Personal Bankruptcy

Most likely. It depends on the type of judgment entered against the Debtor and the assets that secure the judgment if a certified copy has been recorded. Yes, you can wipe out or reorganize most credit cards and medical bills.

It depends on several factors including, the type of tax owed, the date the return was filed, if the return was filed on time, whether a lien has been recorded, and several other factors. Typically, federal income taxes that are at least 3 years old and were filed on time may be subject to the bankruptcy discharge.

Typically, student loans are not dischargeable in Bankruptcy; however, in limited circumstances, student loans may be dischargeable. The type of loan the Debtor took out, the age of the loan, if payments were made on the loan, if the Debtor refinanced the loan, who the loan was disbursed to originally, financial hardship, and several other factors play a role in determining if a student loan is subject to a bankruptcy discharge.

In most instances, yes, you can file for bankruptcy protection to save your property from a foreclosure sale.

Yes.

If a Debtor wishes to keep their car, there are options that may lower the car payments or overall out-of-pocket expenses in a Chapter 13 bankruptcy. If it has been at least 910 days (2.5 years) since a vehicle loan was made before a bankruptcy is filed, the loan balance may be able to be reduced to the current value of the vehicle. This is called a cramdown. Cramdowns depend on several factors including the date the loan was taken, the terms of the original loan, the value of the vehicle, and the prime interest rate on the date of the bankruptcy filing. If the auto loan was taken less than 910 days prior to filing a Chapter 13 bankruptcy, there may be other options to lower the monthly loan payment or overall out of pocket expenses.

No, but bankruptcy may eliminate other debt, which may make catching up on past-due child support easier. In a Chapter 13 bankruptcy, child support arrearages are repaid over a five-year plan term while potentially repaying only a small portion of other unsecured debt.

Fed. R. Bankr. P. 1016. That rule states as follows: Death or incompetency of the debtor shall not abate a liquidation case under chapter 7 of the Code. In such event the estate shall be administered and the case concluded in the same manner, so far as possible, as though the death or incompetency had not occurred. If a reorganization, family farmer’s debt adjustment, or individual’s debt adjustment case is pending under chapter 11, chapter 12, or chapter 13, the case may be dismissed; or if further administration is possible and in the best interest of the parties, the case may proceed and be concluded in the same manner, so far as possible, as though the death or incompetency had not occurred.

In most cases, Debtor(s) are only required to attend one Bankruptcy hearing called a 341 Meeting of the Creditors. This meeting usually takes place between 30-60 days after a Bankruptcy is filed and is held by the Chapter 13 Trustee. Generally, no judge is present at a 341 Meeting of Creditors.

Debtors are required to bring their original Driver’s License and Social Security Card for the Trustee to verify the Debtor’s identity. In a Chapter 13 case, the first payment is also required to be brought to that meeting or submitted to the trustee prior to the meeting.

There are many variables which can affect whether a Debtor qualifies for a Chapter 7 Bankruptcy or whether a Chapter 7 Bankruptcy is the best option. Often, the Means Test under the Bankruptcy Code can be the determining factor. Typically, if the gross annual income of a Debtor is under $48,000 as a single member household and under $58,960 as a two-member household then the Debtor(s) is presumed to qualify for Chapter 7 Bankruptcy. The annual salary amounts are adjusted each year.

It depends on the agency searching the Debtor’s credit. Typically, it will appear for 7-10 years.

Bankruptcy is an excellent option for Debtors who are experiencing hardships that result in falling behind on monthly mortgage loan payment(s), homeowner’s association payments, auto loan payments and/or secured debts.

1. If a Debtor cannot afford to keep their property or does not want to keep their property, they may qualify for a Chapter 7 Bankruptcy and be able to Surrender the property and eliminate all their debts while eliminating the chance for the Bank to obtain a deficiency judgment after a foreclosure/repossession occurs. Debtors still must qualify to be able to file a Chapter 7 Bankruptcy. Debtors can also surrender their property in a Chapter 13 Bankruptcy.

2. If a Debtor wishes to keep their property and can afford to make payments sufficient to reinstate their loan(s) over a 60-month term, Chapter 13 Bankruptcy is a powerful tool. A Bankruptcy plan in which a mortgage is reinstated, consist of monthly mortgage payments plus the mortgage arrearage spread out over a 60-month period. Additionally, plan payments will include any other secured debt the Debtor wishes to reorganize, tax, child support arrearage, and other priority claims, trustee fees and often a pro-rata dividend to the allowed unsecured creditors.

Depending on certain factors, it may also be possible to cramdown (reduce) or entirely wipe out homeowner’s association arrearages, mortgages on investment properties, under-secured liens, certain auto loans, non-purchase money security debts, judicial liens, and various other secured debts.

Likely, Debtor’s credit card accounts will be closed by their Creditors after filing Bankruptcy.

After filing Bankruptcy, a Debtor’s Credit Score will likely decrease. Bankruptcy is a legal right to wipe the slate clean, eliminate debt, and get a fresh start on your credit. A Bankruptcy filing will start the clock ticking for removing negative items from your credit report and allow you to begin working on reestablishing good credit.

Results vary but we recommend opening a Secured Credit Card at a local Bank or Credit Union immediately after obtaining a discharge in Bankruptcy. Use it often to pay bills and make sure that the balances are paid on time. After 3-6 months, begin applying for regular unsecured Credit Cards. Using a credit card to pay normal living expenses and making payments on time will help to reestablish good credit.

Debtor(s) must make their first payment 30 days after the Bankruptcy is filed and continue to make monthly payments until the plan is completed.