The negotiations with the creditors failed. Disclosure of evidence is imminent and foreclosure procedures have begun. Regardless of how low your payment is, your income is not enough to pay your invoice. It may be time to consider bankruptcy.
The bankruptcy law evolved as a response to abuse surrounding debtor prison. Prior to the 19th century, the prison system was enacted for those who did not pay the bill. If the merchant declared a claim, the obligor was imprisoned until the obligation was paid. (Because women are not prisons of debtors, they can borrow with riots, not chivalry). The lender was legally responsible for the cost of staying in prison, including food, but it was rarely paid. After all, the obligor had to file a lawsuit to enforce this law, and it was rather difficult to bring a lawsuit in jail. As a result, many borrowers have been living in prison for years. Their family survived or, in many cases, simply starved to death. Some lenders will not challenge the obligor's prison update, but fortunately we live in an era of more enlightenment. A bankruptcy was created to provide a second chance (or third or fourth opportunity) to those desperately debtors. We will provide a mechanism to clean the slate and start a new one. But over time the bankruptcy law has changed. Not all obligations can be dispelled. This procedure may be disqualified easily in case of inappropriate proceedings. There are many things to know before the obligor appeals bankruptcy.
Bankruptcy decision
There are two types of individual bankruptcy: Chapter 7 and Chapter 13 bankruptcy shown in chapter number of bankruptcy law Chapter 7 bankruptcy shall fully cancel all obligations and cancel all obligations not exempt Request. Chapter 13 bankruptcy is essentially a payment plan set by the court, set an affordable monthly payment to the creditors,
The decision to declare bankruptcy is not easy. Unfortunately, many bankruptcy lawyers encourage bankruptcy against anyone they are consulting. Consumers who complain too often are advised to proclaim bankruptcy just to avoid small debts. This is a mistake. As the legal system implies, bankruptcy should really be the last resort. Bankruptcy appears in credits for ten years, loan criteria are gradually changing, but many lenders also do not consider applicants who went bankrupt. In addition, chapter 7 bankruptcy may damage most of your property. Before deciding to declare bankruptcy, please estimate whether your situation is really bad. On the paper we will create a list of all the assets and their possible approximate value. On the other side, add all the debts. If the debt exceeds the asset significantly, you can consider bankruptcy. On the other hand, if your situation may improve (you may get a new job or second income), or if your asset is more valuable or worth your debt value, another Approach may be appropriate.
Negotiate with creditors
Please explain your circumstances and ask for more time to pay. If a creditor refuses confiscation and continues to threaten the complaint, such action will cause you to go bankrupt. Credit does not want to hear the word "B". To make bankruptcy a threat is a very powerful negotiation tool and there is the option that the debtor borrows little by little monthly or get something without bankruptcy. Do not try this tactic for safe creditors. They may decide to repossess your property to avoid going through the courtroom.
Contact Consumer Credit Counseling
As mentioned earlier, consumer credit counseling is a non-profit organization funded by creditors to help consumers negotiate repayment plans. In many cases, due to the constant contact with various creditors, you can negotiate payment arrangements over individuals. If you can not make satisfactory arrangements, please try these people. Please remember that the fact that you are using credit counseling will appear on your credit record.
Chapter 13: Consider bankruptcy
Such submission documents allow you to repay your obligation in a way that is required by the courts and appear only in the credit records for seven years. If the negotiation fails, or if the amount that satisfies the end is missing, Chapter 7 bankruptcy is your only option. Bankruptcy does not necessarily emit all obligations. If your debt is exempt from bankruptcy, filing does little to improve your situation. If a co - signer is used, the debt is owed by the co - signer unless that person declares bankrupt. In the community property state, assuming that spouse's assets and liabilities are community property, it is also included in bankruptcy. Please consider very carefully before deciding the file.
Non emissions debt - Invoices to pay despite bankruptcy
A certain type of debt can not be automatically canceled by bankruptcy application. They must meet certain requirements before going bankrupt. If most of your debts can not be refunded, bankruptcy may not resolve your financial dilemma. The only way that non-amortizable obligations are eliminated by bankruptcy is due to exceptions granted by the court, for a certain period of time after the due date of debt or creditors are not opposed to waiver of debt. Certain obligations can only be refunded by exception. they are:
Recent student loan
This applies to student loans whose payment dates have arrived in the past 5 years. Payment extension will be added during this period. In addition, some courts only refund payments that are over 5 years past their due date. Therefore, if the student loan has expired seven years ago and the payment was originally made over five years, you will continue to be responsible for payment for three years. The court may grant an exception to student loans if you cause "excessive hardship" to pay for it. I rarely appreciate this.
Tax
Federal, state and local taxes can not be removed for at least three years after filing a tax return. Even if it is held in the tax court for more than three years, the tax that is taxed within 240 days from bankruptcy application will not be exempted. Property tax is removed if late for more than one year, but there is no lien for lien against your property. The lowest penalty is that you can expect the government to ultimately collect taxes.
Children's support and benefits
These can only be refunded under special circumstances, usually including a contract without a court order. If a spouse agrees to accumulate more than half of tangible debt in exchange for payment for lower aid, the court can not bankrupt the loan held by the spouse. If this situation applies, please consult a lawyer.
A fine
Fines, penalties, penalties, and damages from courts, judges, or government agencies can not be refunded in principle by banks. The same applies to liabilities caused as a result of damages or liability by driving while drunk. Debt due to drunk driving must be confirmed in the court and the ruling must be issued by the High Court. Small complaints, non-toxic driving, traffic, and the district court are all removable. Please consult a lawyer again.
Debt not debited at last bankruptcy
If it turns out that the obligation from past bankruptcy can not be repaid, it can not be bankrupt at the time of bankruptcy later.
Obligations not stated in the bankruptcy application form
If you do not include debt in your petition, it will not be paid. Many people applying for bankruptcy maintain one or more credit lines with little or no balance in bankruptcy proceedings to deposit part of the credit risk. Another strategy is to confirm the debt on condition that credit will continue to be provided. Creditors will not gather anything and face the choice of maintaining your credit and may choose the latter. Please be very careful when reconfirming debt. You are not mandated and you need a new written agreement that spells out all the new terms.
If the obligor does not object, you can immediately withdraw other types of non-payable obligations. If the objection owes objections, these obligations shall be dischargable or non-dischargeable by the court. A creditor can demand that the obligation will not be disposed if it claims that the following conditions are satisfied.
Debts were intentionally acquired by fraudulent acts
In this case the fraud is a fraudulent act used to gain trust. Claiming that you are not someone or borrowing money when there is no means of repayment or intention is a clear example of fraud. Failure to disclose certain related facts can also be interpreted as fraud. If you believe that you promise and keep it and you can keep it, it is not a fraud. Creditors for default are often used by creditors' attorneys, as creditors tend to be delusive and believe that everyone deceives it.
False written false statements
Boldly wrong credit application is conditional. An incorrect statement must be an important fact and must be the one the creditor requested so that the obligor does not default. The wrong name or minor mistake of spelling will not repay the obligation. Dramatically exaggerating income or falsifying duties is considered injustice.
Fraudulent usage
If you request "luxury goods or services" for an amount exceeding $ 500 within 40 days prior to bankruptcy filing, the debt may be deemed tax exempt. The same is true even if cash income is obtained within 20 days before bankruptcy declaration. A small claim made to avoid pre-approval is considered a fraud if it exceeds your credit limit or can not be obviously paid.
Obligations caused by illegal or malicious behavior, embezzlement, theft, trust liability breach
Money borrowed for illegal activities, such as embezzlement (to keep in property), theft (theft), or failure to perform as trust in your duties, can not leave. The court normally defines trust liability.
Once you have investigated your debt and determined what you can and can not with, you can decide whether bankruptcy will improve the current financial situation. There are a couple of things to know before deciding where to save the file.
Exempted asset
A common misconception about bankruptcy is to lose everything you own to meet the obligation. Indeed, the court makes many things indispensable for your happiness, sometimes even a little more. There are federal exemption laws, but only the state and the District of Columbia allow you. In these states you can choose between state law and federal exemption. In State:
Connecticut
Hawaii
Massachusetts
Michigan
Minnesota
New Jersey
New Mexico State
Pennsylvania
Rhode Island
Texas
Washington
Wisconsin
Vermont
In other states, bankruptcy proclaimers are required to use state exemptions.
There are some cases that may be exempted depending on the country where the motion was made.
· Personal belongings
· Furniture
· Automobile (up to a fixed amount)
· Trade tools
· Shareholders' equity (occasionally the entire residence)
· Clothes
· Household goods
· Books
· jewelry
One very interesting exemption is farmer exemption. When Texas Governor John Konari in a few years ago sentenced bankruptcy, I was surprised that it was permissible to maintain a huge manor house worth several million dollars. In Texas there is a farmers exemption system that allows bankruptcies to keep 100 acres in an urban area or rural area, regardless of value. Although the former governor may serve as a very good lawyer, farmland exemption is done also in many other states.
One bankruptcy strategy is to sell tax free property before bankruptcy and convert it to exempt property. For example, residents in Texas state can sell an unimpaired asset and use that income for a mortgage refund in her place of residence. However, I rarely want to consult a lawyer before trying this kind of asset transfer, but the court can see such an act very easily with abuse of bankruptcy law.
Even though some degree of capital is exempted, your creditors often sell assets and restore extra capital. For example, if you own a car equivalent of $ 10,000, have a duty of $ 5000 on it, and a state exemption of $ 1,200, the seller can sell your car and give you $ 1,200. In some states, waiver cards can be used to cover the difference exemption.
By knowing which debt can be destroyed and whether the law can be kept by the petitioner, we can make reasonable decisions regardless of file bankruptcy. There are several pitfalls and some pitfalls to avoid when choosing files.
I will take action
Once you decide to take action, you can start the application process. It might be prudent to consider emergency declarations to obtain automatic stay if the creditor thrusts the doorway, foreclosure, foreclosure, or decorations are just around. Automatic stay stops stopping the actions of creditors until a lawsuit occurs before bankrupt judge. Unlike bankruptcy applications that usually contain information on several pages, the emergency application is only one page and includes a list of creditors. The remaining petition must be submitted within 14 days, or the case is withdrawn. The court shall send notice of pending bankruptcy to the listed creditors and suspend all subsequent collection activities. If they do not stop please send us a copy of automatic stay and request that all further collecting activities end. Creditors can ask the automatic stay to be canceled and can continue the collection activities. Unless there is a long-term lease contract, only the landlord who intends to remove you from the rental housing takes precedence. If you are leasing with a long-term lease considering an asset, the landlord may have to wait for the formal @ g to withdraw you.
If a wolf attacks, you need to make another decision: whether to hire a bankruptcy attorney. Lawyers are expensive, as we all know. However, in the case of complex bankruptcy, they are very valuable. If you have considerable property or valuables, if you are about to transition from a tax-free property to a tax-free property, if the creditor defaults on fraud due to fraud, or if there are other complications, experienced bankruptcy You may want to hire a lawyer. Around the shop. Do not be afraid to negotiate. Before making your decision, ask a number of questions and consult with several lawyers.
If you have a very simple bankruptcy or you can not afford to hire a lawyer, please invest $ 15 in the bankruptcy book of Don Yoon Yours United. We will provide detailed information not described in this chapter. Typing service can also be used to enter bankruptcy application form. They are reasonable prices and, in the case of very simple bankruptcy, can be a substitute for attorneys. If your case is complex and you can not afford to hire a lawyer, please do your own research. Please read the consumer bankruptcy manual first and consult the appropriate legal library. There are several legal guides devoted to bankruptcy. Once you or your lawyer has prepared your affair, you prepare for official work.
Filing process
All appropriate documents can be obtained from your local bankruptcy court. Please contact your government service yellow page (usually at the beginning of the book) for an address and phone number. The court will allow 14 days from the emergency application date to complete the formal procedure. Chapter 7 If bankruptcy has been raised, it must be sent in the form below after receiving it from the court.
· Financial statements.
· Current income and current expenditure schedule.
· Schedule to describe your debt.
· Schedule to describe your property.
· Exemption property of schedule list.
· Outline of the above schedule.
· Statement about your protected real estate and what you intend to do with it
· Execution agreement stating contracts requiring performance such as car leasing
· Bankruptcy cover sheet.
· The mailing address of all creditors.
· Required local form.
In addition, a fee of 90 dollars is normally charged at the time of filing. The court normally accepts installments for 4 months. An application form must be attached to the application.
After the application is submitted, a creditor meeting will be held. The court will oversee the conference and appoint a trustee who is responsible for the liquidation of the asset. In most small banks, only applicants and trustees are present. A trustee who is a regional lawyer will ask several questions about bankruptcy document information. Call the court clerk and ask which documents you need to bring (usually financial statements or sometimes tax returns). If many real estate is involved, especially if it is real estate, creditors may protest against exemption. They may also try to tell you about intent to pay the bill or what is lying on your application. If you answer honestly, there should be no problem.
Creditors, lawyers are abused and require a hearing before the bankruptcy judge before proceeding. If the creditor disagrees with the subject of your exemption, we will dispute the court 30 days after the creditors meeting. The court will schedule a hearing and you will be given the opportunity to respond, but you do not need to do so. A creditor may also try to claim the obligation as a default as a result of cheating, @ or malicious acts, embezzlement or theft. He can achieve this if he can object to objections within 60 days. A meeting. In order to protect yourself, you or your lawyer must make a written reply and be prepared to file an action in the court.
Once all the requirements are met and your intent is clear, the court can declare bankruptcy. Formal hearings will not be held unless you choose to reconfirm your debt. In that case, the judge will want you to understand what you are doing. After this, unless the obligee raises an objection, the obligation disappears.
pick up
Bankruptcy was the lowest shame that could happen to someone in the past. But today, it is universal. Companies declare bankruptcy to abandon contracts and avoid legal decisions. Individuals rely on it to protect them from a society that is growing their credit too rapidly.
Bankruptcy is not meant to automatically reject all credibility for 10 years. In fact, many companies regard bankruptcy as a responsible way of debt relief when there is no other way. Creditors are afraid of bankruptcy, but if you lend to those who declared bankruptcy, you notice that there is no need to worry about another bankruptcy for more than seven years. If there is a good explanation for bankruptcy such as a medical bill, divorce, or other devastating event, the creditor may want to overlook it and extend credit. Ask potential creditors about their policy on bankruptcy. Their response may be surprised.
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