Getting Your Financial Future in Order with Bankruptcy

Although we don’t intentionally do it, sometimes we make ill-advised financial moves that lead to bankruptcy. While filing for bankruptcy can provide a reprieve for those who are unable to repay their debts, there are consequences which may affect your future, for instance:

Bankruptcy may place some restrictions on your employment or running a business
It doesn’t necessarily release from all debts, and your trustee may sell all your assets
Your name may permanently appear on the National Personal Insolvency Index (NPII)
You must inform a credit provider of your bankruptcy when trying to obtain future credit
While bankruptcy lasts for three years and a day, your trustee can lodge an objection to extend the bankruptcy for up to eight years

Do not be discouraged because there is life after bankruptcy. First, a good bankruptcy attorney can help you in initializing a debt management plan and ensure that you attend credit counseling sessions where you can receive free advice on important steps to take in the future to help you abate the damaging impact of insolvency.

There is no denying that bankruptcy can be a daunting and very emotional decision, however, having a bankruptcy lawyer by your side, he or she can help you find various debt relief options that may be available to you and most importantly, he or she can stop creditors from harassing you. It is also your bankruptcy attorney’s duty to help you negotiate, review and sign any reaffirmation agreements on secured property that you want to keep. Your bankruptcy attorney may appear in further court required appearances on your behalf to satisfy the bankruptcy court’s administrative requirements. While that is happening, consider the following ways of getting your financial future in order after filing for bankruptcy:

Stick to a budget

If living beyond your means is what may have got you in a bankruptcy pickle, creating and sticking to a realistic budget will help you become extra vigilant about your finances and prevent you from incurring unnecessary debts.

Set up automatic bill payments

One of the single, most important things you can do to restore your finances and your credit is making it a priority to pay all your current bills on time and offset any existing bills that you may have accrued in the past.

Get a secured credit card

By obtaining a secured credit card, you start depositing a prearranged amount of money into a bank account, which becomes your credit limit. Charging small amounts each month and repaying your debts as agreed is yet another strategy to rebuild your credit rating after bankruptcy.

Save

Now that you’re free from most of the debt, it’s up to you to manage your money. Start by building an emergency fund. Also look for financial coaching offered by various financial advisers to help you in managing and keeping your finances in check.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Emerging Financially After declaring Bankruptcy

Can you believe that we are already into the month of April? How are those New Year’s Eve resolutions working for you; how about those financial resolutions? Are you rolling your eyes? Financial hardships can add significant stress to personal hardships. Perhaps you resolved to pull yourself out of the financial funk left by a recent divorce or foreclosure on your home. There are many reasons that this might not have been possible for you, a job loss, a significant pay decrease, an extra mouth to feed, and so on can lead to a lack of money needed to pay off existing debts. There are times that personal bankruptcy is the only way out.

An element common to most survivors of going through a bankruptcy is the worry about moving forward and bouncing back financially. Below you will find several ways to help you get started at getting back on your feet after a financial blow like declaring bankruptcy.

First and foremost, it is important to recognize that bankruptcy does often come with a terrible stigma. For many of us it has been drilled into our heads that our financial obligations need to be paid under any circumstance. The simple truth however is that even despite our best efforts there are times when we are unable to pay our debts.

It is crucial that once you have decided you have no other choice but to file for bankruptcy you realize you are in fact not alone. In fact, the number of cases of bankruptcy has grown significantly over time; 13% of all U.S. citizens have considered it. With that said, sulking and harboring feelings of failure and disappointment won’t do anything to help you begin to move forward. Think of the experience as one that you have learned from. Forgive yourself, meet with a professional in personal finance, and move on from your bankruptcy; the bankruptcy does not define who you are.

Start by creating a fund that is set aside specifically for use after the loss of a job. This fund should consist of enough money to cover all your expenses, both essential and not, for at least 6 months. It can take a significant amount of time to find a new job and the last thing that is needed during this situation is the financial stress of not being able to pay your bills.

As previously mentioned, seek the help of a professional who specializes in personal finance. Learn to make smart financial investments and budget spending. The creation of a detailed financial plan can help you stay on track towards a healthy financial future while continue to live comfortably. Begin to slowly re-establish your credit. Eventually, everyone ends up needing some type of credit. Most of us will never be able to come up with the amount of money it takes to purchase a house. Also, if we do have that type of cash it is more likely going to make you more investing than it is paying cash for a home. A good credit score can occur even after declaring bankruptcy; it just takes time and patience.

When Chapter 13 Bankruptcy Is Better Than Chapter 7

If you’ve reached the point where you’re swimming in debt and can’t pay your bills, you may be wondering which type of bankruptcy is best. You may need a Chapter 7 bankruptcy lawyer or a Chapter 13 bankruptcy attorney. There are differences between each type.

Bankruptcy is never a simple process in the United States. Each type depends on your current income, assets, debts, and future financial goals.

Chapter 7 bankruptcy is a type of liquidation bankruptcy that will clear out any unsecured debts you may have, including medical bills, and credit card balances. To declare Chapter 7 bankruptcy, you must currently have no income or little income. If you make over a certain amount of money, you’ll automatically have to claim for Chapter 13 bankruptcy.

Chapter 13 bankruptcy is a type of reorganization bankruptcy. You must have a regular income and be able to pay back a portion of your debts through a repayment plan. There can be many benefits for filing for this type of bankruptcy than Chapter 7.

Chapter 13 bankruptcy will allow you to catch up on your missed mortgage payments. It may also allow you to clear unsecured liens on your house. This means that you will be able to keep your house, unlike filing for Chapter 7 where you can lose your property. You may also keep your nonexempt assets. How it works it that you pay back all or a portion of your debts through a repayment plan. This plan is based on your current income against expenses, and what types of debt you may have. Therefore, it’s commonly referred to as “reorganization bankruptcy”.

Another benefit is that Chapter 13 will allow you to get caught up with car loans without losing your car, and to pay off other non-dischargeable debts including alimony or child support arrears. In order to hire a Chapter 13 bankruptcy attorney, you must be an individual and not a business. For Chapter 13, you must not have more than $394,7255 of unsecured debt or $1,184,200 of secured debt. While the discharge is a lot longer with Chapter 13 than Chapter 7, 3-5 years versus 3-5 months, you’ll receive a full discharge.

It’s important to note that if you own property, Chapter 13 is a lot better than Chapter 7, as debtors will be able to keep all their property, whereas the trustee in Chapter 7 will sell your property to pay off your creditors. Your liens will also be stripped in Chapter 13, whereas in Chapter 7 they are not, leaving you with future debt loads to pay off in the future.

Before deciding which type of bankruptcy is right for you, you should talk to a Chapter 7 bankruptcy lawyer, or a Chapter 13 bankruptcy attorney, to get the best advice that pertains to your financial situation. You may just discover that you do qualify for Chapter 13 and will be able to keep your house and car!

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptciesin Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Not All Debts Are Treated Equally When Filing For Bankruptcy

With a struggling economic climate, millions of people file for bankruptcy every year for varied reasons, most notably due to medical expenses, reduced income or job loss. According to US bankruptcy court statistics, personal bankruptcy has increased at an alarming rate and not just as a result of irresponsible spending, but because something like a divorce means taking on a partner’s debt if you had “regrettably” co-signed or opened joint accounts with them.

Filing For Bankruptcy

Unexpected catastrophes can also quickly drain savings that took years to accumulate including mountains of student loans, the rising costs of utility payments, inflation, foreclosure the list is endless. Bankruptcy laws are in place to give people whose finances have collapsed and need a second chance to start over. According to statistics from the American Bankruptcy Institute, nearly 95% of Chapter 7 bankruptcy cases decided in 2016 were discharged, meaning the individual was no longer legally required to pay the debt. But what about the other 4.5%?

If you are contemplating bankruptcy, you should consider discussing your options with an experienced bankruptcy attorney who works on liquidation bankruptcies where most of your debts are discharged or liquidated under bankruptcy law. A bankruptcy lawyer will also help you in compiling all your financial records, including debts, assets, income, and expenses.

The Length of Bankruptcy Process

Once you have filed for bankruptcy, the process usually takes six months or longer to complete, but the good thing is that during this time it triggers the automatic stay that prevents creditors from calling you, suing you, sending you letters, or even repossessing your property.

Items Not Discharged In Bankruptcy

When your petition is accepted, your case is assigned to a court trustee who then sets up a meeting with your creditors that you must attend. But not all petitions are accepted, for example; student loans are not discharged under a declaration of bankruptcy owing to the fact they are funded or guaranteed by the government and students are required to pay them off once they start working.

Another example of a non-dischargeable that can’t be in a Chapter 7 bankruptcy at are debts from a divorce because they are owed to a spouse but not as a domestic obligation. However, they can be included in a chapter 13 bankruptcy provided the debt becomes part of a payment plan, and the overdue payments will be continued and paid in full.

A debt incurred through fraudulent means, including one that was obtained to take advantage of the bankruptcy code, cannot be discharged. Unemployment benefits overpayments that you may be required to repay the excess, tax penalties, fines on speeding tickets and vehicle registration fees will also not be discharged in a bankruptcy.

Also, fees that are considered a priority debt, meaning you owe the federal government or local state in payroll taxes, past tax debts from previous years, current tax liability, any fees or penalties cannot be discharged under a declaration of bankruptcy, therefore, you must make an effort to pay or deal with the IRS directly.

It’s A New Year and Time for You to Get Your Finances In Order

It’s now 2018 and time to get a new start on your life. If your finances have suffered miserably in past years, it’s now a new year and time for you to get your finances in order. Many people have increasing amounts of debt from mortgages, car loans, student loans, medical bills, and credit card debt. Often it can become unmanageable and you can feel like there is nothing to look forward to. There is help, there is a way to forgive some or all your debts. A bankruptcy attorney can help facilitate filing for chapter 7 or chapter 13 bankruptcy.

Filing for the Right Chapter

Without the assistance of a local bankruptcy attorney many people end up confusing the two chapters of bankruptcy. To get back on track in life, you should have a solid understanding of what each one offers to your future, and your finances. It can be a serious condition to have to file for bankruptcy, and both can affect your future. It’s important to file for the one that’s right for you, so you can get back to good finances in the future.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a certain liquidation bankruptcy that is made to rid you of unsecured debts. These may involve credit card debt or medical bills. To qualify for chapter 7 bankruptcy, you must currently have no income, or little disposable income. If you make too much money, you automatically must file for Chapter 13 instead.

Chapter 7 bankruptcy involves selling any property that you own so creditors can be paid back. If you have no assets, they won’t get anything. This type of Chapter 7 bankruptcy is best for low income or no-income people who have few or no assets.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is best for debtors who have a regular income. They can pay back at least some of their debts on a regular payment schedule. This is the path you’ll take if you don’t qualify for chapter 7. Even if you qualify for chapter 7, many debtors may decide to go the route of chapter 13. This is because there are additional benefits in 13 that 7 doesn’t have.

The benefits of chapter 13 bankruptcy include the ability to catch up on missed mortgage payments without losing your home. You may also be able to remove any unsecured junior liens from your house. With chapter 13 bankruptcy, you’ll be able to keep your house or property. This will also include non-exempt assets. To qualify for chapter 13, you must repay your debt through a special repayment plan.

The amount you pay back will depend on your current income, expenses, and your type of debt. Therefore chapter 13 is commonly called a reorganization bankruptcy. It’s meant strictly for debtors who can afford to make monthly payments and get caught up on car payments, child support arrears, or alimony debts.

Know Your Rights

It’s important to be aware of your rights if you choose to file for chapter 7 or chapter 13 bankruptcy. Choose the route that’s most pertinent to you. Now you’ll be on your way to financial freedom.

Choosing A Bankruptcy Attorney

It’s important to remember that bankruptcy is always considered a negative thing to have within your credit history. It will have a serious impact on any kind of credit loans in the future. With that said, sometimes the process of filing for bankruptcy is the best course of action for the situation you are in. It is possible that you can and will bounce back with the help from the right bankruptcy lawyer.

Knowledge On Your Options Is Key

Understanding the difference between the various options for filing for bankruptcy is going to be important as well. You need to have a clear idea of what you can expect to do when you are involved in this kind of situation. A good bankruptcy lawyer is going to give you proper advice on what kind of procedure is going to be the best for you.

Understanding the differences between chapter 7 and chapter 13 bankruptcies is essential for you to make a good decision. Once you are able to hire an efficient lawyer for this purpose, you should be able to understand the difference and the consequences of each of those different options.

Your Credit Score Should Recover

The process of maintaining a good credit history is important, but don’t expect filing for bankruptcy to be some kind of final nail on your credit score possibilities. This is something that many people end up doing and they are able to recover from it, so don’t see it as some kind of extreme measure that is impossible to bounce back from. Just see it as something that is going to help you when there are no other viable options for you.

If you want to know as much as possible about chapter 7 and chapter 13 bankruptcies are the best thing to do is to schedule an appointment with a competent lawyer. One that is going to be able to help you clear any doubts you might have. Once you do this, you are going to be able to get the most reliable outcome when you finally decide to file for bankruptcy in order to put your finances back in order.

There Is Nothing To Fear

This process is not the end of the world and you should not be ashamed of having to go through it. It happens to major corporations and to wealthy individuals all the time. It happens to highly successful people and even to those who always play it safe. The only thing you can do is be prepared if you need to do this at any point.

The Difference between Chapter 13 and Chapter 7 Bankruptcy

Sometimes situations arise when you can no longer pay your bills. Although you may have the best intentions of paying off your debt, you simply may not have the means to make this happen. When you can no longer pay your bills, you may need to consider filing bankruptcy for debt resolution. Hopefully, you will have considered your alternatives, but sometimes bankruptcy is the most viable option.

You’ll find both the chapter 7 and chapter 13 in the US bankruptcy code and they both deals with individuals. There are significant differences between the two, and if you plan on filing your petition, meaning without the help of a bankruptcy attorney, then you need to be aware of these differences and make sure you prepare your bankruptcy petition accordingly, though it is not recommended that you go it alone, it’s just too easy to make mistakes and get denied.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy means that every non-exempt asset you own will be liquidated to pay your creditors. It is likely that much of the property you own is considered exempt and, therefore, not subject to liquidation. A skilled bankruptcy attorney can take a look at your case and let you know what you would be able to keep should you file for Chapter 7 bankruptcy. If you choose to file for bankruptcy under Chapter 7, you will be required to take a “means test” to ensure your income is not higher than a certain amount. Should your income exceed that certain amount, you will not be considered eligible to file for Chapter 7 relief?

What is Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy can be called “payment plan” bankruptcy. A debtor makes monthly payments to the bankruptcy trustee over the course of 3 – 5 years. Once all payments have been completed, most debts are discharged. How much does a debtor have to pay each month? In a nutshell, a debtor’s monthly payment will be the debtor’s monthly take-home pay minus the debtor’s “reasonable monthly expenses.” A competent bankruptcy attorney will be able to assess your income and expenses and help estimate what your monthly payment will be.

What are the Differences between Chapter 7 and Chapter 13 Bankruptcy?

Individuals can file both forms, and they will both have a negative impact on future ability to obtain credit; however, there are some fundamental differences to be aware. The main differences are the control of property and assets and the length of time for court involvement. Under Chapter 7 Bankruptcy, individuals give up their rights to excess property and assets and can get out of bankruptcy quickly. In a Chapter 13 filing, the individual will get to keep control of his or her property, but be under court supervision for a more extended period.

Both the chapter 7 and chapter 13 come with pros and cons. So, before you commit to either one, you should sit down with a bankruptcy attorney and go over your obligations and options completely. Weighing out the pros and cons of both types and basing your decision on your current situation, you will be able to decide which route you should go with smoothly.

Stick to a budget

Set up automatic bill payments

Get a secured credit card

Save