Seek Support From Those Close To You
Bankruptcy can continue to have an impact on you in the future. This could be if you need to make a big decision such as your job choice, when you wish to apply for a mortgage or for a private tenancy agreement or even when telling future partners about your past debts.
This is why its important to seek the support of those closest to you such as a family member or friend when you are considering bankruptcy. They can help you talk through your situation and decide what may be best, as well as offering moral support. Have someone you can confide in and share any worries with every step of the way.
If you feel like you need any further help or advice on bankruptcy or the issues weve included in this guide then get in touch with our team of expert financial advisors today on 0800 280 2816or complete our contact form to receive a call back at a time that is convenient to you.
Filing The Financial Management Course Certificate
Once the date is set for your 341 Meeting of Creditors, there are two required classes you must take to complete your Chapter 7 bankruptcy. The second course must be completed within 60 days of the date of the 341 Meeting of Creditors. You will then file a certificate proving that you completed the financial management course.
What Is The Process For Filing Bankruptcy In California Are There Prerequisites
From the time you file forChapter 7 bankruptcy, the process takes approximately 3-4 months, depending on various factors. Once the process resolves, you’re ready for a fresh start, free of debt. Alternatively,Chapter 13 bankruptcy involves a reorganization of debt. Payment plans for Chapter 13 bankruptcy are usually around 3-5 years.
Chapter 7 Bankruptcies are perhaps the most commonly filed type of bankruptcy, a typical Chapter 7 bankruptcy follows this timeline:
- Free consultation with a bankruptcy attorney at our office
- Fill out a bankruptcy packet and meet with one of our assistants to review your paperwork and verify that all necessary information has been provided
- Meet with your attorney and review your Petition to be sure all information is accurate and ready to file
- File your bankruptcy
- Approximately 30 days after filing, attend an informal meeting with a United States Trustee
- 60 Days later, your Discharge is processed
- Fresh Start!
If you have not filed for Chapter 7 in the past eight years, you are eligible if you pass the means test . If you’re not eligible to file for Chapter 7, you may be eligible for Chapter 13. You’re eligible to file for Chapter 13 if you possess a stable income above a certain amount, have not filed in the past six years, and your secured and unsecured debts fall below the legal limits.
Recommended Reading: What Is Epiq Bankruptcy Solutions Llc
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.
What Is Chapter 7 Bankruptcy
Chapter 7 bankruptcy is called liquidation bankruptcy, because, in theory, a persons assets are liquidated to pay their unsecured debt. In reality, most people who file Chapter 7 get to keep their house, car and other necessary assets, as long as they stay current on payments.
Before you can file Chapter 7 bankruptcy, you must pass a means test, which shows that you dont have the means to pay your unsecured debt. That would mean things like credit cards, medical bills and personal loans debt that isnt tied to collateral like a house or car. The majority of people who filed bankruptcy in 2020 cited the problem as consumer debt, which is debt caused by buying things, much of it credit card debt.
While some assets are sold to pay back that debt, you get a break through state and federal exemptions that allow homes and cars up to a certain value to not count. The amounts vary, depending on where you live, but most people who file dont have to give up those assets. Things like home furnishings, tools needed for work and other essential property is protected. Things thar arent protected are luxury items, like jewelry, coin collections, second homes, hobby cars, as well as insurance policies, bank accounts, inheritances and money from lawsuits.
It cant be used to discharge federal student loans, alimony or child support or tax debt.
You May Like: How Many Times Has Trump Filed For Bankrupsy
Where To File A Will
To begin executing a will, file it with the probate court. Usually, a will is filed with the probate court in the county where the wills owner has died or the county in which he last lived. Some states do not have separate probate courts, but your local telephone directory should provide numbers for your court so you can determine the proper place to file the will. Filing the will as soon as reasonably possible after the testators death has two advantages: it sets the probate process in motion more quickly, and it ensures probate begins long before any state deadlines.
Dont Miss: Will Filing Bankruptcy Stop Irs Debt
Talk To A Credit Counselor Before Filling
It may also be wise before embarking on the process, to participate in , so you can fully assess your situation. Such credit counseling agencies are listed with the National Foundation for Credit Counseling. Counselors may recommend a debt management plan, in which the agency negotiates lower interest rates with creditors, usually credit card companies. You would pay one monthly payment to the debt management agency over three to five years, and the agency pays your creditors.
While theres a small monthly fee as part of the monthly payment, bankruptcy, if hiring an attorney, can end up costing more. Also, unlike bankruptcy, a debt management plan doesnt appear on your credit report, and will eventually result in a higher credit score, so it doesnt have the negative impact on your ability in the future to get loans or financing that a bankruptcy would.
9 Minute Read
Recommended Reading: Can You Lease A Car After Filing Bankruptcy
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
When The Bankruptcy Order Is Made
The early stages of a bankruptcy are normally handled by an official receiver. An official receiver works for the Insolvency Service and is attached to the court. They will also be your trustee unless an insolvency practitioner is appointed to take over that role. The trustee will realise any assets .
The official receiver will write to you within 2 weeks of the bankruptcy order being made, explaining what you need to know and what you must do.
Also Check: How Many Bankruptcies Has Donald Trump Filed
Is Bankruptcy Right For Me
Bankruptcy cases can be complicated and the laws vary from state to state. For anyone considering bankruptcy as an option, its important to consult with a reputable bankruptcy attorney before moving forward. An attorney will help you asses your financial situation and determine which type of bankruptcy program is right for your needs. If you need assistance finding a bankruptcy attorney in your area, Start Fresh Today offers an attorney locator to help. For those who are having difficulty paying legal fees, the American Bar Association and Legal Services Corporation offer assistance to those in need.
Complete Your Bankruptcy Duties
The objective of bankruptcy is to eliminate your debts. To obtain your discharge, you must complete certain bankruptcy duties including:
- surrender certain assets and your credit cards
- attend two credit counselling sessions
- send proof of income and expenses to the trustee monthly
- make payments including if required surplus income payments
- provide information needed to file necessary tax returns.
Your trustee will file two tax returns during your bankruptcy a pre-bankruptcy return covering the period up to the date of bankruptcy and a post-bankruptcy tax return to the period to December 31 while you are bankrupt. While you lose tax refunds as part of the bankruptcy process, you keep all HST / GST cheques and child tax benefits.
Very few bankruptcies in Canada require a creditors meeting, less than 1 in 1000. If creditors request a meeting, your trustee will prepare a report for the court and you will be required to attend.
Recommended Reading: How Many Times Did Donald Trump File For Bankruptcy
What Are The Three Types Of Business Bankruptcy
Chapter 7 is the only form of business bankruptcy that is legally available to all types of businesses. You dont have to meet any requirements to file.
However, chapters 11 and 13 are only available for certain types of businesses and carry specific requirements.
Each type also has a unique legal process and can result in different outcomes for the business at hand. Heres what happens when a business owner files for each of the three types:
How Long Does It Take To Do A Chapter 7 Bankruptcy
Home » How Long Does It Take to Do a Chapter 7 Bankruptcy?
The average Chapter 7 bankruptcy case for an individual or married couple is pending for about 4 months before it is fully closed. This time frame can vary though. According to the U.S. Courts, the following timelines may serve as a general guide on how long it takes to do a Chapter 7 bankruptcy:
- Between 21 and 40 days after filing, the case trustee will hold a meeting of the filers creditors. Certain restrictions may apply if a regular U.S. trustee or bankruptcy administrator is unavailable.
- Within 10 days of this meeting, the U.S. trustee will report to the court if the case appears to be an abuse of the bankruptcy process.
- Within 90 days of the meeting, any unsecured creditors must file a claim with the court .
Many people who file for Chapter 7 bankruptcy are able to retain all of their assets. Most bankruptcy cases generally receive a discharge order from the court between 60 and 90 days of the initial meeting of creditors.
Also Check: How To File Bankruptcy In Tennessee
What Happens After You File For Chapter 7 Bankruptcy
Once you know that you qualify for Chapter 7 and that you can keep the property important to you, you’ll be ready to file your case. Here’s what will happen next.
How Long Does It Take To File Bankruptcy
If you are in a financial crisis, stopping collection attempts from creditors and finding debt relief may be a high priority. For those struggling with a significant amount of debt, bankruptcy may be the best option if youve explored other solutions for dealing with debt. Bankruptcy can provide a clean slate without overwhelming debt hanging over your head.
Bankruptcy isnt a decision to take lightly. A bankruptcy filing is a legal process that can have long-term consequences.
How long does a bankruptcy filing take? This is often a concern for someone feeling the sting of a difficult financial situation, there are no absolute answers to this question. The length of time it will take to discharge your debt obligations through bankruptcy will vary depending on the specifics of your financial situation, the amount of debt you have and the type of bankruptcy you are seeking.
You May Like: Which Of The Following Phrases Best Summarizes Chapter 7 Bankruptcy
The 6 Stages Of Bankruptcy
While most people know that bankruptcy is a way to discharge or eliminate debt, few know how it happens.
Not knowing what to expect during the bankruptcy process can make the idea more intimidating than it has to be. In reality, the filing for bankruptcy protection is not overly burdensome. And with help from an experienced and committed Cleveland bankruptcy law firm, you can usually go through the whole process with ease.
To discuss if bankruptcy is the right option for you, call today and set up a free and confidential consultation.
Dealing With Your Car
Your car is considered and asset in your Virginia bankruptcy and if it is not yet paid off, then it is also a liability that has to be dealt with in a way that best sets you up for your fresh start. You can choose to surrender the vehicle to get out from under the loan, or you can reaffirm the debt and keep everything essentially the same. A reaffirmation agreement means that you will continue to be responsible for paying the car loan even after your discharge is entered. If you fail to make all payments as agreed, then the bank can still repossess your vehicle and, since the debt was not discharged, sue you for the balance left owing after the vehicle is auctioned off. If your car is paid for then depending on its value and the exemptions available for folks filing Chapter 7 in Virginia nothing at all may change.
Recommended Reading: How Many Bankruptcies Has Donald Trump
Types Of Corporate Bankruptcy
The type of bankruptcy proceedingsChapter 7 or Chapter 11generally provides some clue as to whether the average investor will get back all, a portion, or none of their financial stake. But even that will vary on a case-by-case basis. There is also a pecking order of creditors and investors, which dictates who gets paid back first, second, and last . In this article, we’ll explain what happens when a public company files for protection under Chapter 7 or Chapter 11 and how that affects its investors.
Chapter 11 Reorganization Plans
Ordinarily, the debtor has the exclusive right to propose a reorganization plan for the first four months however, the court can extend the debtors exclusivity period for to up 18 months after the petition date. This provision is one of the reasons why Chapter 11 is so costly. Once the exclusivity period expires, the creditors committee or other parties can propose alternate reorganization plans. But more often, creditors or other parties dissatisfied with the debtors progress will move to dismiss or convert the case to Chapter 7. Creditors are entitled to vote on whether they accept a proposed Chapter 11 plan. At least one class of impaired claims must vote in favor of a Chapter plan. An impaired claim is an obligation that will not be paid in full upon plan confirmation or when originally due.
You May Like: Filing For Bankruptcy In Iowa
Our Legal Help Is Affordable
You can expect upfront, transparent quotes that include the courts filing fee. Our payment plans make legal services affordable for you. We know the financial pain because weve been there. Our founder had to climb back to financial freedom after filing for bankruptcy relief. Were here to help you on your journey and make the process affordable.
