North Dakota Bankruptcy Information
North Dakota bankruptcy, we know these laws well. Our attorneys are from well-established law firms dealing exclusively in consumer debt.
Chapter 7 Bankruptcy in North Dakota
Most people who file bankruptcy will choose to file Chapter 7 Bankruptcy. Chapter 7 Bankruptcy is a liquidation bankruptcy and is the easiest and least expensive option. A trustee is assigned by the North Dakota Bankruptcy Court to sell your assets and use the money to repay your debt obligations. Most of your debts can be discharged with in four to sixe months. There are debts which are considered non-dischargeable and your North Dakota Bankruptcy Lawyer can discuss those debts with you.
One benefit of Chapter 7 Bankruptcy is your debts can be immediately discharged. Collections will also be temporarily halted, but may continue if a judge decides there is \"cause\". The first step is to contact your North Dakota Bankruptcy Lawyer who can file your bankruptcy forms, including the petition, the schedules and the Statement of Financial Affairs. The Statement of Financial Affairs will outline all of your creditors, debts, expenses and assets.
- Changes were made in 2005 with the passage of the Bankruptcy Abuse Prevention and Consumer Act (BAPCPA). The goal of the BAPCPA was to update bankruptcy law to encourage more individuals to file Chapter 13 Bankruptcy and repay most or all of their debts.
The main changes included:
Requiring individuals to complete a credit counseling course prior to filing bankruptcy
Requiring individuals to complete a financial management course prior to the discharge of your debts
Making it more difficult to file Chapter 7 Bankruptcy. Now individuals must pass an income test to be able to file Chapter 7 Bankruptcy
The income test will review your gross median income compared to other residents of North Dakota. If your median income is less than other North Dakota residents, you may file Chapter 7 Bankruptcy. If your income is higher, you will have to pass other means tests to determine if you can file Chapter 7 Bankruptcy.
The purpose of the means test is to determine if you have enough disposable income to repay your creditors. The test will subtract your house payment, car payment, school tuition up to $1650, back taxes and child support from your gross income. If you can pay $6,000 or $100 per month over the next 60 months, you will probably have to file Chapter 13 Bankruptcy. If you fail this test, but you could pay 25% of your disposable income to your creditors over the next 60 months, you may have to file Chapter 13 Bankruptcy.
Filing Chapter 13 Bankruptcy in North Dakota
With the updated bankruptcy laws, many individuals will make too much money to file Chapter 7 Bankruptcy. Other individuals will not want to liquidate their property or assets. Chapter 13 Bankruptcy is another good bankruptcy option. Although your debts will not be immediately discharged, you may be able to: Stop a home foreclosure,
End certain types of wage garnishments,
Stop repossessions of your property,
Stop creditor calls,
Reorganize your debt payments.
Chapter 13 Bankruptcy will let you discharge your debt with in three to five years by creating a bankruptcy repayment plan. This plan is approved by the bankruptcy court and managed by your court appointed trustee. Your trustee is responsible for dealing with your creditors, in fact, your creditors will not be able to contact you for debt payment at all while you are under Chapter 13 Bankruptcy protection. Creditors may contact you if you fail to continue to make payments for debt which is considered non-dischargeable and not outlined in your bankruptcy repayment plan.
Your North Dakota Bankruptcy Lawyer will be able to answer your questions, file your bankruptcy petition and schedules, appear in court for you and help you develop your bankruptcy plan.
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