Tag: Chapter 7 Bankruptcy
Can I File Bankruptcy Without an Attorney?
Even though you can legally file bankruptcy with an attorney, there are still some circumstances that will require you to hire like if you are an SEO consultant. Thousands of people are unable to pay off their debts each year, but still not able to afford to hire an attorney properly. Attorney fees and other expenses can pile up pretty quickly. If your situation is not complex, you should be able to go through the process with the help of a lawyer. How does the process work? In order to follow bankruptcy without the assistance of an attorney, you will need to follow several steps including: 1. Figure out if your income meets the Means Test- The Means Test can help you determine whether you qualify to file for Chapter 7 bankruptcy. There is a test form provided by the federal government where you will have to answer questions regarding your income, debts, and the number of people in your household. If you only own a few assets, haven’t been accused of fraud, and have a household income below your state’s median, you should be able to handle the process on your own. 2. Obtain your credit reports and complete credit counseling- You will then need to obtain your credit reports from all three major credit bureaus. If you do not report a debt, it will not be included or discharged in your bankruptcy. 3. Fill out paperwork- This is probably the most complicated task if you are going to file bankruptcy without an attorney. You will need to download the bankruptcy forms package and complete all forms attached. You can then submit them by mail or in person. 4. Attend 341 meetings- You must attend this meeting even though your creditors will not be present. You will be asked a number of questions regarding your case by the trustee. 5. Complete a personal financial management course- Finally, you will complete a personal financial management instruction course within 45 days of your meeting. Once this has been completed, you will wait to hear from the court regarding whether your debts have been discharged. Filing Without Money To file bankruptcy without an attorney, you will need to at least pay a filing fee for the credit counseling courses. If you do not have the funds for either, you can request a fee waiver or ask the bankruptcy judge to roll the payment into your repayment plan, only if you are filing Chapter 13. Chapter 13 Bankruptcy Cases Even though there are some cases where you can file bankruptcy without a lawyer, there are some exceptions that may require you to hire a Houston bankruptcy attorney or another attorney including: If your partnership or corporation is facing bankruptcy, you will need an attorney You can still file bankruptcy without a lawyer if you fail the Means Test since your income is too great, but the process may be more complicated. This is because Chapter 13 cases are more difficult to file than Chapter 7 bankruptcies. Additionally, you will also need to come up with a repayment plan that explains how you plan on repaying your creditors back. While filing bankruptcy without the help of a lawyer may be possible, it may not always be the best route for you to take. It all depends on your individual circumstances. Read Also: Bankruptcy Means Test: Why It Matters? What Is Chapter 7 On Bankruptcy Laws: A Beginner’s Guide Important Things You Need To Know Before Filing For Bankruptcy What are the types of debt that can be discharged in bankruptcy? 5 Common Body Corporate Issues Faced by Strata Management Debunking 7 Notorious Bankruptcy Myths
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What Is Chapter 7 On Bankruptcy Laws: A Beginner’s Guide
If you are in the business industry, Bankruptcy is one of the most common terms used. It is a legal process to give your financial life a fresh start, either by discarding or making arrangements to pay your debts. In most cases, Bankruptcy also plays an influential role for the companies to end the business and liquidate the company’s assets in an orderly way. A bankruptcy case is filed when a company is no longer able to handle the financial flow of the business and is on the brink of closing its doors. Bankruptcy offers a way out in such scenarios. Yes, Bankruptcy stays on your credit report and makes it hard for you to apply for a loan, but sometimes it is best to apply for Bankruptcy. Let’s understand it in a much better way. What Is Bankruptcy? When a situation arises where an individual or a company feels like they can no longer pay up their debt, they choose to file Bankruptcy. Although there are different types of Bankruptcy, you can go with anyone that best complements your current situation. Despite being several types, the only goal of Bankruptcy is to discharge you from debts and give a fresh financial start. When a bankruptcy is filed, a Discharge order is issued. It is an order from the Bankruptcy court that permanently prohibits any debt collectors and creditors from coming to your doorsteps. Here are the types of Bankruptcy: Chapter 7. Chapter 9. Chapter 11. Chapter 12. Chapter 13. Chapter 15. Yes, we do have this many bankruptcy laws to offer full support. Among them all, the most filed Bankruptcy is Chapter 7. What Is Chapter 7 Bankruptcy? Chapter 7 Bankruptcy is by far the most common filed Bankruptcy for individuals. It calls for the sale of the debtor's nonexempt property to pay out the debt he/she has incurred. Chapter 7 bankruptcy is well suited for the dividual who do not have a fixed income source. When a chapter 7 bankruptcy is filed, the bankruptcy court appoints a trustee to oversee the case. The main responsibility of the trustee would be to see whether the sales process is going as planned and creditors getting paid their money. However, the selling process of the debtor’s assets has some restrictions. The trustee cannot take all of your assets. They can only sell the assets with a nonexempt tag. This ensures that you are not stripped of everything you need to live. Some common exemptions are as follows. House. Auto vehicle. Certain retirement accounts. Property that can be considered assets and not necessary for living. To know more about the whole bankruptcy thing, more especially about chapter 7, contact Chapter 7 Bankruptcy in GA. How To Prepare For Chapter 7 Bankruptcy? When preparing for chapter 7 Bankruptcy, gather all your financial records that include all your loan details, credit card statements, bank statements, and paystubs. You will need all the documents to complete your chapter 7 bankruptcy documents. Chapter 7 bankruptcy comes with a voluntary petition to the court, scheduling all your assets, and declaration regarding the debtor’s education. Credit Counselling Before the chapter 7 case can be filled, every debtor must participate in a session with an approved credit counselor. This session can either be attended in person, via telephone or online. Understanding The Means Test Debtors are needed to pass the Mean Test. It is also a necessary document that is required at the time of the chapter 7 filing. This test calculates the potential of whether you can pay the mean. The Mean Test compares your household income and the mean income of the state to know the current standing of your financial footings. The Meeting To The Creditors After Chapter 7 is filled, the court will issue a notice of “meeting of creditors”. As the name suggests, it is a meeting for the creditors to question the Bankruptcy and clear any doubts. Conclusion There you have it; now you know what Chapter 7 bankruptcy is all about. We have tried our best to keep every information possible in the most concise way. We hope that you get the answer you were looking for. If you want to know more about Bankruptcy, do let us know, we will be there with a suitable answer. Read Also: What are the types of debt that can be discharged in bankruptcy? UAE Insurance Authority Sets New Regulations for Insurance Broking
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Bankruptcy Means Test: Why It Matters?
Bankruptcy means a test is done to determine who can file for chapter 7 bankruptcy. The means test considers everything while determining your current position to pay your debt to the creditors. It goes through your income, expenditure, assets, and family members. The means test was designed to reduce the number of debtors willing to get their debts erased. It has been seen that most of the debtors who have applied for the means test have passed. Those people who cannot qualify for chapter 7 or want to keep their assets to themselves can apply for chapter 13 bankruptcy. How Chapter 7 Bankruptcy Works? Applying for chapter 7 can be an expensive and lengthy process. The means test helps the government clarify who is eligible for chapter 7. The Means Test has two parts. Both parts are designed to see through your income and assets and determine the current financial standing. You have to apply for the Means Test only for the primary consumer debts like medical debt or credit card debts. You do not have to apply for this test if your debt is related to business loans. First Part The part of the Means Test determines whether your house income is below the state's median income. The means test starts gathering information about your income, expenses, and assets. These data are mostly collected from the past six months. However, there have been cases where this six months time duration can be changed. After all the reports, if it is being found out that your income is below the median income, you will qualify the Means Test. In a report made by the US government in 2013, more than 12% of the debtors were able to qualify the Means test in the first stage. Second Part The second part consists of going through all your expenses. These expenses consist of everything you pay for, starting from paying your utility bills, grocery bills to the travel expenses and education expenses. Out of all the expenses, only the allowable expenses are considered to be used by you. Other expenses that are not necessary are used to pay off your debts. While you document the list of expenses, be thorough about the things you add to the list. Remember, those expenses will decide whether your petition will be accepted or not. Allowable expenses are based on the local and national standards used by the IRS. The national list covers items like food and clothing, and local items cover housing expenses and car payments. You need to work carefully to ensure that all your expenses are thoroughly documented. What's Next After You Qualify for the Means Test? Passing the means test means you have the green light to apply a petition for chapter 7 bankruptcy. Once your petition is accepted, most of the unsecured debts will be forgiven. That does not mean that this will be the best route for you. There are also chapter 13 bankruptcy that might give more advantage over chapter 7 in many cases. Chapter 13 will help you put a hold on all your debts, mortgages, overdue loans, and bank taxes. What Will Happen After You Fail The Test? Once you fail the Means Test, there are no more appeals for a certain period. You can apply for the chapter, or you can wait for the cooldown time to apply again for the means test. We have already mentioned that the Means Test goes through all your financial income and expenditure in the last six months. That means, after a failed attempt at the Means Test, you can apply again after six months. However, if you do not intend to apply for the Means Test again in the future, you will be restricted to chapter 13 and will have to pay off your debt based on the chapter 13 provision. The Bottom Line Is it really hard to apply for a loan after bankruptcy? Well, you can say more than hard; it is more complex. You first need to qualify the Means Test, and then only you can apply for chapter 7. It is better to have an attorney while you are managing legal documentation. Read Also: 8 Simple Tips To Pay Off Your Loans Faster 5 Must-Have Long-Term Goals for A Secure Future What are the types of debt that can be discharged in bankruptcy? Using Short-Term Loans to Help Rebuild Your Credit Score
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