Filing For Chapter 7 Bankruptcy Without An Attorney
You aren’t required to have an attorney when filing for bankruptcy relief. Whether you should, however, will depend on how complicated your case is and how comfortable you are researching the law and filing on your own.
In general, people who have a simple case will be better able to complete a Chapter 7 bankruptcy. For instance, if your income is below the state median, you have little or no property, you can wipe out all or most of your debt, and your creditors aren’t likely to allege fraud against you, preparing your case will be possible.
However, keep in mind that filing for bankruptcy without a lawyer isn’t easy. Bankruptcy laws are involved. If you aren’t willing to put in the necessary research time, you’ll risk losing unprotected assets. Or, you might learn that none of your debts will be discharged in bankruptcy.
All Chapter 7 cases require you to fill out extensive bankruptcy forms, research exemption laws and follow all local court rules and procedures. If you aren’t comfortable doing the workand assuming the riskconsult with a bankruptcy lawyer. If you’d like to file on your own, consider using a good bankruptcy self-help book.
You’ll find step-by-step instructions on how to file for Chapter 7 bankruptcy in How to File for Chapter 7 Bankruptcy, by Attorney Cara O’Neill and Albin Renauer, J.D. .)
What Are Bankruptcy Exemption Laws
Texas bankruptcy exemptions are much more generous than federal exemptions. In Texas, someone who files Chapter 7 bankruptcy may be able to keep their home, vehicle, pension and up to $50,000 in personal property such as firearms, livestock and other items. However, there are strict rules as to how these exemptions work, so having an experienced Texas bankruptcy lawyer by your side is essential.
Will My Debts Be Discharged
Most or perhaps all of your debts will be discharged in Chapter 7. As noted above, you will eliminate your , gasoline card debt, medical bills, pay day loans, lawsuits, judgments, unpaid balances on repossessions or foreclosures, personal loans, guarantees and more. Of course, there are some limited exceptions to the Chapter 7 discharge of debts.
These debts which dont get discharged are called nondischargeable debts. They fall into just a few categories: Child and spousal support most student loans , recent debts run up for buying luxury items and tax debts that first came due in the last 3 years. Older tax debts may be discharged in your Chapter 7 case, so talk to us about the specific rules that apply to taxes.
Besides these categories of nondischargeable debts, Chapter 7 also may not discharge debts that arise from fraud . But in these situations, the creditor is required to ask the Bankruptcy Court to except their debt from your discharge. If they dont ask with for this kind of an exception to discharge within the allowed time limits, then their debts will also be discharged in your Chapter 7 bankruptcy.
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Chapter 7 Bankruptcy In Philadelphia Case Scenario 2
On the average, for every $10,000.00 of credit card debt, it costs $500.00 per month in minimum payments, which amounts to $6,000 per year. A Chapter 7 Bankruptcy would therefore erase the extraordinary monthly and yearly expense of carrying debt and increase a Petitioners monthly disposable income and potential savings.
Lastly, because the Petitioner in Chapter 7 Bankruptcy would no longer be carrying unsecured debt due to the discharge in Bankruptcy, it is very common for credit scores to rise. Yes, filing bankruptcy Chapter 7 in PA improves credit sores. Reason being that since a Petitioner in Chapter 7 Bankruptcy is no longer responsible for credit card and other debts with outstanding balances they have a more positive debt to income ratio in the eyes of the credit reporting agencies and accordingly a rising credit score.
More About Chapter 7 Bankruptcy
Risks Of Buying A Foreclosed Home
Dont let an appealing price tag lead you into home-buying mistakes. There are serious risks involved.
- Expensive repairs: Most experienced agents will not take first-time homebuyers to foreclosed properties since, often, they are in rough shape and could become money pits, says Bhatt. Count all the costs before you close a deal.
- A drawn-out buying process: Because youre dealing directly with a bank, there can be more red tape involved.
- Steep competition: If home prices continue soaring in 2021, foreclosures may become a popular way for buyers to find a deal, leading to increased buyer competition and higher prices.
- Redemption periods: Most states offer a period of redemption after a foreclosure sale. During this period, the original homeowner could still catch up on payments and earn their home back even after youve moved into the house. Redemption periods can range from 30 days to a year, so be sure to check your states laws before you buy a foreclosure.
- Squatters: If a property has been abandoned for a while, squatters may be living there. And if theyve been there for an extended time, you might run into problems. All states have laws that grant squatters rights of adverse possession after a certain period of time meaning the property legally becomes theirs. In some states, this window is as short as five years, but its usually longer. Make sure you assess your property thoroughly to avoid any potential squatter disputes.
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How Can I Make An Offer On A Reo Us Bank Property
For properties owned by and being sold by U.S. Bank, we do not accept any direct purchase offers. We rely on various real estate disposition vendors to properly list and market each property, whether that be with a traditional real estate agent or an on-line auction. Please monitor local real estate listings and any for sale sign that may be placed in the yard.
If unable to find property of interest on a local real estate listing or a for sale sign is not posted, the property may not be available for sale or may be getting conveyed to original investor. In such a case, U.S. Bank will not be involved with selling the property.
About Saskatchewan Bank Foreclosures
Foreclosures are properties that the mortgage lender has taken possession of after the lender has fallen behind on payments and defaulted on their mortgage. At a loss from these missed monthly payments, the lender needs to try and recoup on the property and will turn to the real estate market to make that money back as quickly as possible. Motivated to have as quick of a sale as possible, they will typically list for slightly less than the market value to make it most appealing to buyers. Below is a list of current foreclosed homes for sale in Saskatchewan that are currently listed for sale on the MLS® service. Feel free to browse this foreclosure list and contact me if you have any questions!
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Filing Fees And Required Courses
First off, bankruptcy filers must pay a filing fee. For a Chapter 7 case, the fee is $335. For a Chapter 13 case, the fee is $310. The Bankruptcy Trustee may charge a fee of $15 to $20 when you file, as well. You may request to pay the filing fees in installments most courts will allow it if you can show it would be a financial hardship to pay all at once.
If you file under Chapter 7 and later convert to Chapter 13 , you wont have to pay any extra fee. However, if you file under Chapter 13 and later convert to Chapter 7 youll have to pay a conversion fee of $25.
Aside from the filing fees, youll be required to obtain credit counseling and take a personal financial management course. That generally costs anywhere from $20 to $100, depending on where you file.
Chapter 7lawyer San Diego
Our Chapter 7 Bankruptcy Attorneys in San Diego will Discharge Your Debts and Put You in Control of Your Financial Future With a Fresh Start. For example,the most common type of bankruptcy case filed, a Chapter 7 case can eliminate virtually all of your debts. In addition, If your case is handled by an expert San Diego bankruptcy attorney, it is likely to be a fast and easy process from the perspective of most people who file.
Lastly, without expert advice and help, cases can quickly go off track and lead to many problems, delays, and even lost property or the failure to get the relief you seek. Our attorneys have filed and handled literally thousands of bankruptcy cases and we are experts at guiding people through the process and getting you the relief you deserve.
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Alternatives To Chapter 7 Bankruptcy
The best course of action is determined by your finances and the type of debt you owe. If you cannot pay your creditors, you may be able to enter into a debt management plan, negotiate with your creditors and reach a payment arrangement. In some instances you may be able to consolidate your debts or obtain family assistance to satisfy your debts. An attorney or agency can discuss debt relief options.
What Can You Keep When Filing Chapter 7
When you file Chapter 7 bankruptcy, some property is subject to forfeiture. Any nonexempt assets, property with a lien on it, or property offered as collateral may be sold to repay debts.
Some property and assets are exempt from repossession in Chapter 7, but exemptions and limits vary state by state. There are also federal bankruptcy exemptions, and in 17 states including Pennsylvania, you can choose the federal exemption system if it is more beneficial in your specific situation.
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Filling A Chapter 7 Bankruptcy Is More Complicated After Changes To The Law In 2005
Despite its popularity with consumers suffering from too much debt, Chapter 7 relief has an eligibility requirement called the Means Test that makes bankruptcy more complicated for higher-income earners. The Means Test was added to the Bankruptcy Code in the 2005 amendments to the law called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 .
The Means Test will only apply to you if your income is higher than established averages in your region. And if its necessary to apply this Means Test to your income, youll find that the Test uses a complicated combination of your actual income, some of your actual expenses, and some hypothetical living expenses in order to see how much net income you have available to pay your creditors over time.
If the Means Test shows that you have the significant net available income to pay creditors, you may not be able to file Chapter 7 and instead, youll have to consider other options, like Chapter 13. Of course, there are threshold minimum amounts of net available income, and below these threshold amounts, you will still qualify for Chapter 7. And the Means Test is time sensitive because it looks backward at your income for 6 months.
So even if you just got a big raise or a fabulous new job, you may be able to qualify for Chapter 7 bankruptcy and beat the Means Test if you move fast. Call us if you face this situation and well drop everything to get you relief!
Reaffirmation Of Debt In A Chapter 7 Case: Can You Keep Your Car
Secured creditors may keep some rights to seize property to secure a debt even after a discharge is granted. If you want to keep this property , you may reaffirm this debt.
A reaffirmation is an agreement between you and the creditor that you will pay all or some of the money you owe, even though the debt could be discharged. In return, the creditor promises it wont repossess or take back the automobile or other property as long as you pay the debt.
If you owe significantly more than the auto is worth instead of reaffirmation, you may redeem the auto for its fair market value. If you cannot afford to repay the fair market value, you may try to get a redemption loan to pay over time.
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Consider Hiring A Buyers Agent
You donât need your own agent to buy REO property, but it might save you some time and stress to have someone negotiating with banks on your behalf. A buyerâs agent will do just that. Plus, they have a fiduciary responsibility to advocate for your best interests. Even better, the seller typically pays the buyerâs agent, so thereâs no additional cost for you to hire one. Ideally, you should work with an agent who has experience dealing with REO properties.
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Will I Lose My Car
If you file for Chapter 7 bankruptcy whether you keep your car will depend on your ability to make payments and the value of your vehicle. State law usually exempts $3,325 of vehicle equity. Assuming you have has $1,000 of equity in a $25,000 car that was bought new a year ago. The vehicle would be exempt. The equity value is all that matters.
If you are concerned about your vehicle being repossessed or you would like to explore your options for filing for bankruptcy, we can help.
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Make A Competitive Purchase Offer
If the home is in pre-foreclosure, your real estate agent will need to present the offer to the individual who currently owns the home.
If youre looking at a foreclosed home thats headed to auction, youll need to contact the trustee or attorney whos running the auction to ask any questions about the house before the auction takes place.
A trustee is a third party who runs a foreclosure auction on behalf of a lender or government agency. This official accepts the bids during an auction.
If the house is REO, your agent will present your offer directly to the banks listing agent.
A buyers agent will never have direct contact with the bank. The process is similar for government-owned listings: Your real estate agent will again present your offer directly to the government agency listing the home.
You might be tempted to make a low offer on a foreclosed home. Its true that foreclosed properties often sell for less than traditional homes. But if you make an offer thats too far below , the sellers might reject it.
Its important, then, to work with your real estate agent to make a competitive offer. Your agent will advise you on what this figure should be.
You should also include a contingency for a home inspection in your offer. This contingency says that the home sale cant be finalized until youve scheduled a home inspection of the property.
Communicate With Your Lender
If you know that you are going to have trouble making your mortgage payments, contact your lender immediately and let them know you are having financial difficulties. This allows your lender time to work with you to create a plan. Remember, do not stop paying your bills, and do not wait until you cannot make payments before you act. Learn how to talk to your lender about trouble making payments.
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Contact A Chapter 7 Bankruptcy Lawyer Today
Chapter 7 bankruptcy may be best way to regain control of your life. ARM Lawyers can skillfully guide you through the process. Contact our law offices today to learn more about how we can help you get relief from debt. Call for your free bankruptcy consultation.We are a debt relief agency. We help people for relief under the U.S. Bankruptcy Code.
Why Wait Get Mesa Arizona Debt Relief
Do not spend another sleepless night worrying about your finances. Let us help to get your finances and life back on track. The best thing about a Chapter 7 Bankruptcy is the automatic stay which prevents most creditors from being able to collect from you . This means your car cannot be repossessed and your wages wont be garnished. It also protects you from foreclosure and your accounts being emptied. If you would like to learn more about bankruptcy and which chapter is right for you, contact our Mesa bankruptcy lawyers team today. Now is the time to get back on your financial feet.
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How To Buy A Foreclosed Home
You might be intimidated by the thought of buying a foreclosed home. But the process of purchasing a home in foreclosure isnt too different from the traditional way of buying a home. Buying a foreclosure does require additional research, and youll need to be comfortable taking on a bit more risk.
But if you work with a real estate agent who understands your local foreclosure market, the stress shouldnt be much higher than during a traditional home buy.
Here, then, are the steps you need to take in order to successfully buy a foreclosed house.
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What Is Credit Counselling & Why Do You Have To Do It
Bankruptcy laws require debtors to complete a credit counselling course prior to filing bankruptcy. After filing, another course must be completed before receiving a discharge. As such, you must complete two courses to get a bankruptcy discharge.
Our Jackson bankruptcy attorneys usually direct our clients to an online course. But if you cannot do the course online, we also have a phone option for you! Our experienced bankruptcy lawyer based in Jackson, MS can guide you with the course.
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