In order to get a discharge of your debts, a Chapter 13 debtor must complete their plan by paying a certain amount of money each month for the length of the plan. But what happens if you are unable to pay the monthly payment required by your plan? Sometimes it is possible to modify the terms of your plan by petitioning the court. At any time after your plan has been confirmed but before the completion of your plan, you can ask the court to...
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It is completely understandable if you have debt you may not want other people knowing about it. After all, your debt is something that is a completely private matter between you and your creditor. Unfortunately, some debt collectors like to intimidate or guilt people into paying their debt(s) by threatening to tell other people about the debt. What you need to know is that there are certain people your debt collector MAY NOT tell about your debt. Who debt collectors MAY NOT contact regarding your...
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Any individual or business residing, domiciled, or owning property or a place of business within the United States may file for bankruptcy. Meeting any one of these criteria is sufficient; there is no requirement of citizenship, or even insolvency, to file bankruptcy. In some cases a trustee may be able to file on behalf of a trust, or an attorney or relative may be able to file on behalf of an incompetent person in a Chapter 7 case. Even persons not able to be present...
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Much of society’s aversion to bankruptcy can be attributed to the intimidatingly complex process. Often people are afraid due to unfamiliarity with the financial aftermath of bankruptcy. In reality, bankruptcy is a potent and, at times, crucial remedy, the benefits of which can be seen across society as a whole. Consumers today are in a much different situation now than when bankruptcy was first introduced. This is due to extraordinary growth in the availability and use of consumer credit over the last 30 years. Many...
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Of course you have heard about “unsecured” and “secured” creditors, what is it that differentiates between the two terms? A creditor is somebody to whom money is owed. For example, when you owe the bank money because you have taken out a loan, they are then your creditor. We can separate creditors into two categories, "secured" and "unsecured". When there is property that guarantees the loan amount or else you have purchased a couch, ring or house, the loan is considered a "secured" loan. Most people have...
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There is not one straight answer on this one, it will depend on the details of your particular case. We will work through some of those possibilities here, and also be sure to speak with a Tucson bankruptcy attorney for your special case. There are many factors to consider before filing bankruptcy. Bankruptcy has numerous advantages, but it also has its disadvantages. Below is a quick overview of some of the main effects that will be felt by the typical bankruptcy debtor, both positively and...
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It depends. In some cases, immediate filing may be in your best interest to avoid losing property. In many other cases, you may be better off waiting to file so that you ensure that you are able to come out of your bankruptcy with a fresh start, or to ensure you do not lose a future interest, such as a tax refund. If you are in danger of immanent foreclosure, repossession, execution sale, eviction, or utility shut-off, you may have little choice but to file...
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The bank has already started the foreclosure process on my home, is it too late to act? No. As long as the foreclosure process has not yet been completed, filing bankruptcy can stop the foreclosure process and allow the debtor an opportunity to bring the payments current and thereby “cure the default.” The right to cure is allowed to debtors filing a Chapter 13 bankruptcy on both secured debts, such as a mortgage, as well as unsecured debts, regardless of whether or not this right...
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Some limited “exemption planning” is allowed in anticipation of filing. Exemption planning consists of arranging assets to fit into the allowed exemptions, thereby leaving less property to be used to satisfy creditors’ claims. This planning is completely legal if done reasonably. However, excessive transfers to create exempt assets or improper transfers to third parties: one must avoid giving away property, especially to friends or family members because it can be considered bad faith and can be grounds for denial of a discharge. The bankruptcy court...
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A reaffirmation agreement simply means that you have agreed with your creditor to continue to be liable to them after bankruptcy. You should almost never enter into a reaffirmation agreement with an unsecured creditor. This is because your debt to them will be discharged in Chapter 7, meaning they can never come after you again to collect that debt. However, if you enter into a reaffirmation agreement, and later fail to make payments, the creditor can sue you in court, receive a judgment and even...
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