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How To File Personal Bankruptcies

Filers In Alabama And North Carolina

How Can I File Bankruptcy if I Have No Money

By law, the U.S. Trustee Program does not operate in Alabama and North Carolina in these states, Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers. The following is a list of Bankruptcy Administrator approved providers in Alabama and North Carolina.

Negotiate With Your Lenders

Whatever form of debt you hold, its possible to negotiate with your creditors. You might be able to get a one-month extension on your car payment, have some of your interest-only credit card debt forgiven or obtain a mortgage modification.

I would always advise trying to negotiate with your creditors directly first before just filing for bankruptcy, Tannery said. Because you may be able to gain the result you need without having to use the bankruptcy court.

Approval Process For Credit Counseling And Debtor Education Courses

In Alabama and North Carolina, the bankruptcy administrator approves credit counseling and debtor education providers. Lists of approved providers for the six judicial districts in Alabama and North Carolina are maintained by the bankruptcy administrator for that district or bankruptcy court.

An entity seeking to become an authorized credit counseling or debtor education provider in Alabama or North Carolina must go through an application process administered by the bankruptcy administrator for that district.

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How Will My Spouse Be Affected

One of the most common questions trustees are asked is how a bankruptcy will affect a husband or wife.

Your spouse, whether common-law or married, will not be affected by your bankruptcy if he or she is not responsible for any of your debt .

If your spouse is responsible for any of your debt or has his or her own debt, then your spouse may also have to file for bankruptcy.

Your spouse’s income will come into play when the calculation is made on the monthly payments that are required to be paid into the bankruptcy estate.

Here is an example:

Bankrupt’s income = $2,600Spouse’s income: = $1,000Total: $3,600Monthly surplus income calculation per 2015 Superintendent’s standards at 50% = $201.50Percentage of bankrupt’s income of the family income isx 100 = 72.2%$201.50 x 72.2% = $146

In this example, the bankrupt is required to pay $146 per month into the bankruptcy estate.

If the spouse not filing bankruptcy decides to not divulge their income to the trustee, the following payment would be required to the bankruptcy estate:

$2,600 – $1.598.50 = $1,001.5at 50% = $501 a month

Submit Documents To The Chapter 7 Bankruptcy Trustee

Tips On Filing For Personal Bankruptcy

You’ll prove the accuracy of your bankruptcy petition information by providing the Chapter 7 trustee appointed to your case with financial documents. You can find out why the trustee will want bank statements, paycheck stubs, profit and loss statements, tax returns, and more by reading about the financial paperwork needed for proof in bankruptcy.

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File Your Forms With The Pennsylvania Bankruptcy Court

There are three districts in Pennsylvania: the Western, Middle, and Eastern Districts. Attorneys use the federal courtsâ Electronic Court Filing System to file documents electronically.

Usually, all other filers must file paper copies of their documents. You can either hand-deliver the documents to the court or mail them in. Hereâs the Eastern Districtâs mailing address and the Western Districtâs mailing address. If you file in person, you must show your picture ID to the clerk when you file your documents. During the COVID-19 pandemic, however, the Middle District and Western District bankruptcy courts have adopted an electronic filing system for all users to file their documents electronically.

Types Of Bankruptcy Filings

Chapter 7: Liquidation

Chapter 7 is designed for individuals and businesses experiencing financial difficulty that do not have the ability to pay their existing debts. Under Chapter 7 a trustee takes possession of all of your property. You may claim certain property as exempt under governing law. A bankruptcy trustee then liquidates all non-exempt property and uses the proceeds to pay your creditors according to a distribution scheme required by the Bankruptcy Code.

The main purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. A bankruptcy discharge is a court order releasing you from liability for many types of debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the court and the purpose for which you filed the bankruptcy petition will be defeated.

Even if you receive a discharge, there are some debts which are not discharged under the law. These include certain types of taxes, student loans, alimony and child support payments, debts fraudulently incurred, debts for willful and malicious injury to a person or property, and debts arising from a drunk driving charge. Generally speaking, a bankruptcy discharge does not remove liens from your property.

Chapter 11: Reorganization

Chapter 11 is designed for the reorganization of a business. It is also available to individual debtors who exceed the thresholds for Chapter 13 bankruptcies.

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What Happens When You File Chapter 13

If you can’t file a Chapter 7 bankruptcy, or if you have some money to pay creditors and there are assets that you want to keep, a Chapter 13 bankruptcy may be an option for you. In a Chapter 13 bankruptcy, you will:

  • Develop a plan for making payments to your creditors over a three-to-five-year period, depending on your income
  • Make all of your payments on time to said creditors
  • Complete a budget counseling course

After these milestones are complete, the remainder of your debt that is eligible for discharge will be erased.

Chapter 13 is a good option for someone with a steady income who has some money left over every month to make debt payments but who needs some breathing room and extra time to get caught up.

Which Of My Debts Are Not Discharged In Chapter 7

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While a discharge relives you of your obligations to pay most of your debts, not all debts are dischargeable in a Chapter 7 bankruptcy. Nondischargeable debts include, for example, alimony and child support obligations, certain taxes and fines, certain education loans, debts for death or personal injury caused by the debtor’s operation of a vehicle while intoxicated from alcohol or other substances, and debts you fail to disclose properly to the bankruptcy court when filing your petition. Some debts that are typically dischargeable can be excluded from discharge if the specific creditor requests that the bankruptcy court declare the debt nondischargeable. These debts include debts for money or property obtained by false pretenses and debts for willful and malicious injury by the debtor to another entity or to the property of another entity. If the bankruptcy judge grants the creditor’s request, the debt owed to that creditor will not be discharged.

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Determining The Best Way To Get Out Of Debt

If you are considering claiming bankruptcy, the first thing you should do is to contact your local Bankruptcy Canada Licensed Insolvency Trustee to speak about your available options to get out of debt.

Our friendly insolvency team will help you determine the best way for you to get out of debt.

In some cases, filing for bankruptcy will be the best option and if so, we will help you understand the entire process of going bankrupt.

In other cases, we can help you explore other debt solutions that will work better for you.

What Are Consumer Debts And Why Are They Important In Personal Bankruptcy Cases

The Bankruptcy Code defines consumer debts as the debt accrued by an individual for personal or household purposes. Certain elements of the Bankruptcy Code are only applicable to individuals with consumer debts. Debts incurred for a business, trade, or profession are not considered to be consumer debt.

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Whats The Difference Between Chapter 7 And Chapter 13 Bankruptcy

The major difference is time Chapter 7 takes 4-6 months Chapter 13 takes 3-5 years and money. You can have most, or all your unsecured debt discharged in Chapter 7 bankruptcy. In Chapter 13, some of your debt is forgiven, but only if you meet the conditions approved by the trustee and bankruptcy judge.

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How To File For Bankruptcy: A Step

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Bankruptcy is governed by the United States Bankruptcy Code, a federal statute, so the process is very similar in any of the 90 federal bankruptcy courts nationwide. However, there may be local variations, and every case is different, so this guide serves as only a general outline of the bankruptcy process.

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Hire An Attorney Or Go Pro Se

The last thing anyone facing bankruptcy wants is another bill. And hiring a bankruptcy attorney isnt cheap. It can cost thousands for a Chapter 7 filing and even more for a Chapter 13 filing. Costs can vary depending on where youre filing and your cases complexity.

However, its possible to get an initial consultation with an attorney for no charge. You may get valuable information from an hour-long talk, including whether or not youre a good candidate for bankruptcy.

Less-costly legal help is available. Check with your state bar association, American Bar Association or local legal aid clinic to find out about affordable or even free attorneys to assist with your bankruptcy. If you are unable to afford an attorney, you may qualify for free legal assistance.

Representing yourself, known as going pro se, is another option. Despite the potential costs, odds are you will be happier using an attorney. About one in nine Chapter 7 cases are pro se, according to a 2018 study by the American Bankruptcy Institute. The same study also found that, compared to lawyer-represented filers, pro se filers were nearly 10 times more likely to have their cases dismissed or some debt discharge requests denied. Chapter 13 cases are more complex and benefit even more from professional assistance.

What If I Have Canadian Debt But Am Living In Another Country

Canadians living abroad can go into bankruptcy for their Canadian debt in the following ways:

* They can go bankrupt in their new country of residence.

This will free them of the Canadian debt for as long as they live in that country.

If they return to Canada, that debt will have survived and they will still owe money

* They can re-establish residency in Canada and then go bankrupt in Canada

* They can go bankrupt under Canadian law while still living in their new country of residence if they have property in Canada or they have carried on business in Canada in the preceding year.

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Secured Debts Versus Unsecured Debts

Anyone can file for bankruptcy relief regardless of how small or large their debt is. When you file for bankruptcy, you are required to list all the debts you owe. The court does not consider all debt equally.

It recognizes two types of debtsecured and unsecuredas follows:

  • Secured debts are those where the original loan was backed up with property or collateral. Common secured debt includes a mortgage or vehicle loan.
  • Unsecured debts are those where the original loan was offered based solely on your credit. These typically include credit cards, medical bills, and other bank loans.

Your bankruptcy lawyer will explain how the court weighs each type of debt. He will also clarify which debts are dischargeable depending on the bankruptcy chapter you choose.

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If I File Bankruptcy How Will It Affect My Future Credit And My Job

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Different people have different experiences obtaining credit after they file for bankruptcy. As a general rule, most people find it more difficult to obtain long-term credit, such as a home mortgage, shortly after a bankruptcy has been filed. For other types of credit, however, experiences vary depending on other factors. The Bankruptcy Code prohibits your employer from discharging you or discriminating against you solely because you have filed a bankruptcy case. A bankruptcy can remain on your credit report for up to 10 years, but many people are able to raise their credit score to a relatively good level within a few years after bankruptcy.

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Could Other Debt Alternatives Provide Relief

A legal process, filing for bankruptcy can help reduce the majority of your debts. It is regulated by the Bankruptcy and Insolvency Act. First, you must contact your nearest MNP LTD Licensed Insolvency Trustee, who will go over and explain your options based on your overall financial situation. In many cases, people find declaring Bankruptcy is not required for their financial situation instead, they follow one of the alternative solutions we offer.

Do I Have To Sell My House

Texas homeowners can exempt a maximum amount of their primary residence from tax, provided they do not have any restrictions on acreage or residency. It depends on whether you are doing a Chapter 7 bankruptcy or Chapter 13 bankruptcy, how much equity your home has and if you have enough disposable income to pay your mortgage payments.

If you are current with your mortgage payments and have little equity in your home, you can keep it. However, if your home equity is greater than the amount allowed by a state , your home could be sold to gain access to that equity and pay creditors. Chapter 13 cases are filed by people who own equity in their homes and want to retain it.

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It Gives You A Fresh Start

When you declare personal bankruptcy in Canada you will receive an Automatic Stay of Proceedings which prevents your creditors from taking collection action to collect their debts.

Collection agencies will stop calling.

Wage garnishments will stop and interest of your debts stop accruing.

When you receive your bankruptcy discharge all your eligible debts will be erased.

As a legal process under the BIA, personal bankruptcy will eliminate most of your debts and the bankruptcy process will give you a fresh start and allow you to rebuild your credit.

How Do I Know When To File For Bankruptcy

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On Behalf of Goldman & Beslow, LLC Attorneys At Law | Sep 23, 2022 | chapter 13, chapter 7 |

Knowing when, or if, to file for bankruptcy is a tricky and highly emotional decision. Even if its through no fault of your own, bankruptcy seems like running into a brick wall of failure.

Logically, you know bankruptcy is common, especially in the era we live in, but when it gets personal you can lose perspective. As such, some people dont recognize it when the moment arrives, others think they should when they cant.

Theres actually one, top-line sign that you should file for bankruptcy: If it will unquestionably improve your life. But the devil is in the details.

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How To File For Bankruptcy

Youve decided to file for bankruptcy after exploring other options. You see filing for bankruptcy as the practical lifeline it can be if handled correctly.

Its as important to know what not to do while filing bankruptcy as it is knowing the proper steps to have a successful bankruptcy filing.

Filing for bankruptcy is a legal process that either reduces, restructures, or eliminates your debts. Whether you get that opportunity is up to the bankruptcy court. You can file for bankruptcy on your own, or you can find a bankruptcy lawyer, which most experts regard as the prudent avenue to pursue.

Bankruptcy costs include attorney fees and filing fees. If you file on your own, you will still be responsible for filing fees. If you cant afford to hire an attorney, you may have options for free legal services. If you need help finding an affordable bankruptcy lawyer or locating free legal services, check with the American Bar Association for resources and information.

Before you file, you must educate yourself on what happens when you file for bankruptcy. Its not simply a matter of telling a judge Im broke! and throwing yourself at the mercy of the court. There is a process a sometimes confusing, sometimes complicated process that individuals and businesses must follow.

The steps for filing bankruptcy are:

You Cant Handle The Impact Bankruptcy Will Have On Your Credit Score

This is a long-term issue to consider. Filing for Chapter 7 bankruptcy will negatively impact your ability to purchase a house, car or start your own business for 10 years. Chapter 13 bankruptcies will impact these actions for seven years.

A bankruptcy flag on your credit history wont make these actions impossible, but it will make them extremely difficult.

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Cost Of Debt Calculator

It makes sense to think that the cost of debt is simply the amount of debt that you owe, right? But this is most often not the case. Unless you paid extra close attention and were extremely diligent, its likely that your debt or loan involves interest collected over time. Until you calculate what that interest will amount to by the time you finish paying off your debt, you wont know what your debt is really costing you. Use this Cost of Debt Calculator to determine exactly how much youll be paying over time.

Meet With The Chapter 7 Bankruptcy Trustee

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The trustee will check identification at the 341 meeting of creditors in Chapter 7 bankruptcyalthough your attorney might do so if it’s a virtual meetingand ask questions about your financial affairs. Creditors can come to the meeting, but they rarely do. However, creditor attendance is up because the virtual meetings required for social distancing are cheaper to attend than in-person meetings.

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