When you file for Chapter 7 bankruptcy, most of your assets are sold to raise money to repay your debts. Obviously, you would try to keep as many of your properties as possible. There are some properties that can be redeemed and thus kept under Chapter 7 bankruptcy.
You redeem a secured property by paying off the secured portion of a loan. By so doing, you will be able to reduce your monthly debt payments by reducing the outstanding balance and hence keep the property.
Let’s say you want to redeem a vehicle valued at $15,000 which has a loan of $22,000 on it. You would pay the value of your vehicle ($15,000) in cash and get to keep the property. The balance of $7,000 is regarded as an unsecured debt and may be discharged depending on the details of the bankruptcy case.
However, redemption can only be applied to personal properties such as vehicles, household appliances etc that are used by you and your household. All forms of real estate do not fall under the category of personal property so they cannot be redeemed in bankruptcy. For real estate, you have other options to keep them when a mortgage is not fully secured by the value of the property.
Likewise, business property is also not eligible for redemption in Chapter 7 bankruptcy. While a personal vehicle can be redeemed, a car registered under your business name cannot even though you use it as a sole proprietor.
If you wish to redeem your personal property, call us at (813) 200 4133 to schedule an appointment for a free consultation. When you engage us, we will help you file a motion for redemption with the bankruptcy court.
Alternatively, you can look into other ways to keep your property such as reaffirmation. If you redeem your property, you will be discharged of future debt although it will entail some lump sum payment. On the other hand, if you reaffirm your loan, you will be subject to post-bankruptcy loan obligations. We will discuss the viability of keeping your property in light of all the options when you call us at (813) 200 4133.
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Filed under Chapter 7 (Tampa) by on Feb 1st, 2012. Comment. 
How to List an Omitted Creditor in Bankruptcy
When you file for bankruptcy, you have to submit the list of your creditors to the bankruptcy court. This listing contains the names and addresses of all your creditors. This is the list reviewed by the bankruptcy judge and used to pay off your creditors either through liquidation of your assets in Chapter 7 bankruptcy or payment plan in Chapter 13 bankruptcy.
You will have the opportunity to review the list before it is lodged with the bankruptcy court. During this time, if you notice any inaccuracies or any creditor that has been omitted, you should rectify it with your bankruptcy lawyer.
However, if you overlooked a creditor and submitted the list with one or more creditors missing, you can still have the creditor included. But you have to file an amendment. In most cases, when you file for an amendment you will have to complete a new schedule list to show all creditors including the creditor that was omitted. For this, you will incur an amendment fee.
If you have exited bankruptcy and had your debts discharged and discover you have omitted a creditor, you may still have the debt owed to this creditor discharged provided it was incurred before you filed for bankruptcy. If the creditor attempts to collect on the outstanding debt, you may have to reopen your bankruptcy case.
If you are in such a situation, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 27th, 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.
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Filed under Chapter 7 (Tampa) by on Jan 26th, 2012. Comment.
If you are contemplating filing for bankruptcy, you should make sure you are knowledgeable about the bankruptcy options open to you. One of the types of bankruptcies you can file for is Chapter 7 bankruptcy, also known as liquidation bankruptcy. Under this bankruptcy, your non-exempt assets are liquidated to pay off your debts and when all this is done, any debt left over is forgiven. But there are lots of other factors that come into play which can be confusing at times. Here are some facts about Chapter 7 bankruptcy to clear the air.
1. You will not lose your home
The prospect of losing the roof over your head has caused many a potential filer to avoid Chapter 7 bankruptcy and thereby bypass a good opportunity to wipe the slate clean and start again financially. But under the bankruptcy rules, you will not lose your primary home if it is worth below a certain amount. This also applies to your car. However, if you live in an expensive home, then you may want to consider filing for Chapter 13 bankruptcy (wage earner plan) instead to keep your home.
2. You will not lose your retirement funds
Another exempted asset that is protected under Chapter 7 bankruptcy are your retirement funds like your 401(k) or IRA (Individual Retirement Account). These retirement assets cannot be used to pay off your debts. However, if you have recently withdrawn money from any of your retirement plans to pay debts, then this money is no longer exempted.
3. You will still be able to secure loans
Granted, there will be an inevitable effect on your credit score once you file for Chapter 7 bankruptcy which will last for 7 to 10 years. But this does not mean you will be shunned by banks and financial institutions when you apply for loans. If you stay current on all your loan obligations for 2 years or so, there should be no reason why you cannot secure loans from lending institutions.
4. You can file for Chapter 7 bankruptcy more than once
There is some confusion as to how many times you are legally allowed to file for Chapter 7 bankruptcy. There is no limit in the law with the proviso that you cannot file a Chapter 7 bankruptcy petition within 8 years after your last Chapter 7 bankruptcy.
5. You can qualify for Chapter 7 bankruptcy provided you pass a means test
Due to the nature of Chapter 7 bankruptcy, it can be open to abuse. That is why the government passed the Bankruptcy Abuse and Consumer Protection Act 2005. After this Act was introduced, it is now easy to qualify for Chapter 7 as long as you pass a means test. The means test is to see if your household income falls below the average set by your state.
If you are considering filing for bankruptcy, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 25th, 2012. Comment.
Can tax debt be eliminated through bankruptcy? Most people would tell you, “No”. But that is not entirely true. The good news is that you can eliminate tax debts through bankruptcy, although not all of it. The question is which tax debts can bankruptcy eliminate and which bankruptcy cannot. To be able to distinguish which tax debts can be discharged through bankruptcy, you should consult a bankruptcy lawyer.
The fact is some tax debts can be discharged through Chapter 7 bankruptcy while others can be dealt with through Chapter 13 bankruptcy. The taxes that cannot be discharged through a Chapter 7 bankruptcy might be able to be paid off through a Chapter 13 bankruptcy without being penalized with interest payments.
There is a timing factor that determines the dischargeability of your tax debts. Generally, if you have been filing and paying your taxes honestly to the best of your capabilities through the years, then the tax debts that are longer than 3 years prior to the date of filing of bankruptcy can be discharged by the bankruptcy court. But your most recent taxes like you current year’s tax bill is unlikely to be discharged.
But the IRS will go through your old tax returns with very thoroughly. And if they do find any dishonesty or discrepancy in your tax submissions, the bankruptcy court will not allow you to discharge your old tax debts.
How you treat your taxes during your bankruptcy process also plays a role. If you fail to file a tax return or file one late during the course of your bankruptcy, you risk having the court throw out your entire bankruptcy case. So if you do not want to see your bankruptcy case dismissed altogether, you should stay current with your tax filings.
If you are living under a heavy load of debt, whether they be tax debts or other debts, consider bankruptcy as a way out. Call us at (813) 200 4133 for a free consultation.ted through bankruptcy? Most people would tell you, “No”. But that is not entirely true. The good news is that you can eliminate tax debts through bankruptcy, although not all of it. The question is which tax debts can bankruptcy eliminate and which bankruptcy cannot. To be able to distinguish which tax debts can be discharged through bankruptcy, you should consult a bankruptcy lawyer.
The fact is some tax debts can be discharged through Chapter 7 bankruptcy while others can be dealt with through Chapter 13 bankruptcy. The taxes that cannot be discharged through a Chapter 7 bankruptcy might be able to be paid off through a Chapter 13 bankruptcy without being penalized with interest payments.
There is a timing factor that determines the dischargeability of your tax debts. Generally, if you have been filing and paying your taxes honestly to the best of your capabilities through the years, then the tax debts that are longer than 3 years prior to the date of filing of bankruptcy can be discharged by the bankruptcy court. But your most recent taxes like you current year’s tax bill is unlikely to be discharged.
But the IRS will go through your old tax returns with very thoroughly. And if they do find any dishonesty or discrepancy in your tax submissions, the bankruptcy court will not allow you to discharge your old tax debts.
How you treat your taxes during your bankruptcy process also plays a role. If you fail to file a tax return or file one late during the course of your bankruptcy, you risk having the court throw out your entire bankruptcy case. So if you do not want to see your bankruptcy case dismissed altogether, you should stay current with your tax filings.
If you are living under a heavy load of debt, whether they be tax debts or other debts, consider bankruptcy as a way out. Call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 23rd, 2012. Comment.
