Author : Nick MesseIf you are in arrears on your mortgage and no means to catch up is apparent, then Chapter 13 bankruptcy may be your best option Bankruptcy carries long lasting consequences, however, so think carefully before committing to this life-changing action and confer with one of Colorado Springs bankruptcy lawyers to see if you qualify for Chapter 13 under the new bankruptcy reforms enacted in 2005

Chapter 13 is also known as the “Wage Earner Plan” or “Reorganization Plan” in that it will allow you to stay in your home and pay off your arrearages over a length of time far longer than you probably could have negotiated with your lender on your own However, you must also be able to make your current mortgage payments at the same time Given that you can financially handle this, at the end of the bankruptcy period you will be free of the arrearage debt and have kept your home

A Chapter 13 bankruptcy petition will also absolve you of any second or third mortgages you might have on your home Your first mortgage is secured by the entire value of your home If the value of your home has dropped significantly, then there will be no value left over to secure the second or third mortgage As a result, the bankruptcy court will classify these other mortgages as “unsecured debt” And, unsecured debt is last in line to be paid off in a Chapter 13 filing and maybe discharged, leaving you owing nothing on them

Once, borrowers were responsible for any tax losses incurred by the lender as a result of foreclosure But, thanks to a new law that took effect in 2007, you are no longer responsible for those losses However, you will not be protected from those taxes if the additional mortgages were not used for improvements to the securing property or if those loans were secured by other property, such as a second home Colorado Springs bankruptcy lawyers are familiar with these new laws and can help you know if your property qualifies

Chapter 7 to The Rescue? Maybe Not

If you qualify, a Chapter 7 bankruptcy will erase any of the above tax liability problems if you default on your mortgage and any secondary mortgages But Chapter 7 is an extreme step and can create additional problems Under the new bankruptcy reforms, qualifying for Chapter 7 is subject to some restrictions and Colorado Springs bankruptcy lawyers can assist you in determining your eligibility

For instance, even if the amount you owe on your mortgage is discharged, a foreclosure can still proceed Why? Because, when you bought your home, you signed two documents - one was a promissory note that indebted you to pay the mortgage and the other was an agreement that could be recorded as a lien in the event you failed to make your payments So, by this time in your difficulty, your lender has probably already recorded this second document as a lien against you And, even if the Chapter 7 discharges your debt, it has no effect on this lien so you will probably have to relinquish the house anyway as it was the collateral for the mortgage note When faced with the possibility of bankruptcy, Colorado Springs bankruptcy lawyers can help get your financial situation back under control.

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Author : Nick MesseMost of us that graduate from college or technical colleges these days have done so with the aid of student loans The need for student loans has risen dramatically in the last 20 years as the cost of education rose And along with this increase, the rate of default has increased as well Unfortunately, if student loan debt is the monkey on your back, bankruptcy may not be the answer As most student loans are federally funded, the Federal Government has put increasingly tight measures into place to assure the repayment of those loans Many student loans are not dischargeable under either Chapter 13, or the Wage Earner Plan, or Chapter 7, or Straight Bankruptcy Other methods of dealing with this debt are available and may be a better solution than filing for bankruptcy However, if you feel bankruptcy is inevitable, Florida bankruptcy lawyers recommend contacting them for the best method to deal with your student loan debt

Don’t simply give up and default on your loan Collection fees may accrue and increase the balance to make things worse You income tax refunds can be intercepted for years and applied to your balance Your wages can be garnished - not a great help, though, is the balance is steadily climbing Deferment is a viable option for your predicament, provided you are not in default on the loan, are in the grace period after graduation or have been granted previous deferments that keep you from being in default

A deferment is, in simple terms, a delay on payment based on certain conditions You may often defer both principle and interest, which means the interest on your account will not be accruing and your balance will not increase In other cases, you may only defer the principle, meaning that the interest continues to accrue and your balance will increase during this time Determination of which condition can apply to you depends on the type of loan you have and when you got it Contact Florida bankruptcy lawyers for professional help in this matter

In order to qualify for deferment, you must meet certain conditions:

Total, temporary disability - If you obtained your loan before July 1, 1993 and you, your spouse or other dependent is temporarily totally disabled, you can defer payments for up to 3 years on most loans If you are the one disabled, you must be unable to work or attend school for at least 60 days If you spouse or depended is disabled, their disability must make you unable to work or attend school because they need your care for at least 3 months

Enrollment in rehabilitation for disability - You can defer payments on loans for six months after your training ends if you are enrolled in one of these programs

Economic hardship - If you’re suffering economic hardship for whatever reason, you can defer payments on loans obtained after June 30, 1993 for up to three years Perkins loans can be from any time period (A Perkins loan is a low interest (5%) loan for undergraduate and graduate students with “exceptional” financial need underwritten by the Federal government) If you receive welfare or SSI (Supplement Security Income from the Social Security Administration), or other public assistance, you are automatically entitled to a deferment For those not receiving public assistance, your eligibility is calculated using the federal poverty level, the federal minimum wage, your loan payment amount and your income, for which you will have to provide documentation

Re-enrollment in school - If you return to school at least half time, you are eligible for a deferment

Unemployment - If you are unemployed and actively seeking work, you are eligible for a deferment You will have to provide proof of your eligibility for unemployment benefits or evidence you are attempting to find a full time job (at least 30 hours per week) that will last at least 3 months

Uniformed Service - Those currently serving in a uniform wearing branch of the government are eligible for a deferment under several situations Contact your supervisor or commanding officer for more information or contact Florida bankruptcy lawyers

Teaching in Needy Populations - Former students who now serve as teachers in needy areas, such as low income or disabled students, are eligible for deferment

Community Service - performing community services, such as serving in the Peace Corps or teaching under and in certain conditions may entitle you to defer or even partially cancel your student loans

Working in the heath care field - Nurses, doctors working on their residencies and other health care professions can often defer or cancel their loan payments

If you think you qualify for a deferment, contact your lender They can guide you through the paperwork needed Fill out these forms very carefully and be sure to provide the asked for documentation Then, be sure to follow up on your request Although this sounds like a lot of work, deferments can buy you the time you need to rectify your situation without the difficulty of attempting to discharge these debts under a bankruptcy When faced with the possibility of bankruptcy, Florida bankruptcy lawyers can help get your financial situation back under control.

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Author : Nick MesseWhile bankruptcy is stressful for all of us, it may be especially so for service members and their families Added to the strain of financial difficulty may be the fact of being stationed far from home and the added stress on family members left behind and struggling to maintain a household left behind To better allow the service member to concentrate on his or her job, the Service members Civil Relief Act (SCRA) was signed on December of 2003 This legislation was an update of the Soldiers and Sailors Civil Relief Act of 1940 (SSCRA) and expanded many of that law’s protections Before these revisions, the SSCRA had remained virtually unchanged since 1940 and no updates had been added to reflect the changes in American life since that time Charlotte bankruptcy lawyers can offer military personnel additional guidance other than the information that follows

The new Act provides additional relief for active duty military personnel in three areas:

– Prevents the entry of default judgments
– Stay of proceedings when the service member has notice of the proceedings
– Delays the executions of judgments, attachments and garnishments

Default Judgments

If a servicemember fails to appear in an action filed by a plaintiff, the plaintiff just file an affidavit with the court before a default judgment may be entered In this affidavit, the plaintiff must state whether or not the defendant is in the military If so, the court may appoint legal counsel for the absent servicemember and grant a stay of proceeding of up to 90 days if the servicemember cannot be present to defend his or her self or if the council appointed by Charlotte bankruptcy lawyers cannot locate the servicemember

Stay of proceedings

Any one covered by the SCRA may request a stay of proceeding for up to 90 days on any civil action filed The court will grant the stay if the service member can provide proof that his or her military duty prevents them from appearing in court and proof from his or her commanding officer that their military duty prevents them from appearing as summoned and that leave for this appearance is not approved

Delay of executions

Upon application from the service member, Charlotte bankruptcy lawyers, or upon its own motion, the court must stay any judgment entered against a service member or any attachments or garnishment of a service member’s wages of property if it finds that the service member’s ability to cooperate with these rulings is affected by their military service This stay is in effect for the duration of the service member’s enlistment period plus 90 days However, the court can order the service member to make installment payments on any monies owed during this time

The new SCRA also provides service members assistance with eviction, leases and interest rates Landlords seeking to evict service members cannot do so without a court order and the court may alter the lease agreement to benefit both parties Additionally, interest rates for per-service debts are capped at 6% The Act also provides that leases for service members and their families, including auto leases may be canceled if the service member is transferred or deployed When faced with the possibility of bankruptcy, Charlotte bankruptcy lawyers can help get your financial situation back under control.

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Author : Nick MesseTruthfulness in the details of your bankruptcy petition is absolutely essential Dodging the truth, failing to list some debts or creditors is tempting as you might unconsciously attempt to lessen the degree of severity of your situation But, failing to be up front with all your information will only serve to prolong or worsen your situation So, bite the bullet and ‘fess up Your honesty will aid both you and Chicago IL bankruptcy lawyers in getting you the most relief from your bankruptcy petition

Here are some guidelines:

Don’t exclude creditors Perhaps one of your creditors has been particularly kind to you during your ordeal or perhaps you know them personally and you are tempted to exclude them from your list of creditors and attempt to pay them off privately at a later date This almost always never works and prevents you from achieving the relief that bankruptcy will ultimately afford you Plus, if you omit certain creditors and the trustee becomes aware of this, you will have to add these creditors in and that can raise suspicions about the rest of your information Chicago IL bankruptcy lawyers depend on you to bring as complete information as possible to the table

Include any money or assets due you When you list property and income in your filing package, be sure to list any assets or income due you, but not yet received Some examples are:

– A recent inheritance
– Royalties
– Stock options, tax refunds or monies from trust funds
– Structured settlements
– Pensions or retirement funds

You may claim some of this as exempt and keep it, but it must be listed so the court will have a clear picture of your assets Chicago IL bankruptcy lawyers will help you determine what of your assets may be classified as exempt

List all creditors Omitting creditors from your list defeats the purpose of going through the bankruptcy process You receive no relief from these debts and your creditor is still in limbo If a creditor claims you owe them money and you think you do not, list them anyway and term them “disputed ” If a debt is already being contested in a lawsuit, you may list them as “contingent” based on the outcome of the lawsuit At the end of the bankruptcy process, you will no longer owe any of these debts, including the ones that are contested, and the dispute will be irrelevant

Don’t try to hide property or other assets This will surely come back to haunt you When you sign your prepared bankruptcy papers, you declare that all information in them is correct to the best of your knowledge and you will be held to the truthfulness of them under penalty of perjury Intentionally filing incomplete or incorrect information can lead to your case being dismissed or your being charged with perjury Honest mistakes are expected and can be corrected with a reasonable explanation to the trustee

Trying to defraud creditors C’mon now Aren’t you in enough trouble? The role of the bankruptcy court is to act as a neutral party between you and your creditors to settle outstanding debts The trustee is charged with the responsibility of fairness to both you and your creditors Attempts on your part to untruthfully state your position or to deny these creditors what they are legally due can result in deepening the severity of your situation Some examples of actions sure to raise red flags with the trustee are:

– Transferring assets to family or friends in an obvious attempt to hide their existence
– Maxing out credit cards just before filing for bankruptcy, especially if the purchases are for luxury items
– Concealing property
– Concealing debts
– Lying about income or monies and property due you

Being truthful in your bankruptcy filing is for your benefit as much as for the court’s By listing all debts, property, assets and expected incomes, you are putting all your problems up front and soon it will all be behind you When faced with the possibility of bankruptcy, Chicago IL Bankruptcy Lawyers can help get your financial situation back under control.

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Author : Nick MesseOn October 17, 2005, President George Bush signed into law the 2005 Bankruptcy Abuse and Consumer Protection Act, the most sweeping reforms of United States Bankruptcy Laws in 25 years As a result, debt discharge from bankruptcies is not as easy as it once was Traditionally, those seeking to file bankruptcy could choose which plan worked best for them - Chapter 7 or Chapter 13 Now, that decision has been taken out of the hands of the filer A number of new requirements for those seeking relief were put into place as well as new guidelines for attorneys that specialize in this field Ann Arbor lawyers can provide guidance on these new laws

The “Means Test” - Bankruptcy applicants who wish to file for Chapter 7, or absolute bankruptcy, have to pass a “means test” first If the applicant’s net yearly income falls below the median income for their state, then they are eligible to file for Chapter 7 relief However, if their monthly income is above the state median and they are able to pay $100 per month to their debtors, then they are entitled to file Chapter 13, or the “wage earner’s plan”, in which a portion or all of their debts are to be repaid to their creditors over time This ability to pay $100 per month is calculated based on a formula that includes monthly income, monthly expenses and amount of debt

Mandatory credit counseling - As part of the reforms, bankruptcy applicants, before filing, must undergo mandatory credit counseling with a government approved counseling service before they are allowed to file bankruptcy A list of approved services can be obtained from the US Trustee Program or from Ann Arbor lawyers

Less ‘automatic stays” - Historically, filing bankruptcy gave the filer certain immediate protections from creditors and others such as debt collections and lawsuits Termed “stays” in legal terms, these advantages have changed under the new laws Immediate protection from evictions, driver’s license revocations, legal measures for child support and divorce no longer apply

Greater priority for child supports and alimony - Bankruptcy filings place a filer’s creditors in specific order to receive any funds collected Under the new laws, people who are owed child support or alimony receive higher priority on that list

Proof of income and tax returns required - Under the new laws, bankruptcy filers must now provide proof of income by providing their tax return for the past year If the filers have unpaid taxes, they must first pay these taxes before they can file for bankruptcy

Mandatory financial management education - After a bankruptcy has been approved, but before any debt can be discharged, the filer must complete training in financial management education from a government- approved financial management educator or program A list of these programs is available from the US Trustee Program or from Ann Arbor lawyers

Tougher on the lawyers - and more expensive - Part of the new reforms require bankruptcy attorneys to personally vouch for the validity of all information submitted for their clients This requires the attorneys to spend more time and effort of each case and consequentially, makes the fees for such services higher Unfortunately, this also makes it harder to find an attorney willing to handle bankruptcies However, Ann Arbor lawyers have the expertise and experience to meet these new requirements When faced with the possibility of bankruptcy, Ann Arbor Lawyers can help get you better understand the current bankruptcy laws and recent changes.

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Author : Nick MesseThe loss of a home is tragic under any conditions The loss of a home to bankruptcy is a tragedy However, there are measures within the Bankruptcy Code which will “exempt” a home from the bankruptcy process However, the debtor must be able to prove that, once debt is discharged, they are able to then make mortgage payments in a timely manner Aurora bankruptcy lawyers have the knowledge and experience to help you make that determination

Bankruptcy is a powerful tool to delay or prevent a foreclosure and give you time to reorder your finances Filing a bankruptcy petition for either Chapter 13 or Chapter 7 with Aurora bankruptcy lawyers results in the court issuing what is known as an automatic stay This action “stays” or stops many actions, such as debt collectors harassing calls, evictions and foreclosures, but only under certain conditions:
– The lender cannot obtain a motion to lift the stay - If you lender can convince the court that you are unable to retain your home - you are in arrears, you have no equity in your home and, even after the bankruptcy, you finances do not appear to allow to make the payments, then the count will very likely grant the motion to life the stay and the foreclosure will proceed

– The foreclosure notice has not already been filed - Many states have laws that require lenders to give homeowners advance notice of a foreclosure, sometimes as long as three or four months If, during that three or four months, you file for bankruptcy and the notice runs out before the bankruptcy is complete, the court will lift the stay and the foreclosure will proceed

Chapter 13 and Foreclosure
If you are in arrears on your mortgage and no means to catch up is apparent, then Chapter 13 bankruptcy may be your best option Chapter 13 is also know as the “Wage Earner” plan or “Reorganization Plan” in that it will allow you to stay in your home and pay off your arrearages over a length of time far longer than you probably could have negotiated with your lender on your own Aurora bankruptcy lawyers can assist you in understanding the Chapter 13 schedule

Chapter 13 bankruptcy petition will also absolve you of any second or third mortgage you might have on your home Your first mortgage is secured by the entire value of your home If the value of your home has dropped significantly, then there will be no value left over to secure the second or third mortgage As a result, the bankruptcy court will classify these other mortgages as “unsecured debt” And, unsecured debt is last in line to be paid off in a Chapter 13 filing and may, therefore, be discharged leaving you owing nothing on them

Once, borrowers were responsible for any tax losses incurred by the lender as a result of foreclosure But, thanks to a new law that took effect in 2007, you are no longer responsible for those losses However, you will not be protected from those taxes if the additional mortgages were not used for improvements to the securing property or if those loans were secured by other property, such as a second home

Chapter 7 and Foreclosure
Chapter 7 bankruptcy may not save your home As Chapter 7 is often referred to as “liquidation” bankruptcy, the court may order you to well you home in order to pay off debts Only if you have no equity in you home would Chapter 7 work to your advantage

Even if a Chapter 7 discharges the arrears on your home, you may still owe that amount to your lender Why? Because, when you bought your home, you signed two documents - one was a promissory note that indebted you to pay the mortgage and the other was an agreement that could be recorded as a lien in the event you failed to make your payments So, by this time in your difficulty, your lender has probably already recorded this second document as a lien against you And, even if the Chapter 7 discharges your debt, it has no effect on this lien against you so you will probably have to relinquish the house anyway as it was the collateral for the mortgage noteWhen faced with the possibility of bankruptcy, Aurora Bankruptcy Lawyers can help get your financial situation back under control.

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