option of keeping or surrendering property that is attached to a secured debt. When you surrender, you basically turn the home back over to your lender. Why Should You Surrender Your Home? Depending on the circumstances of your bankruptcy, it is unlikely that your bankruptcy trustee will force you to give up your home. If you want to keep it, state and federal exemptions will probably cover the value of the home which would allow you to hang onto it. However, there are some good reasons to surrender your home. If you cannot afford to continue to pay the payments on your loan, you can walk away now. If you opt to keep the home and cannot still afford the payments, you could find yourself financially drowning again in the future. Another reason to surrender your home is the value of it. If the value of your home is far less than the mortgage, you can save money by giving it back to the lender. The best reason to walk away from your home is that you simply do not want it. Whether you are tired of repairs or no longer wish to be a homeowner, you can give it up without explanation. In this instance, the lender can sell the home or your trustee can sell it and use it to help pay off your debts. What Happens to the Deficiency Balance? If you surrender the home to the lender and it is sold in a foreclosure sale, there is a good probability that the amount that is gained from the sale will not be near what you still owe on the debt. However, this is legally no longer your concern. In a Chapter 7 bankruptcy, debts are discharged. If you surrender early enough in the process, your balanced owed on the loan after sale, or deficiency balance, can be discharged. The idea of filing for bankruptcy is to start off with a clean slate. Surrendering your home might be a necessary step you have to take to start over. Talk to your bankruptcy attorney, one like Bill Bodensteiner Attorney At Law, for recommendations about your home and other assets involved in the...

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