Bankruptcy Chapter 7
Useful Tips To Know Before Filing Bankruptcy
Millions of consumers in the US are struggling to come out of the burden of overwhelming debts. In this situation, many debt stricken consumers are forced to file bankruptcy. When you file bankruptcy, you may get rid of your financial woes and start afresh. You can avoid harassing calls from the creditors when you file chapter 7 bankruptcy
. If you’re not aware of the steps involved while filing bankruptcy, then you need to follow the steps given below.
Here are a few effective tips you need to remember while filing bankruptcy:
- When you’re contemplating filing bankruptcy, you need to do an extensive research whether you need to file petition with the bankruptcy court. In case you can’t manage the expenses of hiring an attorney, you need to find an alternative way to manage the situation.
- You need to review your financial situation and check whether you can discharge your debts. There are some debts like student loans, federal taxes, alimony and child support cannot be discharged through filing bankruptcy.
- You need to be cautious when you’re planning to pay off your debts prior to filing bankruptcy. According to the bankruptcy law, you should avoid paying the creditors before 3 months of filing petition with the court. You should not give money to your family members before a year of filing bankruptcy.
- Avoid delaying your filing petition with the bankruptcy court. If you postpone your filing proceeding, then you can prolong your stress as well as complicate your financial situation.
- You need to re-file bankruptcy, if your bankruptcy petition is disapproved by the court. In this situation, the automatic stay may not cover you more than 30 days, when you file for the second time.
- Many people may not be aware that filing bankruptcy is a better option than missing your payment or making late payments. However, bankruptcy may remain on your credit report for 7 to 10 years. Once you start repairing your credit you can manage to reestablish your credit report with ease.
- You need to obtain detail information on filing petition with the bankruptcy court. You need to know regarding the bankruptcy laws prior filing a petition. Make sure you avoid transferring your assets 12 months before filing petition with the bankruptcy court.
Therefore, you need to keep the above mentioned points in mind before contemplating filing bankruptcy.... (go to post
Will You Lose Your Home After Filing For Bankruptcy
This is a tricky question because it is not a written specific rule on this subject. It really depends on the person's debt. Let's say, your home is on mortgage and even after filing for bankruptcy chapter 7 you will be able to pay your monthly mortgage payments, even when the picture is like this you might lose your home if the trustee is allowed to sell it. If you have a significant nonexempt equity in your home, the trustee may attempt to sell your home just to pay off some of the unsecured debts you have. However, there is a bright side to this scenario. Most bankruptcy chapter 7 debtors don't have enough nonexempt equity to trigger a sale, which means you can keep your home while going through bankruptcy.
At the end of the day, it pretty much depends on your unsecured debt and the nonexempt equity in your home. If you haven't already, you might want to hire an attorney just to make sure everything goes smoothly.
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What Is The Cost Of Filing Bankruptcy Chapter 7
If you are reading this, it is probably because you are having a hard time paying your debts and bankruptcy chapter 7 is probably your best way out of this unpleasant time period. But, of course when you are filing for a bankruptcy you need to pay certain fees. And, since you are already in trouble with all the payments you can't make let's take a look at the fees you will have to pay if you decide to file for a chapter 7 so you won't have any problems with the court.
Paying certain fees is demanded by the bankruptcy court and you have to submit those necessary fees along with the documents as stated by the local state court and federal court. The amount of these fees can be different in every other state so you should be checking your state laws just to make sure. But, it is more likely along these lines in most of the states.
First of, the case filing fee is charged by the federal bankruptcy courts as $245, $39 for the miscellaneous administrative fee and lastly $15 for the trustee surcharge. If you fail to pay these fee payments your bankruptcy case will be rejected by the bankruptcy court. Since you are the petitioner you are liable to pay these payments if you want to get liquidation under chapter 7.
All of the payments mentioned above needs to be paid to the clerk of the court after filing the bankruptcy chapter 7. Some states may allow you to make your payments in installments but there has to be certain circumstances that court decided. even though you can pay in installments the number is only restricted to 4. You are also expected to make your last payment in the 120 days after filing the petition with the federal bankruptcy court. Again, if there is certain extreme cases the court may give you an extension for 180 days after the filing.
The only way you can skip paying those payments to the court is, when your income is less than 150 percent of the poverty level as defined in the bankruptcy code. Which makes you unable to pay the bankruptcy chapter 7 fees. Under these circumstances the court waives your fee payments once and for all.
All of these costs are meant to be for the federal bankruptcy court but, if you demand for professional services in order to complete your chapter 7 filing, such as seeking the services of a lawyer, the costs you need to pay will be much more different.
Take these costs as an outline for you and make sure you check your state laws for bankruptcy because, it may vary. Identifying the costs involved in the process will be much more wiser for you.
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When It Is Court Time...
Whether or not you have a debt, the tought of being in court will make everyone nervous. But, if you have filed for bankruptcy chapter 7, eventually you will end up in court. Although the proceedings of a bankruptcy court is less intimadating then you would have expect. Obviously, you will still be nervous so here is briefly what you should expect of the bankruptcy courts.
Bankruptcy Chapter 7 is almost the only bankruptcy form that you can get results in such a short time. To be honest when you are at the point where you are in the court with the creditors, you rarely have a huge role in what will happen next. Considering your debt situation. Since you are the one who got everything to this point, the only thing you will be doing in the court is explaining the reasons why you are in debt.
Also, before your bankruptcy chapter 7 gets approved by a judge, after you file the bankruptcy chapter 7 form, you will have a meeting with a bankruptcy chapter 7 trustee. This meeting will be basically a review of your petition and you will be answering a few of the questions that trustee have for you. And these questions will be all about your debt. After your meeting with the trustee, you will get a Notice of Commencement Case, which means your bankruptcy chapter 7 request is acknowledged.
Your meeting with the creditors will also be in court and you will be testifying in a court setting. They will be aloud to ask you questions which means you need to be honest because you will be under oath. And since you filed a bankruptcy chapter 7, this is the only way you can do things right, in order to get what you want from the beginning. Every question you will be answering is going to be about basic things regarding your assets and properties.
After you are finished with the court proceeding, the bankruptcy chapter 7 trustee might have a few more questions for you and you get back to him/her as soon as possible so everything can go smoothly. In a short time period like 2 or 3 months, if none of your creditors submitted an objection to any of your claims, you will be sent a notice of discharge. I would suggest you to hold on to this notice because this will be your assurance which shows everyone you are a debt free person.
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What Happens After You File A Bankruptcy Chapter 7 Form
We already talked about how you can file a bankruptcy chapter 7 and the vital facts about the process. There is still a lot of subjects I want to share with you about bankruptcy chapter 7 but, I never focused on what happens after you file the bankruptcy chapter 7 forms. If you already have an attorney for this matter I'm sure he already explained some of the steps you are about to go through, but if you are still on the edge of deciding whether or not declare bankruptcy, these steps should make your decision a lot more easier.
The First Relief
A lot of people would agree with me on this topic, you will feel an immediate relief right after you fill the bankruptcy chapter 7 forms. Even though you will have an awful amount of stress deciding on what you
should do, when you make a decision and take the first step you will be relieved, because this will be the first step to get rid of your entire debt. Also, once you have started the bankruptcy process you can tell all your collectors to stop calling you for your debt.
The Day In Court
To be able to finalize your bankruptcy chapter 7 forms and get the approve from the judge, you will have your day in court. At this type of court hearings, even if you have an attorney, you are the one who needs to talk to the judge, because he will have some questions about your debt and you need to answer him correctly so he can approve your bankruptcy forms. Even though, it might sound embarrasing or frightening, the questions will be pretty straightforward and non-judgmental so there is no reason to get uncomfortable. This is just one part of the process you need to go through with.
Marked Credit Reports
Just because you went through with a bankruptcy, for a specific time period you won't be able to get any type of loan or credit card. The bankruptcy chapter 7 will be marked on your report for everyone who checks to see. Basically, you need to start from the bottom again and gradually increase your credits.
Moving On From Bankruptcy
At the very least you need to be sure that bankruptcy chapter 7 will be the answer for your debt problems. Even though many people look at bankruptcy as a negative step in your financial life, for the situation you are in it is the most logical solution. Try to learn from your mistakes and make sure you have the control of your financial life.
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