Consider Applying For A Secured Credit Card
After filing for bankruptcy, its unlikely that you will qualify for a traditional credit card. However, you may qualify for a secured credit card. A secured credit card is a credit card that requires a security depositthis deposit establishes your credit limit.
As you repay your balance, the credit card issuer usually reports your payments to the three credit bureaus. Repaying your balance on time can help you build credit. Once you cancel the card, a credit card provider typically issues you a refund for your deposit.
When shopping for secured credit cards, compare annual fees, minimum deposit amounts and interest rates to secure the best deal.
What Do You Need To Disclose If You Apply For A Loan After Bankruptcy
If you do apply for a loan above a certain limit you must let the lender know about your bankruptcy. This limit is indexed quarterly. At the time of writing, the indexed credit limit set in the Bankruptcy Act and regulations is $5,881. This means for loans worth more than $5,881, you must disclose your bankrupt status when:
- seeking to obtain goods or services on credit, by hire purchase, or cheque
- leasing, hiring, or promising to pay for goods and services
- seeking to obtain an amount by promising goods or rendering services
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Chapter 11 Vs Chapter 13
Chapter 13 involves the appointment of a trustee with Chapter 11 this is optional and not usually done. The trustees role includes reviewing the bankruptcy proposal, making recommendations to the court, and the collection and distribution of creditor payments.
If a debtor meets all the requirements, theres no limit to a Chapter 11 plans duration, though typical plans are structured for three to five years. The court can extend the time frame of the plan for debtors who need more time to make the required payments.
The approval process for a Chapter 13 bankruptcy is generally much more expedient. Theres a set commitment period, however, of three to five years, during which a debtor must relinquish essentially all disposable income to the appointed trustee for distribution among creditors. The commitment period can be shortened but never extended .
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May How Long Will A Chapter 13 Bankruptcy Stay On My Credit
Recently, I read an article published by bankrate.com which included significant misinformation about consumer bankruptcy. The article erroneously reports that a Chapter 13 personal reorganization bankruptcy appears on ones credit report for a period of 7 years from the date the case is completed. It warns that someone who successfully completes a Chapter 13 bankruptcy will have the cloud of bankruptcy for 12 years. This is absolutely false.
According to Maxine Sweet, Experians VP of Public Education, a Chapter 13 appears on a debtors credit report 7 years from the date of filing. Since a Chapter 13 typically takes 3 to 5 years to complete, it will completely disappear 2 to 4 years thereafter. If a Chapter 13 bankruptcy is dismissed, it will still remain on a credit report for 7 years from the date of fling.
Furthermore, it is common knowledge that, while a bankruptcy stays on ones credit for a period of 7 years for a Chapter 13 and 10 years for a Chapter 7 liquidation bankruptcy, the bankruptcy effect weakens over time. A two year old bankruptcy means more to creditors that a six year old bankruptcy because creditors are primarily interested in present financial circumstances. If ones debt-to-income ratio is much improved from years earlier, the negative effect of a prior bankruptcy is minimized.
Should I File For Chapter 13 After Filing For Chapter 7
If you file Chapter 13 at least four years after filing Chapter 7, you can have a very low monthly Chapter 13 payment plan and receive a full discharge of all remaining balances after you complete the three- to five-year plan. For example, you could pay as little as $100 a month for three years inside of Chapter 13, paying very little to your creditors and yet still discharging the remaining balances owed.
This may be a good option for people who have student loan debt, certain types of income tax debt and child support payments to make, says Sean Fox, president of Freedom Debt Relief. These things cannot get discharged in a Chapter 7 bankruptcy.
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Sawin & Sheaindianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. Its the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.
Please do not hesitate to call us today at 759-1483 or send an email for a free consultation. We are ready to help.
How Long Does A Chapter 7 Bankruptcy Take
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In a Nutshell
Once filed, a Chapter 7 bankruptcy typically takes about 4 6 months to complete. The bankruptcy discharge is granted 3 4 months after filing in most cases.
Most Chapter 7 bankruptcy cases take between 4 6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. No-asset cases are typically closed a couple of weeks after the discharge date.
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Accounts Included In The Bankruptcy
After youve filed for bankruptcy, the accounts included in your bankruptcy will show up as included in bankruptcy on your credit report. Most of them will remain on your credit report for seven years. These include accounts like charge offs, collections, repossessions, and judgments. They can also potentially be removed from your credit report before the reporting limit of seven years.
Life After Chapter 13 Bankruptcy
Once the court approves a repayment plan, it is up to the debtor to make the budget plan work. Failure to make agreed-upon payments will bring the matter back to court for further review, which could include selling the debtors property to pay debts. Alternatively, the trustee can simply request the case be dismissed.
Bankruptcy may give debtors a breather from creditors, but there is a penalty to be paid on their . Under the federal Fair Credit Reporting Act, a Chapter 13 bankruptcy will be listed on the report for seven years. Debtors in this situation may find it difficult to get additional credit for years.
Chapter 13 bankruptcy can be a useful financial tool for people with serious debts who worry about losing their homes to bankruptcy. Anyone considering this course should consult a bankruptcy lawyer.
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Is Your Chapter 13 Case Close To Discharge Are You Almost Finished Making Payments Learn What Steps Youll Need To Complete Your Chapter 13 Plan Payment Next
Firstly, congratulations, youre almost done with your Chapter 13 plan payment and now your wondering what to do next? Thats fine. Weve heard this question on more than one occasion. Once your ready and youve completed your payments, your assigned Chapter 13 trustee will complete an entire review of your Chapter 13 case. He or she will go through your case and ensure you have successfully satisfied all the requirements listed in your Order Confirming the Chapter 13 case.
If you are wondering where to find the Order confirming the Chapter 13 case feel free to contact your attorney or the U.S. Bankruptcy Court. If you are one of our clients feel free to contact us, we will be sure to point you in the right direction and give you anything you need to complete this portion of your case.
Once you have successfully complied with the Order Confirming the Chapter 13 case, your trustee will then file his or her report of the completed plan. This process may take up to 60-90 days, however, there have been cases that the process takes less time or more time. It just depends on the current caseload of the trustee, not that theyve forgotten about you.
What Happens After Chapter 13 Is Paid Off
Whether you are considering bankruptcy or have already begun the process, youll want to know what to expect at every point, as well as what life may be like for you after you complete your plan.
Although each persons situation is unique, there are a few things everyone can typically expect from the conclusion of their Chapter 13 case. Lets take a look at some of those factors.
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File Petitions And Other Paperwork
Your attorney will file a substantial amount of paperwork with the bankruptcy court. This includes the petition and forms describing your assets and liabilities, income and expenses, and contractual obligations and leases. Obviously, completing and submitting these documents will take some time. This can take a few weeks or a few months, depending on the size and complexity of your assets and debts.
Can I Refile Chapter 13 After My Case Is Dismissed
Whether you can file another Chapter 13 case immediately after a dismissed Chapter 13 depends on the reason why the Chapter 13 case was dismissed. If this wasnât your first bankruptcy case in a short period of time, the bankruptcy court could prevent you from filing another Chapter 13 case for a specific period of time. Even if youâre able to refile right away, your automatic stay may be limited.
Especially if youâve had a prior Chapter 13 bankruptcy case dismissed by the court, itâs best to talk to a bankruptcy attorney in your area. The Chapter 13 bankruptcy process is much more complex than a Chapter 7 case and more than 97% of all Chapter 13 cases filed without an attorney are dismissed by the court. Having a bankruptcy lawyer by your side as you navigate a Chapter 13 case is usually worth the investment.
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What Happens After A Chapter 13 Case Is Dismissed
While you are in a bankruptcy case, you are protected by the automatic stay. Creditors are prohibited by the bankruptcy stay from taking any actions to collect a debt without court approval.
Once a bankruptcy case is dismissed, the automatic stay is no longer in effect. That means creditors can take all collection action allowed by law. Collection activities may include collection letters, debt collection lawsuits, wage garnishments, repossessions, and foreclosures.
The only way to stop creditors from taking action to collect a debt after a dismissed Chapter 13 case is to pay the debt or re-file a new bankruptcy case.
Talk To A Bankruptcy Lawyer
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Bouncing Back From A Chapter 13 Bankruptcy
Its not easy to make a debt consolidation payment every month. Many debtors who file Chapter 13 are unable to finish, especially if they do not have a Georgia bankruptcy lawyer to stand up for them. Most families must make drastic changes to accommodate the debt payment. They must find an additional source of income or trim expenses to the bone.
The additional financial discipline helps you recover faster from bankruptcy than you ever thought possible. Most former debtors continue making their debt consolidation payments for a few months. But instead of paying the trustee, they pay themselves. After several months, they have a financial reserve that is big enough to weather almost any financial storm.
Chapter 13 ends after five years, but its positive effects are almost never ending. For a free consultation with an experienced Georgia bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. Convenient payment plans are available.
You Can Choose A Five
Even if you qualify for a three-year plan, you might opt for a five-year plan instead. There are several reasons why debtors who could proceed under a 36-month plan would do this:
- Catch up on arrearages on a home or car loan. Often a Chapter 13 debtor’s primary asset is a home or motor vehicle, and many people file bankruptcy after defaulting on a home mortgage or motor vehicle loan. One of the benefits of Chapter 13 that isn’t available in Chapter 7 is bringing home mortgage and motor vehicle loans current through the repayment plan. But, many debtors owe too much in arrearages to bring them current in only 36 months. By stretching the payment period out up to five years, you’ll pay less each month and have a better chance of getting the plan confirmed.
- Keep nonexempt property. One of the advantages of Chapter 13 over Chapter 7 is that you can keep assets that otherwise would have to be turned over to a trustee. Under the best interests test, a Chapter 13 plan can’t be confirmed unless it pays unsecured creditors at least as much as they would have received in a Chapter 7 case. In short, you must pay the value of your nonexempt property at a minimum.
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How Long Do Chapter 7 Bankruptcy Cases Take
Chapter 7 bankruptcies are called liquidation bankruptcies because they involve liquidating your assets to pay off your creditors. People with high debt and limited income typically file for chapter 7 bankruptcies.
For most people, a Chapter 7 bankruptcy will take around four to six months to be completed. The first step in filing for a Chapter 7 bankruptcy involves filing a petition and listing all your assets, debts, and information about your creditors.
You will need to meet with the trustee assigned your case, complete a meeting with your creditors, and give your trusty time to sell your assets and pay off your creditors. If the trustee needs more information from you, the bankruptcy process will take longer.
What Is A Chapter 13 Bankruptcy
A Chapter 13 bankruptcy case is one of the main types of consumer bankruptcy relief for individual filers. There is also the option of a Chapter 7 case, where you are able to walk away from all of your debt and make a fresh start.
Chapter 7 is what most people think of when considering filing for bankruptcy relief. A Chapter 7 case is usually pretty quick and can be completed within four to six months after filing your case.
Chapter 13, by contrast, will typically last for three to five years and involves a repayment plan, where you pay some or all of the money owed to your creditors over the length of the plan.
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How Long Will My Bankruptcy Case Last
The length of a bankruptcy case depends on which bankruptcy chapter is filed by the debtor. There are three major types of bankruptcy: Chapter 7, Chapter 13, and Chapter 11. The first two bankruptcy chapters apply to individual debtors, and the first and third chapters apply to corporate debtors.
Many debtors wonder how long a bankruptcy case will last, should they decide to file for bankruptcy relief. It is possible that the length of the bankruptcy case may be a determining factor over whether to file bankruptcy, and if a filing is inevitable, which particular chapter of bankruptcy to consider filing. A helpful rule of thumb is important to remember in the background throughout such considerations: If a debtor has enough money to repay all of his debts within three years, after subtracting his monthly bills from the amount of eligible repayment funds, then a strong case may be made for staying put and making no bankruptcy filing whatsoever.
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How Long Does A Bankruptcy Stay On Your Credit Report
When consumers have more debt than savings and are faced with mounting bills and saddled with other ones such as student loans, filing for bankruptcy might be the only option. However, if you are considering filing for bankruptcy it’s important to consider the long-term consequences.
One of these consequences is the impact bankruptcy can have on your credit. Depending on how you file, the bankruptcy could remain on your credit report for seven or as long as 10 years. People who have exhausted all their options and can not get another job or increase their income are faced with few choices.
Filing for bankruptcy often remains the only viable choice for some individuals. People who are considering filing for bankruptcy should first consult with a non-profit credit counseling agency or attorney to see if it is the right choice for them.
The law states that consumers must also seek pre-filing bankruptcy counseling. The counseling helps people learn about several options other than bankruptcy, such as settling with creditors, entering into a debt management plan or simply not paying the debt.
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