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Which Bankruptcy Do You Pay Back

How Do You Apply For Ui Benefits

Can You Pay Back Personal Loans Made by Friends Outside of Bankruptcy?

To receive UI benefits, youâll need to file an unemployment claim with the unemployment insurance division of your stateâs department of labor. Each state has an unemployment program. Each state has its own rules about how much unemployment benefits a worker is eligible for, how long the benefits last, and whether the worker is eligible to apply for benefits.

The state government pays the UI benefits to the unemployed workers. The recipient of UI benefits is called a claimant. Typically, claimants are required to have worked for a certain length of time and to have earned a certain wage before they are eligible to receive UI benefits.

Claimants are required to do certain things to keep receiving their benefits. They usually need to certify that they have been job hunting while they are receiving UI benefits. Many of these requirements were placed on hold during the COVID-19 pandemic. Typically, claimants who remain unemployed are granted UI benefits for 26 weeks. This eligibility period was extended during the coronavirus pandemic.

After you apply for unemployment benefits, you will be notified of the full amount of unemployment benefits you can receive. Typically, the benefit amount is paid to you in weekly benefit payments. The benefit amount is based upon a percentage of your earnings. If you receive Social Security, this might affect the amount of UI benefits you will be entitled to receive.

Repayment Assistance For Students With Permanent Disabilities

If you are applying with a disability

If you were confirmed to have a permanent disability when you applied for OSAP while you were a postsecondary student, you do not need any further documentation.

If you were not confirmed as having a permanent disability when you applied for OSAP, you will be required to complete a Verification of Permanent Disability form. You will also need to provide medical documentation to support your permanent disability.

Repayment terms

If you have a permanent disability, you can apply to the debt reduction stage immediately when you enter repayment, without receiving any interest relief as part of stage one.

The governments of Canada and Ontario help borrowers who have permanent disabilities pay off their loans in 10 years.

You can also provide documentation to have your disability-related expenses considered when your affordable monthly payment is calculated. To do this, you must:

  • complete a Repayment Assistance Plan for Borrowers with a Permanent Disability Expenses form from National Student Loans Service Centre
  • provide proof of your expenses and insurance coverage

Keeping Your Home In Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, the court will liquidate most of your unsecured debts thats debt like credit card debt and personal loans, that isnt attached to an asset like a house or a car. Once that debt is out of the way, it should make it easier to make your mortgage payments.

If you cant pay your mortgage after bankruptcy, the result will be the same as not paying it before bankruptcy you eventually will lose your home.

If you know you are going to file for bankruptcy and want to keep your house, you can see if your mortgage lender would work with you on modifying your mortgage agreement in a way that would allow you to catch up on your payments. Do this before you file for bankruptcy. Once you file, the court takes over your assets and its out of your hands.

Here are some of the things that make it more likely your house will be protected if you file for Chapter 7 bankruptcy:

  • You are up to date on mortgage payments
  • All, or most, of your equity is protected with an exemption
  • You owe more on the house than its worth
  • You demonstrate to the court you can make your mortgage payments on time
  • You negotiate with your lender before you file for bankruptcy on a loan modification.

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If You Owe Money To People Or Companies In The Eu

Bankruptcy might not be right for you if you owe money to people or businesses in the EU. These debts might not be covered by bankruptcy.

Your creditors could keep asking you for money, for example by calling you and sending you letters.

If you live in the EU, they could take you to court in the EU.

EU creditors still have to sue here in the UK rather than abroad in the EU, even if they have an existing judgment. The UK will recognise EU judgements entered or started before 31 December 2020.

If you live in the UK but have a home in the EU with a mortgage from an EU lender, the lender could take you to court in the EU.

Which Should I Usechapter 7 Or Chapter 13 Bankruptcy

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Most people who file for bankruptcy choose to use Chapter 7 if they meet the eligibility requirements. Chapter 7 is a popular choice because, unlike Chapter 13, it doesn’t require filers to pay back a portion of their debts. Learn when Chapter 7 bankruptcy is a better choice than Chapter 13.

Chapter 13 will make more sense if you’re behind on your mortgage and want to keep your house. You can repay the missed payments over time using the Chapter 13 repayment plan. You can also force a creditor to allow you to repay nondischargeable debts, like back taxes or support arrearages, over three to five years. Find out more about when you’d use Chapter 13 bankruptcy instead of Chapter 7.

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How To Follow The Repayment Plan

Once your plan is approved, most of your payment interactions should take place with your bankruptcy trustee. This individual is appointed shortly after the initial bankruptcy filing and essentially acts as a go-between for you, the bankruptcy court and your creditors.

Your payment goes to the trustee on the approved schedule , and they are responsible for dividing it among your creditors as detailed in the repayment plan.

Not following through on the plan could complicate your bankruptcy case. Missing or stopping payments could lead to the court dismissing your bankruptcy essentially canceling it. In that case you could end up back where you started, or your bankruptcy could be converted into a Chapter 7 bankruptcy that doesnt allow you to keep certain assets.

To avoid that result, its probably a good idea to put your monthly plan payments on autopay or even a payroll deduction to make sure theyre all made on time.

If you make all payments according to the plan, you will be on the road to repaying your debts by the end of the repayment plan, which can help your chances of earning a bankruptcy discharge.

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  • Downsides To Keeping Your House When Filing For Bankruptcy

    You may desperately want to keep your house, even if youre so deep in debt youre considering filing bankruptcy. Thats understandable it not only has an emotional attachment, but could some day be an asset, even if youre behind on payments now.

    That said, there are some financial downsides to hanging on to your house through a bankruptcy proceeding.

    If you file for Chapter 13 bankruptcy, you have to continue making your monthly mortgage payments, as well as pay what you were behind on. This can be difficult, even if the payment plan that you, the court and your lenders agree to, seems to be doable.

    Almost two-thirds of Chapter 13 bankruptcies fail. Its tough to keep to a payment plan over three to five years, even though modifications are allowed. Those involve going back to court and explaining why you need one. Through it all, you have to keep current on your mortgage payments, as well as all the other payments agreed to in the plan.

    If you file for Chapter 7 and keep your house, you must make the monthly payments. The only hope for a modification, is the bank itself.

    Bankruptcy, obviously, is complicated, and if youre worried about keeping your house, its even more so. If youre asking, Should I file for bankruptcy? your first move should be to talk to a credit counselor.

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    What Is A Chapter 13 Repayment Plan

    Bankruptcy can help you get out from under considerable debt, but not all forms of bankruptcy allow you to keep many of your most important assets along the way. Those with regular income can file a Chapter 13 bankruptcy to help keep key assets like a home or car. In Chapter 13, debts are restructured over a three- or five-year period. If you make regular payments over that time, then some or all of your debts may be discharged.

    The Chapter 13 repayment plan is the legal document that lays out how youll pay back your creditors. It must be drawn up and filed with the bankruptcy court within 14 days of filing the bankruptcy petition , after which the judge and your creditors will have a chance to assess and possibly challenge the plan. If the court ultimately OKs your plan, youll then follow through to pay back your eligible debts.

    Its possible to DIY your own Chapter 13 plan, but the process can be complicated and detail-heavy. Thats why its best to work with a bankruptcy lawyer, who can help make sure your repayment plan meets all requirements for approval.

    If Youre Having Trouble With Your Mortgage Payment

    Paying Back Loans Before Filing for Bankruptcy – Don’t do it!

    Its probably best to start by talking about what to do if youre having trouble with your mortgage. Its our expertise, but also for many people, its their single biggest monthly expense. If you find yourself struggling, you have a few options for mortgage help.

    The most preferable option for most people might be to look at a modification. A mortgage modification involves temporarily or permanently lowering your interest rate and/or extending your term so that you can more easily afford your monthly payment.

    If youve been over things with your servicer and can afford to make a payment at all, one option might be a short sale. In this scenario, you might know you cant sell your home for what you owe on your mortgage. However, if you can prove hardship, your lender might be willing to let you do a short sale where they work with you to sell the property for less than what you are.

    Depending on state law, a lender may be able to go to court and get a judgement against you for the difference between what the property sells for and what you actually owe, so thats something to be aware of.

    Finally, your lender could approve a deed in lieu of foreclosure. Under this arrangement, you sign the property over to your lender and they then sell the home. In exchange for keeping the home in good shape, your lender may forgive some or all of the difference between what you actually owe and what the property can be sold for.

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    Saving Your Credit Score Is Only One Reason

    An end to collection hell: Nosals study found that once people fell seriously behind on their debt with at least one account 120 days overdue, for example their financial troubles tended to get worse. Balances in collections and the percentage of people with court judgments grew.

    By contrast, people who file for bankruptcy benefit from its automatic stay, which halts almost all collection efforts, including lawsuits and wage garnishment. If the underlying debt is erased, the lawsuits and garnishment end.

    Freedom from certain debts: Chapter 7 bankruptcy wipes out many kinds of debt, including:

    • Civil judgments .

    • Past-due rent.

    • Business debts.

    • Some older tax debts.

    Some debts, including child support and recent tax debt, cant be erased in bankruptcy. Student loan debt can be, but its very rare. But if your most troublesome debt cant be discharged, erasing other debts could give you the room you need to repay what remains.

    Better access to credit: It can be difficult to get credit right after a bankruptcy. But Nosals study shows people who have completed bankruptcy are more likely to be granted new credit lines within 18 months than are people who fell 120 days or more overdue at the same time but didnt file.

    Your credit limits after bankruptcy are likely to be low, however, and your access to credit like your credit scores wont recover completely until a Chapter 7 bankruptcy drops off your credit reports after 10 years.

    Chapter 13 Bankruptcy Repayment Plan

    Chapter 13 debtors create their own repayment plan, which must be written and submitted to the bankruptcy court at the outset of your case. The federal bankruptcy court provides a form for drafting a plan, or you can obtain one from a lower court in your area. The bankruptcy court must approve your plan for you to enter Chapter 13. The plan details your income, property, expenses and debts and includes a proposed payment plan.

    A trustee will be assigned to review your plan, assess its compliance with bankruptcy laws, collect your payments and distribute them to creditors, and make sure all terms in your bankruptcy repayment plan are followed.

    Your repayment plan will be divided into categories, which include:

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    How Chapter 13 Works

    A chapter 13 case begins by filing a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. Unless the court orders otherwise, the debtor must also file with the court: schedules of assets and liabilities a schedule of current income and expenditures a schedule of executory contracts and unexpired leases and a statement of financial affairs. Fed. R. Bankr. P. 1007. The debtor must also file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling evidence of payment from employers, if any, received 60 days before filing a statement of monthly net income and any anticipated increase in income or expenses after filing and a record of any interest the debtor has in federal or state qualified education or tuition accounts. 11 U.S.C. § 521. The debtor must provide the chapter 13 case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case . Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302.

    In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must compile the following information:

  • A list of all creditors and the amounts and nature of their claims
  • The source, amount, and frequency of the debtor’s income
  • A list of all of the debtor’s property and
  • Determine Your Eligibility To File Chapter 7 Bankruptcy

    Always Learning: Paying Off Your Debt

    When you are drowning in more debt than you can repay and youre asking yourself, How much do you have to be in debt to file Chapter 7?, you might consider filing for the bankruptcy protection the law provides. Chapter 7 bankruptcy can offer you the debt relief you need if you have accumulated more debt from your creditors than you can pay back.

    The following criteria can help you determine if you are eligible to file Chapter 7 bankruptcy. You may qualify if:

    • You are an individual citizen, business owner, or corporation
    • You have not had a bankruptcy discharge in the previous six to eight years
    • You have received court-approved credit counseling within the previous six months

    Your lawyer can help you determine your eligibility to file Chapter 7 bankruptcy and guide you through the bankruptcy filing process and procedures. They can also help you understand the debt relief and other benefits of filing Chapter 7 bankruptcy.

    For a legal consultation, call

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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 About Chapter 13 What Happens With My Existing Mortgage

    With a chapter 13 bankruptcy, borrowers will not lose their property. You will include details on how you plan on paying your mortgage in your repayment plan. In most cases, an automatic stay is issued once Chapter 13 is filed. An automatic stay means that creditors must stop collection efforts.

    It was designed to temporarily halt foreclosure and stop repossession of homes regardless of the stage of the foreclosure proceedings. For homeowners with too much equity to qualify for a homestead exemption in their jurisdiction, this is an advantage of a Chapter 13 filing.

    There are a couple of important caveats here: First, you have to stay current on any mortgage payments that are due after the filing. If youre behind on your payments, missed payments can be included in your reorganization plan, but you have to make sure all these debts are paid back by the end of your plan timeline.

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    How Do I Find Out Whether I’d Qualify For Chapter 7 Bankruptcy

    You’ll take the two-part Chapter 7 means test. If your household income is lower than the median household income in your state, you’ll pass. However, if you don’t pass the first part, you’ll have another chance to qualify. The second portion of the means test allows you to subtract some monthly expenses from your income. If you don’t have enough remaining to pay a meaningful amount to creditors through a Chapter 13 repayment plan, you’ll pass.

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