Schedule E/f: Creditors Who Have Unsecured Claims
Schedule E/F is where you list all of your remaining debts, such as credit card bills, personal loans, medical bills, and other debt that doesn’t belong on Schedule D. You also list claims which are not dischargeable in bankruptcy, called “priority claims.” Common examples include certain taxes and domestic support obligations, such as alimony or child support.
Schedule E/F contains instructions regarding which types of debt are considered priority debts. If you believe that only a certain amount of the creditor’s claim is entitled to priority, disclose the entire claim but list the portion not entitled to priority in the appropriate column.
Make Sure to List All Remaining Debts
You must disclose all of your debts in your bankruptcy schedules even if you want to repay them. If you forget to list a debt, it may not get discharged in your bankruptcy. This means you should carefully review all of your debts to make sure they are included. It is typically a good idea to obtain a copy of your credit report and compare it against your other bills so that you don’t miss anything.
Deficiency Balances After Foreclosure or Repossession
Why Choose Our Law Firm
You have one chance to get it right when filing bankruptcy. Do not risk it to an inexperienced lawyer. With years of legal experience, we have what it takes to properly represent you.
Do not sacrifice experience for cheap representation. We will work with you to create an affordable bankruptcy plan based on your individual needs.
Sometimes you can’t afford to wait. When garnishments or levies are leaving you in a tight spot, we will act fast to help get you the relief you need.
Speak to Lawyers
This is a critical time for you. You don’t want to be passed off to an office assistant. You will develop an important relationship with our law firm as we guide you through the Bankruptcy process.
With experience comes results. We will deliver on our promises and represent your best interests at all times.
“In the eyes of the law you are innocent until proven guilty. Criminal law requires the authorities to prove that you are in fact guilty as charged. This is why you need an attorney from Salvador Phillips, who have the experience needed during this critical time. Call Now and We Will Fight For You.”
Is There More Than One Kind Of Bankruptcy
Yes. For individuals, there are two main types of bankruptcies that can be filed: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 cases are also referred to as “liquidation” cases, while Chapter 13 cases are commonly referred to as “debt adjustment” or “wage earner” cases. Individuals may also be eligible for a Chapter 11 bankruptcy, which allows the debtor to propose a plan for reorganization to pay creditors overtime, but Chapter 11 is normally used to reorganize a business. Farmers and fisherman can also file a separate type of bankruptcy available only to farmers under Chapter 12. The word “Chapter” is simply a reference to a chapter number in the Bankruptcy Code.
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Federal Loans And Hardship
Your student loan holder may choose not to oppose your petition to have your loans discharged in bankruptcy court if it believes your circumstances constitute undue hardship. Even if your loan holder doesn’t, it may still choose not to oppose your petition after evaluating the cost of undue hardship litigation.
For federal loans, the Department of Education allows a loan holder to accept an undue hardship claim if the costs to pursue the litigation exceed one-third of the total amount owed on the loan . Private student lenders are likely to apply similar logic.
What Can A Chapter 7 Bankruptcy Do
A Chapter 7 bankruptcy CAN:
- Stop foreclosure of your home and allow you to catch up on missed payments.
- Stop repossession of a car or other property, or, in some situations, force the creditor to return property even after it has been repossessed.
- Stop debt collection harassment.
- Restore or prevent termination of your utilities for nonpayment of previous bills.
- Restore your drivers license if it was suspended because you failed to pay court-ordered damages for a driving accident .
- Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts.
After Filing: Attend Personal Financial Management Counseling
Before receiving a bankruptcy discharge, you must attend a course about financial management with an agency approved by the U.S. Trustee’s office. This is different from the credit counseling course you attended before filing.
You will receive a certificate to file with the bankruptcy court upon completion. This requirement is necessary for the fulfillment of bankruptcy.
Take Bankruptcy Course 2
After filing your bankruptcy forms, you will need to complete a Debtor Education Course from an approved credit counseling agency. It can be completed online or by phone and typically takes at least 2 hours and costs between $10 – $50, unless youâre eligible for a waiver.
The purpose of the course is to educate you on making smart financial decisions going forward but does not provide legal advice about the bankruptcy process. Youâll learn how to prepare a budget and avoid incurring debt with high interest rates.
Youâre not eligible to receive your bankruptcy discharge and obtain a fresh start if you donât complete the course and file your certificate of completion from the credit counseling agency with the court.
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How Much Does Chapter 7 Bankruptcy Cost
If you dont hire an attorney, the total cost for filing Chapter 7 is $338, broken down this way:
- $245 filing fee, the cost for the court to handle your paperwork and case after you take it to the bankruptcy court and file it in person.
- $78 administrative fee. Somebody has to pay the clerks and other court employees.
- $15 trustee surcharge. Its the government, right?
The good news: Those who qualify may file for free, with all bankruptcy filing fees waived. The bad news: Qualifying means not only are you in debt, your income is really low.
Those whose household income is less than 150% of the federal poverty level qualify to have fees waived. To become eligible for the fee waiver, you must file Form 103B Application to Have the Chapter 7 Filing Fee Waived and its wise to include it when you file bankruptcy. This form requires you to certify your income, and that you cannot even afford to make installment payments. Filing the form along with your bankruptcy filing takes care of everything at once.
Fees for the two required courses one before filing on pre-bankruptcy credit counseling and the other, after filing, focused on financial management are not high. The courses are run by agencies outside the court, many of which are nonprofit typically the cost for both should never be more than $50. But if you cant afford even that, you can ask the agency or organization for a waiver of the fees.
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.
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Western District Of New York Requirements
The Western District of New York is one of the few districts in the nation that requires people filing Chapter 7 bankruptcy in New York without an attorney to provide the court three full copies of all bankruptcy forms in addition to the original signed forms upon filing their case. It has offices in Buffalo and Rochester but holds 341 meetings in a variety of locations within the district. If you have to update any information in your forms by filing an amendment, make sure to file this coversheet along with the amended documents, and follow the instructions regarding service on the bottom of the form.
Make Sure You Are Eligible
Most people must take and pass the means test before qualifying for a discharge in Chapter 7 bankruptcy . If your average gross income during the six months before you file is more than the median income for a family of your size in your state, you qualify. If not, you’ll subtract allowed expenses from your income to determine whether you’ll be allowed to use Chapter 7 bankruptcy.
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What Are The Reasons A Person Would File A Chapter 13 Case Instead Of A Chapter 7 Case
There are a few advantages to filing a Chapter 13 case over a Chapter 7 case that you should keep in mind if you are considering bankruptcy. For example, you might have more equity in your home than can be protected by the exemption for real estate in a Chapter 7 case. Filing for Chapter 13 bankruptcy automatically stays a foreclosure proceeding, giving you time to incorporate into your plan a way to cure your delinquent mortgage payments that could allow you to keep your home. Furthermore, Chapter 13 bankruptcy has a special automatic stay provision that prohibits collection actions against co-debtors for consumer debt. Also, whereas you are required to surrender all your nonexempt assets for distribution under Chapter 7, so long as you successfully complete all the payments under your Chapter 13 plan, your nonexempt assets are protected and do not have to be turned over to creditors. Before filing for bankruptcy, you should contact an experienced bankruptcy attorney, who can conduct a means test to determine your eligibility to file a Chapter 7 or Chapter 13 bankruptcy.
How Do You File Chapter 7 Bankruptcy
You can probably complete the process within six months. You’ll have to follow several steps.
You must complete pre-file bankruptcy counseling from a qualified nonprofit credit counseling agency within 180 days before filing.
Find an attorney:Before diving into the various forms required to file Chapter 7, find a qualified bankruptcy attorney to help. Its hard to find money for a lawyer when you need debt relief, but this is not a DIY situation. Missing or improperly completed paperwork can lead to your case being thrown out or not having some debts dismissed.
File paperwork: Your attorney will help with filing your petition and other paperwork. But its on you to gather all relevant documentation of your assets, income and debts. An automatic stay goes into effect at this point, meaning that most creditors cannot sue you, garnish your wages or contact you for payment.
Trustee takes over: Once your petition is filed, a court-appointed bankruptcy trustee will begin managing the process.
Meeting of creditors: The trustee will arrange a meeting between you, your lawyer and your creditors. Youll have to answer questions from the trustee and creditors about your bankruptcy forms and finances.
Your eligibility is determined: After reviewing your paperwork, the trustee will confirm whether youre eligible for Chapter 7.
Education course: Before your case is discharged, youll have to take a financial education course from a qualified nonprofit credit counseling agency.
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The Totality Of Circumstances Test
A few states use the “totality of the circumstances” test. It might seem that this is an easier standard to meet because it doesn’t consider whether youve made a good-faith effort to repay your loans, such as consistent attempts to obtain employment, maximize income, and minimize expenses. However, the totality of the circumstances test also includes an any other relevant facts and circumstances component that could be broadly interpreted.
Under either standard, the bar to clear is high, especially for federal student loans, for which the government specifically states that the burden of proof is on the debtor to prove undue hardship.
Bankruptcy Ilas Idaho Legal Aid Services Inc
Filing for Bankruptcy Without an Attorney Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent
The provisions of the Bankruptcy Code are complicated. It is advisable for businesses and individuals to consult with an attorney before filing a bankruptcy
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Student Loans In Chapter 7 Bankruptcy
Student loans are not dischargeable in Chapter 7 bankruptcy unless the debtor can demonstrate that loan payments impose undue hardship. To eliminate a student loan under the undue hardship exception, the debtor must file a separate motion with the bankruptcy court and appear before the bankruptcy judge with evidence of hardship. As a practical matter, it is difficult for bankruptcy debtors to demonstrate undue hardship unless the debtor is physically unable to work.
Most bankruptcy courts use the Brunner test in determining hardship. Under this test, to discharge student loans in bankruptcy, the debtor must show:
How To Remove Items From Your Credit Report In 2021
Weve outlined how to remove negative items from your credit report, the paid services you can opt to use, and additional information to have on hand. It is important to clarify that only incorrect items can be removed. If youve done this already, but your credit score is still low, you will need to repair bad credit over time. Although accurate items cannot be removed by you or anyone else, there are still many credit report errors that can damage your score, and these are worth looking out for.
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When You Cant Afford To Go Bankrupt Propublica
Mar 2, 2018 People who hire lawyers to help them file under Chapter 7 have their debts wiped away almost without fail, national filing data shows.
It is certainly possible to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy without an attorney. After all, there is no legal obligation for you to Rating: 5 · 44 votes
Can I file bankruptcy without an attorney? Yes the United States bankruptcy law allows you to file for bankruptcy without an attorney. This is called a Pro Se
Aug 6, 2021 Chapter 7 bankruptcy erases most unsecured debts, that is, debts without collateral, like medical bills, credit card debt and personal loans
Attend A Financial Management Course
The list of approved debt education courses is available at the Department of Justice website. InCharge Debt Solutions is an approved agency with our own online bankruptcy course. The course must be completed within 45 days of meeting with your trustee and creditors.
Lieberman said anyone considering bankruptcy should take the important first step of using an internet search engine to find the bankruptcy court for their area. Each site has a plethora of information for consumers and filers.
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Choosing Between The Different Types Of Bankruptcy
To know which bankruptcy case is the best choice for you, it helps to ask the following questions:
- Are most of your financial problems medical debts and credit card debts?
- Are you behind on home mortgage or car payments and wish to make these up?
- Do you have a co-signer on any account in arrears, and do you want to have them protected while I pay off what I owe and clear the co-signed debt?
- Do your debts include child support, student loans, or recent taxes that most likely cannot be discharged by Chapter 7, but paying off what is owed from other lender types would help wipe off these debts?
Those who wish to file for bankruptcy must be familiar with its essential requirements. In general, no bankruptcy petition must have been filed in recent years, and none has been filed and dismissed in the last 180 days, mainly because of failure to appear or comply with orders from the court. If you are declaring bankruptcy under Chapter 13, your total unsecured debt must be below $394,725, while your total secured debt must be below $1,184,200.
Appointment Of Bankruptcy Trustee
Once your case is filed you are appointed a bankruptcy trustee. They handle the paperwork, questions, and monitor your case from beginning to end.
Your trustee must, by law, make you aware of the possible bad outcomes that can happen. They should tell you that:
- You cannot file Chapter 13 for four years
- Your credit score will decline after the bankruptcy discharge
You will be told about these risks at or before the meeting of the creditors . Ask questions if you do not understand one of the topics.
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Chapter 7 Bankruptcy Lawyer: Why Should You File Chapter 7 Bankruptcy
If you are struggling with credit card debt and medical debt, chapter 7 bankruptcy may be right for you. If you were recently unemployed and want to clear your debt for a fresh start, then you may want to explore chapter 7 bankruptcy as a tool for debt relief.
Chapter 7 Bankruptcy lawyer can assist you with any of the following matters:
1. You were laid off due to the Coronavirus shut-down.
2. You lost your job or business opportunity.
3. You were sick, disabled, or hospitalized even for a short time.
4. Hospital and medical bills are through the roof.
5. You are working but your debts keep piling on.
6. Credit card interest rates are ridiculously high and are killing you.
7. Your monthly payments overwhelm you.
8. You cannot curb your spending habits & get thrills receiving packages.
9. You have tried debt-consolidation companies but they are a rip-off.
10. You want to pay off your debts but why sacrifice for 3 years or more.
11. Taking care of your familys needs comes first.
12. You do not know how you got to be financially upside-down.
13. You were trying to keep up with the Joneses but they moved on.
14. You were trying to keep up with the Joneses but you moved on.
15. You are stressed out most of the time.