Restrictions On People Who Have Been Declared Bankrupt
Once you have been declared bankrupt, you will be guilty of an offenceif:
- You do not disclose the bankruptcy when getting a loan or any other credit facility of 650 or more
- When trading in a name other than that in which you were made bankrupt, you do not disclose the bankruptcy
- You act as a director, manager, auditor, liquidator or receiver of a company without permission of the court
These offences carry a maximum penalty of 5 years in prison and a fine of1,270.
Other consequences of bankruptcy are:
- If you wish to travel outside the State, you should tell the Official Assignee. You may be arrested if it seems to the High Court that you are leaving the State in order to avoid the consequences of your bankruptcy.
- You cannot be granted an enduringpower of attorney on behalf of someone else, and if you hold one already, it is automatically revoked if you become bankrupt.
- Under the Charities Act 2009, you may not be a trustee of a charity if you are adjudicated bankrupt.
- Some professional bodies disqualify members who are adjudicated bankrupt
How Do I Calculate Interest
You may need to seek legal assistance or contact the court that issued the final judgment for help.
Our online service provides you with an interest calculation tool. However you should be aware that, where a judgment includes interest, you can only claim this interest in your application if:
- The court that made the judgment or order has allowed it.
- You specify the amount of interest.
- You attach a schedule in your application. This should show how you calculated the interest and the legislation youre using to claim the post-judgment interest.
- It’s your responsibility to ensure you have calculated the interest correctly.
Note: You can’t includepost judgment interest to make up the minimum of $10,000 we require for bankruptcy notice applications.
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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Most Chapter 7 Cases Last Between Four And Five Months But There Are Exceptions
When compared to many other legal matters, a Chapter 7 bankruptcy is a relatively quick process. As a general rule, you should expect your case to last approximately four to five months. This timeline, however, varies depending on where you live and where you file your case. In addition, several things may occur during your case that will extend the length of your Chapter 7 bankruptcy.
Payments From Your Income
If you can afford it, the trustee will ask you to make regular payments towards your debts from your income through an income payment agreement . You enter an IPA voluntarily, but theres a written binding agreement between you and the trustee.
If your main or only income is state benefits, the trustee will not normally try to get an IPA.
If you cannot agree on payment amounts for an IPA, the trustee can apply for an income payment order . If you do not meet these payments, the trustee can then apply to extend your bankruptcy.
The payments will come from surplus income .This is money you have left after paying your living expenses. Normally you will have to pay all of this surplus income as your IPA payment.
Payments normally last for 3 years . The court will not make an IPO if it leaves you without enough money to meet everyday needs.
The official receiver may use private debt collection agencies to collect the payments.
A fee will be charged in all bankruptcy cases where an IPA or IPO is set up. The fee is set at £150 which will cover the specific costs incurred by the Official Receiver of arranging and setting up your IPA or IPO and will be collected from the first payments you make into the arrangement. This fee is only chargeable on cases where a bankruptcy application was made or a petition presented on or after the 21 July 2016.
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A Chapter 13 Bankruptcy Will Generally Last From Three To Five Years From The Confirmation Date
Not including the pre-confirmation time period , you are likely to spend about 3 to 5 years completing your Chapter 13 case.
The Chapter 13 case will end with a discharge if you are able to maintain the terms of your plan for the entirety of the plan. A successful discharge in a Chapter 13 will excuse the rest of any debts included, so if your plan called for 10% to all of your unsecured creditors then the remaining 90% you owed will be discharged and you will no longer have to pay on it.
Phase : 341 Meeting Date Of Discharge
Remember how the date of the 341 meeting determines a lot of deadlines for the rest of the case? Here is how it works:
341 meeting + 30 days = Deadline for the trustee to object to an exemption you claimed. This deadline starts when the 341 meeting is âconcludedâ which can be delayed if the trustee schedules a follow up meeting.
341 meeting + 60 days = Deadline for creditors to object to having their debt discharged. are not very common in typical Chapter 7 cases, but they do happen.
341 meeting + 45 days = Deadline to deal with secured debts, like car loans .
Once the deadline to object to the discharge has passed, the court will enter the discharge order.
Can the discharge date be delayed?
Yes. If you donât take your financial management course after filing and submit a certificate of completion, the bankruptcy court canât grant your discharge. If too much time passes, the court can close your case.
Other Things That Can Delay The Entry Of The Discharge
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Speak With A Professional
The U.S. Bankruptcy Court strongly suggests that those filing get an attorney. Court officials, including judges, are barred by law from offering advice to people whove filed for bankruptcy. The court does have information and documents available for those doing it themselves, legally called pro se.
Phase : Discharge Case Closed
Once the bankruptcy trustee has determined that thereâs no property they can sell for the benefit of creditors, theyâll file a Report of No Distribution. This lets everyone know that itâs a no-asset case and can happen anytime after the 341 meeting. No asset cases are typically closed by the court within 1 – 2 weeks or so.
If the trustee hasnât filed a Report of No Distribution, the case will stay open until the trustee signals to the court that theyâve completed their work on the case. How long this process takes can vary greatly, as it depends on what kind of property the trustee is selling and what else is going on in the case.
In some cases, all the trustee is waiting for is the filer’s tax return for the year their bankruptcy case is filed in. If no specific exemption for a tax refund exists, a portion of the refund may be used by the trustee to pay creditors.
Usually, not much else is required from the filer during this process. But, if the trustee asks for additional information or otherwise requests assistance with the sale of property, the filer has a duty to help.
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How Long Does It Take For Chapter 13 Bankruptcy To Discharge
Chapter 13 bankruptcies have a longer timeline because they involve payment plans. Similar to Chapter 7, a meeting of the creditors must be held within 60 days of filing for Chapter 13 bankruptcy. Regular creditors have 90 days to file claims in your case and government creditors have 180 days. However, you have to file a repayment plan within two weeks of filing your Chapter 13 petition and you must begin making payments within 30 days of filing even though the repayment plan wont have been approved. The judge will rule on your repayment plan no later than 45 days after the meeting of creditors.
The length of your payment plan will be either three years if your income is at or below your states median for a family of your size or five years, if your income exceeds the median. If you make all of your payments in accordance with your repayment plan, then the balances of the debts covered by the plan will be discharged. Youll no longer be responsible for paying those debts, and the creditors will be prohibited from trying to collect them or attempting to get a legal judgment against you.
When Does The Discharge Occur
The timing of the discharge varies, depending on the chapter under which the case is filed. In a chapter 7 case, for example, the court usually grants the discharge promptly on expiration of the time fixed for filing a complaint objecting to discharge and the time fixed for filing a motion to dismiss the case for substantial abuse . Typically, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court. In individual chapter 11 cases, and in cases under chapter 12 and 13 , the court generally grants the discharge as soon as practicable after the debtor completes all payments under the plan. Since a chapter 12 or chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing. The court may deny an individual debtor’s discharge in a chapter 7 or 13 case if the debtor fails to complete “an instructional course concerning financial management.” The Bankruptcy Code provides limited exceptions to the “financial management” requirement if the U.S. trustee or bankruptcy administrator determines there are inadequate educational programs available, or if the debtor is disabled or incapacitated or on active military duty in a combat zone.
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How Long Does Bankruptcy Take To Finalize
Time seems to move slower when you are anticipating the end of a difficult process so its no wonder that people go through agonizing defeat when dealing with financial issues. The feeling of being tied down to the floor with debt can be tiresome and stressful for many people and their families. The mental strain that debt can put on a person or family is not something that should be understated. Families and relationships can be affected by debt. After exhausting all options, bankruptcy may be your best bet for getting much-needed debt relief. However, bankruptcy can be a daunting task all its own.
You dont want to be stuck in yet another process for too long. Seeking guidance from a bankruptcy attorney can help your bankruptcy process go smoothly. Typically, the bankruptcy process can last about six months until it is finalized. However, without an attorney, things can go south and slow down your process. Be sure to consult with a bankruptcy attorney that can help your bankruptcy case in every regard.
Can A Debtor Receive A Second Discharge In A Later Chapter 7 Case
The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed. The court will also deny a chapter 7 discharge if the debtor previously received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing of the second case unless the debtor paid all “allowed unsecured” claims in the earlier case in full, or the debtor made payments under the plan in the earlier case totaling at least 70 percent of the allowed unsecured claims and the debtor’s plan was proposed in good faith and the payments represented the debtor’s best effort. A debtor is ineligible for discharge under chapter 13 if he or she received a prior discharge in a chapter 7, 11, or 12 case filed four years before the current case or in a chapter 13 case filed two years before the current case.
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Your Trustee May Sell Your Assets
You are able to keep:
- ordinary household goods
- tools up to a set amount used to earn an income and
- vehicle with a value up to a set amount.
Your trustee can sell other assets including your house and property. You must not dispose of any property belonging to the trustee. You must declare any assets you have when you apply for bankruptcy and any you receive during bankruptcy.
Advantages Of Chapter 13
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
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How Can I Get A Copy Of My Credit Record
There are two ways to get your credit report : either through the mail or via the internet. If you want to obtain your credit report for free, you must use the mail. It is also important to do what you can to make sure your credit report shows a history of reliable credit repayments, and as few unfavorable repayment incidents as possible.
For more detailed information related to credit reporting, visit Equifax Canada or Trans Union website. Talk to a licensed trustee today. We have trustees everywhere from Calgary to Montreal and more. Get a free consultation today!
Chapter 11 Bankruptcy Lawyer
Its not a matter of if, its a matter of when. Legal problems come to everyone. Whether its your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sisters brother whos getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation 676-5506. We want to help you!
Ascent Law LLC
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Bankruptcy Process And Outcomes
There are several steps you must take when you have decided to make yourself bankrupt. While instructing a solicitor is notnecessary, the ISI considers it advisable to get professional legal advice inadvance of declaring yourself bankrupt or defending any bankruptcy proceedings.The Irish Mortgage HoldersOrganisation provides a free service in relation to bankruptcy.
The process is summarised below:
- Lodge 200 with the Official Assignee
- Complete your petition, which must be verified by a sworn affidavit and a sworn statement of affairs
- File the relevant bankruptcy application documents in the Examiners Office
- Attend the court hearing on the date given, where the judge, if satisfied, will adjudicate you bankrupt
- Meet the Official Assignee or Bankruptcy Inspector to be interviewed about all your assets and debts
- Place a notice of your adjudication as a bankrupt in Iris Oifigiúil
- Place a notice of your adjudication as a bankrupt either on the ISIs website or in a national daily newspaper
Before 2016 a statutory High Court sitting was also required, but thisrequirement was removed by the Bankruptcy Act 2015.
Will My Job Be Safe During Bankruptcy
Some jobs may be affected by bankruptcy. For example, membership in professional bodies may cease, forcing the individual to stop performing in the current role. Refer to the terms listed in your contract of employment, ask your employer for more information and consult any relevant regulatory or professional bodies.
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Your Interview With The Official Receiver
If your bankruptcy is approved, youll have an interview with the official receiver. If youve presented your own bankruptcy petition, this might happen directly after the bankruptcy order is made. Alternatively, your letter from the official receiver may invite you to an interview either in person or by telephone. If offered a telephone interview you can ask to be interviewed in person, if you prefer.
If youve been made bankrupt by one of your creditors the official receiver may also contact you by telephone to find out if there is anything that needs to be sorted out urgently.
You must attend the interview and cooperate with the official receiver. If you do not, your bankruptcy could be extended beyond the normal 12 months and you could face an examination in court. The more organised you are, the more straightforward the process will be.
Before the interview, telephone the official receiver to confirm or rearrange the appointment let them know if:
- you require special facilities
- there is anything that needs to be sorted out urgently
- you need more time to gather the paperwork for the meeting
If you have been sent a questionnaire, fill it in, and note down anything you do not understand. If youre having a telephone interview, return it by the date given.
Collect together all the paperwork youve been asked to take to the interview or have with you during the telephone call.
Face-to-face interviews may take 2 to 3 hours.
After you arrive:
The examiner will: