See If You Qualify For Bankruptcy
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How It Works? First and foremost, the most important, as well as the basic step before filing for bankruptcy, is to check whether you are eligible to file or not? You can easily check your bankruptcy eligibility free of cost by taking the legal evaluation survey. This is one of the best options to check, since not only are the results accurate but the information that you have provided is also safe and secure.
What can be eliminated…
- Credit card
- Hospital Bills
- Threats received for Foreclosure of property
- Garnishment of wages
- Harassment calls and messages from Creditors
- Outstanding Bills
- All Collection Efforts
- Any Tax Debt
What you can keep…
- House/Property
- Luxury Assets like Car
- Wages
- Fixed Assets like Furniture
- Work Equipment
- Retirement Accounts
- Social Security Benefits
- Benefits that arose out of disability
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866-414-1056
The basics of bankruptcy provide basic information to debtors, creditors, court personnel, the media, and the general public. Bankruptcy provides individuals and groups who are considering filing for bankruptcy with explanatory information about the different chapters. Bankruptcy does not change due to be filed in Florida, bankruptcy falls under federal law.
Bankruptcy wipes out many bills, like credit card balances, overdue utility payments, medical bills, personal loans, and more. You can even get rid of a mortgage or car payment if you are willing to give up the house or car that secures the debt. Be wary, putting up property as collateral may cause you to lose it, because if you don’t end up paying what you owe, the lender may take it back.
Filing for Bankruptcy allow individuals and groups to “wipe out” what is called “nonpriority unsecured debts.” This includes, credit card debt, medical bills, overdue utility payments, personal loans, etc. The difference between having to “give back” your property is due to if your debt is secured or unsecured. If your credit card is secured, then you may have to give back any items that you used the card to purchase.
Secured loans, cannot be forgiven. Other kinds of loans that cannot be forgiven include any kinds of child support or alimony obligations. For all you students out there, unfortunately those loans also cannot be discharged through bankruptcy. Lastly most kinds of tax debts are also off the table as well.
- Bankruptcy Trustee – A person or corporation, appointed by the bankruptcy court that acts on behalf of the creditors. After reviewing the debtor’s petition, liquidates (sells) your property under Chapter 7 filings, and then pays the creditors. Under Chapter 13, the trustee oversees a repayment plan negotiated upon.
- Credit Counseling – Before filing for bankruptcy, any filer is required to undergo counseling with a non-profit agency. All filers, upon undergoing bankruptcy must complete a course in person financial management before the debt can be discharged. Typically, all filers are required to undergo these things, but in certain circumstances can be waived.
- Discharged Bankruptcy – Under Chapter 7, this occurs all non-exempt assets have been sold and creditors paid. Under Chapter 13, it means the filer has completed the time period of the repayment plan. This only happens once the bankruptcy proceedings are complete.
- Exempt Property – This pertains to certain assets owned by the filer, such as cars, tools connected to the filer’s job, etc. Depending on what state you reside in, determines what you are allowed to keep.
- Lien – The creditor is allowed to hold and sell the debtor’s real estate properties for either security or to repay the debt
- Liquidation – This sale of the debtor’s non-exempt property that is used to pay the debt.
- Means Test – A test required by the courts to demonstrate if the debtor has the ability to repay their debts. It also used to curtail abuse of bankruptcy code. The test itself accounts for the debtor’s income, assets, expenses, and unsecured debt. If the debtor fails to pass the means test, if filing for Chapter 7, may be dismissed, and converted into a Chapter 13 proceeding
- Reaffirmed Account – Specific to Chapter 7, the debtor may agree to continue paying a debt that could be discharged. This “reaffirms” the account and your commitment to paying off your debt. This is usually allowed so the debtor can keep a piece of collateral, such as a vehicle that otherwise could be sold to pay the debt.
- Secured Debt – This is any debt that the creditors can seize such as a home backed by a mortgage, or a car backed by an auto loan in case you default on your loan.
- Unsecured Debt – Such as a credit card balance, this is debt that has no tangible collateral.
Chapter 7 bankruptcy. Chapter 7 is often a bankruptcy filer’s first choice for several reasons. It is quick—it only takes a few months to complete. And it is cheap—you don’t pay anything to creditors. It works well for those of us whose property consists of the essential items needed to live and work.
People with more assets could lose them, however, especially if they own unnecessary luxury items. For instance, you might have to give up your RV, baseball card collection, or timeshare in the Bahamas—even your house or vehicle if you have too much equity in it or you are behind on the payments. Unlike Chapter 13, Chapter 7 does not have a payment plan option for catching up on late mortgage or car payments. So, you could lose your home or car if you are behind when you file.
Chapter 13 bankruptcy. By contrast, Chapter 13 filers must pay creditors some or all of what they owe using a three- to five-year repayment plan. But the payment plan allows Chapter 13 to offer benefits not available in Chapter 7. For instance, not only do you keep all your property, but you can save your home from foreclosure or your car from repossession. If you need time to repay a debt you cannot discharge in bankruptcy, you can use this chapter to force a creditor into a payment plan. The biggest downside to this chapter? It can be expensive. Many people cannot afford the monthly payment. Learn more about when filing Chapter 13 is better than Chapter 7.