Is There A Credit Counseling Class For Bankruptcy
Yes, all borrowers are required to take a credit counseling class before filing bankruptcy. The class must be completed within the 180 days immediately preceding the bankruptcy filing. Once the course is complete, the debtor will need to file a statement of compliance with the bankruptcy court. The statement should include either a certificate or a statement that the debtor received the briefing but does not have a certificate. The certificate of completion should be filed along with your petition. If not included, the case may be rejected by the Court.
The class can be done on an individual basis or conducted in a group setting. Most often, borrowers take the class online from the comfort of their homes. You can usually even use a smartphone or tablet to complete the course. Private companies provide the course, you can use any company approved by the court. The fee will vary between class providers but is usually around $10.
Discuss Your Options With A Mortgage Professional
If you do wish to purchase a home, and you have a bankruptcy or consumer proposal in your past, the most important recommendation I have is not to rush into anything. ;Same goes for re-financing a mortgage after bankruptcy. ;Talk to a knowledgeable mortgage professional who is experienced in helping people get a mortgage after;bankruptcy.;;They will help you to understand and evaluate;your options, and figure out which one is best for you.
If youd like to do more reading about credit, check out my articles on Establishing Credit and Repairing Bruised Credit.;; And Im always happy to answer any questions you might have for me, with no obligation.; Please dont hesitate to get in touch with me if youre in the GTA and youd like to talk about your own situation.
I wish you happy home buying!
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Get Your Credit Report Fixed
So, what to do next?
Youve gotten your reports and check them for these errors and youve found one or more of them . No worries, get free help drafting written disputes to your creditors and the bureaus and set your problem up to get fixed as soon as possible!
If it takes a lawsuit to fix it, remember, the law requires that the Credit Bureaus pay the costs and attorneys fees for that .
Youve done the work of going through bankruptcy make sure you get the Fresh Start that you deserve!
More on life after bankruptcy
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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.
Filing Under Different Chapters: The Order Matters
Here are the waiting periods when a second bankruptcy case is a different chapter than the one you received your first discharge in.
Chapter 13 before Chapter 7
- If the court granted your first discharge under Chapter 13 bankruptcy, you’d need to wait six years before filing for a Chapter 7 discharge. You won’t have to wait that long; however, if you paid unsecured creditors in full in the Chapter 13 case, or if you paid at least 70% of the claims, the plan was proposed in good faith and was represented your best effort.
Chapter 7 before Chapter 13
- If the court granted your first discharge under Chapter 7, you’d have to wait four years from the Chapter 7 filing date before filing a Chapter 13 case.
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When Are Multiple Bankruptcy Filings Abusive
The term abusive bankruptcy filing can refer to a Chapter 7 filing that doesn’t meet the means testthe qualification standard that determines a filer’s right to a debt discharge. But it can also describe a case filed by someone who inappropriately uses the bankruptcy process to evade a creditor or buy time in a collection action, such as a foreclosure or lawsuit.
Simply put, the court frowns on debtors who file with no intention of following through with the case. Repeat filers face the consequences for using such tactics, such as a lack of protection from collections or the denial of a discharge.
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Why Was My Bankruptcy Discharge Denied
In most instances, you case will be discharged. Rarely, when a debtor intentionally commits fraud against the creditor, will your discharge be denied. Below are some examples of why you would be denied discharge:
- You are not honest with the court or your trustee about assets, income, debts, or expenses.
- You did not disclose previous bankruptcy cases to the court.
- You attempted to hide assets or did not account for loss of assets .
- You committed fraud against creditors.
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Work Toward Better Debt
To have the best chance of getting a mortgage, youll want a history of different types of debt. After a few months of making payments on your secured credit card, you should apply for an unsecured card so you can show responsibility across multiple credit lines.
Both are a type of revolving debt. Next, you can apply for an installment loan, like a car loan. The key is to buy only what you can afford and pay it off at the end of every month.;
How To File A Motion To Extend The Automatic Stay
If you want to extend the automatic stay, you must file a motion with the court. In your motion, you’ll explain why your previous bankruptcy was dismissed and why the court should extend the stay in your current case. You’ll have to prove that you filed the subsequent bankruptcy in good faith .
The specific procedures for filing a motion to extend the automatic stay depend on the rules in your jurisdiction. But the following are typically the most common steps you must take:
Find and complete the appropriate forms. Each bankruptcy district has forms for specific motions and notices. Check with your local bankruptcy court to find all paperwork related to motions to extend the automatic stay. But be aware that your jurisdiction may not have a standard form to fill out. In that case, you will have to create the motion and declarations. You can find your court’s website using the Federal Court Finder tool.
Obtain a hearing date and file the motion. In most cases, you will need to obtain a hearing date from the court before filing the motion . Keep in mind that the filer must complete the hearing before the stay expires, so typically you must file your motion immediately after filing your case. You’ll tell the court why your first bankruptcy was dismissed and explain why this case is filed in good faith. Then you’ll serve the paperwork on the bankruptcy trustee and your creditors .
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Write A Letter Of Explanation
Your lender takes a careful look at your finances when you apply for a mortgage. Every time a lender issues a mortgage, they take a risk. Lenders need to know that youll make your payments on time every month. Of course, a bankruptcy on your record is a major red flag.
You can increase your chances of getting a mortgage after bankruptcy by writing a letter of explanation. A letter of explanation tells your lender more details about your bankruptcy and why you needed to declare bankruptcy.
You might want to include details on the circumstances that led to your filing and how your financial life has changed since then. Also, explain the steps youve taken to prevent a future bankruptcy as well like paying off debt and building an emergency fund.
A letter of explanation isnt a requirement to get a mortgage after bankruptcy, but it can help your lender see the bigger picture instead of just a set of numbers. Include your letter of explanation with your mortgage application when you request a preapproval.
How Long Can A Creditor Collect From Me After A California Judgment & How Can Bankruptcy Help
When a person stop paying on her unsecured debt like credit cards, usually the creditor will file a lawsuit as an attempt to collect on the debt. ;Once the creditor receives a judgment in its favor at the completion of the lawsuit, the creditor can collect on that judgment for 10 years. ;Before the 10 year expires, the creditor can renew it for another 10 years, and so on. ;With the judgment, the creditor can either obtain;a wage garnishment order;or bank levy order;or record abstract of judgment with the county recorder, placing a lien on the borrower’s real estate in that county .
From time to time, I have clients tell me that they did not expect that their creditors was going to garnished their wages several years or over a decade;after receipt of judgment. You have to reason that if a creditor spend time and money filing a lawsuit to collect on credit card, medical bill, deficiency from car repossession or foreclosure, he or she wants to recoup their cost and debt owed.
Keep in mind that creditors can add costs, attorney’s fees and interests to debts that you owe in a lawsuit. After the lawsuit it completed,;judgment can grow by accruing interests. The statutory interest rate in California is 10%.
For more information, call to schedule a bankruptcy consultation with Muoi Chea, Sacramento CA Bankruptcy Attorney.
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How Will Bankruptcy Affect My Credit Score
Credit scores are based on a multitude of factors. One of the factors that determine the credit score is the amount of debt a person has. Bankruptcy can assist with this by discharging debt a borrower may otherwise be obligated to pay. Another factor is open credit accounts with late payments; these accounts can significantly reduce your credit score. Fortunately, bankruptcy can assist with this aspect as well. If the debt is discharged in bankruptcy, the account should no longer be reported as an open delinquent account. For more information on how bankruptcy affects credit scores and how the score is calculated,
The bankruptcy filing may last on your credit report for a few years. If you completed a Chapter 13 bankruptcy, the filing might remain on your credit report for seven years. On the other hand, Chapter 7 bankruptcy will stay on your credit report for up to 10 years. See MyFico.com.
If bankruptcy is on your credit, it does not mean you will be prevented from acquiring new debt. For instance, the waiting period for a mortgage may be a lot sooner. Many car loan lenders will have no waiting period at all; you may get a loan the very next day. The FHA and Veteranâs Association allows borrowers to qualify for a mortgage in just two years after the discharge. See FHA Regulation 4155.4.
Bankruptcy Court Time Limits For Consumer Bankruptcy
- Chapter 7: To receive another Chapter 7 bankruptcy discharge, you need to wait eight years to file from the date you filed the previous Chapter 7 case.
- Chapter 13: While it takes three to five years to complete a Chapter 13 repayment plan and discharge your case, you are usually able to file again immediately. However, if you want to file sooner, you need to wait two years after the date you initially filed.
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Can You File Amendments After Your Case Is Over
It may be possible to amend documents after your Chapter 7 discharge, but it is a much more complicated process.
If you filed a Chapter 7 no-asset case, meaning you didnât have any property that could be sold, you can generally just send notice of the discharge to any additional creditors.
If you had assets that were sold or redistributed to your creditors, you have to file a motion to reopen your bankruptcy case before you could file an amendment.
Can I File A Michigan Bankruptcy Again
Can I file a Michigan Bankruptcy again is a question we get a lot. ;Even if you have received a Chapter 7 or Chapter 13 discharge in the past, you may be able to file bankruptcy in Michigan again. However, there are certain requirements that must be met in order to receive a discharge. An experienced Detroit bankruptcy attorney; can evaluate your situation to verify if you are qualified.
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Frequency Of Bankruptcy Discharges For Chapter 7 11 12 13
But what happens when you need to file bankruptcy again?
Once you have already filed for Chapter 7 bankruptcy, the bankruptcy court will deny a discharge in a subsequent Chapter 7;case if you already received a discharge in your previous Chapter 7 or Chapter 11 case if it was filed within the last eight years. In simple terms, you can obtain a Chapter 7 bankruptcy discharge every eight years. The eight-year time period starts to run from the date your previous case was filed.
The bankruptcy court will also deny a Chapter 7 discharge if the debtor has previously received a discharge in a Chapter 12 or;Chapter 13 case filed within the last six years unless the debtor meets fairly strict requirements regarding the amount of debt she paid back in her Chapter 13 case. Similarly, a debtor is ineligible for a second discharge under Chapter 13 if he or she received a prior discharge in a Chapter 7, 11, or 12 case filed within four years of the current case or in a Chapter 13 case filed within two years of the current case.
Can I File A Different Chapter Of Bankruptcy
If you filed for one type of bankruptcy and youre interested in filing for a different type, there are still time limits that affect when you can receive a second discharge.
- If you received a Chapter 7 discharge and you now want to file for Chapter 13: You must wait four years from the date you filed the Chapter 7 case to be eligible for a discharge in a Chapter 13 bankruptcy.
- If you received a Chapter 13 discharge and you now want to file for Chapter 7: Typically, you must wait six years from the date you filed the Chapter 13 case before you can file for Chapter 7. However, if before six years you have paid back all your unsecured debts, or paid at least 70% of your unsecured debts , you are able to file for Chapter 7 immediately.
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Is It Bad To File Bankruptcy Twice
Not necessarily. Most people who file twice have worked out a strategy with their bankruptcy attorney to deal with their total financial situation, like in the case of Chapter 20 you just read about. Yes, there will be ramifications on your credit, however, there are also ramification to allowing unpaid debt to just remain out there. Solving your debt problem allows you to move on and get a fresh start.
Filing Chapter 7 After A Chapter 13 Discharge: 6 Years
After a Chapter 13 discharge, the standard waiting time before you can file Chapter 7 is six years from the previous filing date.
The six-year wait can be waived if you paid your unsecured debts in full in your original Chapter 13 case or if you paid at least 70%, your plan was made in good faith and you made your best effort to repay.
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What Other Factors Impact Bankruptcy Length
Bankruptcy Duties
The length of time before a bankruptcy discharge also depends on whether you have completed your;duties under bankruptcy law. Some of the most important duties include:
- Disclose all property in your possession and delivering non-exempt assets to the Licensed Insolvency Trustee
- Surrender all credit cards to the Trustee for cancellation
- Report your household income and monthly expenses to your Trustee
- Make all of your required payments, which include surplus income
- Attend two mandatory credit counselling sessions
You can find a complete list of duties here. Failure to complete them will increase how long you will be bankrupt. If you have any problems in completing your duties, you should speak to your Trustee for advice as soon as possible.
Discharge Opposition
While this is rare, if one of your creditors opposes your bankruptcy discharge, a court hearing will be held. It will then be up to the court to decide whether you will be discharged. If you face this process, it would extend the length of your bankruptcy.
But, as mentioned earlier, if its your third bankruptcy, youre required to go to court to be discharged.
