Will The Court Staff Explain The Filing Procedure To Me
To some extent, yes, but it depends on the court.
Some courts are quite willing to help non-attorneys and will give you a packet of information that explains the filing procedure in detail, and in plain English.
Other courts are quite hostile to debtors attempting to represent themselves and will make it a point not to help you at all.
The difference between courts can be dramatic, as evidenced by the wide range of difference between various court websites.
See the court ratings section on this page. The list of courts that get it provide helpful information to non attorneys.
If the staff at your court tells you that they cant offer you any help, you may wish to refer them to the websites of these other bankruptcy courts that manage to provide ample help the general public.
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What Happens To A South Carolina Divorce When A Spouse Files For Bankruptcy
When someone files for bankruptcy, an automatic stay becomes effective and a bankruptcy estate is also created. The estate includes all property of the person filing for bankruptcy . The automatic stay means that all non-criminal legal claims or lawsuits are automatically stayed from moving forward. The family court must wait until the bankruptcy proceedings have concluded or the automatic stay has been properly lifted before it can divide marital property. However, this automatic stay doesnt include legal proceedings for:
Requirement : Asset Value
The final requirement is where things become the most complicated. The Licensed Insolvency Trustee will compare the total value of your assets to your total amount of debt. If the value of the assets you have exceeds your debt, you wont qualify. You must owe more than you can afford to repay if you sold everything.
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Help For New York Residents
Account Resolution Plans are providing a vital lifeline for New York residents who are struggling to keep up with minimum payments, those who have fallen behind, or those who are being forced to use credit cards or personal loans to take care of personal or business expenses.
ARPs are available across a wide range of income levels. No credit approval is required.
Is Child Support Dischargeable In Bankruptcy
Typically, child support obligations cannot be discharged through bankruptcy. Child support obligations might include other types of support as well, such as medical bills or educational expenses for children. This means that even if all of your other debts are discharged in bankruptcy, you will still be responsible for your child support obligations.
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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.
Dealing With Your Car Loan
If you own a car that you still owe on, youâll have to let the bank and the court know what you want to do with it one one of your bankruptcy forms.
If you want to surrender the car to the lender and discharge the debt, you donât have to do anything other than stop making your payments. The bank will either file request with the bankruptcy court to ask permission to retake the car, or wait until your discharge is granted before picking it up.
If you want to keep the car, you can either reaffirm the loan or redeem the car. If youâre reaffirming your loan, the bank will send you a reaffirmation agreement after your case is filed. You have to complete and sign the agreement and return it to the bank within 45 days from your 341 meeting. The bank files the signed agreement with the court for approval.
To redeem the vehicle you have to file a motion with the court and, once granted, buy the car from the bank for its current value. This gets you out of having to pay the amount left on the loan, but payment has to be made in one lump sum.
Filing for bankruptcy takes some preparation. Hiring a good bankruptcy attorney is one way to file. But if you can’t afford the attorney fees to hire one and you need a fresh start, Upsolve may be able to help. If you’re eligible, our free web app will walk you through the process and help you prepare your forms for filing with the court.
Check out the video below â¬ï¸ to see how it works!
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How Does Chapter 7 Bankruptcy Work In South Carolina
For most people, the goal of Chapter 7 bankruptcy is to wipe out as much debt as possible. In legal terms, this is called having your debts âdischarged.â
In exchange for your bankruptcy discharge, you must be willing to turn over any of your property that is not exempt under bankruptcy law. The bankruptcy trustee in charge of your case will liquidate the property to pay as much as possible to your creditors; thatâs why Chapter 7 is often called âliquidation bankruptcy.â
This article covers:
- debts you owe under a divorce or separation agreement
- fines, penalties, or criminal restitution payments, and
- any debts related fraud youâve committed or injuries youâve caused.
In addition, you often canât discharge debts that are âsecuredâ by a particular piece of property. For example, if you have a car loan, the lender may be able to repossess your car. If you have a home loan and canât show that your home is exempt under bankruptcy law, the lender may have the right to foreclose your mortgage.
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Learn The Basics Of Bankruptcy
Bankruptcy is a legal proceeding created to give people a fresh start after financial disasters. If youve explored your alternatives and cant see a way out from under your debt, bankruptcy may be the right solution for you.
There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 can wipe out most of your debts in a matter of months in exchange for giving up all of your property that the bankruptcy law does not protect.
Chapter 13 takes three to five years. During that time, you repay some or all of your debts under a payment plan approved by the bankruptcy court. Itâs often used by people who are behind on mortgage payments and want to use Chapter 13 to catch up. Most folks who file for bankruptcy prefer to file for Chapter 7 if they qualify, because you can get out from under lots of debt in a matter of a few months.
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When Should You File A Consumer Proposal Or Bankruptcy Before Divorce
It is always important to discuss your specific situation with your spouse, Licensed Insolvency Trustee and divorce lawyer, however, here are some reasons why you may want to file bankruptcy before you finalize your divorce:
- You have significant joint debts, and it makes sense for you and your spouse to clear up those debts before finalizing your divorce settlement. It is possible to file a joint bankruptcy or joint consumer proposal to eliminate the unsecured debt for both spouses. Its also typically less costly to file together as opposed to doing it apart. This could also make life easier for both of you in a very difficult time.
- You are being threatened with a wage garnishment or seizure of assets by your creditors. Filing for bankruptcy or a consumer proposal can stop creditor collection actions, while you work to finalize your divorce.
Can Couples File Bankruptcy Together After Divorce
Divorced couples are still allowed to file a joint consumer proposal or joint bankruptcy to get relief from their combined debts. It is not uncommon for separated couples to find themselves no longer able to repay debts they could manage while married. Divorce changed their financial circumstances. Divorce costs can lead to divorce debt and operating two homes can significantly reduce the amount of monthly income available to repay old marital or joint debts.
To determine whether a joint consumer proposal or bankruptcy is the best way to go, both spouses should contact a Licensed Insolvency Trustee to get an assessment of their individual financial obligations.
If you need to file for divorce and bankruptcy, it is very important to talk to a divorce attorney and a Licensed Insolvency Trustee before filing for either one. The decision as to whether to file bankruptcy or divorce first should be made based on whats best for you at the time. If you need further advice about the timing of your bankruptcy vs your divorce, contact us for a free consultation. Were here to help.
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Role Of The Case Trustee
When a chapter 7 petition is filed, the U.S. trustee appoints an impartial case trustee to administer the case and liquidate the debtor’s nonexempt assets. 11 U.S.C. §§;701, 704. If all the debtor’s assets are exempt or subject to valid liens, the trustee will normally file a “no asset” report with the court, and there will be no distribution to unsecured creditors. Most chapter 7 cases involving individual debtors are no asset cases. But if the case appears to be an “asset” case at the outset, unsecured creditors must file their claims with the court within 90 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 3002. A governmental unit, however, has 180 days from the date the case is filed to file a claim. 11 U.S.C. §;502. In the typical no asset chapter 7 case, there is no need for creditors to file proofs of claim because there will be no distribution. If the trustee later recovers assets for distribution to unsecured creditors, the Bankruptcy Court will provide notice to creditors and will allow additional time to file proofs of claim. Although a secured creditor does not need to file a proof of claim in a chapter 7 case to preserve its security interest or lien, there may be other reasons to file a claim. A creditor in a chapter 7 case who has a lien on the debtor’s property should consult an attorney for advice.
The Benefits Of An Automatic Stay Of Proceedings
As soon as the trustee files your paperwork, the Bankruptcy and Insolvency Act guarantees your right to an automatic stay of proceedings. This means that all collection actions and attempts to force repayment are suspended immediately while you go through the legal process of bankruptcy. This includes:
- Collection calls
- Repossession
- Foreclosure
No new enforcement actions can be started, and even current enforcement actions must cease. For example, if you owe back taxes to the Canada Revenue Agency and they are garnishing your wages, the garnishment will stop once you file.
This can give you some welcome breathing room if your wages are being garnished or if youre dealing with threatening calls from collectors.
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Are You Getting A Refund
Refunds that are issued as a result of returns for years prior to the year of bankruptcy are considered to be the property of the estate in bankruptcy. As a result, these refunds will be sent to the trustee. Any refunds issued in relation to returns for years subsequent to the year of bankruptcy will be sent to you, unless the trustee has obtained a court order.
For the year of bankruptcy, any issued refund related to the pre-bankruptcy return will be sent to the trustee. Issued refunds related to the post-bankruptcy return will also be sent to the trustee if your bankruptcy assignment date is July 7, 2008, or later. Post-bankruptcy refunds that are issued for bankruptcies with an assignment date prior to that will be sent to you, unless the trustee has obtained a court order or has provided us with an Authorization and Direction letter.
Filing Bankruptcy As A Partnership
Partnerships are formal arrangements between two or more parties for the management and operation of a business. But technically, a partnership does not exist as a separate legal entity; it simply describes the association of the partners.
In good times, partners share in the profits. In bankruptcy, they may well share in the obligation to satisfy debts. It all hinges on the structure of the partnership.
The partnership that files for Chapter 7 bankruptcy, whatever the setup, is in for a rough ride, resulting in the loss of investments, lawsuits outside bankruptcy court, and the likely collapse of the partnership itself.
Thinking of trying the Chapter 13 reorganization path? Good luck with getting creditors to accept a long, drawn-out partial repayment plan if some combination of the partners has sufficient personal assets to pay off all the partnerships debts. An alert creditor may attempt to move the case into Chapter 7 to recover all its owed, rather than some reduced portion.
Thats the reason most partnership agreements contain a poison pill clause: The moment one partner files for bankruptcy, the business dies, preventing trustees or creditors from suing other partners to recover debts.
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How Do You File For Bankruptcy In Sc
How Do You File For Bankruptcy In Sc. South carolina bankruptcy laws match federal laws and closely reflect the laws of other states. Even if the judge is expecting a document from you, it should be filed with the clerk.
Bankruptcy can also you pay off your automobile loan, restructuring and reducing payments to a more affordable amount. Mahakali caves which becomes better communicate. Please let the clerk know if any emergency situation exists when you file a document. If you are judgment proof and do not have a lot of debts, it could be easier and better for you to allow the creditors to take you to court and obtain a judgment against you instead of filing bankruptcy. If the car is worth substantially more than the exemption, the bankruptcy trustee may sell the vehicle, pay off the car loan with the proceeds, pay you the amount of.
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What Is Newyorkdebtrelieforg
NewYorkDebtRelief.org is a free resource where residents may find help through free do-it-yourself tools. In addition, residents may request a free evaluation and savings analysis to find out which of their bills are eligible for assistance.
We’re here to help you. We’ve served over 1.2 million New York residents since 2009.
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Make Sure You Are Eligible
There are qualifying standards that must be met before you can file for either Chapter 7 or Chapter 13 bankruptcy and it makes sense to do research to see what form of bankruptcy you are eligible for.
To be eligible for Chapter 7 bankruptcy, an individual must pass a means test that determines if their income is at or below the median income for their state. If not, they may have to file additional paperwork or switch to Chapter 13 bankruptcy.
To be eligible for Chapter 13 bankruptcy, an individuals unsecured debt must be less than $419,275 and secured debts of less than $1,257,850.
The Things That Happen Immediately After Filing Bankruptcy
As soon as you file your Chapter 7 bankruptcy, you are given a case number and a bankruptcy trustee is assigned to your case. The bankruptcy trustee will oversee your bankruptcy filing, will review your bankruptcy forms, and may ask for additional documents to verify your information. The trustee will also conduct the meeting of creditors.
Protection from your creditors begins immediately after filing for Chapter 7 or Chapter 13 bankruptcy. This is called the automatic stay. Once you file and the automatic stay takes effect, your creditors are not allowed to take collection action against you.
After you file for bankruptcy protection, your creditors can’t call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt. Wage garnishments must also stop immediately after filing for personal bankruptcy.
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What Is A Claim In A Bankruptcy Case
In the broadest sense, a claim is any right to payment held by a person or company against you and your bankruptcy estate. A claim does not have to be a past due amount but can include an anticipated sum of money, which will come due in the future. In filling out your Schedules, you should include any past, present or future debts as potential claims.
