Mail Documents To Your Trustee
The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Not all types of bankruptcy require the involvement of a bankruptcy trustee, but both Chapter 7 and Chapter 13 cases have one.
Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents, like tax returns, pay stubs, and bank statements. If you donât send the trustee the requested documents following the instructions provided in their letter, you may not get a discharge of your debts.
Will I Lose My Home If I File Bankruptcy And Have A Mortgage To Pay
The majority of Canadians in debt will have a mortgage to pay.
A mortgage is a secured debt, which means that you have an asset secured against it.
In the case of a mortgage, your home is that asset.
If youre unable to pay your mortgage, the lender can seize your house to make up for this.
However, if you have been making mortgage payments and theyre up-to-date, then theres no reason to be worried.
Provided you can keep making the monthly payments, nothing will change.
Youll still have the house, you just carry on paying the mortgage.
In fact, you can try to negotiate with your mortgage provider to adjust the loan terms.
This may help you spread the payments out over a longer period, reducing the monthly costs and making it easier to pay.
Can I Do The Pre
Yes, the course is offered online, over the phone or in person at the offices of an approved credit counseling agency.
The same scenario applies review different aspects of finance answer questions review program with a counselor and receive a certificate of completion.
Taking the course over the phone normally runs from 90-120 minutes.
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Exceptions To Discharge From Personal Bankruptcy In Nine Months
The length of your bankruptcy will be nine months unless one or more of the following is true:
- You fail to perform all your bankruptcy duties, such as making regular payments of surplus income to the Trustee
- You have surplus income
- You have been bankrupt before
- There is an objection filed to your discharge
How much longer your bankruptcy lasts will depend on the details of your case. Twenty-one months is typical when the bankrupt individual makes a higher salary .
Can I Rent After Bankruptcy
People delay or avoid bankruptcy because they are worried it will turn their lives upside. Unfortunately, the longer they wait to file the worse their lives actually get. Many are worried theyll be unable to rent an apartment or home because theyve filed for bankruptcy.
The truth is there is nothing stopping you from renting after you file for bankruptcy, but it can affect your ability to do so. Before you file or before you avoid filing its important to understand just how bankruptcy will affect your ability to rent a home.
Most landlords will run a credit report on you and will know youve filed for bankruptcy, and though they could deny you for this reason, there are usually more important factors they consider.
To find out what landlords look for when they check your credit, check out this article from NerdWallet.com.
Landlords are interested in your credit history because its a good indication for how you manage money. If your credit history is filled with repossessions, foreclosures, lawsuits and judgements, and late payments, this could increase the likelihood theyll reject your application. However, a less-than-perfect credit report alone is not a guarantee youll be rejected.
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Are There Benefits To Filing Bankruptcy With My Spouse
Exempt property is the property that you do not have to forfeit when filing for Chapter 7 bankruptcy. A joint filing may entitle the couple to double the amount of some exemptions. For instance, the Florida exemption for a motor vehicle is only $1,000 in an individual bankruptcy case. However, when filing jointly, the exemption doubles to $2,000. Additionally, the personal property exemption of $1,000 increases to $2,000 when filed jointly. See In Re Hawkins. It is important to note the remaining exemptions will remain the same and not increase by filing a joint petition. Therefore, a couple may be able to claim more exemptions by filing separate, individual petitions for bankruptcy.
The number of exemptions you are eligible for may significantly impact whether or not to file jointly. Depending on the circumstances of your case, all of your property may be exempt from the bankruptcy. On the other hand, you may be forced to liquidate precious assets if you file for Chapter 7 bankruptcy, and your property does not qualify for an exemption.
Retaining A Lawyer To Field Creditor Calls While Making Payments
The automatic stay order that stops creditors from collecting doesn’t go into effect until you file the bankruptcy case. However, once you hire an attorney, you can cut down on annoying calls by instructing creditors to call your lawyer instead of you.
Some lawyers will let you pay a retainer as low as $100 and then pay the remaining attorneys’ fees in installments. However, even though many lawyers offer payment plans, they won’t file your case until all fees are paid in fulland for a good reason. Any amount owed to your attorney would get wiped out in the bankruptcy filing.
Also, keep in mind that this approach will cut down on annoying calls while you save for your attorneys’ fees. Still, it won’t stop creditors from engaging in other collection activities, such as garnishing your wages or levying against a bank account.
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Attend Your 341 Meeting
Your 341 meeting, or meeting of creditors, will take place about a month after your bankruptcy case is filed. Youâll find the date, time, and location of your 341 meeting on the notice youâll get from the court a few days after filing bankruptcy. Due to the COVID-19 pandemic, all 341 meetings are held either by video conference or via telephone until at least October.
The main purpose of the 341 meeting is for the case trustee to verify your identity and ask you certain standard questions and most last only about 5 minutes. Your creditors are allowed to attend and ask you questions about your financial situation, but they almost never do.
ââ You must bring your government-issued ID and social security card to the meeting. If you donât bring an approved form of both, the trustee canât verify your identity and the meeting cannot go forward. You should also bring a copy of your bankruptcy forms to the meeting, along with your last 60 days of pay stubs, your recent bank statements, and any other documents that your trustee has asked for. ââ
How To Rent Or Buy A Home Or Car After Bankruptcy
Sooner or later something bad happens in every family. In fact, its unusual for a person to never have an accident or go through bankruptcy. So, whether you buy a car or rent a home this information helps you recover after filing bankruptcy. Therefore, with this article, you will learn about how to rent or buy a home or car after bankruptcy.
Usually, you should be able to buy a home two years after discharge. Then, if you want to rent, many of the same factors for buying a home also apply to renting an apartment.
Then, as soon as you file, you can buy a car after bankruptcy at a slightly higher rate. Within six months, you might also buy a car at a normal rate. But, to accomplish this, you must first work on your credit file. Also, please note that my assistant has a list of car lots in the Louisville, Kentucky area.
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What Happens When You Go Bankrupt
If the adjudicator makes you bankrupt:
- youll receive a copy of the bankruptcy order and may be interviewed about your situation
- your assets can be used to pay your debts
- youll have to follow the bankruptcy restrictions
- your name and details will be published in the Individual Insolvency Register
You can apply to have your address removed from the Individual Insolvency Register if publishing it will put you at risk of violence. This will not affect your bankruptcy.
After 12 months youre usually released from your bankruptcy restrictions and debts. Assets that were part of your estate during the bankruptcy period can still be used to pay your debts.
You might be able to cancel your bankruptcy before youre discharged.
Bankruptcy only applies to individuals. Find out what your options are if your limited company cannot pay its creditors.
How Much Does Chapter 13 Bankruptcy Cost
As with Chapter 7, the filing fee for Chapter 13 will vary by filing location. For instance, the filing fee for Chapter 13 bankruptcy in Tampa is $310. There will also be fees for the credit report and credit counseling class. Additionally, the Court may charge a $45 fee for a mortgage modification requires. If you need to convert your Chapter 13 to a Chapter 7, there is a $25 fee.
The fees will be changed occasionally by the Court. You can access the fee schedule for the Middle District of Florida by . For information on the fees charged by the Northern District of Florida , .
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Bankruptcy In Florida: The Comprehensive Guide
If you are struggling to keep up with your debt, bankruptcy may be the solution. Bankruptcy allows borrowers to stop all collection efforts and get a fresh start immediately. Phone calls, wage garnishments, foreclosure sales, and collections notices all must stop immediately after a bankruptcy is filed. Bankruptcy also provides for a discharge of debt to give people the fresh start they need to rebuild. Bankruptcy has a lot of benefits, but it is not right for every situation. If you are considering bankruptcy, contact a bankruptcy lawyer in Tampa to schedule a consultation.
What Happens After I File Bankruptcy
Your stay of proceedings begins immediately after your bankruptcy is filed with the government. That means collection calls stop and your trustee can notify your employer to stop a wage garnishment if needed.
After filing, you stop making payments to your unsecured creditors and make your bankruptcy payments instead.
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Completion of Duties
Once you are legally bankrupt, you are required to perform the bankruptcy duties as outlined in Appendix I of the Act. The trustee will inform you of these duties but generally, they include making your bankruptcy payments, providing information about your monthly budget, attending two credit counselling sessions, and keeping the trustee notified of any material changes to your situation.
Meeting of Creditors
Generally, a meeting of creditors is not necessary but there may be instances where such a meeting will be held. . Creditors or the Official Receiver may request one after filing bankruptcy. If a meeting of creditors is called, you must attend this meeting. You may also be required to go to the Official Receivers office to answer several questions under oath about your financial affairs.
Examination with the Official Receiver
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How Much Does Chapter 7 Bankruptcy Cost
The Court will charge filing fees for Chapter 7 bankruptcy. The fees will vary by Court. Some may be higher than others. For instance, the filing fee for Chapter 7 bankruptcy in Tampa is $335. If you needed to reopen a closed case, the Court would charge a fee of $260. There may be additional costs as well for your credit report and credit counseling class. Your lawyer will also charge a fee for their legal services.
The Lit Files Paperwork
After considering your options with the LIT, if you decide to pursue bankruptcy, the LIT will complete the necessary documents and file them with the Federal Governments Office of the Superintendent of Bankruptcy . The LIT will also notify your creditors that you are filing for bankruptcy, and their phone calls to you will stop. Once you have filed for bankruptcy, you are considered to be an undischarged bankrupt and you are officially in bankruptcy. All legal claims against you by your creditors will stop, and all calls and questions will be handled by your trustee.
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How Often Can You File For Bankruptcy
There is no limit to the number of times you can file for bankruptcy, and no legislated time limit between bankruptcies. However, the length of the bankruptcy and your obligations within the bankruptcy along with the length of time your credit rating will be negatively impacted will increase with each successive bankruptcy. If you file bankruptcy more than twice, the Court will be required to determine how you will be discharged from bankruptcy.Find a local Trustee you can trust. Bankruptcy Canada can connect you with Trustees from coast to coast in Canada including Toronto and Ottawa. Talk to one today.
Alternate Ways To Afford An Attorney
Your attorney won’t file a Chapter 7 case until you’ve paid in full. Why? Because the bankruptcy would wipe out the fees still owed to your attorney. A debtor who doesn’t have the fee will often start by asking friends and family for help.
If that isn’t an option, qualified Chapter 7 debtors will stop making bill payments if the obligation will be discharged in the case. Then they use the money for legal fees. While this might seem sketchy, rest assured that the court understands and expects filers to use this approach. But it’s essential to be sure that you’re qualified because it can be difficultif not impossibleto catch up on bills if you find out you don’t qualify later.
It isn’t as challenging to finance a Chapter 13 case. Many attorneys will take a downpayment upfront. The remaining amount gets paid in your repayment plan, thereby allowing you to pay a small part of your legal fees each month.
Find out more about how bankruptcy lawyers get paid.
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Should I File For Bankruptcy
The first step in declaring bankruptcy in Canada is recognizing and assessing your financial situation.
Filing for personal bankruptcy starts with understanding that you have a debt problem. The sooner you recognize your financial situation, the sooner you can begin your bankruptcy filing. If you have been wondering whether or not to file for bankruptcy, here are a few signs that you might need to consider taking this step:
- Your credit cards are always at their limit
- You are paying bills with your credit cards or cash advances
- You continually fail to make one or more payments each month
- You have received letters threatening legal action unless you pay money owed
- Loss of income in the household means there is no money to pay the debts
- You are making the payments, but the debt is persisting/increasing
- You are credit reliant the cost of the debt is so high there is no money left for everyday expenses so you need to use your credit cards to buy gas and groceries
- You are overwhelmed and stressed about your finances, and it is affecting your sleep and wellness
- You have reached your borrowing limit and your bank will not provide any further financial assistance
Every bankruptcy file is different, but there are consistent indicators that you need to seek help with your finances. If any of the above points sound familiar, declaring personal bankruptcy may be the right choice.
Schedule A Free Debt Assessment
Still have questions? See our Personal Bankruptcy FAQ page or contact us for a free consultation. We are happy to answer any questions you have about filing bankruptcy over the phone or by email.
Hoyes, Michalos has helped over 60,000 individuals file a bankruptcy or consumer proposal since 1999. Our licensed bankruptcy trustees always take the time to answer any questions you have about how to file for bankruptcy and how bankruptcy will affect you and your family. Contact us so we can help you make a plan to be debt free.
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What Is Chapter 7 Bankruptcy
Chapter 7 is known as the liquidation bankruptcy because it discharges most of your unsecured debt. That includes , medical bills and personal loans.
Its the quickest, simplest and most common type of bankruptcy. According to the American Bankruptcy Institute , 63% of the 774,940 bankruptcy cases filed in 2019, were Chapter 7.
An even more encouraging bankruptcy statistic: 94.3% of Chapter 7 filings had their debts discharged, meaning forgiven.
You must pass a means test to qualify for Chapter 7 filing. The bankruptcy means test examines financial records, including income, expenses, secured and unsecured debt to determine if your disposable income is below the median income for your state. The means test income level varies from state to state.
You might be forced to sell any non-exempt assets, though several online sites claim that 96% of Chapter 7 filings are no asset cases, meaning there is not enough equity or value in the property for a trustee to sell it and pay off creditors.
Generally, the Chapter 7 process can be completed in four to six months.
Why Consumers Cant File Bankruptcy Cases Online
As mentioned, this could change as quickly as the summer of 2018, but the current case management system used by courthouses is extremely complex.
The filing must be coded in such a way that it creates a docket entry and places the paperwork where it needs to be. If the filing is coded incorrectly, it could tangle up the court system and/or cause the consumer to have their case dismissed for any number of mistakes.
There also is the matter of the communication channels and timing necessary if the bankruptcy judge has questions or wants additional information regarding the case. Who performs quality control to make sure that problems are corrected and the flow of cases is not interrupted because one party or the other didnt show up?
Those are just some of the problems programmers are trying to solve as they update the U.S. Court systems current software. Its why bankruptcy experts suggest that individuals not registered with the system are better served filing papers at the courthouse themselves and allowing the clerks there to code it correctly.
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