There are 2 types of bankruptcy applicable for individuals and both have their merits. However, the first of the two, Chapter 7 bankruptcy, is not so easy to qualify for because it is reserved for those whose average household income is below the average set by the state where the bankruptcy petitioner lives. The second type of bankruptcy is Chapter 13 bankruptcy, which is called the wage earner’s bankruptcy and is easier to attain. Chapter 13 bankruptcy involves repaying debts according to a payment plan set by the bankruptcy court. Here are some benefits of filing for Chapter 13 bankruptcy:
1. You get to keep your home, even if foreclosure is imminent
This major benefit of Chapter 13 bankruptcy allows you to keep your home even if it is about to be foreclosed. Furthermore, if you have been slapped with a lien on your other properties, they can be dismissed. In short, Chapter 13 bankruptcy enables you to cure missed mortgage payments, seek loan modification options besides dismissing a lien on other properties.
2. You get to keep your vehicles
Under Chapter 13 bankruptcy, you are allowed to reduce your vehicle installment payments. During the bankruptcy period, the court sets the amount you have to repay and your lender must accept what is paid to them. All in all, there are some debts that can be discharged through Chapter 13 bankruptcy that cannot be discharged under Chapter 7.
3. You and your co-debtors are protected from creditors
If you and a co-signer or co-debtor are jointly liable for certain debts, you both will be protected from the harassment of creditors while under bankruptcy as long as you make the required payments under the payment plan of Chapter 13. So you can be free from the stress of being in direct contact with your creditors. On the other hand, they will have to communicate with your bankruptcy attorney instead.
4. You can file Chapter 13 more often than Chapter 7
While no one wants to file for bankruptcy again and again, it is assuring to know that you can do so more than once if necessary. Under the law, you can file for Chapter 7 once every eight years but you can do so more often with Chapter 13 bankruptcy.
If you want to know more about how Chapter 13 bankruptcy can benefit you, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Feb 7th, 2012. Comment. 
It is not uncommon to get ripped off when making a purchase of certain goods or being overcharged when hiring someone for services. In many industries there are no governing regulations and prices are generally dependent upon market forces. But unlike other industries, the legal industry insofar as bankruptcy is concerned has its fees governed by law.
The bankruptcy judge has the right to determine the fees charged by bankruptcy attorneys to some extent. Section 329 of the bankruptcy code gives the judge this power. In fact, it is legally binding for the bankruptcy attorney to declare his fees to the court. The court then reviews the charges and decides if the fees charged are unreasonable. Being required to do this causes many bankruptcy lawyers not to charge excessively for their services.
But there are no hard and fast figures that determine if a fee charged is excessive. Among the things the bankruptcy judge takes into account in deciding whether fees are reasonable are the complexity of the case, the competence and skill of the lawyer and the amount of work the lawyer did in the case. A long-drawn or complicated Chapter 13 bankruptcy would warrant a higher fee than a straightforward Chapter 7 case. If the attorney solved difficult problems for the client, set out creative strategies or filed correct petitions, the charges can be higher.
If the judge determines that the fees charged are excessive, the onus is on the lawyer to prove otherwise, failing which the lawyer has to lower his fees.
So if you are contemplating filing for bankruptcy but are hesitant to do so because of affordability issues, it’s time to put aside such concerns. Call us at (813) 200 4133 for a free consultation on how bankruptcy can give you a new lease of life financially by eliminating your debts.
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Filed under Chapter 7 (Tampa) by on Jan 30th, 2012. Comment.
Healthcare these days is getting more expensive. Your medical bills are usually unsecured debt. And the peculiar thing about medical debt is that they are ongoing, especially the expensive ones. You see the doctor and you are directed to have additional tests and treatments, followed by consultations with specialists and then come the prescription charges. Should your medical bills increase to the point where they are a debt you cannot bear, you may want to consider filing for bankruptcy.
Usually, it is advisable to seek other means of paying medical debts before filing for bankruptcy. You can look around for more reasonable medical fees, discounts on medicines or seek the help of non-profit advocacy groups. But suppose you have already taken these steps and still find yourself drowning under the weight of medical debts. Then you should consider bankruptcy.
The thing about medical debt is that it is not likely you will be allowed to file for bankruptcy only to clear your medical bills alone. You would be required to include all other debts also, including back taxes, credit card debts, personal loans etc.
It is strongly advisable for you to seek the legal counsel of a bankruptcy lawyer to discuss the timing to file for bankruptcy. As I mentioned above, medical debts are ongoing and bankruptcy only discharges your medical debts incurred up to the point of your bankruptcy filing. So if you file for bankruptcy too early you may be left with a large amount of medical bills incurred after the bankruptcy that cannot be discharged.
So call us at (813) 200 4133 for a free consultation on how to best eliminate your medical debts (and other debts) through bankruptcy.
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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.
