One of the most common questions about Chapter 13 bankruptcy is what happens if your financial situation changes during the duration of the plan? After all, a Chapter 13 plan runs from between three to five years and a lot of life can happen in that period of time. What happens if you or your spouse lose a job, get sick or in an accident and incur medical expenses, or have a change in family size?
Fortunately, Chapter 13 bankruptcy does have a great deal of flexibility in case of a change of income or expenses during the duration of the plan. Many times the court can agree to modify your plan to make it work. This often involves a lowering of monthly payments which debtors are obligated to pay.
Other times, the changes may need to be made even before a first payment is sent. Sometimes debtors are still unable to pay their mortgage even with the restructuring of their debt in Chapter 13. In cases such as this, modification is necessary. If the situation that you are experiencing is only a short term problem, the court may grant a moratorium in payments if it will allow you an opportunity to recover from an illness, one-time expense, or some other temporary cash flow problem.
If your situation changes significantly, Chapter 13 has what is called a “hardship discharge”. This happens when a Chapter 13 plan is confirmed but circumstances come up that prevent the debtor from completing the plan. However, there are stipulations to a hardship discharge which make it available only if: the failure to pay comes from circumstances beyond the debtor’s control, creditors have received at least as much money as they would have received under Chapter 7 where assets are liquidated, and if modification of the plan is impossible.
If you are seriously considering bankruptcy and you live in California, you need to consult with a California bankruptcy lawyer. While the process is complicated, they will be able to help you understand your options and help you avoid making bad decisions that you could later regret. If you are over-burdened with bills and cannot see any light at the end of the tunnel, bankruptcy may be the best option to help you get that much needed fresh start and allow you to rebuild your future.
When you get third-hand reports of secret meetings about world leaders fumbling with the economy of Europe, you recall that politicians are actors too ugly for television and not smart enough for radio, and just barely able to understand the problems they are tasked with fixing, or real smart guys who get ignored because they lack charisma.
Either way, the economy in Europe is in trouble. And real people on the street knows for miles ahead when economic trouble is brewing. Politicians try to spray-paint over economic problems, because they know they’re in the same boat as the CEOs of publicly traded companies; if the company shows lousy earnings, they get the boot, and somebody else gets to try to fix the problem.
So when I read an article saying that European leaders are fighting “to contain a mounting sense of crisis” about the single currency, all I can think is that everybody knows that the damage is done, and we’re all just waiting for the announcement.
One thing politicians of all sorts are good at is pretending that it’s business as usual, and a lot of them probably have such short time-horizons that they believe it.
One other thing: I wouldn’t want to live in Greece today. Other countries are currently deciding the economic fate of the ordinary working man in Greece, not the Greeks themselves.
And as the South found out after the American Civil War, it’s a bad and unpleasant thing when somebody else controls your economic fate, especially if they don’t like you. The Germans discovered the same thing after World War I, and World War II.
And I’m currently hoping that we won’t get to discover that firsthand, here in the United States, but I’m fairly worried about our biggest creditor, Communist China.
Because Communist China doesn’t like the United States very much. Even after we gave ‘em “most favored nation” status. The ingrates.
p.s. the hoo-rah about the Euro falling apart got a lot louder when an article in Spiegel Online addressed the possibility that Greece may pull out of the Eurozone and go back to good old-fashioned Drachmas. The secret meetings were in connection with figuring out a carrot of sorts to keep Greece in the Eurozone; and Germany owns the stick, which appears to be its role in all of human history.
p.p.s. what does this have to do with you? Well, if the Euro unwinds, and folks go back to Drachmas and Liras and God knows what else, that would be a little like U.S. States deciding that it’s time to print their own money. At a minimum, figuring out the exchange rates would require supercomputers.
p.p.p.s. Now that I think about it, we may see something a little like the American Civil War in Europe, if countries try to escape the Euro, and are not permitted to escape. And that would be both bad, and very confusing. Who would I root for?
There comes a time in just about every ones life, that things just do not turn out the way you thought they would and you find yourself in deep financial trouble. For many people this is a hard thing to face, and if someone has a strong work ethic and values that tell them that you must always work hard in life and pay all your bills.
There are people that are so stuck in this thinking that when the hard times come, they see no way out and it can seem like the end of the world to them. This is nothing to feel ashamed of or embarrassed about… You just might have to face the fact that you have hit a point when you can not avoid bankruptcy.
Contrary to some beliefs, filing for bankruptcy does not make you a deadbeat. This is a debt relief program that is approve by the government. There is no one in the world that deserves to feel the pain of not being able to pay their bills and losing everything they have. Things happen, get over it, you deserve to get another chance in the arena.
You have tried to solve the problem by yourself and you feel like the worst failure that could ever be. Now that is over, pick yourself up and start to move ahead to stop the creditor harassment and all the phone calls at all hours of the day. It is time to start working on reducing that pile of mail in the mailbox that you have decided to quit hauling in your kids wagon every day. This is the most awful experience you have been through in your life.
Once you have reached this point, you need to back down and know that you have had enough. It is now time to get some kind of relief from the collection efforts of the creditors. You have consulted with more than enough of the debt reduction agencies that tried to lock you into a reduced total monthly outlay for the rest of your days. This is the time to hire a good lawyer.
Once you hire a lawyer, you can get a well needed rest from all of those creditor phone calls. This can happen within 2 days of signing the paperwork at the attorney’s office. Your lawyer will order that all the collection actions come to a screeching halt, and NOW. You will again be able to experience peace and quiet in your own home. The days of taking the kids wagon to the mail box to haul your bills home are now gone.
If things in the financial arena have gone bad enough for you, without the help of a good attorney, you could be facing freezes on your bank accounts and wage garnishments. I don’t care for either one to tell the truth.
During the time that it takes to get the filling completed and wrapped up, you can have your attorney work with you to do some negotiating with the auto loan and mortgage people so you can make a deal to save your car and home. You will be given complete relief of all your unsecured debit, like credit cards under the bankruptcy law.
This is one tough situation, and I cannot think why anyone would like to stay in it any longer than they absolutely have to. Call that attorney and grab your next chance…
Mother’s should have their own bankruptcy Chapter, especially if they’re raising a kid by themselves. It should be the loving, warm, supportive, easy and compassionate Bankruptcy Chapter. Which doesn’t currently exist.
Some guys help with the fun part of having a baby, and then head for the tall timber, leaving the mom to take care of the resulting progeny. I get to file bankruptcy cases for those moms sometimes, and it often breaks my heart.
I try to avoid sobbing while they’re actually in my office, because when the lawyer cries, the client tends to get anxious, you know?
Now, some folks say that it takes a village to raise a kid.
At a minimum, it takes a mother. A dad can sometimes fill in, but he has to work twice as hard, because guys can’t multi-task (don’t tell anybody; we’re a little sensitive about it).
I hate it when a mother has to work, if she really wants to stay home with the bambino.
But a mother will do whatever it takes to take care of a kid, which is the only reason the human race survives.
And to all you mothers out there, God bless and keep you safe and happy, and may your burdens be light, and your rewards be great.
Chapter 7 is the most common type of bankruptcy, and is sometimes referred to as liquidation bankruptcy or straight bankruptcy. Chapter 7 is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations and partnerships. Chapter 7 is one way for you to begin reestablishing your credit by eliminating the bulk, if not all, of your unsecured debt dramatically reducing your debt to income ratio.
Creditworthiness and the likelihood of receiving a Chapter 7 discharge are only a few of many issues to be considered in determining whether to file bankruptcy. Chapter 7 is used most often by people who are unemployed or very deeply in debt due to medical expenses or unexpected financial circumstances.
The process for a Chapter 7 bankruptcy is relatively easy. After a meeting with a bankruptcy attorney to discuss your financial situation, a bankruptcy filing may be recommended. In the case of a Chapter 7 filing, you will need to attend a creditors meeting, which generally takes place 30 days after the filing of the bankruptcy petition.
Creditors, who you have debt with, may appear and ask questions regarding the debtor’s financial affairs and property, but creditors rarely attend. Creditors, by law, are no longer permitted to initiate or continue their lawsuits, wage garnishments, attachments or other collection activity. This activity includes telephone calls from collection agencies demanding payment. Attorney’s fees for Chapter7 filings vary depending upon the complexity of the case, but generally hover around the $700 to $800 range.
In determining what debts will be discharged, or forgiven, by the courts there are certain types that can not be waived in a Chapter 7 bankruptcy filing. Debts for most taxes are not cancelled. Debts for educational benefits and student loans are not discharged unless a court finds that not discharging the debt would impose an undue hardship on the debtor and his or her dependents. Debts or obligations under a divorce or support decree are not usually cancelled, and debts due to fraud, dishonesty or misconduct are not cancelled.
Debts that you incurred a result of an intentional or even negligent misrepresentation on your part are not dischargeable in Chapter 7. Certain debts that the courts deem questionable may also be outside the scope of debt discharged. Debts owed to a single creditor totaling more than $500 for luxury goods will not be discharged if acquired up to 90 days prior to filing. Cash advances of $750 acquired within 70 days will also not be discharged.
Property is one of the biggest areas of concern for those considering bankruptcy. Consulting your attorney will make it clear whether or not your property is at risk when you file Chapter 7 bankruptcy. Sometimes property can be taken by the bankruptcy official (trustee) and sold to pay on your debts. Property or asset exemptions are determined based upon your situation, income and the laws of your state.
Chapter 7 is a complete and total liquidation of a debtor’s assets in order to pay off their creditors. Chapter 7 is designed as an orderly, court-supervised procedure by which a trustee collects the assets of the debtor’s estate, reduces them to cash, and makes distributions to creditors, subject to the debtor’s right to retain certain exempt property and the rights of secured creditors, such as mortgage companies and auto lenders.
Chapter 7 may be your best option however, if you are not eligible for Chapter 7 bankruptcy or if Chapter 7 will not meet your specific needs and goals, Chapter 13 bankruptcy is a useful alternative. Chapter 7 may not be available to debtors who have enough income exceeding their basic living expenses. For those who are deemed to have an excess of disposable income, the court will determine that they can afford to repay a portion of their debts through a Chapter 13 payment plan…
Financial issues are quite inevitable and can seriously put a person in big troubles at any point of his or her life. This is when, fast loans for your car title can prove to be a great help.
In situations, where you need fast cash as soon as possible, it is not at all acceptable for one to wait for weeks in order to get his or her loan approved. Applying for car title loans can help a lot in getting your money in your hands within a very short span of time. You can opt for such loans online. Just browse through the internet to find out a reliable company, which provides title loans. Once you are satisfied with its testimonials, reputation and overall features, you can apply for your loan immediately. The entire process including the loan approval and transaction will take around an hour or two to complete.
Thus, now, it is possible to get loans for your car title without any hassle. Since you are keeping the title as the collateral, you will not be requiring any kind of credit checks. This makes the whole process even easier for you.
Apart from being fast, the procedure is also quite easy to understand. You may have to fill up an online application form. With few more easy steps, you will be provided with the money. So, this time, if you see any of your friends or relatives, struggling with the companies in order to get their loans sanctioned, it is the high time that you inform them about the online title loans and save them from any financial complications.
I ran into an article indicating that there are benefits to be had if you charge some kinds of transactions on your plastic.
Remember, though: don’t charge things on your credit cards within 90 days of filing your bankruptcy. That’s because of a presumption of non-dischargeability if you do!
Putting it another way, don’t use your credit card within 90 days of the filing of your bankruptcy! Not only does it look bad, but you’ll probably get to pay the charges within the 90 days back!
The practice of running up credit card amounts has been referred to as “loading up” by experienced bankruptcy lawyers for many, many years. Try to avoid it!
Today is all about love. As I stroll through my local grocers, I am swimming in a sea of red; red roses, balloons and candies all remind me that it’s Love Day. So, why is a bankruptcy lawyer writing about love? Well, I’m a compassionate soul and I believe that Money is a Matter of the Heart. So much so, that I wrote a white paper on this very subject apropriately entitled, Money Is A Matter Of The Heart.
As a practicing attorney in consumer bankruptcy, I hear your stories and cries for help. I hear, “I’ve done everything right,” “I always pay my bills,” “I can’t believe I’m in this mess,” “I don’t want to file for bankruptcy.” You’re not alone and you’re not entirely to blame for your situation. The question is not, “How did we get here?,” but rather, “What do we do with this situation we’re in?”
Too often people spend down savings, borrow against a 401k or cash in retirement plans to support a lifestyle that can no longer be afforded. What is important to remember is that the moment your income drops, you absolutely must preserve your cash. If you don’t, you’ll end up filing bankruptcy broke. The truth is, you can keep the trustee from taking retirement savings and other savings accounts and still file bankruptcy. Talk to your local bankruptcy lawyer today if you’ve experienced a significant loss in income. I call this Self Love.
The reason why so many people delay the inevitable bankruptcy is the moral and emotional stigma attached. One has failed if they must file bankruptcy is such a misnomer. While bankruptcy is not the right choice for everyone, it is a powerful tool to provide a fresh start to those facing a complete inability to pay their debts, or those looking to restructure their debts and stop foreclosure on their home.
It’s time to stop the vicious cycle and feelings of “moral obligation” to pay your debts. If you cannot afford it, then you must file bankruptcy. Remember that indecision is also a decision and you must take action to resolve your current situation. Money is a Matter of the Heart will take you on a journey from your head to your heart and bring your wallet with you. I hope you enjoy reading it. Happy Valentine’s Day.