A Closer Look At How Will Bankruptcy Affect Me

Jul 10th, 2014 | By | Category: Info

Being unemployed can oftentimes hinder a person’s capacity to file for bankruptcy, since debtors are required to get a stable source of income, with a view to file for a Chapter 13 bankruptcy. I have been an increase in clients coming into my office since the recession began. There have surely been a lot more filings. This has a lot of work to do with the increased levels of unemployment and job layoffs in the Oklahoma area. Without a source of income, debtors oftentimes have a difficult, if not impossible, time paying off their creditors.

Filing for bankruptcy can actually be counterproductive for a person who has been without work for too long, because the court filing fees are most probably going to add up to more than what the unemployed debtor can afford. Nonetheless, I still recommend that people in Tulsa speak with a bankruptcy lawyer even if they do not think they have sufficient resources to pay for the case, since most lawyers will work out some type of payment plan for clients in trouble.

However, there are differing opinions about how will bankruptcy affect me

If the repossession is imminent and you need the bankruptcy protection to go into affect right away, you can speak with Seattle bankruptcy lawyers about the option of filing emergency bankruptcy. The fees for doing so may be higher. However, you’ll still be in a position to avoid losing the car that you may depend on to go to work.

Once you have stopped the repossession of your car with the help of Seattle bankruptcy lawyers, there is always the matter of actually paying for it. You cannot just erase a car loan with a bankruptcy filing, since the loan is a secured debt and the getaway car is collateral.

You can, however, have the balance on the car loan reduced in certain instances. This is done using a chapter 13 cram down, and is an option in cases where you owe more on the vehicle than the vehicle is worth. Seattle bankruptcy lawyers can help you to see if a cram down is available for you, given the balance on your loan and the amount owed.

If your car is worth $5000 for instance, but you owe $7000, your car isn’t really securing the entire rest of the loan since the lender could not repossess the car and get back the full remaining balance. With a chapter 13 cram down on your vehicle, the rest of the secured loan can be reduced to $5000 and the remaining amount above-and-beyond the real value of the car can be reclassified as the unsecured debt that it really is and can thus be part of the repayment plan that you create with the help of Seattle bankruptcy lawyers.

Not having a job can be a serious obstacle to filing for a Chapter 13 bankruptcy, because a Chapter 13 bankruptcy is essentially debt reorganization, rather than total debt relief. When you normally pay back debts, your payment is determined depending on the amount of the debt. So you would take the debt, and then divide it by three or five years to figure out your monthly or annual payments. Under debt reorganization, your attorney will determine how much money you have coming in each month, and then set a payment on the basis of that amount instead of basing it on the total amount owed.

The debtor must have money coming in each month to file for a Chapter 13 bankruptcy. If not, he’ll not be in a position to pay any money towards the debts in the reorganization process. That is why when a debtor is unemployed and in trouble, his best option is usually a Chapter 7 bankruptcy.

A Chapter 7 bankruptcy is a straight liquidation. This means that filing for this type of bankruptcy will essentially wipe out all of a person’s bills and enable him to start over. It is a chance for a new start. Chapter 7 is far and away the most popular type of bankruptcy for people to file for right now as a result of its lack of income requirements.

If you’re too broke to be paid for your house anymore, or any other asset-backed debt, then the next stage is to file for a Chapter 7 bankruptcy and get rid of that financial obligation altogether. In a Chapter 7 bankruptcy, you would be in a position to discharge all of the debt immediately, as compared to a Chapter 13 where the debt is only discharged at the termination of the debt reorganization process.

On the other hand, when filling for a Chapter 7 bankruptcy, debtors won’t get to keep as many of their property as they would with a Chapter 13 bankruptcy. In Chapter 7, you only get to keep what is exempt. All assets that are non-exempt—which would vary from case to case—can be taken away by the bankruptcy trustees and used to pay unsecured creditors.

There are two important sorts of bankruptcy, Chapter 7 and Chapter 13. A Bankruptcy Attorney Hawaii can sit down with you, and contribute to find out with chapter best fits your financial state of affairs and which one you’ll qualify for. You have to to liquidate all your non-exempt assets in such a way as to repay your debts with Chapter 7. Your Bankruptcy Attorney Hawaii will work with you and a court appointed trustee to establish a repayment plan with Chapter thirteen bankruptcy. Both bankruptcies range in the manner in which they’re discussed in addition to the affect they’re going to have on your overall credit. The lawyer you choose will even have the potential to inform you of what debts you may and cannot claim below your bankruptcy case.

Don’t pick a Bankruptcy Attorney Hawaii on the final minute. You’ll want to do some advance planning and research. Otherwise, in the event you pick a Bankruptcy Attorney Hawaii at the final minute you could possibly find yourself with a lawyer who is just not skilled within the space you want or whom you do not really feel comfy working with.

It is very important discover good Bankruptcy Attorney Hawaii or Honolulu Bankruptcy Lawyer. Examine on their experience and reputation. Get a really feel for their personality and whether or not it is agreeable with your personal style. You may be spending a little bit of time with this individual and divulging some personal information to them so you want to really feel comfortable with them and really feel that they’re trustworthy.

As a bankruptcy lawyer to people in Tulsa, I think the best plan is to make mortgage payments your first priority, second only to car payments. You should take the money that is left over and pay off your credit cards and other debts after that. Look at what you have, and figure out if you are able to really afford it. Try to determine how you’re going to handle your debt, and have a good game plan together for your life.

This article is for informational purposes only. You shouldn’t rely on this article as a legal opinion on any specific facts or circumstances. You shouldn’t act upon this information without seeking professional counsel. Publication of this article and your receipt of such article doesn’t create an attorney-client relationship.


Comments are closed.