Can I Pay the Debt Before the Court Date?

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Can I Pay the Debt Before the Court Date

In this article, we’ll discuss the important topic of: “Can I Pay the Debt Before the Court Date?”

It seems incredibly stressful to present yourself to the court, especially if it’s for a few unpaid and outstanding debts. Nobody wants that, and even if such a circumstance is created, you can very well be in charge of the situation by agreeing to pay. 

It doesn’t matter if you are paying in one go or making part payments. The important thing is that you have decided to pay, even if not altogether. If the credit card company has filed a lawsuit because of some unpaid debts, there’s nothing to worry if you are ready to clear your debts.  

Can I pay the debt before the court date?

It’s common to be in this situation, as a circumstance like this may arise for anyone. It is understandable to not be able to pay off all debts because of not a very sound paying capacity at a certain point. 

What matters is, one should understand the seriousness of facing a lawsuit by a credit card company and agree to pay even if in small chunks. In an ideal situation, you should be ready to pay because who wants the label of a lawsuit on their case. 

As stressful as lawsuits are for you, it is for your creditors and debt collectors as well because they are both expensive and time-consuming. Let your creditors know you are willing to pay before the court date and try to come upon a settlement, and they make withdraw the lawsuit against you.  

It doesn’t matter even if you have already received notification of a lawsuit, and it is still not late. You can make up your mind and agree to settle some of your debt, and later contact your creditor party or debt collector to come upon a standard settlement that is feasible for both the parties. It might help your case improve in an instant.  

What are the chances of being sued by credit card companies over debt?

Since the company issued the credit card to you, it has the right to sue over unpaid debt whenever the company wants.  

  • You won’t be sued until six months have passed or longer than this period 
  • If you haven’t been able to pay in the last six months, then your debt will be reported as uncollectible to the credit bureau 
  • Under such a condition, debt will be passed to a collections company 

What are other ways to settle debt before court date?

This question is relatively simple to answer, given the court isn’t so strict anymore that it will send you to jail for unpaid debts.  

  • You can pay off your debt before the court date 
  • Once you realize you can’t make payments, you should immediately start working on your debt settlement 
  • In case of a lawsuit, it is essential to settle your debt 
  • Even if it’s small amounts that you can pay, it will save you lengthy court proceedings 

What to do with the settlement before the court date?

It is excellent if you are ready to pay all your debt! Settlements are very much appreciated, and it’s great if the case does not have to go to court.  

  • Try to identify first who is going to sue you, a credit card company or a debt collector 
  • If you understand it on your own, you can even hire a debt lawyer  
  • For settlement, it is necessary to have an open conversation with your creditor  

What will a debt settlement company do for you?

Debt settlement companies handle both kinds of debts, one known as secured debts, other unsecured debt. 

  • Secured debt includes boat loan, car loan, and a mortgage 
  • Unsecured debt comprises Private student loan, medical bill debt, and credit card debt  

When should you hire your attorney?

If it’s extremely complicated for you to figure things on your own, you can go with an attorney who will look over a few things for you 

  • To get you more time from the court 
  • Give timely response to court summons 
  • Do all kinds of negotiations related to the case 

FAQs

Will hiring an attorney in such a case help?

You can easily handle the case on your own, but there’s nothing like it if you can afford an attorney for your case who can work professionally than you would, along with the creditors. It would even ensure a timely response on all court notifications. 

How to prevent a lawsuit?

It’s important to understand that it’s rare to be sued for non-payment on credit cards. But that does not mean we can disobey company guidelines; we must know that our debt can be written off and passed to the credit bureau.

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Summary

Can I pay the debt before the court date? As explained, one should be able to pay his debt before the court date, for sure. If you don’t want to subject yourself to the lengthy lawsuit proceedings of the court, you must work your way around, and try to be a good paymaster.

https://www.youtube.com/watch?v=4ndvqkPAsYg

How to Get Back in School When You Owe Money? Important Facts & Details

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How to Get Back in School When You Owe Money?

In this article, we’ll discuss the important topic of: “How to Get Back in School When You Owe Money?”

If you owe money on student loans and still wish to get back to school for further studies, you are not alone. As per the Federal Reserve, there are as many as 22% of the Americans who get back to school even when they own money. If you are thinking about whether you can get back to school when you own money, you can. The only question that may arise is how to get back in school when you owe money. 

So, if you are determined to join back your school for further studies, here are some ways you can make even when you owe money. 

How to Get Back in School When You Owe Money?

If you have not paid back the school education loan you have taken, thinking to go ahead with further studies can be challenging. But many such students decide on going back to school while in debt. There are just a few critical factors you need to consider and understand while deciding on it. 

Some of the indispensable factors that you need to think about are:

  • How much debt you have?
  • Whether you will be able to pay off the debt if you are taking another loan for your further studies or not?
  • How much time will you take to pay off the debt?

After you have analyzed the entire picture, several things get clear. It helps you understand whether you should take up another study loan for your further studies while you are already in debt. Also, it helps you in paving ways on how to go back to school with defaulted student loans. 

Once you have thought deeply about all the factors and angles, there are several ways that you can try out how to get back in school when you owe money. Here are some of the ways that you can try out.

Taking to the Creditor:

The fundamental way is to talk to the creditor from whom you previously took the study loan. You can discuss the scenario with the creditor that you wish to go back to school for your further studies, for which you will require more loans on the debt you already have. If the creditor that you have chosen is a good one and offers several benefits, then the service provider can surely help you in different ways. They can help you in selecting a more convenient repayment option for your loan that you are taking. 

If You Have Defaulted:

If you have defaulted on your federal loan, you cannot apply for a further loan for your other studies. So, how to get back to school with defaulted student loans? In such a situation, you have to improve your standing in the loan to get further help. Two different ways can help you. Federal loans have the benefit of offering your forgiveness if you have a critical financial situation. But if the forgiveness option does not work out, you can pay off the federal loan by taking a student loan from a private creditor. After this, you can again stand a chance of getting a new loan for your further studies and get back to school. 

If You Are Confident:

If you have not defaulted and are confident that getting further studies, you will stand a good chance at earning a handsome income, and you can indeed talk to your creditor. If your creditor is not satisfied with the plan you have in life, you can take a separate loan to pay off the debt and further studies. This way, when you start earning, you can slowly pay off the loan amount. 

Going Back to School While in Debt

Going back to school while in debt can be a risky thing. When you already must pay, getting another debt can overburden you even more. In such a situation, there are two ways in front of you. 

  • Either you should first pay off your debts and then take another debt to start your further studies, or
  • Take an added burden to complete your further studies and then pay off both the debts together. 

Many scholars who are tracking higher studies in medical, law, and similar sectors prefer to go for the second option. They are confident that after completing the classes, they will have a lucrative career ahead and earn well. They can use up this making to pay off the debts quickly. But of course, you have to be sure that you can get the career option you have thought of after completing your studies. 

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Summary

Many students in America do not continue their further higher studies because they are in debt. On the contrary, also others still wish to pursue further studies even when they are in debt. If you need to know How to Get Back in School When You Owe Money, you should have an in-depth analysis of your situation and talk to your creditors about it. 

Can You Sell Your House After Filing Chapter 7? Important Facts & Details

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Can You Sell Your House After Filing Chapter 7

In this article, we’ll discuss the important topic of: “Can You Sell Your House After Filing Chapter 7?”

Once you have filed a case of bankruptcy under chapter 7, your properties are now under the court’s jurisdiction, and the court will decide what needs to be done with it. The creditors do not have any right to foreclose on the property, as an immediate stay protects it. You will not be able to sell your house either, without any permission from the court. The court will appoint trustees who will look after the property, have every right to sell, and pay back the debts. But there are exceptions. 

In this article, we will discuss the exception to selling a house during bankruptcy chapter 7. 

Can You Sell Your House After Filing Chapter 7?

In each case of Chapter 7, bankruptcy is treated differently. However, in all cases, the court appoints trustees who decide what needs to be done for the debtor properties or assets. The only reason for a trustee to sell properties is to pay the creditors and reduce the debt amount. The trustees consider those assets only which can be sold.

But you can save some of your equity, which is protected under the law called a homestead exemption. If the total amount of your mortgage loan and the homestead exemption valuation is greater than the valuation of your house, the trustees usually do not sell it. Instead, they hand it over to you, and you can then sell it or hand over the property to the mortgage company. 

If we wish to sell the property, let’s find out what procedure can be followed. 

Procedure to sell your house after filing chapter 7

Below are the listed steps wherein you can sell your house- 

  • Calculation of equity and homestead exemption

You need to find out the total valuation of your homestead exemption. There is a possibility that trustees can dissolve all assets if they are not declared as exemptions. Some states, like California, have two exemptions. Section 704, under the Civil Procedure Code, defines a more homestead exemption list. Check out how to calculate homestead exemption in details.

For instance, if you are single and disabled, you will receive up to $75,000, and if you are family, you will receive $100,000 of exemption. If you are elderly and disabled, you will receive more. This exemption amount is the value of your equity, which is your house’s total market value minus the mortgage loan you owe. 

  • Meeting with Creditors

Now that you have calculated your homestead and equity value, you will have to attend a meeting with the trustees and creditors. This meeting may take up to 30-40 days from filing the bankruptcy case. You will have to present all the exemption claims. 

If the mortgage value, home exemption, and trustee fees and selling cost overpowers the house’s total value, there is no equity you can give away, and the trustees can consider not selling the house. 

  • Discussion with Trustees

If the trustees are convinced that your exemptions are correct and that there are no considerable assets with equity for him to sell and distribute amongst creditors, he can leave the assets. The Bankruptcy Law network reports that out of 100, 95 cases are like these. Now the trustees will file a “No Distribution report,” which will help discharge your bankruptcy.

  • Discharge from Bankruptcy

Now that the court discharges the case, your home is free from Chapter 7 bankruptcy. You can directly officially sell your house as an owner.

  • Sell the property

You will either have to list your property on any real estate website or appoint an agent to find a suitable buyer and negotiate the value. 

Foreclosure process after chapter 7 discharge

Often, we receive a question that, can the property which has already been disclosed be foreclosed? The answer is yes. There can be two types of foreclosure in the United States. 

One is judicial, and the other is non-judicial. In judicial foreclosure, to regain ownership of your house or property, the lenders can go through an entire court proceeding. However, in non-judicial, the lenders can sell a property at an auction and foreclose without taking approval from the court. It follows a state-specific foreclosure procedure.

One popular misconception is that bankruptcy provides the lenders a way to regain the property. They will have to follow either of the above mention methods. In a few cases, the lender might wait till your bankruptcy case is discharged. But a few lenders may not wait that long. They can immediately start doing the correct paperwork and request the bankruptcy court to keep the house or property out of protection so that they can continue with the sale. 

Final Thoughts

The house that you own can fall under multiple exemptions while you are trying to sell. You must have all the valuation accurately prepared to save the house and sell the house. The lenders can foreclose the property in a few cases. We suggest you consult with your attorney to identify your properties and not lose it during bankruptcy correctly.

Video

Here is a quick video to that goes into more detail on the topic “Can You Sell Your House After Filing Chapter 7?”

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Can You File Bankruptcy on Court Fines? Important Facts & Details

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Can You File Bankruptcy on Court Fines?

In this article, we’ll discuss the important topic of: “Can You File Bankruptcy on Court Fines?”

People file for bankruptcy because of their financial difficulties on account of a criminal issue. Paying bills may be a worrisome task. In case you are involved with fines imposed by government authorities, your state of affairs can get out of hand quickly. Whether or not you can release the penalties of a government agency, the mat

ter will rely upon why you had been assessed the penalty to start with in case of bankruptcy. Also, the debt related to the fines which could be dismissed is decided through various convictions. Even supposing it can’t get rid of your penalties, bankruptcy might nonetheless be a useful option. In this article, we will discuss if you can file bankruptcy on court fines.

Can You File Bankruptcy on Court Fines?

The court addresses fines in unique approaches: penalties, surcharges, forfeitures, tickets, etc. Usually, fines are charged by government authority units (nation, federal, municipal, etc.). Whether or not or no longer a satisfactory is capable of being discharged depends on whether it was a penalty, repayment or reimbursement, are the facts which decide if the fine will be released.

The fines are assigned to people who are disobeying the law in the form of punishment, like traffic rules violations. In issues like this, indirectly using bankruptcy to dismiss other debts is the prime choice. 

Your penalty can be dismissed if they are in the form of reimbursement of any expense to the government because, in this case, the fines are not treated as a punishment. As an example, a penalty for rear-ending a central authority car by accident then, it is not accounted as a non-dischargeable fine towards you.

How can bankruptcy help with court fines (Chapter 7 and Chapter 13)?

If you decide to file bankruptcy on court fines, you will have to determine what type of bankruptcy you want to file. There are two chapters, Chapter 7 and 13 of bankruptcy. Both of these bankruptcy types are capable of getting rid of your unsecured debts. 

  • Chapter 7: You can cast off different forms of debts, which include clinical bills, personal loans, credit card debt, etc., in case you have sufficiently low income, which can assist you to be eligible for Chapter 7. Your creditors get paid from money earned from this procedure. The remaining amount you owe is removed after bankruptcy is dismissed.
  • Chapter 13: Chapter 13 bankruptcy can come up with beyond the regular time for you to pay it, in case you have some different non-dischargeable debt or if your fine is hefty. 

Can traffic fines be discharged by filing Chapter 7 bankruptcy?

Even though these penalties aren’t dischargeable in a chapter 7 bankruptcy, you still can wipe out these debts through a chapter 13 bankruptcy submission instead. If you file a chapter 13 bankruptcy, you will be permitted 3-5 years for repayment.

Which fines are non-dischargeable in bankruptcy?

We have listed some fines which many people wish to discharge by filing bankruptcy. The nature of the penalty is tough to recognize in some cases if it’s compensatory or penal. Even if it relies on the jurisdiction, the experts might disagree on discharge the fine. 

  • Lousy check fees:  These are commonly non-dischargeable because it emerges in cases of criminal or civil fraud.
  • Unpaid Street and bridge tickets: People argue that because the tolls are compensation for the bridge’s usage or avenue, it should be discharged.
  • Criminal restitution fees: It might sound like compensation is given to the victim because of the word “restitution,” but the fact that here restitution is treated as penal was clearly stated by U.S Supreme Court, which makes it non-dischargeable.
  • Income tax fines: Tax penalties are non-dischargeable in tax being less than three years old.
  • Penalties for construction code violations: They are non-dischargeable because of being criminal.
  • Fines for disrespecting the courtroom: Some professionals disagree with it being non-dischargeable, quoting that since it’s imposed on you because of your negligence towards a government authority order, and it should be dischargeable.

Final Thoughts

If you have any traffic tickets or court fines, then some minor cases like traffic tickets or small court fines where filing bankruptcy might prove helpful. We suggest you consult with a bankruptcy attorney for more information on filing bankruptcy on court fines.

Video

Here’s an informative video on this topic: “Can You File Bankruptcy on Court Fines?”

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Can I Sell My Car While In Chapter 7 and 13? Important Facts & Details

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Can I Sell My Car While In Chapter 7 and 13

In this article, we’ll discuss the important topic of: “Can I Sell My Car While In Chapter 7 and 13?”

In the process of bankruptcy, your car is adjudged as an asset, and doubtlessly a precious one. That’s why your vehicles are pursued by your lenders while seeking to accumulate debt. Numerous elements determine whether you will be capable of retaining your car throughout the bankruptcy procedure. The subsequent factors are taken into consideration while deciding if you can keep or sell your car:

  • The sort of bankruptcy (chapter) you are submitting
  • Do you own or car, or are you leasing and nonetheless financing it for the time being.
  • The worth of your car
  • Exemptions that are applied and practiced in the place you are residing in.

Can I Sell My Car While In Chapter 7 and 13?

The code of bankruptcy calls for you to reveal all transactions, transfers, and sales of your assets for the previous two years before you filed for bankruptcy. Each nation and state has a one-of-a-kind period for disclosing asset information in bankruptcy schedules; however, the minimum period required is two years.

If you are filing bankruptcy, you cannot hold onto your assets. Since your house, automobiles, or any other valuable asset is meant to be used for payments of your debts, that’s why you can’t keep them. There are no restrictions on selling your assets previous to filing bankruptcy. Receiving the truthful marketplace price for your valuable asset is the critical factor.

Receiving a fair value and transferring your asset to the right buyer is legal. But selling your assets for less or no value is not considered standard. There are many cases where, for some reason, the clients want to sell their valuable before filing. You are free to do that, but you have to sell your item at the current market value, and you are required to uncover all the details about this transaction during the bankruptcy proceedings; this proves that you have acted in accordance with the law.

A capable bankruptcy professional or lawyer of your nation can explain and legally guide you through the procedure and its complex parts like trade proceeds. In some instances, you may preserve the cash within a financial institution, but in most, the money is used for paying off your debts, and you are required to keep proper tabs on the way you spent it.

Explication about Selling Your Car While In Chapter 7 Bankruptcy

If you’re filing Chapter 7 bankruptcy, you might be able to settle some of your unsecured debts by selling some of your valuable assets. The type of assets that are excluded from this process differs in every state. The local bankruptcy law states that you can keep your car as long as you are constant on your debts payments.

In this procedure, the equity of your automobile is also determined. Your car can be protected in case the exemption limit is more significant than your car’s equity. But if the equity of the vehicle transcends the range of exemption, the following cases might occur: 

  • The Trustee who is directing your case has the authority to sell your car and give the money you owe to the creditor to clear your debt and then give you the spared amount. You are granted a choice to pay off your car’s value at a discounted price if you want to keep your vehicle.
  • The creditor can take possession of your car if you cannot pay your vehicle debts and loans on time. 
  • If you don’t have any plans to pay the vehicle loans, you can relinquish your car’s rights and surrender to the creditor. In this way, after filing bankruptcy, your responsibility regarding the loan will be eliminated.

Explication about Selling Your Car While In Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, the idea of a debt repayment plan is introduced. No government trustee is appointed here to sell your properties; instead, your assets and finances are arranged in a systematic order; after that, you initiate the repayment procedure.

The repayment period differs in every state. Usually, the period is 3-5 years. Some unresolved arrears might be discharged at the end of your period, like clinical bills and credit card dues.

In the case of car loans, if you owe more than its current worth, then the principal amount or the interest rate can be decreased; this occurrence is referred to as cram-down in this procedure. But you might need to sell the car if you cannot qualify for the repayment plan.

Final Thoughts

The procedure involved in selling your car while in the chapter (bankruptcy) is different in both cases. In Chapter 7, a federal trustee is appointed to oversee the financial settlements of your assets. In Chapter 13, the government offers you a repayment plan with enough time to pay off your debts. In this article, we have briefly explained the essential facts which can help you. We suggest you consult with a bankruptcy attorney for more information on whether you can or can’t sell your car while in the chapter. 

Video

Here’s a quick video that goes into more detail on the important subject: “Can I Sell My Car While In Chapter 7 and 13?”

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How Does Bankruptcy Affect a Spouse? All The Important Facts & Details

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How Does Bankruptcy Affect a Spouse

In this article, we’ll discuss the important topic of: “How Does Bankruptcy Affect a Spouse?”

To get protection from the threats of the creditors, many people prefer to file for Bankruptcy. Though this will protect you from the creditor’s threats, it will show up on your credit report. Bankruptcy breaks on your credit report for as much as ten years. But apart from this, a major question that many people have is how does bankruptcy affect a spouse. 

The answer to this is yes, your spouse may also get affected even when you are filing individual Bankruptcy. It also depends on several factors stating to what extent the Bankruptcy is going to affect your spouse. Some of the factors are:

  • Joint properties or bank accounts
  • The State’s property laws
  • The type of Liquidation that you have filed for help. 

How Does Bankruptcy Affect a Spouse?

If you are filing Bankruptcy as a couple, of course, it is going to affect both your finances. Though the effect will vary based on your finances, both of you have to suffer from the consequences. 

But what will happen when you are married, and you have just filed for Bankruptcy individually? Will it affect your spouse? Yes, it is going to affect your spouse even when you have filed Bankruptcy individually. Of course, it will not harm your spouse’s credit score, but there are other ways. Apart from the mental pressure and other emotional drawbacks, there are other ways of how your spouse can suffer. 

So, how does Bankruptcy affect a spouse in such a case? Here are some of the ways that can impact your spouse due to your bankruptcy filing. 

Joint Accounts:

This is quite logical that if you have a joint account in a bank, loan, lease, or similar others, your spouse also has to suffer along with you after the bankruptcy filing. If you have a joint account with your spouse, your spouse is also equally responsible for the Bankruptcy legally. There is no option of being half responsible because your spouse has not filed for the Bankruptcy. The joint accounts make the spouse also a co-borrower from the creditors from whom you have borrowed finances. 

Applying for Loans:

As mentioned earlier, the filing of Bankruptcy is not going to affect your spouse’s credit report. So, in normal circumstances, the spouse can apply for loans and even get it based on the credit score. But many of the creditors may back out when they find that you have filed Bankruptcy. The info can be easily known when your spouse presents the address where you both stay. 

Family Business Goes for Toss:

If you have funneled for Bankruptcy, you cannot remain your business director until and unless the court does not allow you to do so.  Bankruptcy’s trustees will also try to sell off your business to recover your debts when nothing works out. Thus, if the spouse also had a contribution to the business, it also goes away. But here, playing a bit tricky can help you save the business from selling out. Getting in touch with the right advocate can help you in doing so. 

Assets of the Spouse:

Whether the trustees of Bankruptcy use up the spouse’s jointly-owned assets or not depends upon the type of assets that the spouse holds. If it is furniture and similar items, the trustees may not interfere in it. But if the spouse has bought an expensive car along with you, this can be taken away. If the trustees notice that the spouse is using the car for work purposes, there are chances of reconsideration. If the spouse has a monthly income that can help pay off the debts in the next three to five years, the trustees can consider this. So, the pressure of paying off the debts now comes upon the spouse. 

Personal Disturbances:

If you have a big house, the court and the trustees of Bankruptcy may try to liquefy the property to pay off the debts. Of course, this can cause a personal and emotional disturbance to the spouse. House is made of love and care. When a house is sold out to pay off debt, it hurts. Similarly, due to the bankruptcy filing, the whole focus remains to pay off the debts. In such a situation, the spouse also has to suffer in terms of lifestyle, holidays, and other elements. 

Summary

If you think that individual filing of Bankruptcy is just affecting you, you are very much wrong. In the case of joint accounts, the Bankruptcy will directly affect your spouse. But if it not, then How Does Bankruptcy Affect a Spouse?

Even when the spouse does not have joint accounts with you, it can trouble the spouse by offering pressure on him or her for paying off your debts if the spouse is an earning partner. You cannot ignore the emotional breakdown that the spouse can go through seeing the house and other beloved assets and properties getting sold off to pay off the debts. 

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How Much Debt to File for Bankruptcy? All The Important Facts & Details

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How Much Debt to File for Bankruptcy

In this article, we’ll discuss the important topic of: “How Much Debt to File for Bankruptcy?”

To answer how much debt to file for bankruptcy, there is no such limit. Moreover, there are some other essential factors that you need to consider while you are filing bankruptcy. 

So, just having a load of debt is not enough to file for bankruptcy. There are many other factors that you should understand before you move towards the court. 

Here are some of the indispensable factors that you need to maintain and how much debt to file for bankruptcy. 

How Much Debt to File for Bankruptcy?

As mentioned earlier, there is no such minimum limit of debt that you need to have while filing bankruptcy. Of course, it is the most crucial factor because it is the amount of debt overloading you each passing day. But here are some of the serious questions that you should ask yourself while thinking of bankruptcy filing. 

  • Can you pay back your debts if you are provided with some extra period?
  • Is it possible that you can settle down with your creditors outside the court?
  • What is the debt types that you have right now?
  • What is the situation that you are currently in?

Apart from considering how much debt to file for bankruptcy, there are also other things around to look for. So, a convenient way out is to get in touch with an attorney who can help you deal with all this. 

Though you can quickly meet up with an attorney and understand the next steps, it is always better to first analyze your situation. Hence, it is a great idea to understand and analyze each factor that will help you simplify the process. Let us explore each of the critical factors in detail.

You Capacity to Pay the Debt:

Analyze the factors such as your income and capacity to pay off debts in a year or so. If you think that you can quickly pay off the debts in a year or two, it is always better to do it. If the creditors are troubling you too much, you can take up a bank loan to pay the debts off and can slowly pay the bank loan on a regular monthly basis. 

Identifying this factor is very much important because often, your filing of bankruptcy may get dismissed by the court if your income is sufficient to pay off the debt. If your income is adequate, you will not be eligible for debt discharge also by the court. 

Settling with the Creditors:

In place of ignoring your creditors, it is always better to talk to them upfront. It may happen that you might have faced a loss in your business. Many creditors may understand this situation of yours and may provide you some time to arrange for the debt payback. This can save much time and also the harassment of a court case. 

But if the creditors are not ready to understand your situation and are threatening of suing or are taking other actions, you can file bankruptcy. If you are definite that you just need a bit of extra time for the debt payment, you can file for bankruptcy and get a period of three to five years. When you have this protection from the bankruptcy court, you will be free from the creditors’ threats. Meanwhile, you can arrange for the amount and pay off the debts after the grace period you have. 

Debt Types:

It is also essential to consider the debt types that you are supposed to pay to your creditors. There can be different debt types that you may have to deal with, such as:

  • Any type of loans
  • Alimony
  • Tax obligations
  • Child support

You should consider a proper attorney based on the debt type that you have. For example, if your ex-wife has asked for alimony that is much higher than your income, you can surely go for a bankruptcy filing to wave it off or to get a reduction in it. 

What Situation Are You In currently?

It also hangs on what situation you are in while you are planning to file for bankruptcy. You can file for it in these situations such as:

  • The creditors are troubling you with threats of suing you or others,
  • You have lost the source of income through which you could have paid the debt,
  • The creditor is about to take control of your properties.

You can indeed file for bankruptcy in such situations so that either you get extra time or you can get the option of debt discharge. 

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Summary

It is the most common question that many people ask how much debt to file for bankruptcy. But it is not the amount of debt that you have on you. The filing of bankruptcy also depends upon several other factors. Of course, when your creditors are kind enough to offer you some extra time for paying off the debts, there is no point in filing bankruptcy. Hence, it is always necessary to check through all the factors before taking this ultimate step. 

What’s the Difference Between Deferment and Forbearance? Important Facts & Details

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What's the Difference Between Deferment and Forbearance

In this article, we’ll discuss the important topic of: “What’s the Difference Between Deferment and Forbearance?”

Higher scholarships have turned out to be a must-take decision these days given the competition and the tough job markets globally. This leads several students to go for the choice of student loans. Going for the federal student loan option is considered to be in this case due to the benefits that it offers. Though it offers several beneficial features, some students still may not pay back the debt amount on time.

Some students do not think about further studies in such a case, while some brainstorm ways of going back to school while in debt. It is possible to go back to school even when you have not paid off your last debt with the help of different procedures such as deferment and forbearance. 

What’s the Difference Between Deferment and Forbearance?

When a scholar has completed a certain level of schooling but has not paid the student loan, then comes a situation where a crucial decision needs to be made. Some students prefer to complete the payment procedure first and then start their schooling again for further studies. On the other hand, some students prefer going back to school while in debt because they do not wish to break their studies. 

Students who are still in debt or have defaulted on their student loans can have several options to go for in such a case. 

  • If you still have some debt to pay, you can refund your pending debt, along with an additional amount for your studies. 
  • In case of default, you need to correct your status by either paying the amount by taking a private loan. 
  • Also, you can go for options such as deferment to carry on your studies.
  • Similarly, forbearance is another option here. 

Now in the first two options, getting a private student loan is one of the best choices. For the subsequent two possibilities, it is indispensable to comprehend how they work. 

The Duration:

The deferment duration varies as per the deferment type you have opted for from the options. Some may last for about three years, while some may have even further duration or lesser. But in the case of forbearance, the period is just 12 months and not more than that. 

The Qualification:

To get the benefits of deferment, you need to show that you are unemployed or enrolled in a school. For the forbearance option, there are no such qualifications required. You can opt for the possibility of forbearance without showing up any capabilities or proof of your employment. 

The Application:

There are innumerable forms for diverse deferment types. It would help if you talked to your service provider to understand which one to opt for among the options. You need to fill this form and need to attach the required documents for the process. But in the case of forbearance, there is only one standard form for patience. There are also instances when forbearance is also granted through the phone.

The Interest:

One fundamental advantage of deferment is that no extra interest levied on the loan you have in debt. It can be your federal student loans and the Perkins loans for which you can opt for deferment and enjoy interest-free benefits. But when you opt for forbearance, interest is levied on every type of loan you have. 

Apart from knowing what’s the difference between deferment and forbearance, you should also know the resemblances. One noteworthy comparison between the two is that both of them do not have any impact on your credit report. 

How to Return to College with Dodged Student Loans?

If you are already in debt but are paying the installments regularly, you can opt for deferment or forbearance. But how to go back to school with defaulted student loans is the larger query. When you default on the student loan, you may not be entitled for deferment or forbearance. To get the benefits, you need to clear up your default status. Here are some of the ways that you can try out. 

Loan Rehabilitation:

When you apply for loan rehabilitation, you can sincerely claim aid after making the next six months’ payments. 

Loan Consolidation:

With this process, you can get out of the default in 2 to 3 months so that you can claim further aid. 

You have to pay back the loan amount in each case, but you get some time in hand and other benefits. 

Summary:

Federal student loans help students who wish to apply for higher studies that can be expensive otherwise. But if you have passed out of school, you still are in debt; you are continually paying the installments, thinking of going back to school can be difficult. In such an instance, you should look out for diverse ways to get support. Knowing the difference between deferment and forbearance and choosing the right one can help you in a significant way. 

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Using Credit Cards Before Filing Chapter 7 – All The Important Facts & Details

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Using Credit Cards Before Filing Chapter 7

In this article, we’ll discuss the important topic of: “Using Credit Cards Before Filing Chapter 7”

Today, many individuals file bankruptcy when they find themselves under a load of debt. There can be different debt loads, such as a loan or credit card bills. Yes, pending or accumulating credit card bills can also become a burden, especially when your income source has been interrupted somehow. You can indeed file bankruptcy to get some time to pay the credit card bills or discharge the debt without getting harassed by the service providers. 

But if you make a habit of using credit cards and then filing bankruptcy, the credit card service providers can easily understand this trick. They might soon charge a lawsuit of fraud against you. So, it is essential to know the grounds for using credit cards before filing Chapter 7 bankruptcy. 

Using Credit Cards Before Filing Chapter 7

It may have happened that you used your credit card for various expenditures while you had a stable job or income. But suddenly, you have lost that job or source of income, and you are in no position to pay back the credit card debts. For such cases, you can file bankruptcy and seek help from the bankruptcy court. But that does not make you eligible for using credit cards before filing chapter 7 intentionally. If you think that you can use credit cards to the fullest and then can file bankruptcy, the credit card service providers can soon understand this trick of yours. Soon, they will charge fraud against you. 

But if you are seriously stuck up with credit card debt and wish to get rid of it, there are two ways. 

  • When you file Chapter 13, you can make some payment towards the credit card debt. The pending amount will be wiped out. 
  • When you file Chapter 7, the entire amount can get wiped out. 

But again, you should understand this that if the credit card service providers prove that you have done fraudulence, then the court may not help you in this. In such a situation, you may have to make the full payment towards the debt.

So, here are some of the decisive things that you should keep in mind while using credit cards before filing chapter 7. 

Maximizing Your Limit Before Filing Bankruptcy:

If you have already accumulated a credit card debt, you can file for bankruptcy to have a peaceful life. But if you intend to spend before filing chapter 7, this can count as a fraudulent activity. For example, if you have already decided to file Chapter 7 and you have taken the necessary steps, but still, if you spend from the credit card before finally filing Chapter 7, this is fraudulency. You should refrain from such activities if you wish to discharge your debts. 

How Can Creditors Claim Fraudulence?

Apart from the credit card service providers, the other creditors can also claim a fraudulence case against you. This mainly happens in the case of buying luxury items of a higher amount from a single creditor. In the case of returnable items, you should return the items to settle down the issue. But it is not rather that can be returned; you may have to talk to your attorney who can convince the court that you are in no position to pay back the amount.

Credit Card Companies Challenging Dischargeability:

After you have filed bankruptcy, the credit card company checks through your history of expenditure. If you have made a massive transaction from one place or have been immediately spending before filing chapter 7, the credit card company can file a lawsuit against you for fraudulency. In such a situation, the discharging of the debt is stopped, and you have to make the payment. An easier way is to ask for extra time to pay off the debts or to settle with the credit card company to close the matter. 

Can You Use a Credit Card After Filing Chapter 7?

Credit cards are an easy option today to afford items that you cannot afford with your liquid money instantly. You can slowly pay off the bills of the credit card later on. But can you use a credit card after filing Chapter 7? This is a significant question that many people ask. To this, there are two essential answers. 

  • When you have seen once that the overspending habit has led you to such a situation, you should avoid having a credit card after bankruptcy. 
  • But if you still wish to have it, you should initially apply for the secured credit card options. Once you have paid off the bills regularly for six months or more, you can apply for a regular credit card. 

 So, the answer to can you use a credit card after filing Chapter 7 is entirely upon you. If you think you cannot take up that burden again, you should ignore it. But if you are sure that you will use the credit cards more wisely this time, you can get one. 

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Summary

Credit cards can be a great help at times. But if you do not pay off the bills on time, it keeps on accumulating, and you end up under a mound of debt. Indeed, you can file bankruptcy for credit card debts, and the debt is also dischargeable. But it will depend upon several factors. The factors such as the expenditures that you have made or if you were using credit cards before filing Chapter 7 will count in this. 

Will My Bankruptcy Be In The Newspaper? Important Facts & Details

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Will my bankruptcy be in the newspaper

In this article, we’ll discuss the important topic of: “Will my bankruptcy be in the newspaper?”

Will my name and details be printed in the newspaper if I file for bankruptcy? There is often anticipation around records to be public in default. And the reasons are apparent. At times bankruptcy reports against your name may be looked down upon by your friend and colleagues. So, being a public record, will bankruptcy details be printed in the newspaper?

The popular thought about bankruptcy is that if a person fails to return the debt they own, they file bankruptcy. In this article, we will discuss Chapter 7 bankruptcy and the properties you can seek to keep and the ones that you feel you can sell. 

Will my bankruptcy be in the newspaper?

Bankruptcy details are public records (Except security details like your Social Security Number) under the Federal law. So, you need to understand that technically it is open for public viewing. 

Once you have filed the case of bankruptcy, the details will be uploaded in the Pacer (Public Access to Court Electronic Records) system, often being used by federal courts. 

So, anyone who can access the Pacer system can look into the system, with multiple details of your, for instance, your name, and then view the bankruptcy documents. To enter the Pacer system, you need a password which can be received online. 

Despite that, people do not have the time to look through your bankruptcy details online. A person has to be very curious to look for your details, as they have to surpass the Pacer system with a password.  

To the most crucial part, a few jurisdictions can upload your bankruptcy details online. And a few local newspapers can pick up that detail and print too. But do not be alarmed; these do not happen in larger jurisdictions. Let’s now find out who the 3rd parties are eventually going to find out about your bankruptcy. 

Who will be informed about the bankruptcy?

 When you file for bankruptcy, irrespective of whichever chapter you have filed a case in, the following organizations will receive a notification.

  • Creditors

It is not mandatory that you have to inform the creditors about your financial situation. The court will notify the creditors as they are the primary stakeholders of your debts. 

They are also informed about the immediate stop on collecting debts and that you cannot be contacted directly for any payment. There can be discussions with the creditors to decide on the repayment plan in lawyers’ presence in court. 

  • Bank or building society

The authorities can inform your bank about the bankruptcy. A piece of vital information to notice, when you file for bankruptcy, your bank account can be frozen. You will have to make prior arrangements of cash. The banks can decide if they want you to use it in the future or not. 

  • Landlord

If you are a tenant, there are chances that your owners are not informed about your bankruptcy. But eventually, they might find out if you are not able to give the rent. The court can only contact your owner if it feels it needs to see and discuss the tenancy agreement. You might have to prove that there are no profits/gains from the deal.

  • Energy, water, and telephone suppliers

These service providers are to be informed by the court. They are bound to treat you like a new customer, and they may also ask you to submit a financial security deposit or a guarantor. 

  • Professional bodies

Not all professions need a clean background from bankruptcy. For instance, if you are part of a financial firm, the FBI, or CIA, it is evident that the court will inform your professional bodies.

When will your employer and landlord find out about your bankruptcy?

Irrespective of which chapter you have filed your bankruptcy case against, there are a few cases when the court can decide whether or not to inform your employer or landlord. When you are part of high security or financial related job, it may be evident that your employer knows about your financial status. This may not affect the job you are in. And if you are looking for a new job, this might be a factor of decision making for the employers. 

On the other hand, if you are a tenant, there are no such rules, which your owners can ask you to evict if you have filed a case of bankruptcy. The tenant can still pay on the rent as it is a non-exempt expense and cannot be discharged. However, there is a scope of discussion between the landlord and tenant if there can be a revised rent possible. The landlords are informed soon after the case reaches the court. 

Final Thoughts

So, Will My Bankruptcy Be In The Newspaper? There have been instances in the past where many newspapers have printed the names and details of the people who have filed bankruptcy. And a lot of local jurisdictions continue to do so. However, all the bankruptcy reports are open to the public on a platform. This leaves us with the idea that you have to be prepared to face the consequences of bankruptcy once filed. 

Here’s a quick video to understand the topic of bankruptcy and newspaper posts. 

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