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Chapter 7 bankruptcy is designed for people who, no matter how hard they work, will find it nearly impossible to ever pay off all their debts and be able to afford daily necessities at the same time. A sale of the debtor’s assets is conducted and the money raised is distributed among his or her creditors. While the stigma of the bankruptcy and the damage to the individual’s credit will last for years the person can usually walk away from bankruptcy free from prior debts, with notable exceptions.
In 2005, Congress passed the Bankruptcy Prevention and Consumer Protection Act of 2005 (BAPCPA) which resulted in several changes to the United States Bankruptcy Code. One adjustment was that it made it much more difficult for individuals to file under chapter 7.
This is where chapter 13 bankruptcy becomes an option. 11 U.S.C. §13 specifically provides for a way for “wage earners” to keep their assets and avoid continued collection activity by agreeing to pay off their debts over a fixed period of time.
- Under chapter 13, a debtor voluntarily suggests a specific plan to to pay his or her creditors over a 3-5 year period. The precise amount of time allowed for the payments to be completed is determined by a debtor’s current monthly income. (11 U.S.C. §1322(d))
A document known as a chapter 13 plan is filed with a debtor’s petition. This written plan details all of the payments and when they are expected to be made. The plan details the treatment of debts, liens and lists the status of all the debtor’s assets and liabilities. The goal of the system is to allow a debtor with a relatively steady flow of income to find a way to pay the amounts owed without having to surrender any assets.
Some of the advantages of chapter 13 bankruptcy:
- You can stop a foreclosure of your property.
- If you have loans coming due soon, you can spread out the payments over the next five years instead of having to pay them off all at once.
The major problems people experience with chapter 13:
- You have to make your payments on time.
- If you do not complete the payment plan as scheduled, you may end up owing your original debt plus retroactive interest.
Filing for bankruptcy though chapter 13 is no magic bullet – it comes with many potential pitfalls, just as other personal bankruptcy options. However, it may be worth it for some individuals.
For those who are instead thinking of turning to debt consolidation companies to help solve their problems, you may be making a costly mistake. Individuals who are considering debt consolidations companies to assist with their debt consolidation may be making a costly mistake. While some of these businesses are legitimate, others are not and may make an individual’s situation considerably worse. These companies often put the money you give them towards paying their monthly “service fees” rather than actually using it to help pay down your debts.
If you think you may qualify for bankruptcy and would like to discuss your options with a lawyer specializing in bankruptcy, please contact Adrienne Woods.
Adrienne Woods
The Law Offices of Adrienne Woods, P.C.
[email protected]
917.447.4321
Many homeowners seek a short sale if they are no longer able to maintain their mortgage payments or wish to step away from the property due to valuation issues. In most cases, the homeowner needs to prove a financial hardship for the bank to engage in a short sale. When the house is sold for [...]The post Does a Short Sale Result in Deficiency Debt? appeared first on Acclaim Legal Services, PLLC.
If you are behind on child support payments those payments are not eligible to be wiped out in bankruptcy. Child support payments are considered priority debts that a debtor will continue to be responsible for even after their case ends. But, Chapter 13 bankruptcy may help you get caught up on payments. If you have [...]
This is the case of Amy Jackson who resides in Chicago, Illinois who was visiting me for a consultation on debt relief. Ms. Jackson filed a Chapter 7 bankruptcy more than 10 years ago so she is eligible to file once again. She does not own any real estate. She is currently renting. No formal+ Read MoreThe post Chicago Bankruptcy Lawyer States “Fresh Start In Order” appeared first on David M. Siegel.
Bad news for families needing to file bankruptcy in Fresno! Beginning November 15, 2013, families will need to make almost $500 less per year to qualify to file chapter 7.
In order to qualify for a Chapter 7 bankruptcy, most families have to pass the "means test". In very simple terms, the "means test" takes a family's "net" income and measures it against established guidelines. Those guidelines become tougher beginning November 15, 2013.
If you are single, the new median family income is $47,798. It used to be $48,415. A family of 2 is allowed $62,009. It was $63,030. A family of three is $66,618. It was $67,401. A family of four is now allowed $75,111. It used to be $75,656. If you have a larger family, add $8,100 for each member in excess of 4. You can view the guideline table at the United States Department of Justice's website:http://www.justice.gov/ust/eo/bapcpa/meanstesting.htm
If you are contemplating filing Chapter 7 bankruptcy and you are close to these means test numbers, it would be wise to file Chapter 7 before November 15, 2013.
The new "means test" data changes frequently. These numbers should be good until April 15, 2014.
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Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for November 05, 2013 Advantage to file for bankruptcy as Hertz cuts car supply Atlantic Express files for bankruptcy, but Staten Island bus service will remain the same for now Casey Anthony bankruptcy judge: Lawsuits can move forward
There are various advertisements on television and radio that encourage consumers to utilize special services aimed at getting rid of tax debt through bankruptcy. Keep in mind the process may not be as easy as they make it sound. Some tax debts may not qualify for elimination in bankruptcy (Chapter 7), but they may qualify [...]
Miami bankruptcy lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. Office: 1221 Brickell Ave., 9th Fl., Miami, Florida. Tel.: (305) 891-4055. www.bublicklaw.com
Florida Statutes section 440.02 provides for a certain exemption of worker's compensation claims in Florida. It generally provides for the exemption of "compensation or benefits due or payable" under Florida Statutes, Chapter 440. The In re Mix, 244 BR 877 (Bankr. SD Fla. 2000) case held that this exemption for worker's compensation benefits applies whether the benefits are payable to compensate for lost wages or for present or future medical expenses.
This exemption though does not extend to creditors with claims based on an award of child support or alimony.
Deposited in Account
The Florida Supreme Court held in Broward v. Jacksonville Medical Center, 690 So. 2nd 589 (Fla. 1997) that "workers' compensation benefits received by the beneficiary and deposited in a bank account" remain exempt "so long as the funds are traceable to the workers' compensation benefits." Florida courts also hold that publicly traded stocks, bonds, and mutual funds purchased with worker's compensation benefits remain exempt.
Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Bankruptcy Lawyer - Chapter 13 Bankruptcy Lawyer Jordan E. Bublick has an office in Miami and has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is located in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
A constructive trust is a remedy imposed by a court to return property to its rightful owner and to prevent unjust enrichment of one person at the expense of another. Equity holds that although the possessor holds "bare legal title" to the property, the beneficial interest is held by the person entitled to the property. The property may have been acquired by another by fraud or even without fraud if it is against equity that is should be retained by the person who holds it.
For the imposition of a constructive trust, there must be generally be clear and convincing evidence of
- a promise, express or implied
- a transfer of property and reliance thereon
- a confidential relationship (legal, moral, social, domestic or personal)
- unjust enrichment (by fraud or benefit of the mistake of another)
Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
This is the case of Ms. Corey Felton who was in my office to see me about debt relief whether it be Chapter 7 or Chapter 13. Corey resides on Waverly Place in Joliet, Illinois which is Will County, Illinois. She filed a Chapter 7 bankruptcy back in 2001 so it’s been more than eight+ Read MoreThe post Eliminate The Credit Card Debt Through Bankruptcy Filing appeared first on David M. Siegel.
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