Faq’s About Debt Consolidation
Looking to improve your financial well-being and consolidate your debt? In addition to comparing the top debt;consolidation services, we’ve compiled some of the most commonly asked questions about debt consolidation.
Bankruptcy Timeline: Steps To Complete Before Your Filing Date
Federal law requires you to complete a credit counseling course during the six-month period before filing bankruptcy. However, you have other prep work to do before your bankruptcy timeline officially starts, such as: ;
Important: You must complete all above tasks in the 180 days before your filing date. This is true regardless of whether you file Chapter 7 or Chapter 13 bankruptcy.
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Whether filing for bankruptcy relief is in your best interest will depend on the circumstances above, but some situations can tip the balance in favor of bankruptcy. Be sure to act quickly if a creditor is:suing yougarnishing your wages, ortrying to repossess or foreclose on your property.If you arent sure what direction is best for you, consider meeting with a bankruptcy lawyer. Not only will a bankruptcy attorney advise you of your options, but most offer a free consultation.
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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.
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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.
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Chapter 7 Bankruptcy Discharge Timeline
While it’s possible that you could receive a discharge within as few as 82 days after filing your case, it would be unusual. The court usually needs an additional twenty days to accommodate scheduling and other procedural requirements.
So that you’ll know what to expect, the Chapter 7 discharge timeline below covers all aspects of a typical bankruptcy filing, from the initial gathering of documents up until receiving the discharge, and should help clarify how long it will take to get a Chapter 7 discharge:
- Gathering documents. You’ll start by locating financial information, such as bills; banking, retirement, and investment account statements; paycheck stubs; and tax returns.
- Preparing the paperwork. You’ll disclose all aspects of your finances on official bankruptcy forms. Once completed, the average bankruptcy petition, including schedules and other required documents, will be between 35 and 50 pages.
- Completing the credit counseling course. If you’re an individual bankruptcy debtor, you’ll also need to take a credit counseling course from an approved provider. Business entities are exempt from this requirement. Most courses can be completed online within a few hours.
- Passing the deadline for creditors to object. Creditors can object to the court discharging its debt but must do so within 60 days of the first day set for the 341 meeting of creditors. The court will wait until this deadline passes before issuing the discharge.
Completing The Credit Counseling Course
You have to take;two credit counseling courses;during the bankruptcy process. Although they will cover different topics, you can expect each one to take up to two hours.
Plan to complete the first one before filing your documents, so you can include the certificate with your paperwork. Then, do the second one after the creditors hearing. The court will only move forward with the discharge once they get the certificate for that course.
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Is There Life After Filing Bankruptcy
Your credit score may decrease initially when you file your bankruptcy depending on your score before filing. Either way, it should start to increase shortly afterwards. Steps you can take to improve your credit include financing a new vehicle, making timely payments on a new credit card, opening a secured line of credit through your bank, and filing bankruptcy with a $0 down payment plan. Our office offers a $0 down payment plan that credit reports your payments to help your score rise faster after bankruptcy.; Thus, when considering an attorney, carefully choice a debt relief lawyer with a credit rebuilding program that has been tried and gets results.
You will have to wait 2 years after your bankruptcy before you can qualify for a home loan. However, this shouldnt prevent you from renting. Many of our clients are able to finance a new vehicle the day after they file and receive plenty of offers for new lines of credit.; For more information about a Zero Down Bankruptcy or $0 Down bankruptcy, please consider contacting our bankruptcy attorney.
How To Get An Ffl License
The Brady Handgun Violence Prevention Act of 1993 effectively changed the licensing system in that it raised application fees and extended the license period. For example, the Brady legislation raised the cost of a dealer license from $10 per year to $200 for every three years. Everyone who holds an FFL is also required to follow all firearms licensing laws in their resident states. In addition, all FFL holders are required to keep meticulous inventory and sales records, including using ATF-approved inventory software. Holders are required to maintain records for at least 20 years from the date of generation. If a licensed manufacturer or dealer goes out of business or closes shop, their records are to be shipped to the ATFs Out-of-Business Records Center for filing. Finally, licensed holders may be asked to supply transaction records to law enforcement officers as requested for investigations. You know you want an FFL, but youre not sure how to get one. Follow these four steps and youll be up and running in no time.
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How To Take Title In Joint Tenancy
To create a joint tenancy, be sure to get the right legal words on the title document. Joint tenancy is a popular way to avoid probate. It certainly has the virtue of simplicity. To create a joint tenancy, all you need to do is put the right words on the title document, such as a deed to real estate, a cars title slip, or the signature card establishing a bank account.
Typical Filing Timelines By Types Of Bankruptcy
Chapter 7 is a form of liquidation bankruptcy.; Under Chapter 7 bankruptcy, all nonexempt assets will be reviewed and sold off with the help of a bankruptcy trustee. The bankruptcy court will pay your creditors with the proceeds of those sales and discharge remaining unpaid unsecured debts.
Under Chapter 7 Bankruptcy, only unsecured debts;are discharged. Secured debts such as a mortgage or a car loan require you to either relinquish them or continue paying according to the terms of the loan.
A Chapter 7 bankruptcy filing may be completed in three to seven months.
Chapter 13 bankruptcy reorganizes your debts.;When you file for Chapter 13, the court evaluates your total debt obligations and sets a court-ordered repayment plan that typically spans 3-5 years. Under this plan, repayment is typically equal to the value of your nonexempt assets.
A Chapter 13 filing can take anywhere from 24-60 months to complete depending on the amount of your debt and the repayment plan that is established.
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How Long Does It Take To File Bankruptcy: Complete Guide
How long does it take to file bankruptcy? This is the lingering question that consumers need to ask when dealing with debt. Contrary to popular belief, filing for bankruptcy does not mean your problems with your debts are over and done. It only means that you are starting to put things in proper perspective.;
When filing for bankruptcy, it is important to get an idea of the accurate timeline to know your next move.;
Know How Much Time You Have Until Youre In The Clear
When consumers file for bankruptcy, they usually want the process to be over and done with as quickly as possible. After all, the sooner you complete the process, the faster you can get started rebuilding and moving forward with a fresh start.
Unfortunately, filing for bankruptcy doesnt mean your troubles are over in a snap. Even with Chapter 7 bankruptcy, which is generally the faster type of personal filing, its going to take some time.
The answer below can help you estimate how long you have on the road ahead, but if you need to file and have questions, you should talk to a professional. That way, the estimates they give you can be based on the specifics of your situation, so you know you have an accurate timeline. Call us or complete the form to get started.
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How Long Does A Chapter 13 Bankruptcy Take
A Chapter 13 bankruptcy involves a repayment plan, so it takes quite a bit longer to complete. Typical Chapter 13 bankruptcy cases last 3 to 5 years. As part of the repayment plan, secured debts, like car loans are paid off. Depending on the type of debt you have, this type of bankruptcy may provide more debt relief than a Chapter 7 filing. Itâs always best to speak to a bankruptcy attorney about a Chapter 13 filing, as there are many moving parts in the Chapter 13 bankruptcy process.
S In Filing Bankruptcy
1.;;;;;;;Free Consultation
While you can theoretically have a consultation with a bankruptcy attorney and file your case the same day, you should start seeking out an attorney approximately;90 days;before you file. This is because credit card purchases made within 90 days of your bankruptcy can be deemed fraud and you will have to repay them. A bankruptcy attorney can guide you through these purchases so you arent stuck with debt after filing bankruptcy.
You should also speak to an attorney before you file because you will likely need time to gather all the documents needed for your petition. Your attorney should be able to assess which documents you will need during the consultation.
2.;;;;;;;Meet your attorney
If you had a phone consultation, you may want to meet your attorney in person before proceeding with your bankruptcy. If you have documents youre more comfortable submitting in person than online, you may be able to schedule a time to drop off documents, meet with your attorney, and discuss your case.
3.;;;;;;;
;Your first credit counseling course must be taken before your case is filed. Do not procrastinate until the day of filing, as you may experience technical or other issues. If you take your class before you are able to file bankruptcy, your course certificate will be valid for 180 days.
;4.;;;;;;;Sign and File your bankruptcy
5.;;;;;;;341 Meeting of Creditors
;6.;;;;;;;2nd;Credit Counseling Class
7.;;;;;;;Discharge and Conclusion
60 days
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Meet With Your Trustee To Review Your Options
Now that youve selected your trustee you should contact them and schedule a free initial consultation. You will be asked to bring some specific details of your financial situation, including your income and expenses, assets and debts.
At your first meeting, your trustee will review your financial details, and outline the alternatives to bankruptcy that could be chosen in your case, ranging from debt consolidation through consumer proposals and including the bankruptcy process. Your trustee will provide you with information and advice on each which is best for you but the decision will remain in your hands and you will have as much time as you need.
- If you have enough income, debt consolidation or credit counseling are good debt relief options.
- Consumer proposals allow you to keep your house and other assets, subject to the rights of secured creditors.
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Learn How To Rebuild Your Credit After Chapter 7 Bankruptcy
Updated By Cara O’Neill, Attorney
Everyone wants to remain debt free after discharging credit card balances, medical bills, and other qualifying debt in Chapter 7 bankruptcy. Enjoy your fresh financial start for years to come by following these tips:
- stay within a budget
- monitor your credit report for errors, and
- learn how to purchase a new car or home relatively shortly after bankruptcy.
If you take control of your finances now, you can be one of the many who prosper following Chapter 7 bankruptcy.
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How Long Does Bankruptcy Take
Filing for bankruptcy does not immediately eliminate your debts when you sign the initial paperwork. Instead, filing just means that you are entering the bankruptcy process. During bankruptcy, your creditors cannot demand payment from you directly, but you will still pay them indirectly through your bankruptcy trustee. Your debts are cancelled only at the discharge of your bankruptcy, which happens some months after you file for bankruptcy and then only if you meet all the bankruptcy duties laid out in your bankruptcy agreement.
The length of time you are in bankruptcy is determined by several factors such as whether you have filed bankruptcy before, your faithfulness in following your bankruptcy duties, and many others. Most of the time, you will be out of debt faster with bankruptcy than with a low-interest debt consolidation loan or a consumer credit counselling program. However, other debt solutions such as debt settlement or a consumer proposal may get you out of debt sooner than a bankruptcy, and certainly with less damage to your credit history.
What Do You Lose And What Can You Keep In Chapter 7 Bankruptcy
If you file for Chapter 7 bankruptcy, you may lose your nonexempt belongings, property that has a lien on it and property you offered as collateral for a loan.
Examples of exempt property based on current federal limits for an individual include:
- A homestead exemption of $25,150
- Up to $4,000 on a vehicle
- Up to $1,700 in jewelry
- Up to $13,400 in personal property, such as books, household items, and clothes
- Funds in tax-exempt retirement accounts, such as a 401 or 403 accounts, and up to $1,362,800 in combined savings in IRAs and Roth IRAs
- Public benefits, such as Social Security, veterans benefits and unemployment
- Up to $2,525 in books and tools of trade
- Alimony and child support
- Certain insurance benefits
- An additional $1,325 in property of your choice, plus up to $12,575 of unused funds from your homestead exemption
Double these amounts if you’re married and file a joint tax return. Keep in mind that states may have different exemptions and limits that you can use when filing bankruptcy. For example, the homestead exemption for a single homeowner living in California starts at $75,000, but is unlimited in some other states.
A trustee can’t take property when its value is less than the exempt amount, which means you may be able to keep your home and vehicle.
A similar scenario could play out with other forms of secured debts, such as an auto loan. However, just because the trustee can’t take and sell these assets doesn’t mean you’ll get to keep them in the long run.
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Why Do Businesses File For Bankruptcy
A myriad of circumstances can render a business unable to repay their debts. What makes bankruptcy different than other possible solutions to this problem is the opportunity to start fresh. The debts you are unable to pay are forgiven, and your creditors are given some degree of compensation.
In other words, any debts you incurred before the filing are eliminated once the bankruptcy case comes to an end.
What Happens Once I File For Bankruptcy
A bankruptcy discharge is the ultimate goal for bankruptcy filings — no matter what type you choose. In a bankruptcy discharge, the debtor is no longer required to pay what they owe on debts covered under the filing. What is discharged depends on the type of bankruptcy that was filed and the determination of the courts.
Its important to note that bankruptcy wont eliminate all debts. Some types of debt including student loans, alimony, child support, and some back taxes cant be discharged in a bankruptcy filing.
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