Pay Off Debt Consolidation

While there are many types of bankruptcy, Chapter 13 bankruptcies are often also called reorganization. Only individuals are allowed to file for Chapter 13, and not businesses. There are two types of individual bankruptcy, Chapter 7 and Chapter 13. A debtor opts for Chapter 13 typically because their situation falls into one of the four categories. One, the debtor’s income is higher than the limits of Chapter 7. Two, the debtor does not want non-exempt assets to be liquidated as they might be in Chapter 7. Third, the debtor wants to avoid car repossession or a trustee sale or foreclosure on their home. Lastly, the debtor wants to use the lien stripping provision of the bankruptcy code, which will be discussed in more detail in this article.

One of the basic principles of chapter 13 bankruptcy is the “best interests of the creditors test.” In general terms, the rule states that a debtor’s unsecured creditors are entitled to the greater value of the debtor’s non exempt assets or their disposable income for the applicable commitment period.

Determining which assets are exempt or non-exempt is a big part of the bankruptcy process. This is where a qualified Tucson bankruptcy attorney can be a huge help. Because Arizona’s exemptions differ from federal exemptions, you need someone who understands the revised Arizona statutes. You also need an attorney that can help you sort out all of your assets and determine which are exempt. For example, your home might be exempt, because Arizona has a homestead exemption that prevents creditors from taking your house, provided the equity is below $150,000. In addition, there is a $5000 vehicle exemption. If you are handicapped, the exemption is $10,000, and a married couple is allowed two vehicle exemptions of $5,000 each.

It will be paramount to determine your disposable income to ensure that you do qualify for Chapter 13 bankruptcy. Your disposable income is determined through legal means, the official bankruptcy form B-22(c). What this form states is that your income from all sources is added up and then standardized expenses are subtracted. These expenses are listed in IRS collections materials and include the costs of household necessities as well as your actual expenses. After subtracting this amount from your total income, this figure is multiplied by how many months your bankruptcy commitment period will last. This could be anywhere from 36 months to 60 months. This amount must be enough to satisfy the “best interest of the creditors’ test,” or you may not qualify for Chapter 13.

An advantage of Chapter 13 can be cram down and lien stripping. Cram down typically deals with vehicles and lien stripping deals with real estate. With cram down, you can qualify only if your vehicle was purchased more than 90 days prior to filing your chapter 13 bankruptcy petition. In addition, the amount you owe on the vehicle has to be less than its fair market value. If these conditions are met and you continue to pay the fair market value throughout the bankruptcy period, the lien on your vehicle will be considered satisfied when bankruptcy is over.

Lien stripping is also available in chapter 13 bankruptcy. It is usually utilized on the debtor’s primary residence. For the home to qualify, there must be more than one encumbrance (deed of trust, home equity line of credit or mortgage) on the property, and the fair market value of the property must be less than the amount owed on the first encumbrance. In this case, with the assistance of a competent Phoenix bankruptcy attorney, any lien holder after the first lien holder loses his status as a secured creditor and is treated as an unsecured creditor so long as the debtor successfully completes the chapter 13 bankruptcy plan. Chapter 13 bankruptcy is also used to prevent a trustee sale (foreclosure) on real estate and repossession of a vehicle. In general terms, here is how it works. The past due amount is divided by the length of the plan and added to the current payment. So if a debtor is $6000 behind on a house payment in a 5 year chapter 13 plan and his normal house payment is $1500/month, his payment would increase to $1600/month in order to pay the past due amount ($6000 / 60 Months = $1600) This strategy can also be used for vehicle delinquencies as well.

In the hands of a skilled Phoenix or Tucson bankruptcy attorney, Chapter 13 bankruptcy is a very powerful tool that enables debtors to achieve a fresh financial start. Most economists agree that allowing debtors to achieve a fresh financial start through bankruptcy is better than allowing creditors to take everything a debtor owns causing them to become dependent upon the state and ultimately the taxpayers for survival.

Emely Peight loves blogging about bankruptcy and finance issues. To get further Phoenix bankruptcy info or if you require a Phoenix bankruptcy attorney, please check out these bankruptcy sites today.

A debtor must qualify for two different assessments in order to file for a chapter 7 bankruptcy. The bankruptcy trustee first applies the median/means test, averaging the debtor’s income over the previous six months. Under the requirements of Schedule J of the bankruptcy petition, the trustee also will analyze the debtor’s current income and compare it to the current expenditures. If the trustee determines that the debtor qualifies under both of these analyses, then filing for a chapter 7 bankruptcy is allowed.

The first part of this analysis, the median/means test, is a very straightforward look at the debtor’s income. Bankruptcy rules take several factors into consideration, including the county where the debtor resides and the size of his or her family. From here, the trustee determines the amount that the debtor’s gross income must be under in order to qualify for chapter 7 bankruptcy. If this income is under the allowable amount, the result of the means test is fulfilled. However, even if the income exceeds the allowed amount, the debtor may still be eligible via the means section of the test. The means test compares six months of the debtor’s expenses to six months of his income. If the latter is less than the former, this test is satisfied.

The bankruptcy trustee also determines eligibility under Schedule I and J of the bankruptcy petition. Where the median/means test is a more black-and-white analysis of the debtor’s financial situation, the analysis under Schedule I and J are more of a judgment call. The trustee looks to see whether the debtor has enough disposable income to make significant monthly payments to his or her creditors. If the trustee determines that the debtor does have sufficient disposable income, the debtor’s case will likely be dismissed by the court.

Consider this hypothetical example of Schedule J. The debtor filing for bankruptcy has a disposable income of $100 per month. The overall unsecured debt that would be eliminated in the bankruptcy would be $40,000. It is unlikely that a bankruptcy trustee would consider this small amount of disposable income as a large enough monthly payment to pay the unsecured debt in a reasonable amount of time.

In another scenario, suppose the same debtor with the same amount of unsecured debt had in excess of $500 of disposable income each month. The trustee is much more likely to determine that this larger amount could be used to make payments and eliminate the unsecured debt without resorting to bankruptcy. In this example, the case probably would be dismissed.

It is also important to note that bankruptcy rules only allow for certain expenses to be included on the Schedule J calculation. The trustee determines what, if any, other expenses can be included in the bankruptcy petition. If the trustee chooses not to include some of the expenses, it can increase the debtor’s monthly amount of disposable income. If this amount increases significantly, then typically you’ll find that the debtor’s case will be dismissed by the court.

Stephen Trezza has successfully handled thousands of cases, including filing many Phoenix bankruptcy cases. For further details regarding Phoenix bankruptcy attorneys, go to the FileBankruptcyinArizona website now.

Many of us are often in awe of lawyers, some of whom seem to enjoy the status that doctors and even actors enjoy. Lawyers are very smart, and therefore normal people fear that they can never win if they have to against them in court. Lawyers are professionals and very educated.

Unfortunately, although most lawyers are decent people and are simply doing their job, some of them are somewhat arrogant and difficult to deal with. The ordinary person feels a little threatened at the thought of having to go up against a seasoned professional, like a lawyer, in court.

These fears are true in sense, because lawyers are professionals in court. They know this too and their arrogance reflects that. Anyone hiring a bankruptcy attorney expects them to be able to do their job and if he or she fails to do that, but still expects to get paid, you are within your rights to ask for a partial or complete refund of your fees.

You have to be strong and be willing to fight for what is right in court. Don’t get intimidated. You are protected under the law. If you are not satisfied with your bankruptcy attorney, you can file a complaint with various bodies, including consumer protection agencies and your State Bar Association.

CitySearch is a website that allows you to post reviews of a company or organization, and you can post on there, as well as on other sites. If need be you can complain to the State Bar. You might also want to complain to other agencies and write reviews all over the internet about your bad experience with a certain lawyer or lawyers.

Do not be afraid of putting negative remarks on websites, as an attorney is generally unable to do anything about this. You do have the right to free speech, so you should use that right.

Filing bankruptcy is hard enough without worrying about a bad lawyer. Make sure that you take your time and do some research on any lawyer that you are thinking about hiring. Make sure you do your homework and find out everything you can about an attorney before hiring him or her to represent you.

The author of this article is a Bankruptcy Attorney St Louis. You can more bankruptcy advice at his website www.aksbankruptcy.com.

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When your finances have seen better days, this can be a difficult time just by itself. When it comes time to settle the Bankruptcy, this will be a level of hell like no other. This is where the services of a qualified bankruptcy attorney in Michigan will be the best thing that you can have. This is important as these proceedings will often times get quite ugly and as a result this will be the time to have representation to help you.

When this is established, there has to be a process that affords an individual the opportunity to get the services of a person that can take the services and help a Bankruptcy from becoming an ugly occasion that will send them into a tailspin due to losing the things that mean the world to them.

If you are a little concerned with the price, then make a comparison between professionals. This task will be a great tool in helping to make sure that you are not getting taken for a ride by a lawyer that is just seeing dollar signs instead of a person.

How much will this trip into paradise cost you, this is an important question that you have to get the answer to. This can be an area that is a little grey and will often times lead to a lot of issues in the long run, take the time to make sure that you know what you are getting into price wise.

Price as in most cases will be an important subject that should be looked at closely, the more that a lawyer cost, then the better that the results will be. You need to remember though that the reason that you are in this mess, is due to a lack of being responsible with your money. It is because of this that the more expensive choice is not always the best in the world to use to get out of trouble.

Once the actions have been filed, then it will be a matter of taking the time to head to the person that is responsible for your finances and take the time to get a plan for the future of your finances that will show that you are able to manage your money in a responsible manner and not get back into the situation that you just got out of.

These attorneys are able to often to be the light at the end of a dark tunnel. This is due to the fact that when it all seems lost; there is always the option of getting out through the use of a court settlement.

John L. Hicks & Associates specializes in filing chapter 13 in Michigan. Their lawyers can help you obtain peace of mind and erase debt. (http://www.johnlhicks.com)

Being sued for credit card debt is one of the worst things to happen. It’s never a good thing, especially if you have no idea how to handle it. That can easily change though. It doesn’t have to be a horrible experience like it is for some people. There is a way you can win your credit card suit even if you don’t have the money to afford some fancy lawyer. I’d like to help you be better educated about this type of lawsuit and am here to tell you that if I can win, so can you.

It really makes a difference if it is by the original creditor or a collection agency when being sued for credit card debt. (Just about everyone I know hates receiving those calls.) Now if you’re being sued by the original creditor, it is quite likely that they will have all the documents on file to prevail in court, but they could till slip up and break a court rule during the process, allowing a win for you. On the other hand, collection agencies never really have any documents to prevail in court.

Another thing to take into consideration when you face this issue is how old the debt is. Did you know that the older your debt is, the harder it is to prove? It’s true! Your debt could very well be beyond your Statute of Limitations so be sure to look into that.

Typically collection lawyers believe that by simply giving you a Summons they are going to win because they assume you won’t go hire a lawyer or even fight the credit card lawsuit yourself. If you don’t fight it, they win by default. That could be one of the worst mistakes of your life if you don’t attempt to fight it. Please don’t plan on just ignoring your Summons. That’s exactly how you lose, and it’s really not a tough battle to fight. Take it from me; you can actually win your suit as well as I did!

In my own personal experience Capital One was the original creditor, but I was still able to defeat them. You might ask ‘how did I do that?’ I made sure to become well informed, learn my Court Rules and follow them. There is no need to fear. We as citizens have rights, and it’s just a matter of educating yourself on the correct way to go about handling your lawsuit. Usually, to get out of this mess you have two choices: hire a lawyer or defend the lawsuit yourself. Well, it’s so much easier than you think it is so be sure not to back down. I was able to win my case, and with my package I think you can use the information from my personal story to help you do the same.

Learn more about how to win a credit card lawsuit. Stop by my website where you can find out all about court summons and how you too can win your case, even without a fancy lawyer.

The best help for making the decision on filing a chapter 7 or 13 bankruptcy case is choosing a Riverside bankruptcy Attorney. There is a lot to know about the filing process and the types of debt solutions available to a debtor that only a lawyer can really help you with. If chapter 13 is your best option, there is some important information you should know about.

Chapter 13 bankruptcy is a good option for people who want to keep their assets, but only a good Riverside bankruptcy lawyer can make sure your assets are protected. In chapter 13, the debtor creates a repayment plan that takes between three and five years to complete. You usually pay most if not all unsecured debt when filing bankruptcy under chapter 13. You must be eligible for chapter 13 by residing or having a business in the United States and by having an income that is predictable. Regular income means that the debtor has income that will continue and be sufficient to make the payments under the chapter 13 plan. Secured debt and unsecured debt limits are strictly enforced to chapter 13 bankruptcy filings, so a Riverside bankruptcy Attorney can best advise you.

Just like in chapter 7 filings, debtors who want to file chapter 13 must go to a counseling workshop and give the certificate of completion with the bankruptcy petition. The debtor must also file other schedules and paycheck stubs and a plan to pay off the debt in the required timeframe. Your most recent federal tax return is also part of the petition.

However, the repayment plan is still the most important part of your petition. Debt repayment is the central part of the plan and has to use any and all of your disposable income to make it happen. The plan also has to specify when and how your creditors are paid, for example by direct deduction from wages or by payments from the debtor in the form of a check or cash. The payment plan has to begin right away and everything has to be paid off during the plan’s time period.

By paying off debt and making it occur within the time frame of the bankruptcy plan, you can get a new financial lease on life. At the end of the bankruptcy repayment plan your debts will be paid off or eliminated and you will have a much better ability to manage future financial obligations. To make this a reality, having a good Riverside bankruptcy Attorney is a good idea.

If you are suffering from any financial problems, you should look into Riverside Bankruptcy Attorney or you may also want to see the website of Riverside Bankruptcy.

Even if you are faced with a bankruptcy, it may be comforting to know that some of your assets may be protected by bankruptcy “exemption” laws. If some of your assets fall into these exempted categories, then you as the debtor will be allowed to keep these assets after filing for bankruptcy. The asset, however, can only be protected if the court determines that the asset is within the allowable values as per state regulation. Some states follow the federal government’s list of bankruptcy exemptions. Arizona is a state that has its own exemptions, and the list of exemptions and maximum value limits is much friendlier to debtors in Arizona that in states that follow federal guidelines. Arizona allows more assets with a greater allowable value than many other states.

The homestead exemption protects the home of a single or married debtor as long as he resides in the home as his primary residence. The home can have up to $150,000 in equity and still be protected in a bankruptcy. As with all exemptions, any equity over that amount is not protected. A debtor might be required to pay the amount of excess equity to the bankruptcy court in order to prevent the bankruptcy from being dismissed. A bankruptcy trustee might also choose to force the sale of the home, giving the bankruptcy filer the $150,000 to which he is entitled, and the rest of the proceeds will be distributed to the creditors by the court. Only one homestead exemption may be used in a bankruptcy.

The vehicle exemption allows a bankruptcy filer to keep his vehicle as long as it has less than $5,000 in equity. A married couple who files for bankruptcy protection can use two, $5,000 exemptions toward two vehicles. Any vehicle equity over those amounts will be treated as it would with the homestead exemption.

Personal property exemptions include items such as appliances, household furniture and furnishings. Married couples can protect up to $8,000 in assets, while single debtors may protect up to $4,000 of assets. These items are assessed at their used value, rather than if they were new items. A detailed list of all of these personal assets must be given to the court.

Bankruptcy laws also protect some miscellaneous assets. Among these items is equipment, such as tools, that can be used for commercial activities. Other items include clothing, wedding jewelry, weapons, books, musical instruments, hobby-related items and certain life insurance earnings. Specific values for each of these items have been set by bankruptcy codes.

Assets for the purpose of retirement are protected with no restrictions on value. These must be qualified retirement assets such as a 401k, IRA, state retirement fund and the like.

Some future assets also are protected by bankruptcy code. If the debtor has employee stock purchase plans that have not been vested or a future interest in a business, these potential future assets generally are protected. Annuities that have not yet been vested are another example of an asset that may be exempted.

Stephen Trezza has successfully managed thousands of cases, including many Arizona chapter 7 cases. If you need a Tucson chapter 7 attorney, check out the FileBankruptcyinArizona website now.

It helps to have a plan. In life. In business. In relationships. Plans are good things. So to, in Chapter 13 bankruptcy, having a plan is not only a good idea, it’s the law!

As an Orlando bankruptcy lawyer, I help my clients formulate a Chapter 13 payment plan to accomplish their financial goals. Depending on my client’s situation, through their payment plan, which can usually last anywhere from 36 to 60 months, I can help them catch up a mortgage payment, eliminate a second mortgage altogether, wipe out credit card debt, save money on a car loan, or handle IRS debt.

The Debtor, the person filing the Chapter 13 bankruptcy, has to file a payment plan at the outset of the case. The plan’s job is to tell everyone what goals the Debtor wants to achieve during the time the Debtor is in bankruptcy. The plan also instructs creditors how they will be dealt with, and tells the Chapter 13 Trustee who to pay and how much to pay each creditor.

The Debtor has several options to choose from when creating a chapter 13 plan. Too often in Court I see folks try to develop a plan with no idea how to express what they want to do in the plan in a way that can be understood by anyone. The result is that the plan gets objected to, or the Debtor’s case gets dismissed by the Trustee. This is bad because then the Debtor has filed bankruptcy and got nothing from it.

Hiring an experienced Orlando bankruptcy lawyer is a greta first step to getting the result you want in your Chapter 13 case. Most of the time in my cases, when my clients make their Trustee payments, they never even have to go to the Bankruptcy Court at all during their case. The most important thing, though, is that my clients succeed in meeting the financial goals they set at the beginning of their case.

In Chapter 13 cases, it’s all about having a plan. A plan that gets you through the Chapter 13 process and wipes out your debt is even better.

Learn more about Chapter 13 bankruptcy. Stop by K. Hunter Goff’s site where you can find an experienced Orlando bankruptcy lawyer and learn how he can help you.