Bankruptcy And Forelcosure Options
Bankruptcy and foreclosure are the two main problems resulted from the inability of homeowners to pay off their debts. Also, there has to be paid attention to the fact that both bankruptcy and foreclosure are methods to be taken fro debt relief. Even more, homeowners might eventually loose their homes through both bankruptcy and foreclosure.
There has to be paid attention to the fact that, no matter what options from these two is being taken by debtors, his/her credit history will still be affected. For example, while a bankruptcy remains for 10 years, foreclosures will remain on the debtor’s credit report for seven years. Since foreclosure can be erased faster from the debtor’s credit report than bankruptcy, it does not necessarily mean that foreclosure is a better option.
An important aspect which has to be taken into consideration is being represented by the fact that filing for bankruptcy might help debtors avoid foreclosure. Also, there has to be kept in mind that this is possible only if the debtors are filling for a Chapter 13 bankruptcy. Debtors are being allowed, under a Chapter 13 bankruptcy, to keep their properties, as they are being given a pre-established period from three up to five year during which they can pay off their payments through monthly installments.
Another main difference between bankruptcy and foreclosure is that mortgage lenders are looking at a foreclosure more seriously than they are to a bankruptcy which does not include the house. Therefore, for anyone who is looking forward choosing one of these two options, legal advice is definitely recommended. People, who can not decide if bankruptcy and foreclosure are the best options they can take, can easily go to a lawyer and talk the problem over in order to be able to develop a solution matching their financial situations
What is a chapter 7 bankruptcy?
Many of the people that are in difficult financial situation think about bankruptcy and find out about Chapter 7 and Chapter 13 bankruptcy. Below we offer ten possible answers to a common question:”What is a chapter 7 bankruptcy?”
1. Chapter 7 bankruptcy, also called straight bankruptcy is a liquidation proceeding.
2. Chapter 7 is a way to wipe out all out your non secure debts
3. Chapter 7 is not a way to erase secure debts or debts like tax debt, child support or alimony
4. Chapter 7 is the fastest bankruptcy type. A person will get the discharge in around 4 months.
6. Chapter 7 is the bankruptcy type where you will loose all of the non exempt properties. These will be sold by the bankruptcy trustee in order to pay your creditors.
7. Chapter 7 bankruptcy is also called the “fresh start” because in the vast majority of cases the debtor has no assets that he would lose.
8. Chapter 7 main purposes to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debts.
9. Chapter 7 is the most used type of bankruptcy (around 60% of the people that fill for bankruptcy will choose chapter7) because most of the debts are wipe out.
10. Chapter 7 is NOT something you can do every year. If you filled for bankruptcy in the last 8 years you cannot fill for Chapter 7 again.
These are some of the answers to the “What is a chapter 7 bankruptcy?” question. You can find out more about the chapter 7 bankruptcy by reading other articles published in our site.
Getting Informed On How to File Chapter 7
This article is written by John Lawman, a successful bankruptcy attorney in Dallas, Texas.
To compare your current monthly income to the median income for a family of your size in the state you live in, is actually the first step in determining whether or not you can file for Chapter 7. Also, there has to be kept in mind that as your average income over the last six months before you file, your current monthly income is not your income at the time you file, in the context of the new law.
After the debtor has determined his/her income, he/she has to measure it against the median income in his/her state. Anyone can file for Chapter 7, if his/her income is equal to or less than the median. The debtor must pass a requirement of the new law called the Chapter 7 means test, if
it is more than the median. By subtracting different variables from your current monthly income, the means test requires you to determine
your amount of “disposable income”.
An important aspect which has to be taken into consideration is being represented by the fact that anyone can pass the means test and become eligible to file for Chapter 7, if his/her current monthly income after subtracting these amounts is under $100. Also, there has to be kept in mind that it is prohibited to use Chapter 7, if the income is more than $166.66. Being required to still pay a percentage of their debt, the ones who are in the middle of these incomes will be able to file for Chapter 7.
There has to be paid attention to the fact that anyone who is wondering how to file Chapter 7 bankruptcy has got to seek professional assistance. There are counseling sessions provided nowadays on how to file Chapter 7 bankruptcy. The more information you gather on how to
file Chapter 7 bankruptcy, the better deal you may get. The information you receive on how to file Chapter 7 bankruptcy is essential for your submission process, meaning that the source from which you are extracting the information should definitely be reliable.
Getting Informed On How to File Chapter 7 Bankruptcy was written by John Lawman.
Located in Oklahoma City, Mr. John Lawman practice is focused debtor representation in consumer and business bankruptcy cases, bankruptcy litigation and appeals.
Mr. John Lawman graduated cum laude from the University Of Los Angeles School Of Law where he was a fellow in the prestigious Center for Ethics and Public Service and was the recipient of numerous academic awards in addition to the Outstanding Service in the Public Interest Award for his work with Center for Ethics and Public Service.
With John Lawman you get a bankruptcy lawyer who is dedicated to finding a solution to meet your needs. We focus exclusively on bankruptcy in order to provide the personal service and representation that our clients deserve.
John Lawman
Dallas,Texas
Phone : (111)- 123-4567
Fax: (111)-123-4568
Email : John.Lawman@Lawman.com
Web: www.my-bankruptcy-attorney.com
Informing Upon The Cost Of Chapter 7 Bankruptcy
Being upgraded in October 2005, bankruptcy is practically a procedure brought in federal court. Also, there has to be kept in mind that the bankruptcy court in the area where you reside will issue an Order declaring all your unsecured debts discharged, about 6 months after your case is being filed.
Therefore, this practically means that bankruptcy laws will have your unsecured creditors barred from contacting you ever again to collect on a debt. There has to be paid attention to the fact that, by filing a petition and 30 or more pages of additional paperwork detailing your financial situation, a Chapter 7 bankruptcy is commenced. Your creditors are prohibited from bothering you or attempting to collect on the debts, immediately upon filing.
In order to review your filing and to recommend to the court that your debts be discharged, a trustee is being appointed by the court. An important aspect which has to be taken into consideration is being represented by the fact that the cost of Chapter 7 bankruptcy may vary from firm to firm.
Also, there has to be kept in mind that the cost of Chapter 7 bankruptcy usually ranges somewhere between $1,300 and $1,600. There is a fee imposed by the Court which has to be paid as well before filing, besides a credit counseling fee. Federally approved agencies are providing with professional counseling for anyone filing a bankruptcy case.
This may as well increase the cost of Chapter 7 bankruptcy. No matter the cost of Chapter 7 bankruptcy, there has to be paid attention to the fact that bankruptcy may actually improve your damaged credit. It is as well important to be considered that you should inform yourself on the cost of Chapter 7 bankruptcy before applying, as bankruptcy is the sure way to improve your “income to debt ratio”.
Chapter 13 bankruptcy definition
Chapter 13 bankruptcy, also called reorganization bankruptcy (or wage earner’s plan) is a method employed by consumes who have debts and are not able to pay them back.
In chapter 13 bankruptcy you reorganize your payments and create a chapter 13 bankruptcy payment plan. Then you start paying your debts under
the direct supervision of the bankruptcy court and trustee and according to this plan.
The chapter 13 bankruptcy timeline is between three to five years and during this period you have to make every payment on time. If you miss one of the payments your case may be dismissed.
Chapter 13 bankruptcy is the solution for the ones that want to fill for bankruptcy but in the same time keep their properties like home or car. If in Chapter 7 bankruptcy you have to give all your non exempt properties to the bankruptcy trustee in Chapter 13 you are allowed to keep all your assets but in the same time you need to make regular payments to your credits.
So the Chapter 13 bankruptcy definition is:
A type of bankruptcy used by individuals who want to reorganize their debts and pay back a portion of the money they owe to creditors.
