Recently on our bankruptcy forum a user asked, “I was injured in a severe car accident. The driver was intoxicated. I will never walk again. I just found out that the driver is filing bankruptcy. I am concerned about my DUI injury judgment. Can this be discharged in Chapter 7 bankruptcy? I filed a DUI injury claim against the driver because they did not have insurance to cover the expense of my injuries.”
Recently on our forum a user asked, “I find myself on the brink of financial disaster for the second time in my life. I am only thirty years old. I have a decent paying job. I am at a loss. I am wondering if you can give me any tips for saving money and re-establishing financial control before I have to declare bankruptcy a second time.”
Recently on our bankruptcy forum a user asked, “I have heard for years that I need a three to six-month emergency fund which can cover my living expenses., I have very high student loan debts, a $10,000 credit card bill and secured assets which are costing me a great deal of money. What are your thoughts? Should I pay off my debt or start to save for my emergency fund?”
Recently on our bankruptcy forum a user asked, “I have completed all the requirements for my bankruptcy filing. Now I find out that I have to complete a Pre-Discharge Debtor Education Course. I am wondering why I have to do this and why the government makes everyone jump through so many hoops to file for bankruptcy protection.”
Recently on our bankruptcy forum a user asked, “I am in a financial crisis. My spouse has divorced me, I need to find a job, and I am suffering from a severe medical condition. I have not worked in years, and I am scared. Additionally, I have over $50,000 in medical debts. I am thinking that my only option might be to file Chapter 7 bankruptcy. Do you have any bankruptcy tips for me or things I need to consider before I file?”
Filing bankruptcy is a very important decision. Unfortunately, because the stigma of filing bankruptcy has declined, many filers now file bankruptcy without considering the financial and long-term ramifications of their decision.
Bankruptcy is not for everyone. In fact, most debtors should find alternative means to resolve their financial crisis. Let’s look at six of the top things you need to consider before filing for bankruptcy protection.
Recently on our bankruptcy forum a user asked, “I took out a loan for $20,000. I lost my job and I have not been able to repay the loan company. I have tried contacting them and seeing if they will accept less than the amount owed, but they will not budge. Now they are threatening to take me to court. What are my options?”
There has been a lot of confusion and questions about reaffirming a loan for a secured asset during the bankruptcy process. This article is an attempt to help you better understand the reaffirmation process while going through the bankruptcy process. Continue reading
Is there any such thing as removing court ordered judgments after filing bankruptcy? A similar question was recently asked on a bankruptcy forum website about two judgments where a creditor filed judgment liens against a debtor’s house after obtaining court ordered judgments for failure to pay back money for the use of their credit cards. The debtor wanted to know if he had to file some other forms to remove the court ordered judgments or whether or not filing a Chapter 7 bankruptcy would do away with the such matters. Continue reading
One of the most common questions on our bankruptcy forum is, “Can I qualify for bankruptcy?” This question is important, but equally important is whether or not you should file for bankruptcy. This blog will address who can qualify for Chapter 7 and Chapter 13 Bankruptcy and also what considerations should be made prior to filing for bankruptcy protection.
Can I file Chapter 7 Bankruptcy?
If you are an individual, married couple, corporation or partnership you might qualify for Chapter 7 Bankruptcy. If you file Chapter 7 Bankruptcy your qualifying, unsecured debts can be immediately discharged. In 2005, however, bankruptcy laws were updated to make it much tougher for debtors to qualify for Chapter 7 Bankruptcy.
How do you know if you can file Chapter 7 Bankruptcy? Prior to filing Chapter 7 Bankruptcy you must pass a means test and prove that either your income is less than the median income for your state or you do not have enough disposable income to repay your debts. There are several online calculators that can provide general information about whether or not Chapter 7 Bankruptcy is an option for you.
Can I file Chapter 13 Bankruptcy?
If you cannot file Chapter 7 Bankruptcy you might wonder if Chapter 13 bankruptcy is an option. Chapter 13 Bankruptcy is available to all United States citizens; however, the debtor’s outstanding unsecured debts must be less than $307,675 and secured debts must be less than $922,975.
Chapter 13 Bankruptcy does not liquidate debts immediately but allows you to create a 3 or 5 year debt repayment plan. Because you will have to make regular payments to your Chapter 13 debt repayment plan the bankruptcy court will expect that you will have an income. If you do not have a job it will be difficult to prove that you can make the necessary debt payments.
Due to the complexity of filing Chapter 13 Bankruptcy most debtors consult with a bankruptcy lawyer prior to filing. It is not necessary to have legal help, but a bankruptcy lawyer can help
debtors review their assets and liabilities, create their Chapter 13 Bankruptcy schedules, file the Chapter 13 Bankruptcy petition and develop the Chapter 13 debt repayment plan.
Is filing bankruptcy right for me?
Another really important question that each debtor should ask is, “Is filing bankruptcy the right decision for me?” Bankruptcy will negatively impact your credit score and will remain on your credit report for 7 to 10 years. Bankruptcy may also make it difficult to make large purchases on credit or to get a loan with a good interest rate. Debtors should evaluate all of their other debt repayment options before filing bankruptcy.
Next, each debtor must understand what bankruptcy will and will not do for them. For instance, if your debt is unsecured debt: credit cards, medical bills, or unsecured personal loans, filing bankruptcy may discharge your debts or allow you to restructure your debt payments. If your debts are mainly child support, federal student loans or tax debts filing bankruptcy will not eliminate these debts and may not be the best choice for you.