Over your budget. due to Holiday expenses

If you have accumulated significant holiday debt due to the lure of bargains, easy credit only to discover out your job has suddenly vanished, a spouse has left you with all the bills and foreclosure, repossession, and /or garnishment is looming, Chapter 13 and/or Chapter 7 may benefit your financial situation. Both Chapter 7 and Chapter 13 resolve debt accumulation but somewhat differently. Chapter 13 is for individuals or couples who may have filed Chapter 7 in the past eight years, or are facing foreclosure on their home and also repossession of a motor vehicle . Chapter 13 requires the debtor/filer to have a stream or source of income either employment, social security, other disability payments, etc. Chapter 7 is not always income dependent if you are surrendering collateral to extinguish a debts or have unsecured debts like , credit cards, loan company’s, check cashing companies, medical bills. Chapter 7 is debt liquidation and is means tested. Call my office to discuss which bankruptcy options suits your situation.

Past Due House and or Car payments

Should you find yourself past due with car and or house payments all is not lost. Chapter 13 Bankruptcy provides a safe and secure method to get your payments and past due amounts back and up to date. With car payments often we can lower the interest rate. That is not available for home mortgages at this time. A chapter 13 provides the tools if you are a wage earner with sufficient income or receiving social security , disability payments, or retirement income to save your house from foreclosure and your car from repossession. It also allows you to combine all your bills into one payment that often is less than your current payments. Since it is under Court supervision creditors are barred from annoying you with telephone contact, harassment and dunning letters. Do not let creditors wear you down on their terms. Consult this bankruptcy attorney for results you may be able to live with and have some financial freedom and peace of mind.

Already filed a Chapter 7 or 13 . What Can I do to stop foreclosure garnishment repossession?

If you have filed a chapter 7 or Chapter 13 bankruptcy in the past you may still file bankruptcy again if needed. Chapter 13 repayment plans are usually favored in these circumstances. The factors you and your attorney will have to consider are; will you get a discharge , can you file within the filing limitation periods. What is causing the repeat filing. Discharge is the first calculation to overcome. Did you receive a discharge in your past bankruptcy filing? If so are you time barred? Often you can resolve the time bar with a chapter 13 . Its best to consult with an attorney to resolve these conflicts before you spend the money to file.

IRS, student loan, and creditor garnishment

I am being garnished by the IRS, Student Loan , or another type creditor. Can I discharge this debt. All debts maybe dischargeable in Chapter 13 or Chapter 7 bankruptcy. They both also stop garnishments from payroll or other accounts. they also help stop collections efforts that may affect security clearances for military and government contractors. As a rule student loans must be repaid with some exceptions. Income tax debts may be discharged provided the individual filed his tax forms as required by law in the year required. As the tax debt ages it may be treated as unsecured and discharged. State income tax debts are often non dischargeable. It is important that tax debts be included in any bankruptcy filing so the debtor understands their treatment. Child support and alimony are not dischargeable but may be repaid if past due through a chapter 13 plan.

Chapter 13 debt consolidationn

A Chapter 13 bankruptcy is often referred to as debt consolidation. It does consolidate all unsecured debts and allows all or a portion to be paid interest free over the life of the plan. It also permits a filer to catch up on a past due mortgage payments and automobile payments. Chapter 13 personal property interest rates are calculated at this time at 5 per cent. That is a significant reduction for most filers. The Chapter 13 requires a wage earner to have a wage order deducting the chapter 13 plan payments from their wages to fund the plan. This is not a garnishment and should not be considered as one. Chapter 13 is a wage earner plan and usually lasts 60 months long. At the end of the plan most debts are paid out and/or discharged. An exception may be a house mortgage. All bankruptcy filings require complete and thorough disclosure of assets, liabilities, and potential assets ( property to be inherited through a will, lawsuit award, winnings at the casino or lottery)

Summertime vacation bills coming at you

The vacation you enjoyed this summer and charged on your credit card is squeezing your budget vis a vis paying your rent or mortgage. Compounding this issue is you may have set up automatic bank drafts for bill payment and money is being sent out to pay bills automatically before you have time to adjust payments and payment amounts. The dominos begin to fall leading to a cascading debt balloon with no end in sight. Fortunately Chapter 7 or Chapter 13 may be a solution for you. Both bankruptcy filings eliminate unsecured debt such as credit cards, medical bills, cable bills Wifi expenses, check cashing companies and a myriad of other months collectors who harass and stay after you telephonically, via text message, email, a telephone for the express purpose of separating you from your income, savings, or windfall. Depending on your situation a Chapter 7 or Chapter 13 may be best for your situation. If you are behind on a car, and /or house a Chapter 13 is probably what you will file . Otherwise it will be a chapter 7 depending on your means test and disposable income. This often is the threshold determiner of Chapter 7 abuse or qualification. Bankruptcy is just a pure exercise in asset and liability disclosure. TK for BK

Chapter 13 Debt Consolidation. Is it?

Often debtors will ask me to file a Chapter 13 for a debt consolidation. The particular view of consolidation is interesting. The unsecured debts are all entirely lumped together and paid over the life of the plan without interest and often at a percentage of the total unsecured debt amount. The secured debts are treated differently. They are individually determined as to how they will be treated. They are analyzed to determine if they are in fact secured or something else. If they are secured then is the entire debt or only a portion secured? The interest rate is often lowered to 5 per cent for most secured debts. This strikes out the 31 and 45 per cent interest rates of loan companies. Cars are analyzed with the 910 rule to determine if they can be valued differently from their debt. Within 910 days the entire car amount owed is paid at 5 per cent if the vehicle is retained. Cars purchased outside of 910 days are valued usually by NADA, Kelly Blue Book or some other means and paid at 5 per cent over the life of the plan. Secured debts are not exactly consolidated except for the payment the debtor will make to the Chapter 13 Trustee. This payment often conforms to the debtors pay cycle. The Chapter 13 trustee takes the money collected from the debtor in accordance with a Chapter 13 bankruptcy plan and pays out the creditors according to the Chapter 1`3 plan. The plan may often be modified due to taxes insurance late claims or unforeseen events. At the end of the Chapter 13 plan period the debts are discharged with the exception of a mortgage with a balance remaining.

Issues with delay and inertia at reaching a filing decesion

All too often clients coming to file Chapter 7 or Chapter 13 have waited until they are at the edge of a financial cliff. They have relied on incorrect information learned through Google, friends, family or creditors. If you cannot pay back a debt owed to a creditor, the creditor will take action. That action may be non stop harassment through telephone calls, visits to your home or business or employment . It may also involve threats of lawsuits, actual lawsuit, and attachments of pay, bank accounts and personal property. It did not have to get this far down the road of ruin . Often debtors wrongly are persuaded or convince by those who know nothing, what is the best action to take! If you do not earn enough to pay your bills and live on ( food, rent, transportation utilities), it is highly unlikely delay is going to improve your situation and will add to the stress of the situation. A fresh start exists with a Chapter 7 or a Chapter 13 debt reorganization. It will either wipe the slate clean and provide a fresh start or halt the debts and provide a mechanism for a wage earner to repay their bills without interest or with a reduction or both. Loan companies, check cashing companies, credit cards, bank loans , mortgages, car payments , medical bills can all be eliminated in Chapter 7 or consolidated in or chapter 13. Should the debtor owe student loans, or back state and/ or federal taxes they are also addressed but generally are not dischargeable. The key to peace of mind and ceasing harassment is prompt action. It will save the consumer money in the long run

Hot summer and High vacation or repair bills due

As summer slowly increases its temperature, air conditioning units break or need replacement. These are expensive and extensive repairs for the majority of consumers. A complete change out of central air conditioning equipment can cost anywhere between $5,000.00 to $15,000.00 dollars. Repairs may be less but can still be come costly to consumers. Car cooling repairs can add up quickly. Exposure to high temperatures may cause medical issues with elderly and small children requiring medical attention that rapidly gets expensive. Add to that total is the vacation, travel, meals away from home all which is often placed on the credit cards which must be paid. and the overall summer debt picture becomes heated. Chapter 7 or Chapter 13 may benefit consumers experiencing serious or potentially serious debt payment shortfalls . Summer also is a time of layoffs from employment. or reduced working hours, factors which affect the earnings bottom line. Dont’ wait until its too late.