Will I Lose My Assets If I File Bankruptcy
In some cases you can stand to lose assets when you file bankruptcy. That is why Sapinski Law Office, S.C. will review all of your assets with you before filing your case. If you accurately communicate what you have before you file, everything should be protected.
Almost all my clients who file bankruptcy keep 100 percent of their property. I am able to protect their property in a variety of ways. Through careful use of “exemptions” you can protect your assets.
Exemptions are values or dollar amounts which apply to homes, cars, personal property, retirement accounts, depository accounts, cash, and other types of property. The exemption declares an amount up to which that particular type of property is protected. Through careful and diligent use of these exemptions, Sapinski Law Office, S.C. routinely protects the property of bankruptcy clients.
While you can keep your exempt property, non-exempt property can be seized by a Chapter 7 bankruptcy trustee, liquidated, and used to pay your creditors. Many who find they have un-exempt assets can still keep them if they file Chapter 13. Each state has its own set of laws regarding the use of exemptions.
Under the Wisconsin exemptions, you may keep almost all your property, including:
Other assets that may be shielded from liquidation include pensions, security disability benefits, and personal injury awards. Some states allow you to use the federal exemptions. Wisconsin is one such state.
Complaints Seeking Revocation Of Discharge Will Require Retaining Counsel
Keep in mind that the mere filing of an adversary proceeding seeking to revoke the discharge will require hiring an attorney to answer the allegations of improper conduct. If these allegations are not addressed in a timely fashion, the debtor will lose their discharge by default.
The possibility that a bankruptcy discharge can be revoked highlights the importance of full disclosure to your bankruptcy attorney. You must inform your bankruptcy attorney of all assets and debts in order to ensure that your discharge is not subsequently challenged.
What Are The Time Limits
The type of bankruptcy filed in the previous case determines the time limit between cases. The time starts to run on the date the prior case is filed with the bankruptcy court. The date the discharge was entered doesnât matter.
Chapter 7 bankruptcy â¡ï¸ Chapter 7 bankruptcy: 8 years
This is the longest amount of time between cases required by the Bankruptcy Code. Chapter 7 provides the quickest form of debt relief through a bankruptcy filing and doesnât require the filer to complete a repayment plan before getting their bankruptcy discharge.
Chapter 7 bankruptcy â¡ï¸ Chapter 13 bankruptcy: 4 years
It is possible to file Chapter 13 bankruptcy soon after receiving a Chapter 7 discharge, the filer just wonât be eligible to receive a Chapter 13 discharge in the second case. So, someone who successfully discharges their unsecured debts through Chapter 7 can file a Chapter 13 bankruptcy to pay off tax debts or other types of debt that survived the prior case.
Chapter 13 bankruptcy â¡ï¸ Chapter 7 bankruptcy: 6 years
This waiting period can be waived if you paid back 100% to your unsecured creditors in your Chapter 13 plan and the original case was found to be in good faith. Plus, since a Chapter 13 repayment plan can take up to 5 years to complete before resulting in a discharge, itâs possible to file Chapter 7 bankruptcy about 1 year after receiving a Chapter 13 discharge.
Chapter 13 bankruptcy â¡ï¸ Chapter 13 bankruptcy: 2 years
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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.
How Often Can I File Chapter 7
Bankruptcy can be very useful for a person who finds himself in severe financial distress with considerable debts he is unable to repay. Chapter 7 is often referred to as a total liquidation bankruptcy, although, in fact, not all debts are always dismissed through a Chapter 7. If you believe that bankruptcy is right for you, it is important that you work with a Bryan bankruptcy attorney who can represent your interests and guide you through the complexities of the process.
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What If You Didn’t Receive A Discharge In The First Case
In most situations, you can file again and receive a discharge in the second bankruptcy if you didn’t receive one in the first matter. But that’s not always the case. Also, you lose the full benefits of the automatic staythe order that stops creditors from collectingwhen you file multiple bankruptcies in quick succession.
The court dismissed the first case
- Unless the court orders otherwise, you can file again. A 180-day waiting period may apply if you failed to obey a court order or appear in the case, or you voluntarily dismissed the case after a creditor filed a motion for relief from the bankruptcy stay.
The court denied your discharge
- You might be able to file again, but you probably won’t be entitled to a discharge of the debts listed in your first case. This is another unusual circumstance wherein you would be wise to seek the advice of an experienced bankruptcy lawyer.
Can I Get A Credit Card After Bankruptcy
Yes, there are several options available. While technically not a credit card you could use a bank or debit card to perform activities for which you normally would use a credit card. You also may be able to keep the credit card you already have if the creditor grants approval. If these options do not work you can get secured credit card which is backed by your own bank account.
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If You Previously Filed Chapter 7
If you have already received a Chapter 7 discharge, you must wait at least eight years from the date on which you filed the previous claim before you can file for Chapter 7 again.
However, you only need to wait four years after the filing date of the Chapter 7 case to file for Chapter 13 bankruptcy. While it might seem like a bad idea to file for bankruptcy twice in four years, this is one circumstance in which it might be helpful to do so. You can use the restructuring processes of Chapter 13 to develop a repayment plan that helps you catch up on missed payments and other high-priority debts that could not be discharged when you filed for Chapter 7.
The process of filing for Chapter 13 bankruptcy after a Chapter 7 discharge is often referred to as a Chapter 20 bankruptcy.
Can I File For Bankruptcy Twice
Chapter 7 Bankruptcy-If you have previously filed a Chapter 7 bankruptcy and received a discharge in your previous case then you can file for bankruptcy again and you can be entitled to another discharge in the following situations:
- Chapter 7 Bankruptcy If you need to file for Chapter 7 Bankruptcy after you have filed a previous Chapter 7 bankruptcy and received a discharge then you need to wait 8 years from the date you filed your previous Chapter 7 bankruptcy. If you file prior to the 8 years, then you will be denied a discharge. If you are denied a discharge, then you will still be legally responsible for your debts. You start to count the 8 years from the date you filed your previous Chapter 7 bankruptcy. If you filed your previous Chapter 7 bankruptcy in July of 2000, then you are eligible to file again and get a discharge in July 2008.
Chapter 13 Bankruptcy If you have previously filed a Chapter 13 bankruptcy and you received a discharge in your previous Chapter 13 bankruptcy then there are time limits for filing another Chapter 13 or Chapter 7 bankruptcy. You can file for bankruptcy again, but there are time limits in order for you to obtain a full discharge of your debts.
Filing Under The Same Bankruptcy Chapter: Chapter 7 And Chapter 13
Here are the timeframes if you plan to file the same bankruptcy chapter that you filed the first time:
Successive Chapter 7 cases
- You’ll have to wait eight years after the first Chapter 7 case filing date before filing the second case.
Successive Chapter 13 cases
- Two years must elapse between filing dates before you’ll be entitled to receive a second Chapter 13 discharge.
When A Second Filing Might Be Beneficial Even Without A Discharge
Sometimes you don’t need a dischargeyou need time to pay off a debt. For instance, suppose that you owed federal taxes that you couldn’t discharge in bankruptcy, and you could not work out a reasonable payment plan. Rather than have your wages garnished, you could file for Chapter 13 bankruptcy and stretch out the payments over a five-year Chapter 13 bankruptcy payment plan.
A similar approach is to file a Chapter 13 case immediately after receiving a Chapter 7 discharge . Again, all you might need is time to pay off nondischargeable debts, such as domestic support arrearagesnot a discharge.
However, not all courts allow the process, and it can be tricky to qualify for a Chapter 7 bankruptcy and then demonstrate that you have sufficient available income to pay into a Chapter 13 plan. It’s possible, though, after taking into account the debts wiped out. In any case, it would be wise to consult with a local bankruptcy lawyer before attempting to go this route.
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The Law Offices Of Kretzer And Volberding Pc Can Help With Your Bankruptcy Case
When you are trying to figure out whether or not to file for bankruptcy and which type of bankruptcy is best for you, you will need a lawyer with specific experience on bankruptcy in Texas and who has the right knowledge and resources to help you.
Contact the Law Offices of Kretzer and Volberding P.C. today to briefly discuss your case or schedule a free consultation.
Exceptions To The Rules
There are exceptions to the guidelines above, however. For example, time requirements may be reduced if you paid 100 percent of unsecured claims in your Chapter 12 or 13 bankruptcies. On the other hand, Chapter 11 and 12 guidelines might not be as easy and straightforward as stated above if you violated a court order or had a case dismissed during the 180 days preceding your bankruptcy filing. In either of these situations, you may not immediately qualify for another discharge.
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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.
Where Do I File If I Havent Lived In The Same State Or District For The Last Six Months
Federal Law requires that the case should be filed where the debtor has lived for the one hundred and eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period. 28 U.S.C. sec 1408. This means that the case should be filed in the bankruptcy district in which the debtor has lived for the greatest portion of the last six months.
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Here’s How Bankruptcies Impact Your Credit Score
While bankruptcies on your credit report will always get factored into your credit score for as long as they are on there, the impact on your score lessens with each year that passes. So, you may see a dramatic drop in your score in the first month immediately following your bankruptcy filing, but by the end of the first year it could have less weight, and certainly less in later years compared to year one.
Your own credit profile will also play a part in how much your credit score is affected when you declare bankruptcy. Similar to how having a higher credit score can ding your more points if you miss a credit card payment, so, too, is the case if you file for bankruptcy. According to FICO, someone with good credit may experience a bigger drop in their score when a bankruptcy appears on their report than someone with an already poor credit score.
Estimates we found online from places like Debt.org show how people with different credit scores would be impacted by a bankruptcy filing. Someone with a credit score of 780 or above would be dinged between 200 and 240 points, while someone with a 680 score would lose 130 to 150 points.
Whatever the case, no one really benefits from filing for bankruptcy. It’s an option of last resort that sometimes even those with good credit find themselves making.
Get Another Chance At The American Dream
Life is full of chances. Some chances taken work out and lead you exactly where you had hoped. Others lead the opposite direction and can end in seemingly insurmountable personal and financial challenges. Part of the American Dream and the foundation on which capitalism is built has to do with ordinary people taking extraordinary chances on success.
Our attorney at Kingcade Garcia McMaken has worked to help people file second and even third bankruptcies under Chapter 7 and Chapter 13. This is your right under state and federal law, and we are proud to help you take action to protect those rights.
We guide you through the process, make sure you are aware of the consequences, and help you rebuild a pathway to success.
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From Chapter 13 To Chapter 7 Bankruptcy
If you received a discharge in a previous Chapter 13 bankruptcy, you must wait six years from the date the Chapter 13 was filed before you can file a Chapter 7 bankruptcy and receive a discharge. However, there are two little-known exceptions to this general rule. If you paid back 100% of your unsecured creditors you can immediately file a Chapter 7 bankruptcy. In addition, you can file a Chapter 7 bankruptcy immediately after Chapter 13 bankruptcy discharge in certain cases. If you paid back 70% of your unsecured debts, your plan was proposed in good faith and you used your best effort to pay your debt.
How Often Can You File Bankruptcy In Wisconsin
If you already filed Chapter 7 bankruptcy and received a discharge, you will need to wait8 years before filing for the second time. The 8 year time period begins from the filing date of your previous case.
If you already filed Chapter 13 bankruptcy, received a discharge, and are now looking to file a Chapter 7, you normally will need to wait6 years from the filing date of your Chapter 13 case. This 6 year rule won’t apply if your Chapter 13 plan paid at least 70% to your unsecured creditors in the prior case.
If you already filed Chapter 13 bankruptcy and received a discharge and want to file a second time, you are required to wait2 years from the date when you originally filed Chapter 13.
If you already filed Chapter 7 bankruptcy and received a discharge and want to file for Chapter 13 you can re-file under Chapter 13 at any time. However, you will only get a discharge in the Chapter 13 case if it is filed at least4 years after the date your previous Chapter 7 case was filed.
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What Is Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows you to become debt-free through whats often referred to as a liquidation process. When using this approach, your debt is discharged and your nonexempt property is typically sold with the proceeds distributed to creditors.
Though it varies by state of residency, personal possessions that may be considered nonexempt and thus sold to cover your debts could include your home, pension, car, personal belongings, coin collection and even jewelry. Each state has a set of its own exemptions, and in some cases, youre allowed to choose between your state exemptions and federal bankruptcy exemptions laid out by Congress.