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How To Get A Discharge In The First Place
Most debt can be discharged in a personal bankruptcy case, with the exception of student loans and tax debt. So long as you qualify for the bankruptcy chapter under which you file, most consumer bankruptcies filed with the help of an attorney are discharged and youll pay pennies on the dollar for your debt.
Your bankruptcy discharge can be denied, however, if you do any of the following:
1. Attempt to defraud: If you transfer, move, or conceal property, youre in big trouble. Make sure to talk about all transfers before your bankruptcy filing with your bankruptcy attorney.
2. Conceal or destroy information: This also goes along with failing to keep information on your financial situation in the first place. Keep all records on your finances in a safe and organized place.
3. Lie: A no-brainer, but, any sort of false statement made under penalty of perjury may not only land you back in court, but in jail.
4. Lose assets: This is when you cant explain any sort of loss or deficiency in assets.
5. Refuse to comply with a court order: Similar to lying, disobeying the court is a bad idea.
6. Fail to take an instructional course: When you file for bankruptcy, you must take two instructional courses in finances. One is about credit counseling, while the other is about financial management. These courses are mandatory under the federal law that governs bankruptcy.
How Often Can You File Bankruptcy In California Ideas
How Often Can You File Bankruptcy In California. 2 years after a chapter 13 discharge before filing a new chapter 13 case. 4 years to file a chapter 13 bankruptcy after a previous chapter 7 discharge.
6 years to file a chapter 7 bankruptcy after a previous chapter 13 discharge. Advantages to a california chapter 13 payment plan:
Also Check: Does Bankruptcy Affect Getting An Apartment
Fha Loans After Chapter 7 Bankruptcy
Fortunately, you can qualify for an FHA loan following Chapter 7. But be prepared to wait a while before youll get approved.
Bankruptcy will not stop you from making a large purchase, like a home, in the future. So yes, it is possible to obtain an FHA home loan after Chapter 7 bankruptcy, says Jeremiah Heck, a debt and bankruptcy attorney.
Typically, you have to wait for a minimum of two years after your bankruptcy is approved by the courts to be eligible.
But in some cases, the mortgage lender may require additional time.
For instance, some banks tend to ask potential borrowers who filed Chapter 7 bankruptcy to wait a total of three years before they are eligible, adds Heck.
In addition to the waiting period, youll need to meet other FHA loan requirements. These typically include:
- Down payment of 3.5% or more
- Debttoincome ratio below 50%
- Steady income and employment
- Income source expected to continue for 3 years
Avoiding any new debts after bankruptcy for example, a car loan or personal loan can help your chances of qualifying for an FHA mortgage once the 2year waiting period is over.
Requirements for other mortgage loan types
An FHA loan isnt the only loan type that can get you on the fast track to homeownership. VA loans also have a minimum waiting period of two years from the date of your Chapter 7 discharge.
To qualify for a VA loan, you need to be an eligible veteran, service member, or member of an associated group .
The Chapter 13 Plan And Confirmation Hearing
Unless the court grants an extension, the debtor must file a repayment plan with the petition or within 14 days after the petition is filed. Fed. R. Bankr. P. 3015. A plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis, typically biweekly or monthly. The trustee then distributes the funds to creditors according to the terms of the plan, which may offer creditors less than full payment on their claims.
There are three types of claims: priority, secured, and unsecured. Priority claims are those granted special status by the bankruptcy law, such as most taxes and the costs of bankruptcy proceeding. Secured claims are those for which the creditor has the right take back certain property if the debtor does not pay the underlying debt. In contrast to secured claims, unsecured claims are generally those for which the creditor has no special rights to collect against particular property owned by the debtor.
The plan must pay priority claims in full unless a particular priority creditor agrees to different treatment of the claim or, in the case of a domestic support obligation, unless the debtor contributes all “disposable income” – discussed below – to a five-year plan.11 U.S.C. § 1322.
Attentive Service Through Your Second Bankruptcy Filing
As a Michigan bankruptcy attorney, I will work with you one-on-one, and make sure you are in full compliance with filing statutes before your petition is submitted. My firm assists individuals Sterling Heights and Warren, as well as inMadison Heights, Royal Oak andClinton Township.
I provide my clients with a very high level of service and can discuss how to proceed with a second filing during afree initial consultation.
Take Bankruptcy Course 2
After filing your bankruptcy forms, you will need to complete a Debtor Education Course from an approved credit counseling agency. It can be completed online or by phone and typically takes at least 2 hours and costs between $10 – $50, unless youâre eligible for a waiver.
The purpose of the course is to educate you on making smart financial decisions going forward but does not provide legal advice about the bankruptcy process. Youâll learn how to prepare a budget and avoid incurring debt with high interest rates.
Youâre not eligible to receive your bankruptcy discharge and obtain a fresh start if you donât complete the course and file your certificate of completion from the credit counseling agency with the court.
It Is Possible To Make A Fresh Start With Discipline And Focus
What does life after bankruptcy look like? When you’re considering this move, it’s important to look ahead before you decide your next steps.
People can find themselves at a point where there is no chance they will be able to pay off the debts they have accumulated. For example, consider someone who has depleted all their savings and maxed out all of their credit cards due to medical problems and losing their job. Even with unemployment or a temp job, they might find that they can no longer make even the minimum monthly payments on their cards or keep up with their rent and car loan. That’s when a helpful option is talking to a bankruptcy attorney. Chapter 7 could turn out to be the logical next move.
Unfortunately, this situation is all too commonin fact, Mark Twain, Walt Disney, Elton John, and Henry Ford all filed for bankruptcy at some point in their lives. If you think bankruptcy could be looming for you as well, read on to discover what you can expect and what to watch out for after filing for personal bankruptcy.
What Type Of Mortgage Can You Get After Bankruptcy
Its technically possible to get any type of mortgage loan after a bankruptcy. There are no rules in place that permanently exclude you from getting a certain type of loan because youve gone through a bankruptcy. As long as you meet the waiting period discussed above, youre free to apply. But you can qualify for some types of mortgage loans much easier than others.
An FHA loan could be a great option if you have a bankruptcy on your record. FHA waiting periods are shorter than other types of loans. If you have a Chapter 13 bankruptcy, theres no waiting period at all after a court dismisses or discharges you. FHA loans also have looser requirements compared to other types of government-backed loans.
One of the major benefits of getting an FHA loan after a bankruptcy is its lower credit requirements. Even after a court dismisses or discharges your bankruptcy, it will still negatively influence your credit score. A Chapter 7 bankruptcy will stay on your credit report for 10 years, while a Chapter 13 bankruptcy will stick around for 7 years.
During this time, your credit score will be much lower than before your bankruptcy. You can buy a home with an FHA loan with a credit score as low as 580 points. You may even qualify for a loan with a score as low as 500 points if you have a down payment of at least 10%. However, at Rocket Mortgage®, the minimum credit score is 580.
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One Case Pending Within 12 Months
If you had one prior bankruptcy case pending within the previous 12 months dismissed, you could probably file a second case, but the automatic stay will last for only the first 30 days of the latter case. Creditors will have to stop their collection actions, but only for 30 days. After that, the automatic stay will naturally end unless you get court approval to extend.
When Are Multiple Bankruptcy Filings Abusive
The term abusive bankruptcy filing can refer to a Chapter 7 filing that doesn’t meet the means testthe qualification standard that determines a filer’s right to a debt discharge. But it can also describe a case filed by someone who inappropriately uses the bankruptcy process to evade a creditor or buy time in a collection action, such as a foreclosure or lawsuit.
Simply put, the court frowns on debtors who file with no intention of following through with the case. Repeat filers face the consequences for using such tactics, such as a lack of protection from collections or the denial of a discharge.
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Multiple Bankruptcies On Your Credit Report
You may need to consider a court date in between filing for multiple bankruptcies. In some cases, an automatic stay can expire before your next bankruptcy discharge is filed. You need to make sure the discharge happens before the automatic stay expires.
Your credit report may have language such as:
- Bankruptcy Chapter 13 – discharged
- Filing date: 01/01/2013Status date: 01/01/2014
It could also say “there is a bankruptcy on your credit report” or “you have recently filed for bankruptcy” without listing specific details.
Having multiple bankruptcies on your credit history usually means you will have a hard time finding lenders and low interest rates, and you will have a poor credit score for a year or more.
Avoiding Bankruptcy Bankruptcy Legal Help Debt Collector
As many times as you need to within certain time limits. Bankruptcy law provides for an automatic stay of debt collection actions.
Business financing solutions specialists ashdown capital. 2 years after a chapter 13 discharge before filing a new chapter 13 case.
Pin by grigoryan law firm on california attorney. 4 years to file a chapter 13 bankruptcy after a previous chapter 7 discharge.
Sko brenner american how to deal with a debt from sko. 6 years to file a chapter 7 bankruptcy after a previous chapter 13 discharge.
What debt loads canadian plan to spend more this holiday. Advantages to a california chapter 13 payment plan:
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Here Is What You Should Know When File For Bankruptcy Twice
When you File for Bankruptcy for the first time and receive a discharge, then you have to wait for a specified period before you can receive a discharge again.
If your case was dismissed without entry of a discharge, you can file another bankruptcy but there may be limitations placed on the filing, especially if your case was dismissed within the year preceding your second filing.
For example, if you have had a case dismissed within the last year, the automatic stay only remains in effect in your second filing for one month, unless you get this extended by Order of the Court.
If you have had two cases dismissed within the year preceding a third filing, the automatic stay does not go into effect at all at the beginning of the case, and you have to seek approval from the Court to impose the automatic stay, or in other words put it into effect.
This is important because the automatic stay prevents creditors from taking action against you such as a garnishment, foreclosure or repossession. Normally this stay goes into effect automatically when a bankruptcy is filed, hence the name.
However, if the automatic stay does not go into effect or expires because of a prior bankruptcy dismissal, your bankruptcy will not prevent such creditor action.
With respect to discharge eligibility, you can file for Bankruptcy twice or even three times and get a discharge every time, provided you remain patient and wait for a certain period before filing again.
How Often Can You File Bankruptcy
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In a Nutshell
You can file more than one bankruptcy in a lifetime. How many times depends on how long it’s been since your last bankruptcy case and what type of bankruptcy you filed. We’ll break it down for you.
Written byAttorney Andrea Wimmer.
Have you filed bankruptcy in the past but are faced with a financial situation that you canât resolve despite your best efforts? If youâre facing a possible wage garnishment due to unexpected medical bills, unpaid tax debts, or any other type of debt youâre no longer able to pay, you can ask the court for bankruptcy protection a second time.
Know that youâre not alone. A 2006 paper on a found that 8% of bankruptcy filers end up filing bankruptcy again. The 2005 changes to the Bankruptcy Code, intended to reduce overall filings, have not had much of an impact on this number.
Bankruptcy is a legal way for individuals who can no longer afford to pay their debts to get permanent debt relief through a bankruptcy discharge. The Bankruptcy Code provides for three types of consumer bankruptcies known as Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy.
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Talk To A Bankruptcy Lawyer
Need professional help? Start here.
Can I File A Michigan Bankruptcy Again
Can I file a Michigan Bankruptcy again is a question we get a lot. Even if you have received a Chapter 7 or Chapter 13 discharge in the past, you may be able to file bankruptcy in Michigan again. However, there are certain requirements that must be met in order to receive a discharge. An experienced Detroit bankruptcy attorney can evaluate your situation to verify if you are qualified.
Recommended Reading: Renting After Chapter 7 Discharge
Apply For A Refinance
The first step in any refinance is to apply with your lender of choice. You dont need to apply with the same lender you already have a loan with.
Define your goals for your refinance, then begin comparing lenders. Some of the things you should consider include:
- Minimum loan standards: Make sure you meet the lenders minimum credit score standards before you apply. Its also a good idea to meet debt or equity standards as well.
- Availability: Choose a lender with availability and customer service hours that mesh well with your career or other obligations.
- Rates and fees: Rates and fees can vary from lender to lender. Dont be afraid to take some time and choose one with reasonable refinance interest rates and fees.
Once you choose a lender, you can speed up the refinancing process by having all of your documentation in order before you apply for your new loan. Some documents you should have handy include your:
- Two most recent W-2s