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All Creditors Must Be Listed If you are filing bankruptcy, then all of your creditors must be listed. This includes credit cards, personal loans, auto payments, mortgage payments and any other debt, including debts owed to family members. I understand that many people have lived off credit cards, they love the convenience of credit cards+ Read MoreThe post Can I keep one of my credit cards and not put it on my bankruptcy? appeared first on David M. Siegel.
Bankruptcy is a tool for helping people recover from overwhelming debt. It is a complicated tool, though. To help you understand your options better, let’s clear up some of most confusing myths about bankruptcy. We’ve already debunked three common bankruptcy myths:
- People who file for bankruptcy are reckless spenders
- All debts will be discharged when you file for bankruptcy
- Filing for bankruptcy will damage your credit permanently
Here are a few more related bankruptcy myths:
1. Bankruptcy will fix your credit, so you can start with a clean slate.
As we said in our previous post, bankruptcy will not destroy your credit forever. However, your credit will be affected. The Fair Credit Reporting Act allows the reporting of a bankruptcy filing for 10 years.
While it will be possible for you to get credit during those 10 years, lenders and landlords will know about the bankruptcy and consider it when deciding whether to offer you credit, how much to offer, and how much interest to charge. Still, declaring bankruptcy may be better for your credit, overall, than staying in a situation with overwhelming debt.
To find out if it is the best solution for you, you’ll need to discuss the specifics of your situation with a lawyer who specializes in bankruptcies.
2. Going bankrupt means losing everything you own.
Many people believe the term “bankruptcy” means losing everything. Not so. When you file for bankruptcy, the law lets you keep the basic assets it deems necessary for your day-to-day life, and to make a new start. Retirment funds, such as 401Ks, IRAs, and pension plans are usually protected, too. You may even be able to keep a house or car that you owe money on.
How will you know how much you’ll be able to keep? The court will review your assets and your needs, and make a determination based on your unique situation. Again, you should discuss the details with your lawyer. A good bankruptcy lawyer will help you to figure out what you’ll be able to keep if you file, and what, if anything, you’ll have to give up.
3. Bankruptcy encourages people to spend like crazy, knowing they won’t have to pay their bills.
To clear up this misconception, Bankrate.com’s post on bankruptcy myths put it best: “That’s called fraud and bankruptcy judges can get really cranky about it.” This myth is related to the inaccurate belief that people who file for bankruptcy are reckless, immoral, or incompetent.
Bankruptcy does not protect frauds, embezzlers, or other criminals who take out loans they never intend to repay. Bankruptcy protection is for regular people who take business or investment risks, who have major medical expenses, who are out of work for a while, or who fall on other hard times, and need help to make a fresh start. It may be for you.
If your financial situation is overwhelming right now, consult with one of our expert bankruptcy lawyers to find out what your options are. Bankruptcy can be the tool that makes it possible for you to start again. Your greatest success may be ahead of you, too.
The original post is titled 3 More Common Myths About Bankruptcy , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
The amount that creditors receive in a Chapter 13 depends upon a number of factors. The first factor is what type of creditor are they? Are they a secured creditor, secured by either real estate or a vehicle or some other item? Or are they an unsecured creditor such as a credit card, a medical bill, a personal loan or a debt for some type of service? Depending on what type of creditor will dictate to what amount they are paid back. General unsecured creditors can be paid as little as 10% on the dollar or they can be paid back 100%, depending upon the particular case. Secured creditors are paid back either the entire amount owed or in some cases the market value of their item plus an insurance risk percentage factor.
The main determination on whether or not a creditor is paid back 100% or 10% is the actual income and expenses of the debtor. The trustee will examine the income of the debtor based upon the information provided by the debtor such as paycheck stubs, tax returns and any other proof of income. The trustee will then examine the expenses of the debtor based upon reasonable customary expenses in addition to any exceptional expenses that the debtor may have. The difference between the income and the expenses per month is what is required under the Bankruptcy Code to be paid to the Chapter 13 trustee each month. It is from that amount that the trustee can then make disbursements. In some cases, creditors will get paid back in full. In most cases, creditors will get paid back less than in full, somewhere between 10% to 50% on the dollar.
The trustee has many functions and duties throughout a Chapter 13 bankruptcy case, but none more important than the administration of the Chapter 13. Now, what I mean by administration is the trustee has the duty to first make sure that the debtor has proposed a plan that is confirmable. Two, the trustee then has to administer the payments that come through from the debtor and administer those to the various creditors pursuant to the terms of the Chapter 13 plan. Child support arrearages get paid first. Administrative fees get paid next. Attorneys’ fees can often get paid next or pro rata or in some kind of certain amount along with mortgage arrearages and auto payments. The Chapter 13 plan is what’s going to govern how the Chapter 13 trustee makes monthly disbursements.
The Chapter 13 trustee has to report to the court on a confirmation hearing as to whether or not the debtor has proposed a plan that meets the requirements of the Bankruptcy Code. The trustee also has the duty and obligation to examine the debtor under oath at a 341 Meeting of Creditors. So the trustee has his hands on throughout the entire case, from the filing to the 341 Meeting of Creditors to the confirmation hearing and to the distribution of assets throughout the entire 3 to 5 year payment plan.
The trustee has the obligation to bring a Motion to Dismiss should the debtor fall behind and the trustee has to answer questions of the debtor throughout the case since the trustee is actually working on behalf of the debtor and getting paid an administrative fee for his or her duties under the Bankruptcy Code.
If you file a Chapter 13 prior to your car being sold at auction for sale, then you do have the ability undercurrent Chapter 13 bankruptcy law to recover your vehicle. Now, the lender has the right to immediately bring a Motion to Modify the Automatic Stay to avoid the bankruptcy if you are not adequately protecting that creditor, if you don’t have valid auto insurance on that vehicle naming the lien holder as a loss payee or if any other requirements of the Bankruptcy Code are not satisfied to the point where the lender can bring a motion to avoid the bankruptcy and either repossess the vehicle again or sell it if they still have it in their possession.
There is a case called Thompson which basically stood for the proposition that as long as the vehicle had not yet been sold, the vehicle owner had the right to recover that vehicle and propose a Chapter 13 plan that would adequately protect the lien holder and pay all that was required under the Bankruptcy Code over time. Before the Thompson case, lenders used to hold onto those vehicles and try to negotiate, in other words to return the vehicle to the debtor in exchange for a higher monthly payment, a higher interest rate, proof of insurance. Today though, since the Thompson case has come down, the owner of the vehicle has the absolute right, as long as it has not been sold yet at auction, to demand and receive the return of that vehicle.
From that point forward, the debtor must make good on the Chapter 13 proposed plan. The debtor must provide adequate assurance of payment as well as proof of insurance. But the bottom line is, as long as the vehicle has not yet been sold, the vehicle owner can recover it back from the lender even when it was repossessed.
Case Overview This is the case of Gary Kaplan from St. Charles, Illinois. Mr. Kaplan filed a Chapter 7 bankruptcy back in 2001 so he is eligible to file another Chapter 7 should the facts dictate that he file. He has a townhouse that has a market value of $188,000 and he owes approximately $46,000+ Read MoreThe post Bankruptcy Can Eliminate IRS Debt In Certain Cases appeared first on David M. Siegel.
Few people understand the full workings of the loans pawn shops offer. We all know the basic deal: You bring something of value to the shop, and leave it there as collateral for a short-term loan. If you pay back the loan, plus interest, on time, you’ll get your item back. If not, the shop will keep the item and sell it.
The problem with pawn shop loans is that the rates they charge usually add up to annual percentage rates of 120 to 300 percent. Since your possession is securing the loan and all of that potential interest, you’ll be loaned far less than your item is worth. Worst of all, you may very well lose your item. If you have something of value that you’re willing to part with, you’ll do much better selling it outright through eBay, Craigslist, or a dealer who specializes in that type of object (antiques, jewelry, musical instruments, etc.).
Car Title Loans
These are short-term loans, similar to payday loans, but using your car’s title as collateral. Like payday loans, car title loans usually have very high interest rates, as much as 25 percent per month, which comes to 300 percent (three times the amount of the loan) per year. Worst of all, if you can’t make your payments, the lender can take your car without having to go to court first. Again, if you need money for a short period of time, even adding to high-interest credit card debt is a better option.
Rent-to-Own
This is the type of deal where you pay a monthly rental fee for an item, and a portion of your rental payments goes towards the purchase price. If you continue to rent for a long enough time, you will own the item outright. Rent-to-own plans work well for parents of children who are learning to play an instrument. If the child loses interest or switches to a different instrument, the parents are out far less money than they would be if they had bought the instrument outright.
For most other situations, though, renting to own is a bad idea. You can rent to own furniture, electronics, and even boats and RVs, but you’ll end up paying far more than the value of the item. For furniture or electronics, it’s much better to buy the item used, or to save your money until you can afford to pay the entire purchase price at once. For vehicles, standard vehicle loans will give you much better rates.
If you aren’t sure about whether a loan is right for you, or have been caught off guard by a predatory loan, reach out to us today to find out what you can do.
The original post is titled More Predatory Loans to Avoid , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
After bankruptcy, you might get a call or a bill on a debt that was discharged in your case. Trying to collect a discharged debt during or after the bankruptcy is a violation of the bankruptcy stay–while your case is open–or bankruptcy discharge, once your case is closed.
Don’t get upset, but do take action.
Most judges don’t want to hear about problems “that could be fixed with one phone call,” so I have a benefit of the doubt policy–three steps.
Step one: Tell the creditor you filed bankruptcy. You want to say, I filed bankruptcy; you cannot contact me, call my lawyer, Robert Weed, at 434-993-5101. You can say that on the phone, or write it on the bill and mail it back. That solves most of these problems.
Mistakes happen and most of these contact are just mistakes. Don’t be paranoid, but do keep notes!
Step Two: If you get a second contact, email your paralegal. Let them know that you told the creditor to call us and now you’ve gotten another contact. If it’s a letter, scan and email the letter if you can. If it’s a call, the phone number and person’s name if any.
If a creditor contacts you a second time, email your bankruptcy paralegal. [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], or [email protected]. She will give the creditor a second warning
Your paralegal will contact the creditor and let them know they are about to be in trouble. If there’s another call or bill, we’ll sue.
Step Three: If the creditor keeps up after two warnings, we drag them in front of the bankruptcy judge. Even the most patient judges (and our judges here are pretty patient), will be mad at a creditor who contacts you three times after the bankruptcy.
We don’t get a lot of money in Virginia when we sue on these. If they call or bill you when your case is open, the judge can award emotional damages and punitive damages for violating the bankruptcy stay. Once the case is closed, about all you can get is attorneys fees for violating the discharge. (In other words I get paid, you just get the creditor to stop. The Fourth Circuit says you don’t get anything for being harassed or annoyed–only if you can’t sleep or throw up or something.)
Do the creditors always get the benefit of the doubt? No, they don’t. Our biggest exception is if you get a smart remark when you tell them to call your lawyer.
“Bankruptcy only covers the principal -this is for interest.”
“Our bank didn’t accept your bankruptcy filing.”
“Your lawyer filed the wrong kind of bankruptcy.”
If you get a smart remark like this, write it down and contact your paralegal right away. They get to explain that BS to the judge without a second warning.
Do you always sue? Laws, like locks, remind honest people to stay honest. They don’t do much for criminals. Sometimes, usually but not always on a payday loan, your debt ends up with a debt collector that’s part of “digital organized crime.”
These people know what they are doing is illegal and don’t care. You can often tell them by their outrageous threats. ”The sheriff is bringing a warrant around to your house tomorrow.” And they often want you to make a payment–right away–by a service that’s hard to trace like Western Union Quick Collect.
The FBI might be able to find those guys–I won’t be able to. The best you can do, is file a complaint with the Federal Trade Commission. That might eventually get them shut down.
There are two main types of bankruptcy for consumers, which are Chapter 7 and Chapter 13. Here are the differences:
- Chapter 7 – This type of bankruptcy will clear all of your unsecured debt. Once you receive your Notice of Discharge from the U.S. Bankruptcy Court in your state, all of your debts will be wiped out. A Chapter 7 bankruptcy can free you from unsecured debt (such as credit cards, medical bills, utility bills and payday loans for a few examples). The discharge process can go through pretty quickly, getting it all over within a few short months.
- Chapter 13 – This type of bankruptcy is a little bit different. Basically, instead of discharging you from all of your debt, you will have a payment schedule set up with the U.S. Bankruptcy Court to pay it back. A Chapter 13 bankruptcy was basically designed to stop these things: wage garnishments, foreclosures, repossessions and lawsuits. You will have a single payment made to the court instead of dealing with multiple creditors.
Every situation is unique and that’s why is essential to talk to an attorney who specializes in bankruptcies before making a decision. Keep in mind that there are a few things that might not be able to be included in your bankruptcy, such as:
- Student loans
- Taxes
- Debts relating to personal injuries, or worse, caused by driving while intoxicated
- Child support
- Alimony
- Recent credit purchases
- Fines
- Debts incurred through a fraudulent act
Here are some myths about filing for bankruptcy:
- Everyone will know – This isn’t true. The only way for someone to find out about it is if they go to the U.S. Bankruptcy Court and pull the information. Also, keep in mind that with the way the economy has been, there have been many people filing for bankruptcy. It’s nothing to be ashamed of.
- You will lose everything – You will not lose everything. In fact, bankruptcy laws were put into place to protect you.
- It’s difficult to file a bankruptcy – This isn’t true, and in fact, a bankruptcy is easy to file when you have the right attorney to help you through it.
Filing for bankruptcy can be emotional. We can help. Don’t hesitate to give me a call so we can discuss your options, or setup an appointment at any of our consumer law offices. We have offices conveniently located in Seattle, Portland, Vancouver and Salem. I can help you get that much needed fresh start.
The original post is titled Bankruptcy 101: How to Separate Fact From Fiction , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
Si busca a un abogado de bancarrota aqui en Utah quien puede explicar para usted todas sus opciones en su lengua nativa, no tiene que buscar mas. Yo represento a muchos latinos de todos paises que estan aqui en los estados unidos y necesitan la ayuda del sistema de bancarrota. Si quiere tener una cita gratis y confidencial, puede llamarme al 8012259900 or por email: [email protected]. Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.