Bankruptcy Blog

If you file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, certain debts will not be discharged. These debts are called non-dischargeable debt and they are determined by federal bankruptcy law. Non-dischargeable debt can be difficult to determine and it is important you discuss your debt with an Ohio Bankruptcy Attorney. All non-dischargeable debt in the state of Ohio will be the same as other states. In the state of Ohio the following debts will not be discharged by filing bankruptcy:

• Federal, state and local taxes. May be subject to specific time rules.
• Spousal Support/Alimony
• Child Support Payments
• Most Student Loans
• Mortgage Liens
• Certain types of purchases for luxury items within 90 days of filing
• Secure Debt
• Penalties and fines by government agencies
• Fraud committed in a fiduciary role including larceny and embezzlement
• Punitive damages assessed for “willful and malicious acts”
• Debts not outlined on the schedule and forms filed with the Bankruptcy Court
• Drunk Driving fines
• Certain cash advances or purchases for luxury items with in a certain time frame.

Many individuals will not be able to file Chapter 7 Bankruptcy because their income will be too high or they will have assets they will want to keep. Chapter 13 Bankruptcy does not immediately discharge your unsecured debt, but it does offer several advantages over filing Chapter 7 Bankruptcy. One advantage of filing Chapter 13 Bankruptcy is you may be able to stop your home foreclosure and keep your home. You will have to keep current on home payments through the bankruptcy process.

Chapter 13 Bankruptcy will also allow you to repay a portion or all of your debt to your creditors under a bankruptcy repayment plan. The debt repayment plan will be a three to five year plan. After the completion of the debt repayment plan, your debts will be discharged. A trustee will be appointed to distribute your debt payments to your creditors. Creditors will not be able to harass you for debt repayment while you are under Chapter 13 protection. Certain creditors who are collecting debt payments for non-dischargeable debt may be able to keep collecting debt payments.

Contact an Ohio Bankruptcy Lawyer who can help you file your bankruptcy petition and schedules, and help you create your repayment plan. An Ohio Bankruptcy Attorney can also go to all your court hearings for you.

Chapter 7 Bankruptcy is a liquidation of your assets and is called a straight bankruptcy. Many individuals who file Chapter 7 Bankruptcy will not have assets. This is called a “no-asset” case. The first step prior to filing Chapter 7 Bankruptcy is to contact an Ohio Bankruptcy Attorney who can help determine if you can qualify for Chapter 7 Bankruptcy. If you can, a trustee is appointed by the bankruptcy court to sell your non-exempt property and use the proceeds of the sale to pay your creditors. Creditors will be paid in the order designated under federal bankruptcy law. It will take approximately four to six months to discharge your debt.

Chapter 7 Bankruptcy is the most common type of bankruptcy because it is easy, inexpensive and quick. Most unsecured debt will be discharged. Dischargeable debt may include hospital bills, personal loans and credit card debt. Married couples, partnerships, individuals and corporations may all file Chapter 7 Bankruptcy if they qualify.

Your Ohio Bankruptcy Attorney can file your bankruptcy petition, the schedule of your liabilities and assets, a list of your income and expenses and all information about contracts or leases. The filing of the bankruptcy petition will force all of your creditors to temporarily stop their debt collection efforts. Collection efforts may continue if the bankruptcy judge determines there is cause.

Under current bankruptcy law, it is more difficult to qualify to file Chapter 7 Bankruptcy. The Bankruptcy Abuse Prevention and Consumer Act (BAPCPA) was passed in 2005, and requires individuals to pass an income test to file Chapter 7 Bankruptcy, complete a credit counseling course prior to filing bankruptcy and completing a financial management course prior to the discharge of an individual’s debt.

The new income test will measure your monthly income against other incomes for Ohio residents of similar size. If your median income is less or the same as the other residents of Ohio, you can file Chapter 7 Bankruptcy. If you median income is higher than other Ohio residents, you will have to complete additional “means testing”.

The means test is used to determine how much disposable income you will have to repay your creditors. The means test will take your gross income and subtract certain expenses including: home mortgage, car payment, child support, school tuition (up to $1650), and taxes owed. If you have enough disposable income to pay $6,000 or $100 per month over the next 60 months in unsecured debt payment, you most likely will have to file Chapter 13 Bankruptcy. If you fail this test, but you could pay 25% of your disposable income toward debt over the next 60 months, you may have to file Chapter 13 Bankruptcy.

State median data is provided by the United States Trustee Program. For the State of Ohio, after March 15, 2009, the median income for a single wage earner in the state of Ohio was $42,458 and for a family of two it was $52,922. For a family of three it was $62,251 and for a family of four it was $74,234.

All information for means testing is general in nature and should not be considered legal advice. It is very important to talk to an Ohio Bankruptcy Lawyer who can help you determine if you are eligible to file Chapter 7 Bankruptcy.

The federal government has created bankruptcy laws to allow individuals who can not pay their creditors to resolve their debt obligations by dividing their assets among their creditors. Current bankruptcy law has created the framework to allow creditors to receive payment with a measure of equality.

If you file Chapter 7 Bankruptcy, you may be able to discharge all or a portion of the unsecured debt you have accumulated. The discharge may occur even if the debts are not paid in full. If you file Chapter 13 Bankruptcy, you may be able to repay a portion or all of your debt with a scheduled repayment plan. Often the repayment plan can be constructed with more favorable terms.

Filing bankruptcy can have serious long term consequences, such as a lower credit rating and difficulty getting personal loans. It is important to discuss bankruptcy with an Ohio Bankruptcy Attorney prior to filing. Bankruptcy is a serious financial decision and should not be done with out the help of an experienced bankruptcy lawyer.

There is no right answer for whether or not you should file bankruptcy, but if you are experiencing the following financial issues, bankruptcy may be able to help you get a fresh financial start.

• You are having difficulty making your mortgage payments or you are facing a home foreclosure.
• You have suffered a devastating financial crisis such as a divorce, separation, death or unexpected job loss.
• You are being harassed by creditors.
• You can only pay the minimum on your bills.
• You can not budget yourself out of debt in five years or less.
• You have very high credit card balances.

Given the current bankruptcy laws, many individuals will not qualify to file Chapter 7 Bankruptcy. If you do not qualify or if you have assets that you do not want to lose, filing Chapter 13 Bankruptcy may be a good option for you or your family.

Chapter 13 Bankruptcy is not considered a liquidation bankruptcy and will not immediately discharge your debt. Filing Chapter 13 Bankruptcy will allow you to repay all or a portion of your unsecured debt under a 3 to 5 year bankruptcy repayment plan.

The first step in the Chapter 13 Bankruptcy process is to discuss your situation with a Tennessee Bankruptcy Attorney who understands Tennessee bankruptcy law. If you decide bankruptcy is the best solution for you, your Tennessee Bankruptcy Lawyer will help file your petition and schedule, answer your questions, complete your bankruptcy repayment plan and appear with you in court. Chapter 13 Bankruptcy will end harassing creditor calls, stop a home foreclosure and end wage garnishments.  After filing Chapter 13 Bankruptcy, your creditors must work with your appointed trustee and follow the bankruptcy repayment plan to collect debt payments.

Federal bankruptcy laws will exempt certain assets you own from the bankruptcy process. The exemption lists are created to allow you to retain certain assets after bankruptcy. Many states have created their own list of assets which are exempt and you may be able to choose between the state exemption list and the federal exemption list. Some states will not allow you to choose the federal exemptions. In the state of Tennessee, federal exemptions are not allowed and you must use the Tennessee Bankruptcy Exemption List.

Chapter 7 Bankruptcy is the most popular type of bankruptcy because it is the quickest, easiest, and cheapest way to discharge your unsecured debt. Filing Chapter 7 Bankruptcy will allow you to discharge most types of unsecured debt including: hospital bills, credit card balances and unsecured personal loans. There will be certain types of debt that will not be discharged.

Chapter 7 Bankruptcy is considered a “liquidation” bankruptcy. A trustee will be assigned to your bankruptcy case to sell your assets and use the proceeds to pay your creditors. Priority creditors will be paid first according to federal bankruptcy law. If you are a corporation, partnership, individual or married couple, and you meet the requirements, you may qualify to file Chapter 7 Bankruptcy.

To file Chapter 7 Bankruptcy in Tennessee, you can contact a Tennessee Bankruptcy Lawyer. A Tennessee Bankruptcy Attorney will review your financial situation and if bankruptcy is the best option for you, they will file the bankruptcy petition and the statement of financial affairs in the appropriate Tennessee Bankruptcy Court. A Tennessee Bankruptcy lawyer will understand Tennessee bankruptcy laws and how they apply to your situation. All information concerning your finances will be provided to the courts including: a list of all creditors, the amount you owe, your income and expenses and all the property you own. Chapter 7 Bankruptcy will temporarily stop debt collection efforts, but they may resume again if a bankruptcy judge determines there is “cause”.

In 2005, the Bankruptcy Abuse Prevention and Consumer Act (BAPCA) changed bankruptcy law by making it more difficult to qualify for Chapter 7 Bankruptcy. The goal of the BAPCA was to force more individuals to repay all or a portion of their debt by filing Chapter 13 Bankruptcy. The BAPCA also requires individuals to complete a credit counseling course prior to filing bankruptcy and take a financial management class prior to the discharge of their debt.

To file Chapter 7 Bankruptcy under new bankruptcy law, you must pass an income test. The income test will review your median income to determine if it is below the state median income. If you live in Tennessee and your median income is below other wage earners in Tennessee, compared to other families of similar size, you probably will be able to file Chapter 7 Bankruptcy. If you median income is above the income of other Tennessee families, additional means testing is required.

Means testing will review your monthly income for the last 6 months less certain expenses such as: house payment, car payment, taxes owed and tuition up to $1650, if you could pay $6,000 ($100/month) in payment toward your unsecured debt over the next 60 months, you may have to file Chapter 13 Bankruptcy. If you fail this test, but you could still pay up to 25% of your disposable income in debt repayment for the next 60 months, you may have to file Chapter 13 Bankruptcy.

The median income for the state of Tennessee is published by the United States Trustee program in the State Median Income List. For the state of Tennessee, after March 15, 2009, the average median income for a single wage earner is $37,702.  For a family of two it is $48,729 and for a family of three it is $55,190. For a family of four it is $64,615.

Determining what type of bankruptcy you can file can be complicated. The information provided above is general and should not be considered legal advice. For information about Tennessee bankrupcty laws, it is important to talk to a Tennessee bankruptcy attorney.

If you live in the state of Tennessee and are unable to pay your bills and are facing home foreclosure, creditor’s calls, expanding medical costs or high credit card debt due to out of control balances or interest and penalties, you may be looking for a solution.

The Federal government has established bankruptcy laws to protect individuals who do not have the ability to pay their creditors. Chapter 7 Bankruptcy may allow you to discharge most of your qualifying unsecured debt. If you can not file Chapter 7 Bankruptcy, you may be able to file Chapter 13 Bankruptcy and develop a plan to pay all or a portion of our debt.

Bankruptcy can:

• Stop home foreclosure
• End harassing creditor collection efforts
• Stop property repossessions
• Eliminate wage garnishment

In the last year over one million people filed personal bankruptcy. It is a serious financial decision and should not be done with out seeking the professional advice from a Tennessee Bankruptcy Attorney. Bankruptcy laws can be complex and a Tennessee Bankruptcy Lawyer can help you determine which bankruptcy you can file, and answer all of your bankruptcy questions. If bankruptcy is not right for you, they can discuss other options to help you get a fresh financial start.

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Many individuals who make too much money or have assets they would like to keep will not be able to file Chapter 7 Bankruptcy. Another option may be to file Chapter 13 Bankruptcy. Filing Chapter 13 Bankruptcy will not be a liquidation bankruptcy and it will not immediately discharge your debt, but it will instead allow you to keep most of your assets and restructure your debt under a 3 to 5 year repayment plan.

To file Chapter 13 Bankruptcy you can contact a North Carolina Bankruptcy Attorney who will review your financial situation and file all the necessary bankruptcy forms, including the bankruptcy petition, schedules, and bankruptcy repayment plan. Filing Chapter 13 Bankruptcy will stop home foreclosure, repossessions, and wage garnishments. Creditors will have to work with your trustee who will repay your creditors according to the court approved repayment plan.

There are certain assets that will be exempt from the bankruptcy process. These exemptions are created at the federal level to allow you to maintain certain assets after filing bankruptcy. Federal bankruptcy laws will outline the exemptions that will be exempt, but some states have also developed their own state exemption list. Depending on the state where you reside, you may be able to choose between the federal exemption list and state exemption list. Certain states will require you to use only the state exemption list. In the state of North Carolina, you can only use the North Carolina Bankruptcy Exemption List.

Not everyone can file Chapter 7 Bankruptcy. In fact with the passage of the Bankruptcy Abuse Prevention and Consumer Act (BAPCA) of 2005, more individuals will have to file Chapter 13 Bankruptcy and pay all or a portion of their debt under a bankruptcy repayment plan. If you do qualify to file Chapter 7 Bankruptcy, most of your qualifying unsecure debt can be discharged in four to six months. Chapter 7 Bankruptcy is considered a liquidation bankruptcy, which means your non-exempt assets will be sold and the proceeds will be used to pay your creditors.

Chapter 7 Bankruptcy can be the cheapest, easiest and quickest way to discharge your debt. To file Chapter 7 Bankruptcy, contact a North Carolina Bankruptcy Lawyer who will review your financial situation and file the correct bankruptcy forms in the appropriate North Carolina Bankruptcy Court. The bankruptcy forms will include the bankruptcy petition and a statement of financial affairs which will outline the amount and type of debt you owe, a list of your creditors, your property, and your income and expenses. After filing the petition, debt collection will be temporarily halted with an “automatic stay”.

Discharged debt may include hospital bills, unsecured personal loans and credit cards bills. Not all debt will be discharged by filing bankruptcy. Corporations, married couples, individuals and partnerships may be able to file Chapter 7 Bankruptcy.

The Bankruptcy Abuse Prevention and Consumer Act (BAPCA) required individuals who are considering filing Chapter 7 Bankruptcy to pass an income test. The income test will analyze your median income for the last six months and determine if it is below other North Carolina families of similar size. If it is below the state’s median income, you may file Chapter 7 Bankruptcy. If it is above the state’s median income, additional means testing will have to be done. Means testing will determine if you have enough disposable income to pay your outstanding debt obligations.

The means test will subtract certain expenses from your income, expenses will include mortgage payments, car payments, tuition expenses up to $1650, and taxes owed. If after the calculation, you have enough disposable income to pay up to $6,000 ($100/month) toward your debt, you will most likely not be able to file Chapter 7 Bankruptcy. If you fail this test, but can pay up to 25% of your disposable income toward debt repayment, you may not qualify to file Chapter 7 Bankruptcy. This is general information and there may be extenuating circumstances for your financial situation. It is important to discuss your specific financial situation and bankruptcy options with a North Carolina Bankruptcy Lawyer.

North Carolina’s median income is published by the United States Trustee program in the State Median Income List. For the state of North Carolina, after March 15, 2009, the average median income for a single wage earner is $38,478.  For a family of two it is $52,355 and for a family of three it is $57,301. For a family of four it is $70,134.

This year has been a dismal year for much of the economy and you are not alone. In 2008, over one million individuals across the United States filed personal bankruptcy. The federal government has created bankruptcy law to allow individuals like you to discharge certain unsecured debt and begin again.

Filing bankruptcy is a serious financial decision and can have a long term impact on your future, but it may be your last solution for financial freedom. If you live in North Caroline and you think filing bankruptcy may be right for you or your family it is important to talk to a North Caroline Bankruptcy Attorney who can review your financial situation, determine if you should file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, and answer all of your bankruptcy questions.

What Debts are not discharged in North Carolina?

Regardless of what state you file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, certain debts will not be discharged. These debt obligations are considered non-dischargeable debt and are determine by federal bankruptcy law. Failure to pay non-dischargeable debt obligations will allow your creditors to use all legal means necessary to collect. In the state of North Carolina, the following debts are considered non-dischargeable.

• Federal, state and local taxes. May be subject to specific time rules.
• Spousal Support/Alimony
• Child Support Payments
• Most Student Loans
• Mortgage Liens
• Certain types of purchases for luxury items within 90 days of filing
• Secure Debt
• Penalties and fines by government agencies
• Fraud committed in a fiduciary role including larceny and embezzlement
• Punitive damages assessed for “willful and malicious acts”
• Debts not outlined on the schedule and forms filed with the Bankruptcy Court
• Drunk Driving fines
• Certain cash advances or purchases for luxury items with in a certain time frame.