If you are considering filing a personal bankruptcy case, you should be aware that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) requires you to attend and complete credit counseling courses. This is true whether you are filing a Chapter 7, Chapter 13 or an individual Chapter 11. You must attend, either in person or online, a credit counseling course before you file your bankruptcy petition and another course prior to your discharge order being entered by the court. The initial credit counseling course must be one that is approved by the bankruptcy court. This class must be completed within 180 days prior to your bankruptcy case being filed. This class generally includes a review of your overall financial situation
When you file bankruptcy, whether it be a Chapter 7 or Chapter 13 filing, the bankruptcy trustee plays a big role in the process. Once you and your bankruptcy attorney have filed a successful bankruptcy petition, the bankruptcy court assigns a bankruptcy trustee who will be charged with executing your estate. In a chapter 7 bankruptcy the trustee will sell your non-exempt property and use the proceeds to pay back your creditors. In a Chapter 13 bankruptcy case, you make one monthly payment to the trustee who then devise it up to your creditors according to the payment plan that the court approves. Anyone filing bankruptcy must be completely honest and forthcoming about their accounts, assets, money, and property. You cannot hide or get rid of money or property before or during a bankruptcy without getting it approved by the trustee and courts. A bankruptcy attorney will be able to explain this to you in greater detail and offer you advise on property that you do want to get rid of.
You may have considered filing for bankruptcy to erase your personal debt completely, but then realized that after filing for either chapter 7 or chapter 13 bankruptcy, you will still be stuck with your student loans. However, filing for bankruptcy can erase your student loan debt if you also file for the undue hardship extension. While not everyone qualifies for this extension, many people do, so it is worth looking into. If you attended a for-profit trade school, you are more likely to be eligible to have your loans dismissed when filing for this extension.
A person will have to also undertake credit counseling using a particular organization approved from the United States Trustee.
Declaring Bankruptcy Steps What about for individuals? Bankruptcy for individuals can be viewed as a financial strategy. In many ways, bankruptcy is financial planning when you strip down the details - but, it's important to have a competent bankruptcy lawyer on your side in order to tie up all of those loose
Elimination of debts - A major benefit of filing chapter 7 under the bankruptcy code is that it ensures the elimination
Most people have erroneous ideas about bankruptcy. This is understandable since bankruptcy is a complicated process. Filing for bankruptcy can be a scary and intimidating experience. The stigma that is associated with bankruptcy might deter people from seeking help. A bankruptcy attorney can advocate for his clients.
The filing of the petition does not technically signify bankruptcy since the designated court can deny the petition. BC Sec. 901(a) grants officers of a distressed unit the power to file for Chapter 9 protection. If the unit does not have offices, the governing authority has the power to file. The chief judge for the circuit court of appeal for the district involved to designates the bankruptcy judge. Creditors may object to the petition;in which case, the court may dismiss the plan if the petition is in bad faith or does not meet the provisions of Chapter 9. Such an occurrence is rare,
There are many factors that lead you into handling the process of filing for bankruptcy without a lawyer. The most common among them is the lack of resources to cater for the fees that are charged by the lawyer. This is made worse by the fact that some practicing lawyers are out to take advantage of your situation and rip you off your little and almost non-existent finances.
When filing for bankruptcy is unavoidable, hiring a bankruptcy attorney is also a must. This is especially true today since the New Bankruptcy Law has introduced major changes in the process. Having a bankruptcy attorney who will assist you in the preparation and filing of your documents, as well as advice you with the legalities about the bankruptcy process will ensure that you will not be committing any violations.
Filing for bankruptcy is a very useful way to gain protection from creditors and obtain a discharge of debt. But is it the best idea for everyone? Absolutely not; there are some who would be better off seeking out other options and bankruptcy alternatives.
I would tell Carl that bankruptcy is not directly forbidden in the Bible; but you have been going against Christians beliefs and the Bible by continuously getting deeper in to debt living beyond your means. Words of God directly command us to pay our debts. “Give to everyone what you owe them: If you owe taxes, pay taxes; If respect then respect; if honor then honor.” (Romans 13:7) As a Christian I would advise Carl against filing bankruptcy unless you have no other alternative. Then you must seek guidance from God through prayer before any decision is made. The law of mercy states that if you can’t pay the debt back you may through bankruptcy, obtain forgiveness for your obligation, but the
After a long conversation with the debtor over the letter from trustee, he simply does not have the money to pay for anything. He is a part time teacher, who during the summer he does not get paid because he does not work those months. In addition, he does not get paid for the spring break, Christmas break, so he said that he filed bankruptcy because he is having marital issues due to the financial situation. His wife make $8.00 per hour and hardly makes 40 hours.
Filing for bankruptcy is not a decision that should be taken lightly. Even when it feels like times are tough, you may still be deciding if bankruptcy is right for you. Bankruptcy should be used as a last resort, which is why you should evaluate your financial situation carefully before officially filing
If your financial worries are keeping you tossing and turning every night, you may need to consider filing for personal bankruptcy in hopes of getting some relief. It's really not surprising that there are so many personal bankruptcy cases with as much credit that is extended these days. If you pay your bills, you are rewarded with the ability to run up more bills. More often than not, that responsibility is just too much to handle. It may have seemed realistic to add one more minimum monthly payment when you splurge with your new credit card, but too many of those minimums can overwhelm you with mounds of debt before you know it.
Credit counseling focuses on paying the full amount of the loan, but works through a combination of setting up new payment plans that are a little easier on the wallet, budgeting and working out a method of ensuring that the payments are made each month.