If you are a married couple thinking of filing a bankruptcy petition, there are some considerations you should bear in mind before doing so. You may opt either to file a petition jointly as a couple or separately as individuals. If that is the case, which is more advantageous? It usually depends on how your debts are structured.
If most of your debts are in joint names, it makes more sense to file a joint petition for bankruptcy protection. But if your debts are incurred separately, filing individually would make more sense, since your creditors would have accounts with your separately.
Another consideration you should think about is the type of bankruptcy to file under. If you file for a separate Chapter 7 bankruptcy, the filing may not protect your spouse from being contacted by creditors. Chapter 7 bankruptcy brings along an automatic stay on creditors that prevents them from contacting you for payment but it may not protect your non-filing spouse from creditor actions. On the other hand, filing for Chapter 13 bankruptcy may entail co-debtor protection while the petition is ongoing.
There are many types of debts that may be in joint names such as credit card debts. These debts can be cleared through a joint bankruptcy filing. A joint filing may also save you money since you will only be charged for one filing.
If you and your spouse are headed for a divorce, you may want to consider filing bankruptcy separately. This would help make things easier when it comes to distribution of assets and debts later. A bankruptcy filing may carry different implications depending on which state you reside in. If you file in a community property state, it is possible for bankruptcy laws to protect the non-filing spouse.
If you wish to discuss your financial situation and explore the possibility of bankruptcy as a way to wipe your slate clean of all your debts, call us at (813) 200 4133 for a free consultation.
Related Blogs
Filed under Chapter 7 (Tampa) by on May 15th, 2012. Comment. 
Since the US Sub-prime mortgage crisis, the housing industry has seen residential prices slide drastically. Hence, it is increasingly common to find “underwater mortgages”, mortgages where the market price of your house is lower than the outstanding loan owed to the bank. In such cases, even selling your property would not completely repay your loan. At the same time, such a mortgage would be more difficult to maintain as the bank would likely increase your installment payments or call or additional collateral. Is there a way out? Thankfully, yes.
The best solution for an “underwater mortgage” that saves your home at the same time is to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy, also known as the wage earner’s bankruptcy is where the court grants you a payment plan to pay off your debts (including your mortgage) over a period of up to 5 years. Chapter 13 bankruptcy is especially advantageous if you owe on more than one mortgage and if the bank has filed a lien against any of your properties. Filing Chapter 13 bankruptcy can eliminate or remove other mortgages, including liens on the property. As long as you complete your payment plan under bankruptcy laws, any liens against your property can be removed.
Under Chapter 13 bankruptcy, you will not only be paying off your mortgage but also other debts at the same time. These include unsecured debt like credit card balances, medical bills etc. The bankruptcy court will appoint a trustee that will oversee your case and work out a monthly repayment based on your income and amount of outstanding debt.
There are many other ways Chapter 13 bankruptcy can be used to your benefit. To find out how Chapter 13 bankruptcy can be worked out to your advantage, call us at (813) 200 4133 for a free consultation.
Related Blogs
Filed under Chapter 7 (Tampa) by on Feb 9th, 2012. Comment.
If you are contemplating filing for bankruptcy, you should take note of what the law on bankruptcy says and how they affect you. Some of the recent ones may not be to your best interests but nevertheless, if you intend to file for bankruptcy, you are obligated to abide by them. Here are some of the laws and how they may affect you.
Eligibility to file for Chapter 7 bankruptcy hinges on your income. The bankruptcy law states that you have to pass a means test, which is an evaluation on whether your household income exceeds the amount of average income set by your state. If your household income is more than the average cost of living set by your state, then you are not eligible for Chapter 7 bankruptcy. Instead, you will have to file for Chapter 13 bankruptcy where you are put under a payment plan and required to repay your debtors over a period of up to five years.
Unlike the past, the bankruptcy laws now generally exclude student loans from your petition. This means student loans cannot be forgiven and is treated like child support or alimony, unless you can show that repaying this debt will severely affect your standard of living. Such a thing is not easy to prove so most debtors with student loans have to repay their loans despite filing for bankruptcy. If you still need to include your student loan among your bankruptcy liabilities, call us at (813) 200 4133 for a free review of your case.
On a brighter note, under current bankruptcy laws, your home will be saved from foreclosure the moment you successfully file for bankruptcy. You will receive an immediate automatic stay of action, meaning your bankers are compelled to cease all foreclosure proceedings against your home as soon as you file. Since preventing your home from being foreclosed is something everyone desires, it gives you a strong incentive to file for bankruptcy. So if your home is about to be foreclosed, you should file for bankruptcy without delay.
Call us at (813) 200 4133 for a free consultation on all matters pertaining to bankruptcy.
Related Blogs
Filed under Chapter 7 (Tampa) by on Jan 26th, 2012. Comment.
The number of bankruptcy filings in Buffalo and Rochester, New York fell by 20% year on year in August, marking the 15th straight month and 19th out of the last 20 months that bankruptcy figures fell. The number of new cases fell by 19.8% from 749 to 601, according to new figures from the US Bankruptcy Court for the Western District of New York, which includes courts in both Buffalo and Rochester.
Both cities recorded new 10-year lows in the number of bankruptcies in August year-on-year. Bankruptcy filings fell in Buffalo by 16.6% to 388 cases while in Rochester it dropped 25% to 213. From January 1 till August 31, there have been 3,165 new bankruptcy cases in Buffalo and 1,754 in Rochester bringing the total to 4,919 for the two cities. This number is lower than in the corresponding period last year when Buffalo recorded 3,957 cases and Rochester had 2,196 cases, totaling 6,153 bankruptcies.
The drop in the number of bankruptcies in these New York cities follows the trend nationwide. According to the American Bankruptcy Institute, the number of bankruptcies across the nation fell by 11% in August.
Experts believe a few factors have contributed to the decline in numbers of bankruptcies. Although the economy is still sluggish, the local economy has not suffered too badly. Furthermore, due to the economic crisis, lenders have tightened credit, meaning consumers have less chances of defaulting.
However, the declining numbers might also indicate another worrying factor – consumers may be so financially distressed they cannot afford the cost of filing for bankruptcy. This is particularly the case for those who have been laid off from their jobs or those who are depleting their unemployment benefits. The unemployment rate of Western New York is still 7.7%, which is on the high side. Nevertheless, it is lower than the national average that now stands at 9.3%.
Ever since the bankruptcy laws have been revamped in 2005, the cost of filing for bankruptcy has also risen.
There were 460 Chapter 7 bankruptcy filings in Buffalo (294) and Rochester (166). All these were filed by individuals, except for 14 that were filed by businesses. There were 136 Chapter 13 bankruptcy cases in the two cities, with Buffalo accounting for 90 of them and Rochester the other 46. There were 5 Chapter 11 cases, 4 in Buffalo and 1 in Rochester.
So far this year in the Western New York district, there have been 3,705 Chapter 7 cases, 1,190 Chapter 13 cases and 21 Chapter 11 cases of bankruptcy.
Related Blogs
Filed under Chapter 7 (Tampa) by on Sep 14th, 2011. Comment.
Automaker Saab found itself in a crisis when a Swedish court did not approve its bankruptcy protection application Thursday. This spells trouble as Saab is likely to face bankruptcy action against it by trade union workers within the next few days.
Saab has been in financial trouble since General Motors sold its holding company, Spyker Cars in the Netherlands in 2010. Spyker Cars acquired Saab, and then changed its name to Swedish Automobile. Swedish Automobile says it will appeal the ruling brought by the Vanersborg District Court. It has been given until September 29 to do so.
As their financial woes deepened, Saab struggled to meet its financial obligations. It was unable to pay salaries to its 3,700 workers and its debts to its suppliers. Production in its Trolhattan plant ground to a halt earlier this year.
It is uncertain if the Swedish court will approve Saab’s request for bankruptcy protection. Meanwhile, trade unions representing Saab’s 3,700 workers say they will initiate bankruptcy proceedings against Saab as the workers have still to be paid their August salaries.
Sweden has bankruptcy laws that are similar with the US. Their bankruptcy legislation is much like our Chapter 11 that allows financially troubled companies to reorganize their companies, improve their financial standing and restructure their debts to avoid liquidation. When a company receives bankruptcy protection, the Swedish government underwrites to pay the salaries of its employees.
But with Swedish Automobile, although it has submitted its bankruptcy protection application and restructuring plans to the court last Wednesday, it failed to convince the court that it had enough financial backing to stay afloat. Swedish Automobile is hoping certain Chinese investors, namely Zhejiang Youngman Lotus Automobile Co and Pang Da Automobile Trade Co will pump in as much as $344 million to enable it to continue operations. The Chinese investors are now awaiting approval from the relevant authorities.
According to the Swedish court, it was not clear if and when the Chinese authorities would approve the agreements. In addition, other solutions presented by Saab do not appear to be sustainable, either.
Bankruptcy negotiations can be extremely complex. You need an experienced bankruptcy attorney to navigate the many challenges for you for you to be successful in your bankruptcy application. If you need a bankruptcy attorney, call us at (813) 200 4133 for a free consultation.
Related Blogs
Filed under Chapter 7 (Tampa) by on Sep 10th, 2011. Comment.
