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Written by Canterbury Law Group

Can You File Bankruptcy Twice?

It’s legal to file as many bankruptcy cases as necessary, but there are rules about how often you can file. The U.S. Bankruptcy Code regulates multiple case filings, how long a filer must wait, and other specifics that we’ll cover in detail below.

The mandatory waiting period between filings depends on several factors, including:

The result of your first bankruptcy case: If you received a bankruptcy discharge for your first case, the waiting period before you can file again is different than if your previous case was dismissed without discharge.

The type of bankruptcy you filed before: Individuals and families generally file either Chapter 7 or Chapter 13 bankruptcy. The time limits before you’re allowed to file again differ depending on the chapter of your previous filing.

The chapter of bankruptcy you file the second time: The waiting period between bankruptcy filings is affected by both the chapter of the previous bankruptcy and the chapter you plan to file in the subsequent case. 

What’s the Mandatory Waiting Period Between a First and Second Bankruptcy Filing?

Under bankruptcy law, people can file for bankruptcy more than once to get the fresh start they deserve. The mandatory waiting period between bankruptcy cases depends on whether the first bankruptcy case was successfully discharged, whether your first bankruptcy case was a Chapter 7 (liquidation case) or a Chapter 13 (reorganization with repayment plan), and what chapter of bankruptcy your second filing will be.

Successful Discharge of First Bankruptcy Case

The two main types of personal bankruptcy are Chapter 7 and Chapter 13. Most individuals and families file Chapter 7 bankruptcy. This is the quickest form of bankruptcy. It’s also known as a liquidation bankruptcy, though the majority of filers get to keep most or all of their belongings. 

It makes more sense for some people to file for Chapter 13 bankruptcy. Under Chapter 13, your debts are reorganized and you pay on a repayment plan that lasts three to five years. This has benefits that Chapter 7 doesn’t. 

Filers receive a bankruptcy discharge at the end of a successful Chapter 7 or Chapter 13 bankruptcy case. The discharge is a bankruptcy court order that erases certain debts and means lenders can’t ever legally attempt to collect on discharged debts again. 

The following outlines when you can file bankruptcy again and be eligible for a second discharge. The clock starts ticking on the date you filed your first bankruptcy, not the date of discharge.  

Filing Chapter 7 After Chapter 7

You must wait eight years between Chapter 7 bankruptcy cases. To receive a second discharge, you must wait eight years from the date you filed your first successful Chapter 7 case until you can file your second Chapter 7 case.

Filing Chapter 7 After Chapter 13

You must wait six years between filing a Chapter 13 case and filing a Chapter 7 case. This timeline starts on the date you filed your first successfully discharged Chapter 13 case. Once six years pass, you can file a second bankruptcy case under Chapter 7. The six-year waiting period can be waived if you paid all of your unsecured creditors in full during the initial Chapter 13 bankruptcy payment plan. Unsecured debts include credit card debt, medical bills, and other debts not secured or backed up by property.

Filing Chapter 13 After Filing Chapter 7

You must wait four years to file a Chapter 13 bankruptcy case after filing a Chapter 7 case. This four-year waiting period only applies if you’re hoping to receive a second discharge of debt in your second bankruptcy filing.

In some instances, it might make sense for a person to file a Chapter 13 bankruptcy after receiving a discharge in a Chapter 7 but before the four-year waiting period has passed. This is because Chapter 13 bankruptcy requires you to follow a payment plan to repay your debts. This can help you to catch up on missed payments. 

As soon as you file bankruptcy, creditors must stop all collection activity against you because of the automatic stay. This means that filing for bankruptcy can stop a foreclosure, at least temporarily. A Chapter 7 bankruptcy can stop a foreclosure while a person is in bankruptcy, but if you want to keep your house you have to make your monthly payments and catch up on any missed payments. 

A Chapter 13 bankruptcy includes a repayment plan that allows you to make up any missed mortgage payments over a three-to-five-year repayment plan. During this repayment plan, generally, your house can’t be foreclosed. This is why some people file Chapter 13 even though they’re not seeking to have their debts discharged. In this case, it wouldn’t be necessary to wait four years between filings. 

Filing Chapter 13 After Chapter 13

You must wait two years between Chapter 13 bankruptcy cases. To receive a second discharge of debts in Chapter 13, you must wait two years from the filing date of your first successfully discharged Chapter 13 case until the filing date of your second Chapter 13 case.

All waiting periods between bankruptcy filings are calculated from the filing date of the first case, not the discharge date. 

First Bankruptcy Case Not Discharged

There is a difference between a bankruptcy case that’s discharged and one that’s dismissed. If your first bankruptcy case was dismissed, you didn’t receive a discharge so you may be able to file a second bankruptcy case immediately. When a bankruptcy case is dismissed without a discharge, it means that none of the filer’s debts are erased and they’re still obligated to pay back their debts. 

Bankruptcy cases can be dismissed if:

  • You don’t appear at a required bankruptcy hearing, including the 341 meeting of creditors. 
  • You fail to file all necessary documents properly and on time or fail to pay required bankruptcy filing fees.
  • You don’t pay the required Chapter 13 plan payments.
  • You aren’t truthful in your bankruptcy filing.

Depending on the reasons your case was dismissed, you may be able to file for bankruptcy protection again right away or you may need to wait before filing again. Under the Bankruptcy Code, you must wait 180 days to re-file a bankruptcy case if your first case was dismissed by the bankruptcy court for not following the court’s orders or appearing before the court when required. 

You may also need to wait 180 days before filing a second bankruptcy case if you asked for a voluntary dismissal of your first bankruptcy case after one of your creditors filed for relief from the automatic stay. This means that a creditor formally asked the court to let them continue collection activity against you even though you filed for bankruptcy protection. 

When people file a second bankruptcy case after a first case is dismissed, the court will evaluate if the bankruptcy was filed in good faith. Good faith means that you’re not trying to take advantage of the bankruptcy process. For example, if your first case is dismissed for failure to pay the necessary filing fee, it’s generally okay for you to file a second case immediately as long as you pay all necessary fees in the second case. 

Is It a Good Idea To File Bankruptcy a Second Time?

Filing for bankruptcy is a powerful debt relief tool. You’ll need to look at your financial situation to determine whether filing a second bankruptcy case is a good idea for you or not. Filing for bankruptcy will harm your credit score and negatively impact your credit report, at least in the short term. A Chapter 7 bankruptcy will stay on your credit report for 10 years from the filing date and a Chapter 13 bankruptcy for seven years. 

While bankruptcy can harm your credit, not filing can also be harmful due to missed payments, outstanding debts, and lawsuits for unpaid debts. If you’re facing a second bankruptcy after many years have passed, it’s important to explore why you’re in this situation again. Then take steps to ensure your financial well-being moving forward.

In some cases, it’s a good strategic financial move to file a second bankruptcy after a successful discharge. For example, you may benefit from filing a Chapter 13 after a Chapter 7 discharge to set up a repayment plan to pay off past-due mortgage payments to save your house, catch up on child support arrears, or pay tax debts that were too new to be discharged in your Chapter 7 bankruptcy case. In the case of child support arrears or back taxes, filing a Chapter 13 second bankruptcy could help you avoid wage garnishment and stretch out your repayment plan over three to five years. There are many valid benefits to filing a second bankruptcy case. 

Abusive Bankruptcy Filings

The bankruptcy court looks closely at cases that may be abusing the bankruptcy process. An abusive bankruptcy filing could be a Chapter 7 filer that fails the means test. It could also apply to cases where an individual is inappropriately using the bankruptcy process to avoid paying back a debt, avoid a creditor, or buy time in a collection action, such as a foreclosure or pending lawsuit for unpaid debt. 

The court frowns upon people who abuse the bankruptcy process or who have no intention of following through with their bankruptcy case. People who file multiple cases are more heavily scrutinized by the bankruptcy courts. Repeat filers may lose some of the benefits of bankruptcy protection. For example, the court may deny their discharge or revoke the automatic stay, which stops collection activity. 

If You’re Seeking a Second Financial Fresh Start, Get Professional Help

Filing bankruptcy can be complex — filing successive bankruptcies can be difficult, confusing, and financially dangerous if you don’t plan well. An experienced bankruptcy attorney can help guide you. Bankruptcy attorneys are well-versed in the pitfalls of bankruptcy and multiple filings, the advantages bankruptcy offers, and court requirements. Many bankruptcy lawyers offer free consultations. 

Many people who are struggling with debt start their debt relief journey with credit counseling. Pre-bankruptcy credit counseling can help you evaluate all of your debt relief options, including bankruptcy, debt consolidation, debt settlement, and other debt management options that may be right for you. Debt relief solutions are never one-size-fits-all. You need to know what’s best for you given your financial situation.

Below is a summary of filing fees for bankruptcy, the price of required credit counseling, and if you qualify for fee waivers or installment payments.

You have to pay filing fees and expenses for credit and debt counseling when you file for bankruptcy. You may be eligible for a fee waiver or be able to pay in installments if you are unable to pay the filing fee.

You can find a summary of what needs to be paid, when, and how to be eligible for installment payments or a fee waiver in this article.

Bankruptcy Petition Fees: Chapter 7 and Chapter 13 Filing Fees

The total amount of fees you have to pay in order to file for bankruptcy is as follows, as of December 1, 2020:

For Chapter 7, $338
For Chapter 11, $1,738
Chapter 12: $278; Chapter 13: $313
Periodically, the bankruptcy court raises these fees. The U.S. Courts fee webpage has the most recent fees available.

Chapter 7: Installments and Waivers of Filing Fees

The filing fee is usually due at the time your bankruptcy petition is filed. There are two exclusions from Chapter 7 bankruptcy, though. Asking the court to waive the fee completely or allow you to pay it in installments is an option.

Application for Installments of the Chapter 7 Filing Fee

You file Form 103A Application for Individuals to Pay the Filing Fee in Installments to request permission from the court to pay your filing fee over time. You must indicate on the form that you are unable to pay the fee in full and that you will make no more than four payments within 120 days of the petition’s filing.

Request for Waiver of Chapter 7 Filing Fee

If the court waives the fee, you are not required to pay it. If you are eligible for a fee waiver, you

must be unable to make payments in installments and have an income that is less than 150% of the federal poverty threshold (official poverty line estimates are available from your bankruptcy court).
Fill out Form 103B, Application to Have the Chapter 7 Filing Fee Waived, and send it in to request a fee waiver. In many cases, the judge will approve the application without requiring you to appear in person, but you may still be required to appear in court so the judge can question you.

See how to make changes to bankruptcy forms.

In Chapter 13, there are no fee waivers or installment payments.

Fee waivers and installment payments are generally not available to Chapter 13 filers because they must have sufficient funds to support a repayment plan for three to five years following filing for bankruptcy. When submitting the case, budget for the cost.

Extra Fees Associated with Bankruptcy Filing

Credit counseling from an authorized provider must be completed no later than six months prior to filing for bankruptcy under Chapter 7 or Chapter 13. To get your bankruptcy discharge (the order that eliminates qualifying debt), you have to complete a debtor education course after filing your case.

For the necessary counseling, the majority of approved credit counseling providers charge $15 to $30, but you might not be required to pay anything. In accordance with the law, agencies must offer counseling regardless of your financial situation, so please inform the agency if this is not possible for you.

Additionally, the debtor education classes run about $35. You can request that the provider waive the fee or let you pay a smaller amount if you are unable to pay the full amount.

How to Pay Your Attorney Fees in Bankruptcy

Since many bankruptcy attorneys charge as little as $100 to begin, finding a way to pay Chapter 13 bankruptcy fees is not too difficult; the remaining amount can be rolled into your Chapter 13 repayment plan. You can pay your Chapter 13 fees gradually with this method.

You must pay your attorney in full before filing for Chapter 7 bankruptcy. For what reason? because legal fees are eliminated in Chapter 7 bankruptcy. Your attorney won’t get paid if you don’t make the entire payment.

To file for Chapter 7, how do you obtain the necessary funds? Most Chapter 7 filers divert their payments intended for bill cancellation during bankruptcy to pay their attorney. The funds will be borrowed by others from friends and relatives.

But there are other approaches. If you are unable to pay for a bankruptcy attorney, you can find out more information here about your options.

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Written by Canterbury Law Group

How Child Custody Is Determined In Arizona

Children aren’t mature enough to have the same rights as parents, but they have certain protections. These ensure the best interest of the child.

 

The right to state their opinion

In some states, the court must consider the child’s custody preference when making the final custody decision. The judge usually figures this out by interviewing the child in private. The older the child, the more weight is given to their opinion.

The court won’t always go along with what the child says, even in states like Georgia, where children 14 or older can generally choose whom they want to live with. The judge must rule in line with the child’s best interest. So if a child wants to live with a parent simply because that parent lets them stay up late, the judge will only go with that if that parent is the most competent.

Children can testify during a trial if they have information that can impact the verdict. This is rare since testifying can be distressing for a child. Instead, the judge usually speaks to the child in private or appoints a professional like a custody evaluator to assess the situation.

The right to legal representation

Children have a right to their own legal representation if necessary.

Guardians ad litem represent the child’s best interest. They are usually reserved for cases involving abuse or neglect, but some states assign them in all child custody cases.

Attorneys ad litem represent what the child wants. Typically, they’re appointed on a case-by-case basis, but there are courts that require their involvement for specific case types.

These professionals speak for the child in court and advocate for their rights. Also, they might conduct a short investigation that includes interviews with each parent and a viewing of the child’s potential homes.

The right to safety, education and healthcare

Children have the right to live in an environment free of substance abuse, violence and other dangers. This is why child welfare agencies can intervene when parents put a child in danger. This right also impacts whether a parent receives physical custody.

The right to have a relationship with both parents

Research has shown that children fare better when both parents are part of their lives. For this reason, courts seek to make custody rulings that let the child build a relationship with both parents. Even if a parent isn’t fit for custody, protections like supervised visitation ensure the child can safely be around them.

Parents must also protect this right by allowing visits and not interfering with the other parent’s time with the child. Otherwise, they could lose custody.

The right to financial support

So long as the child is under 18, parents must financially support them.

When parents separate, one typically pays child support to the other. The payer is generally the noncustodial parent or the parent who sees the child less often. If the parent fails to pay support, they could faces penalties ranging from fines to jail time.

Best Interest of the Child

When a court is asked to decide on issues of custody, they will use the best interests of the child standard to do so. In other words, the primary goal of the court isn’t necessarily doing what either parent wants but instead is doing what is best for the children involved.

Courts can consider many factors to determine the best interests of the child including:

  • The recommendations made by a mental health professional after a custody evaluation
  • The preference of the child if they are old enough to have an opinion
  • Who has been the child’s primary caregiver (if either parent has)
  • The ability of each parent to provide a stable, loving home
  • Whether the child has any special needs
  • The emotional ties the child has with parents, siblings and other household members
  • The parents’ ability to provide connections with support networks, including extended family members
  • The mental and physical needs of the child
  • The presence of domestic violence in the home

The specifics vary by state. Courts do not express a preference for parents of a particular gender (such as defaulting to giving custody to a mother). Instead, the goal is to look at the big picture and see which custody arrangement would best ensure the child’s stability and security moving forward. And, in most cases, this means keeping both parents in the child’s life.

 

Source

https://www.custodyxchange.com/topics/custody/legal-concepts/children-custody-rights.php

https://www.forbes.com/advisor/legal/child-custody/child-custody/ 

In the last few years, Arizona has completed an overhaul of custody laws. Essentially moving to a model based on “parenting time” and “legal decision making” as opposed to the terminology previously utilized for custody issues. In January 2013 this move took effect and signified a shift of emphasis towards making joint parenting a priority as opposed to the older legislative model that tended to use every other weekend style custody arrangements and that Mothers would no longer be favored over Fathers automatically as the parent with primary custodial responsibility.

Although there has been a change in the statutory language and terminology used, child custody determination still use legal decision making in an effective manner. Primarily, the determination of parenting time and legal decision-making reflect which of the parents have the right to make certain decisions on behalf of the child or children as well as how much time the individual patent gets to spend with the child or children.

The following discusses how Arizona courts make their determinations of parenting time and legal decision-making.

Determining Legal Decision Making

Based on the best interests of the child, Arizona decided to replace legal custody with legal decision making authority. This means legal decision making allows parents to make important decisions regarding the life of a child or children. These can include, personal care, education, healthcare, and religion. The courts will consider “all factors that are relevant to the child’s physical and emotional well-being”, as outlined by  A.R.S. §25-403. – when making a determination of which parents will have this authority.

There are many factors which courts consider that are specifically mentioned in this particular Arizona statute including:

  • The adjustment of the child or children to their school, community and home environments
  • The child or childrens’ relationships and interactions with siblings, parents and other people who can have a significant effect on the best interest of the child or children
  • The physical and mental health of the parents
  • An examination of the parent and child or children’s past, present and potential future parental relationships
  • If the child or children are of a suitable age, their personal wishes of who they wish to primarily reside with
  • A determination of whether child abuse or domestic violence has been a feature of the home life of the child or children

In summary, the court examines many factors when the court determines which parent should have the authority of legal decision-making. Once everything has been given due consideration, the court will decide to give sole legal decision-making authority to one parent or joint legal decision making authority to both parents. Most similar in form to being granted sole custody, sole legal decision-making authority means one parent is granted the authority to take the major decisions regarding the life and welfare of the child or children. Conversely, both parents will have an obligation to work together if joint decision making is granted by the court.

Legal Decision-Making Considerations

The other primary part of custody is known as “parenting time.” This determines how much time a parent is authorized to physically spend with their child or children and decisions are made by the court using the principles of the “best interests of the child.” A.R.S. §25-403.02 states that parents in Arizona have to submit a mandatory plan of parenting if both parents are unable to come to an agreement regarding the time each parent will spend with their child or children. Because the courts will always make a decision based on the child’s best interest, it is worth noting the determination of joint legal decision-making may not necessarily justify equal parenting time. In a similar vein, the parent who lacks the authority to make decisions is still entitled to a meaningful and productive relationship with the child or children. Only in the case where a parent is not in a fit state to be with their child or children (often for reasons such as child abuse or substance abuse), it is very likely both parents will be granted enough time by the court to continue developing a meaningful relationship with their child or children. As ever, the actual time will be determined by what is in the best interests of the child or children.

Non-Considered Factors

Many people think the female parent will be automatically awarded as the primary caretaker of the child or children. This is simply no longer the case in Arizona.  The parent’s enthusiasm and relationship with the child are paramount. The wealth of the parent or their socioeconomic status has almost nothing to do with the Court’s decision.

Parents only have to provide adequate and safe accommodation for the child or children. The court will not always grant custody to the parent who happens to be more affluent. Both parents should be able to provide comfortable living conditions, cleanliness and the ability to provide for the healthcare of the child. Regarding religion, it is important to be reminded of the fact the court will always act in the best interests of the child or children. Providing the religion of the parent does not cause harm to the child or children – the religion of the parents are not grounds for parental duties disqualification.  Put another way, Mom goes to her church on her days, and Father does or does not attend his venue with the children on his days.

Other Important Considerations

  • In Arizona, family law courts have the ability to grant both joint and sole custody. It is more common for sole custody to be granted when the parties cannot reach a mutual agreement
  • If you use unsubstantiated or false allegations of neglect or abuse against the other parent – it will be used against you by the courts in the process of decision-making; be very careful what you allege in your papers, they are tendered under penalty of perjury
  • The more mature or older the children or child will be increasingly considered (e.g interviewed)  in the legal process
  • Remember the parent who is more open to negotiation and communication with the other parent is often more likely to obtain primary custody or the majority of the children or child’s guardianship

When both parents submit a written plan for parenting and are open to communication and negotiation, the court will grant joint custody on the occasions it is in the best interests of the child or children. Families settle on a successful custody situation in more than 95% of the cases outside the court system in an amicable manner. However, if you are unable to make a mutually successful achievement on a child custody agreement, talk to a family law attorney to investigate your options in achieving resolution via litigation.

Sources:

Hg.org, www.hg.org/legal-articles/how-is-child-custody-determined-in-arizona-29809.

Speak With One Of Our Child Custody Attorneys In Scottsdale

Canterbury Law Group’s child custody lawyers in Phoenix and Scottsdale will advance your case with personal attention and always have you and your children’s best interest in mind when offering legal solutions. We can help with legal guardianshipchild relocationfathers rightsgrandparents rights, and more. Call today for an initial consultation!

We are experienced family law attorneys and will fight for you to obtain the best possible outcome in your situation. Our firm will represent you fully, so you can get on with your life. Call today for an initial consultation! 480-744-7711 or [email protected]

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

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Written by Canterbury Law Group

What Not To Do During a Custody Battle

What Not To Do During a Custody Battle

Knowing what not to do during a custody battle and what the judge will look for can help you prepare the best case possible. While some missteps like lying in court are obvious, you might not have considered some actions that can hurt your case.

Visualize your schedule. Get a written parenting plan. Calculate your parenting time.

Preparing For Court

Don’t lie in child custody court

What you say in court and the information you include on court forms must be true. Lying in court during a child custody case ruins your credibility.

The judge will look for the truth in each parent’s claims through custody evaluations, witness testimony and other evidence presented at trial. Lying in court during a child custody case could cause a parent to lose custody or be held responsible for paying the other parent’s legal fees.

Don’t refuse to participate in the case

Since court cases are often stressful and expensive, you might feel tempted to ignore the case altogether. Yet not taking part in a custody case could cause you to miss out on time with your child.

If you don’t answer the other parent’s filing, the court could issue a default judgment against you. This means the other parent would get everything they asked for without any input from you.

During your case, you’ll receive mailings that require a response, such as requests for documents and notices to appear in court. Ignoring these could lead to the dismissal of your case. Make sure you don’t leave the city or state for an extended period as these documents are typically sent to your last known address or workplace.

Don’t disrespect the other parent

One thing the judge will look for in a child custody case is whether a parent will encourage a relationship between their ex and the child. Disrespecting the other parent shows that you might not be capable of doing so.

Insults directed at your ex through social media, calls, texts and emails could all impact the verdict. You also shouldn’t make negative comments about your ex in front of others. What you say could come to light in court through witness testimony.

Don’t abuse alcohol or drugs

Substance abuse is a major mark against a parent in a custody battle. When you’re under the influence, you can’t be the parent your child needs — especially if you’re dependent on that substance to get through the day. Make responsible choices to show the court you’re fit to parent.

Don’t withhold your child

Withholding your child from the other parent is unique compared to other things not to do during a custody battle because it comes with a caveat: Keeping the child away from the other parent might be your only choice if the parent presents a clear danger.

When there aren’t any safety risks, denying the other parent access to the child will reflect poorly on you. Courts prefer to keep both parents involved in a child’s life and want to see that you can encourage a positive relationship between your child and your ex.

Don’t involve your child in the case

Your child may be the subject of the custody battle, but putting them in the middle will cause undue stress.

Spare them the details of the case, and turn the focus toward maintaining the routines the child is used to and spending quality time together. Distractions from what’s going on in the household like extracurriculars are particularly helpful in allowing some sense of normalcy.

Don’t bring new partners into your child’s life

Bringing a new partner into your child’s life is an often overlooked example of what not to do during a child custody battle. Your child will be in a fragile state during this time. A new partner could cause confusion and anger if your child assumes you’re trying to replace their other parent.

If you do have a new partner, don’t involve them in the case. Judges often frown upon parents who bring their partners to court because their presence could be a distraction. Outside of court, keep interactions between your partner and your ex to a minimum. Any confrontations that occur could help your ex’s case.

Don’t push for a trial without trying to compromise

Trial should be a last resort after all other attempts at a resolution have failed. Stay in charge of parenting decisions and jump-start your co-parenting relationship by negotiating a settlement with the other parent. If you find it difficult to resolve your differences with just the two of you, try an alternative dispute resolution method.

Don’t show up to court unprepared

Preparation is key in a custody battle. You’ll need to be ready to speak in front of the judge, propose a parenting plan and present solid evidence to back up your claims. If you have a lawyer, they will help you prepare.

If you represent yourself, review your state’s child custody laws and rules of evidence to avoid presenting evidence that the court cannot consider. For example, in some states, recording phone conversations without the other person’s permission is illegal. Illegally-obtained recordings hurt your credibility and can’t be used in court.

Don’t behave badly in the courtroom

Your behavior in the courtroom will have an impact on the final verdict. In a custody case, the judge will look at each parent’s actions in the courtroom as a reflection of their character.

Don’t talk out of turn or get into arguments with the other parent. Treat everyone in the courtroom and in the courthouse with respect.

Don’t disregard court orders

Temporary orders are often part of divorce and custody cases. These orders stay in effect until the court issues final orders.

If you have court orders for child support or visitation, make sure you follow them. Not doing so shows a lack of respect for the court and that you may not be capable of following the final custody order.

Also, don’t get into the habit of rescheduling time with your kids. Show up on time for pickups, and drop your child off as scheduled to show the court you can adhere to orders. Only stray from the order if absolutely necessary, and give the other parent proper notice.

What Is Parental Alienation?

Both judges are evaluators of child custody will seek the parent whose actions are positive and promote the relationships between the child or children and both parents. it is vital a parent never appears to be in a mode or retaliation or be vindictive or use financial issues as a weapon in matters of child custody. Therefore, parental alienation happens when a parent is guilty of causing a child or children to be negatively influenced towards the other parent of the child or children. On occasions this behavior can be unintentional but if often intentional and it is worth remembering parental alienation is not only a weapon used by one gender. Parental alienation is not gender specific any either parent is equally able to indulge in this destructive pattern of behavior should they wish to do so.

Parental Alienation Examples

There are many ways a child or children can be manipulated when one parent carries out acts of parental alienation. The goal is normally to separate the emotional bond a parent has with the child or children. The parent can do this by making negative comments about the parent directly to the child or children or to third parties but by ensuring the child or children can hear what is being said. These comments can have a great influence on a child or children who if they hear negative comments on a regular basis, become more credible and believable to the young minds who hear it. In the end, the result is often the child or children sees the other parent in the manner the way the accusatory parent has presented the situation to them.

Additionally, other members of the family may also join the accusatory parent in making alienating comments and actions towards the other parent in front of the child or children. These do not have to be outrageous statements, but just small comments and actions can help to cement negative thoughts towards the other parent. Nonetheless, with alienating, it is more often than not that not just one act or statement is negative, but usually the result of many small comments made over a prolonged period of time.

Signs of Parental Alienation

As we have discussed it is seldom one single action represents parental alienation but a series of actions and words and thoughts that manipulate a child or children negatively impact a parents’ relationship with their child or children. Undoubtedly some tactics used in parental alienation are extremely harmful but never more so than when a parent accuses the other of criminal activity. Especially when they do this in front of a child or children. This is a matter that needs to be acted on immediately. Here are some signs to look for that your child or children may be the victim of parental alienation:

  • Is a parent creating scenarios where the child or children misses when it is your time for visitation?
  • Has the attitude of your child or children changed from one of being pleased to see you to one of being angry towards you?
  • Does your child or children no longer use a familiar, informal name for you?
  • Does your child or children show signs of being uncomfortable around you?
  • Does your child or children only give very brief, monosyllabic answers?
  • Does the other parent turn up unexpectedly, creating drama and tension when there is no need to do so?
  • Does the other parent severely question the child or children following your visitation?
  • Does the other parent show resentment when you discuss enjoyable times with your child or children?
  • Does the child know matters regarding the divorce beyond what they need to know at their age?
  • Does it appear your parenting time is being cut short, altered or canceled at short notice?

There are three types of parental alienation.

 

  • Mild parental alienation: The child avoids contacting the alienated parent, but has a good relationship with them when the alienator is not around.
  • Moderate parental alienation: The child strongly resists contact with the alienated parent and is resentful when they do spend time together.
  • Severe parental alienation: The child insists on not having contact with the alienated parent. They may hide or run away to avoid being around the parent. In these cases, the alienator is determined to ruin the other parent’s relationship with the child.

Signs of parental alienation

Five factors help identify PA.

 

  • The child actively avoids, resists or refuses a relationship with the nonpreferred parent.
  • The child and nonpreferred parent once had a positive relationship.
  • The nonpreferred parent displays no abusive, neglectful or bad parenting behaviors.
  • The child shows many of the behaviors associated with parental alienation (more below).
  • The preferred parent shows multiple alienating behaviors (more below).

Behaviors of a child affected by parental alienation

A child affected by parental alienation may show eight behaviors. It’s important to note that these can also occur without parental manipulation.

 

  • Unfair criticism of the alienated parent (known as a campaign of denigration)
  • Unjustified harsh feelings toward the alienated parent
  • Exclusively negative feelings toward the alienated parent and only good feelings toward the alienator (known as a lack of ambivalence)
  • Insistence that all of their negative feelings and criticisms are their own (called the independent thinker phenomenon)
  • Consistent support of the alienator
  • Repetition of language and false stories told by the alienator
  • Lack of guilt about their hatred or mistreatment of the alienated parent
  • Extension of their dislike of the alienated parent to the alienated parent’s relatives

Behaviors of an alienating parent

An alienator’s behaviors may include:

 

  • Sharing personal information with the child (e.g., the other parent’s infidelities)
  • Preventing the child from talking to or visiting the alienated parent
  • Planning activities that they know will interfere with the alienated parent’s visitation time
  • Disobeying the parenting plan or refusing to negotiate a plan with the other parent
  • Hiding important information from the other parent (e.g., the child’s report card or medical records)
  • Monitoring all contact between the child and the alienated parent

It has been suggested that parents with behavioral issues like narcissistic personality disorder are more likely to be alienators. Though many people assume it’s more common for a mother to use a child against a father, parental alienation against a mother can also occur.

What to do about parental alienation

If you suspect parental alienation, seek professional help. It’s best to be proactive because the more severe PA becomes, the harder it is to treat.

A mediator, therapist, family counselor or child psychologist could help you figure out whether alienation is occurring and come up with a plan to improve your relationship with your child.

More research is needed to find a safe and effective treatment for PA. Current responses depend on the level of alienation.

  • Mild parental alienation: A judge could order parents to allow one another to have a healthy relationship with the child.
  • Moderate parental alienation: A parenting coordinator could help to reduce conflict and improve communication. Both parents and the child could also go to counseling. None of this will be effective if the alienator refuses to take part and continues alienating the child.
  • Severe parental alienation: The alienator might lose custody and only have supervised visits, while the child might have to attend reconciliation therapy with the alienated parent. This treatment may have negative side effects.

Parental Alienation Laws in Arizona & Effect on Child Custody (Legal Decision Making)

Title 25’s legal decision-making laws were last modified a couple of years ago when the Arizona state legislature decided it will be the responsibility of the court to engage both parents in the raising of a child or children. In light of this, clearly parental alienation is recognized as being a cause of damage to a child or children. When one parent has an established history of using parental alienation, it is less than likely they will be able to come to an agreement regarding parenting time or putting the best interests of the child or children first. In some cases, not even the use of lawyers or mediators assist in getting to this goal.

In such circumstances, a judge will consider what is in the best interest of the child or children. To make that determination, the judge will review  Arizona Code section 25-403.

The court is going to examine what parent is more likely to allow frequent, meaningful and continued custody with the other parent. So parental alienation can definitely count against a parent in these circumstances. The court may decide the child or children should be spend additional time with the other parent who is not involved in the practice of alienation tactics. In some circumstances, this alienation crosses a line into custodial interference where one parent violates current custody orders. In Arizona, this is considered a felony offense with possible jail time.

Source: “Parental Alienation.” Stewart Law Group, https://www.arizonalawgroup.com/child-custody/parental-alienation/

Need a Family Lawyer in Scottsdale?

Our experienced family law attorneys will work with you to obtain the best possible outcome in your case.  Proven trial lawyers in family court, you can trust the firm to represent you fully so you can get on with your life. Call today for your initial consultation. Our family lawyers can help with divorce litigation, collaborative divorcedivorce mediationchild custodylegal guardianshippaternityprenuptial agreements, and more.

*This information is not intended to be used as legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs. 480-744-7711 or [email protected]

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What Is The Downside of Filing For Bankruptcy

What Is The Downside of Filing For Bankruptcy

It is not appropriate for everyone to file for Chapter 7 bankruptcy. Even if filing for Chapter 7 bankruptcy seems like the best option for you to reduce your debt, you should weigh the drawbacks first.

If your income is too high, you cannot file for Chapter 7.

You must not have any disposable income and make less than the state median income in order to qualify for Chapter 7. Individuals with disposable income are those who have money left over after covering their essential living expenses and can save. The means test can be used to get your disposable income.
If you have too much extra money than you need, you can’t just stop paying off your debt. While filing under Chapter 13 repayment plans is not permitted, you can still receive a bankruptcy discharge.

There Will Be a Brief Detriment to Your Credit

Prior to filing for bankruptcy, those who are able to make their monthly payments on time and maintain a high credit score will initially see a decline in their score. Additionally, your interest rates may rise momentarily. Nonetheless, declaring bankruptcy frequently improves a filer’s credit rating over time. You have the chance to raise your credit score right away if your bankruptcy discharge is approved.

Not All Unsecured Debts Are Erased by Chapter 7

Certain unsecured debts, such as child support or alimony, are never dischargeable in bankruptcy. Certain debts, such as tax obligations and certain student loans, may be difficult to discharge through bankruptcy. A common misconception is that filing for bankruptcy cannot be used to discharge student loan debt. According to the Bankruptcy Code, you may be able to discharge your student loan debt if repaying it would put you through extreme hardship. The Department of Justice gave courts more precise guidelines in late 2022 regarding what constitutes undue hardship. See if you qualify for this requirement by reading our article on how to file for bankruptcy while having student loans. Our group even produced a filing tool to facilitate the cancellation of student loans.

Some Property Types May Be Lost

Giving up some pricey things could be one of the trade-offs for receiving a bankruptcy discharge in a matter of months. We refer to these things as nonexempt property. In Chapter 7 bankruptcy proceedings, the bankruptcy trustee may sell assets of this kind to satisfy creditors. Having said that, Chapter 7 cases hardly ever involve this.

Your Bankruptcy Under Chapter 7 Others Are Not Protected by Filing (Like Co-signers)

Your only obligation to pay the debt is eliminated by Chapter 7. It does not relieve someone else of their debt. The only kind of bankruptcy that can shield a co-signer is Chapter 13, but that protection is limited to situations where you pay off the debt through your repayment plan.

What Is Bankruptcy Under Chapter 13?

For those seeking a fresh start, Chapter 7 and Chapter 13 bankruptcy are both effective debt relief options. Chapter 13 (also known as the “reorganization” bankruptcy) may be appropriate for you if you have a lot of disposable income, nonexempt assets that you wish to preserve, and the ability to adhere to a payment schedule.

The Price of Bankruptcy Filing

The cost of declaring bankruptcy can be high. The two required credit counseling and debt education courses, the court filing fee, and the cost of legal representation (should you decide to retain counsel) must all be taken into account. For Chapter 7 cases, the Bankruptcy Court levies a $338 filing fee, which, unless you are granted a waiver, you must pay. The court will dismiss your case if you fail to pay the fee in full, even though you are able to request to pay it in four installments. In addition to the court filing fees, you will be required to pay the attorney fees of any law firm or bankruptcy attorney you retain for assistance. This usually adds up to roughly $1,500, and it needs to be paid before your case is filed.
The price of attending the required debt education and credit counseling courses is in addition to the filing fee and legal fees.

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Written by Canterbury Law Group

What is an Emergency Bankruptcy Filing?

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When you file for bankruptcy in an emergency, you just need to submit the bare minimum of paperwork to start the process. It facilitates speedy case filing. If you need to halt serious collection actions like wage garnishment, foreclosure, or repossession, emergency filings can be useful. You have 14 days from the date of filing to finish the remaining paperwork in an emergency bankruptcy case, or your case may be dismissed.

What Is the Process of Filing for Emergency Bankruptcy?

A bankruptcy case filed with only a portion of the necessary forms is known as an emergency bankruptcy filing. An emergency filing may also be referred to as an incomplete filing, a skeleton bankruptcy, or a barebones filing, depending on where you live. The minimal information needed to invoke the automatic stay protection is included in an emergency bankruptcy petition as required by the Bankruptcy Code.

Even in urgent situations, the automatic stay begins to operate as soon as your bankruptcy case is filed. All of your creditors are required by the automatic stay to cease pursuing collection actions against you. The automatic stay can start working even before you’ve finished filing for bankruptcy thanks to an emergency petition.

While it is possible to file for bankruptcy in an emergency situation before finishing all the necessary paperwork, doing so does not release you from filing for bankruptcy in an ordinary manner. As required by law, you have 14 days from the date of your emergency filing to file the remaining forms. If not, your case will be dropped, allowing your creditors to start pursuing collection.

Why Do Individuals File for Bankruptcy in an Emergency?

Most people file for emergency bankruptcy in order to stop a collection action that could soon be initiated. Before choosing to file for bankruptcy, many people do some research and consider their options. It may take some time to gather all the required paperwork and complete all the forms, even after you’ve made the decision to file.

The automatic stay has the power to halt additional collection attempts, but it cannot reverse already completed actions. For this reason, it’s imperative that the automatic stay be in place before there is a wage garnishment, bank levy, repossession, or foreclosure. In the event that you are unable to complete all of your paperwork prior to a significant collection event, you can file for emergency bankruptcy, which will protect you from creditors until you have completed your forms.

What is Required for an Urgent Case?

Only a small portion of the documentation needed to complete your bankruptcy filing will be needed for an emergency bankruptcy filing. You still need to fulfill a few minimal requirements in order to file for an emergency.

Select the Appropriate Type of Bankruptcy

Most people file for bankruptcy using either the Bankruptcy Code’s Chapter 7 or Chapter 13. These two types of bankruptcy were intended for different purposes and operate very differently. Chapter 7 is mainly used by debtors to get rid of unsecured debt, like credit card and medical bills. You have to make your payments on time in order to maintain your vehicle or home in Chapter 7.

Repossessions and foreclosures are frequently stopped through emergency bankruptcy filings. Chapter 13 bankruptcy typically makes more sense in these circumstances. The Chapter 13 repayment plan is often used by debtors who are behind on their rent, mortgage, or auto payments in order to catch up on these payments.

The type of bankruptcy you’re filing must be specified when filing an emergency case. Switching to a different chapter isn’t always simple if you select the incorrect kind of case. Try to arrange a meeting with a knowledgeable bankruptcy attorney if you’re unsure which chapter to file under. When you arrange the consultation, make sure to mention that you’re in an emergency.

Verify Your Eligibility

Not everyone is qualified to file for bankruptcy under Chapter 7. To find out if you are eligible for Chapter 7 relief, you will need to pass a means test. Although completing the means test calculations prior to filing is not necessary in the event of an emergency, it is a good idea in case there is a problem with your eligibility for Chapter 7.

You should also see if you are eligible for a bankruptcy discharge if you have previously filed for bankruptcy. There are waiting periods between a previous bankruptcy discharge and a new discharge mandated by the Bankruptcy Code. Depending on the chapter you filed under previously and the chapter you are filing under now, these wait times vary. The wait periods only come into play if your prior case resulted in a discharge. A Chapter 13 plan can be used to make up missed payments even if you are not eligible for a discharge because of an earlier case.

If you have previously filed for bankruptcy, there are additional restrictions that might be applicable to the automatic stay. The automatic stay usually lasts from the time a bankruptcy case is filed until it is dismissed or discharged. The automatic stay in your new case will only last 30 days if you filed for bankruptcy within the last year and that bankruptcy was dismissed (not discharged). If you want to prolong the automatic stay past 30 days, you can file a motion. Usually, you have to file the motion along with your emergency documents.

When you file for bankruptcy, the automatic stay won’t apply if you’ve filed for bankruptcy twice or more in the previous year. To enforce the stay, you can file a motion, but you’ll need to wait for a hearing and a ruling. You will not be shielded from ongoing collection actions by filing for emergency bankruptcy if there is no automatic stay in place.

Enroll in a Credit Counseling Program

Prior to filing for bankruptcy, all applicants must finish a credit counseling program from an authorized provider. This covers last-minute bankruptcy petitions. Most suppliers provide the course over the phone, online, or both. The cost ranges from $10 to $45, depending on the provider. The course is offered once, with sessions lasting typically less than two hours. A certificate will be emailed to you by the provider once the course is finished. When submitting your emergency forms to the court, you also need to submit this certificate.

Fill out the Forms That Are NECESSARY.

In order to file for emergency bankruptcy, you need to at least fill out and submit the following forms:

Form 101, Voluntary Petition: This eight-page form asks for basic details about your name, address, type of bankruptcy, and history of bankruptcies, if any.

Social Security Number Declaration (Form 121): You will only use your complete Social Security number here in your documentation. It is hidden from creditors, attorneys, and even your trustee; only the court can view it.

An alphabetical list of all your creditors along with their mailing addresses can be found in the creditor matrix. The matrix must be submitted in a specific format to the majority of bankruptcy courts. In certain courts, the list of creditors must be submitted with a verification form. To be sure of the requirements, check with the court where your case will be filed.

Obtain Your Filing Cost

For Chapter 7 cases, the bankruptcy court charges a filing fee of $338, and for Chapter 13 cases, it charges $313. When you file your case, the fee is due. You can file a motion requesting the court to allow you to pay the filing fee in installments if you are unable to pay the entire amount. When you file your emergency case, most courts require you to pay a minimum first installment. For confirmation, check with your court.

You may petition the court to have your filing fee waived if your income is less than 150% of the federal poverty guidelines. When filing your emergency paperwork, you must also file your motion for installments or a fee waiver if you are not paying the full fee.

Put In The Case

New cases can only be filed online by bankruptcy attorneys. Since mailing your forms can cause a delay, it is best to file your paperwork in person in an emergency. To locate your bankruptcy court, use the federal court locater. Certain bankruptcy districts have restrictions on where you can file depending on the county in which you reside. To verify the residence rules and office hours, visit the website of your court. Finding out if your court has any additional requirements—such as bringing specific forms of identification or extra copies of your forms—also helps. Call the court clerk if you’re unsure.

I’ve filed for bankruptcy in an emergency. What Now?

Although filing for emergency bankruptcy will provide you with some immediate relief, your work is not over. Notifying the creditor who prompted you to file the emergency case is necessary. Additionally, you must finish and submit the last of your bankruptcy forms.

Let Your Creditor Know

Notification of your emergency filing will be mailed to each creditor in your creditor matrix by the bankruptcy court. However, it may take a few days or more for this notice to reach creditors. You should give the creditor a call directly in order to successfully halt a garnishment, lawsuit, foreclosure, repossession, or other collection action. Make contact with the creditor’s lawyer if you are familiar with them rather than contacting the creditor directly. Typically, you’ll need to provide them with your bankruptcy case number, the court you filed with, and the filing date. In case there is an issue, jot down the time and person you spoke with when you called.

Fill out the remaining bankruptcy forms and file them.

You have just 14 days from the time you file your emergency documents to the time you file the remaining bankruptcy forms. Remember, fourteen days can pass quickly, so don’t wait. The remaining forms, along with instructions, can be accessed online, just like the emergency forms. For every state, Upsolve also offers a free filing guide.

The bankruptcy court will send you a deficiency notice a few days after you file your emergency case. This does not imply that the material you have already filed is flawed. It simply indicates that you haven’t yet submitted all necessary forms. A list of the forms you still need to file and the due date for doing so will be included with your deficiency notice. To ensure that the remaining forms are received by the deadline, submit them in person.

The court has the right to dismiss your case if you fail to file the last of the bankruptcy forms by the deadline. The automatic stay is lifted upon a dismissal, allowing your creditors to resume collection efforts. You can file a motion requesting an extension from the court if you require more time to file the remaining forms. Don’t ask for more time unless you absolutely need it, as courts are frequently hesitant to grant these extensions.

Following the submission of all necessary paperwork, your case will be handled similarly to other bankruptcy cases. The date, time, and location of your creditors’ meeting, along with your trustee’s contact details, ought to be included in a notification you receive. About 30 to 45 days typically pass after the date of filing. It’s likely that you’ll receive a request for documents from your trustee, which you must submit at least seven days prior to the meeting.

What Drawbacks Come With Emergency Bankruptcy Filing?
The fact that you have so little time to prepare your bankruptcy forms is the largest disadvantage of filing an emergency case. The shapes are intricate. Documents like bank statements, tax returns, and pay stubs must be gathered. Another disadvantage is that you might run into unforeseen problems with your case when filling out your other forms, like property that isn’t exempt from fees. You don’t have much time to solve problems once you encounter them.

Furthermore, even though filing for emergency bankruptcy gives you some relief, in some cases it’s only a short-term fix. For example, in Chapter 7, you have to immediately bring the payments current if you want to keep your house or vehicle. You have an extended period in Chapter 13 to make up missed payments. Regardless of the chapter you file under, you only have 30 days to bring your payments current if you filed for bankruptcy to prevent an eviction.You only submit the bare minimum of paperwork to the bankruptcy court when filing for bankruptcy emergency. When you need to halt an impending threat of collection, like a wage garnishment, foreclosure, or repossession, emergency filings can be useful. In these circumstances, you might have to file for bankruptcy quickly because you won’t have enough time to finish all the paperwork. You are protected from creditors by the automatic stay, which is activated by the emergency filing. However, you only have 14 days from the date of filing to finish all other documentation. This could be dangerous, particularly if problems arise with your case. Your case may be dismissed if the remaining forms are not submitted by the deadline.

Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale

Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business BankruptcyChapter 7 BankruptcyCreditor Representation, Chapter 5 ClaimsChapter 13 Bankruptcy, Business RestructuringChapter 11 Bankruptcy, and more.

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

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Written by Canterbury Law Group

What Are the Chapter 7 Bankruptcy Rules?

The most common form of bankruptcy in the United States is Chapter 7. At Canterbury Law Group, we constantly work with clients to file Chapter 7, which allows individuals to extinguish all debts which are “dischargeable” under the Bankruptcy Code. In a Chapter 7, all of the debtor’s non-exempt assets on the petition date are liquidated through the priorities set forth in the bankruptcy code. At the time of filing, the bankruptcy code establishes the creation of your “debtor’s estate” which includes all “non-exempt assets.” As a Debtor you have various duties and obligations, including significant duties of co-operation, which are owed to the Bankruptcy Trustee. These obligations are designed to assist the Trustee in the administration of your bankruptcy estate.

The Scottsdale bankruptcy lawyers at Canterbury Law Group will counsel you regarding these duties, which if followed, will make your case run smoothly. Unfortunately, many debtors who are not fully informed of these obligations run the risk of not receiving a full discharge of some or all or their debt. If you’re thinking of filing Chapter 7, here are some recommendations from our lawyers:

1. Complete the Mandatory Credit Counseling – Before you can file chapter 7 bankruptcy, it is essential to complete credit counseling. It is a mandatory step before you can file and often requires paying a fee. Otherwise, your filing will not be allowed to continue.

2. File All Chapter 7 Paperwork – Complete and file all necessary paperwork in court. Make sure all of your paperwork is accurate. Determine any fees associated with your filing.

3. Meet With Your Creditors – Approximately one month after filing the petition, you will need to meet with your creditors, an arrangement made by the court. During this important meeting, your creditors will question you regarding your finances and property. Typically this meeting involves only a few people connected with the credit card companies to whom you owe your debt. Your lawyer can certainly be present to aid you through this process.

4. Attend the Personal Financial Management Instruction Course – In addition to your credit counseling course, a personal financial management course generally costs about $30 and is necessary for completing your filing of chapter 7. If you skip the money management course, you risk dismissal of your case.

Although there are a lot of rules, Chapter 7 bankruptcy rules are not as complicated to comprehend as you might think. To guarantee a successful Chapter 7 bankruptcy filing and to gain a basic understanding of the rules, continue reading.

The local court regulations and the bankruptcy laws of the United States are combined to create Chapter 7 bankruptcy rules. The Bankruptcy Code and the Bankruptcy Rules are two distinct categories of US bankruptcy laws.

There are many of them since all bankruptcy cases are covered by these laws. But do not fret! Not all of them need to be learned. It’s a good idea to be somewhat familiar with Chapter 7 bankruptcy rules if you plan to file for Chapter 7 bankruptcy to ensure that a small mistake doesn’t ruin your fresh start.

Unofficial Guideline That All Filers Should Adhere To

Being sincere is the most crucial bankruptcy rule. The bankruptcy laws grant the “honest but unfortunate debtor” a fresh start. Even if they abide by all the other guidelines to the letter, anyone attempting to conceal anything risks punishment. Because of this, it’s crucial that you submit an amendment if you discover that something is missing from your forms.

Guidelines for Chapter 7 Bankruptcy to Adhere to Before Filing

When getting ready to file your case, there are a few easy guidelines to adhere to. To be eligible to file Chapter 7, you must complete an approved credit counseling course, use the official bankruptcy forms from the U.S. Courts, and pass the means test.

A Credit Counseling Appropriate Course Must Be Taken

Everyone is required to enroll in a credit counseling course offered by an authorized credit counseling agency at some point during the six months—180 days, to be exact—before declaring bankruptcy. You cannot file for any kind of bankruptcy without it. You must also have the United States Trustee’s approval for the credit counseling organization you select for this hour-long course.

The Official Bankruptcy Forms Must Be Used

The bankruptcy courts in the United States mandated that all individuals filing for bankruptcy, regardless of location, must utilize identical bankruptcy forms. The U.S. Courts website offers the forms at no cost. The only way to ensure that any bankruptcy forms you download are the official version is to ensure that you are downloading them from a.gov website.

Furthermore, your state’s bankruptcy court might have unique local forms. These local bankruptcy forms are not a substitute for the federal ones; they must be filed in addition to them, if necessary. Required local forms can be obtained by speaking with the clerk at your local bankruptcy court or by visiting the website of your bankruptcy district.

The Means Test Must Be Passed

Chapter 7 filing is subject to income restrictions. Using a means test, the court determines whether you are within those bounds. There are mixed feelings when one fails the means test. One the one hand, your high income precludes you from filing for Chapter 7 bankruptcy. Nonetheless, your monthly income is fairly stable, even though it might not be sufficient to meet all of your creditors’ demands for payments each month. Investigate if Chapter 13 bankruptcy would be a better choice for you in this situation.

How Is the Means Test Operational?

In essence, it establishes the income thresholds for Chapter 7 bankruptcy. You pass the means test if your monthly income is currently less than the state median income. You might still pass the means test even if your income is higher than the median. In order to file for Chapter 13 bankruptcy, you must demonstrate that your disposable income (after your living expenses and income tax withholdings are subtracted) is insufficient to pay off at least 25% of your unsecured creditors.

Chapter 7: Bankruptcy Guidelines for Following Case Filing

The automatic stay, which is a feature of the bankruptcy laws, protects you from creditors as soon as your Chapter 7 case is filed. Once a bankruptcy petition is filed, the Bankruptcy Code prohibits any further collection efforts against the debtor or their assets. Wage garnishments must therefore end immediately upon the filing of a bankruptcy case.

That isn’t the only thing that occurs, though. For the individual filing for Chapter 7 bankruptcy, their creditors, and the bankruptcy trustee managing the case, there are extra regulations.

Chapter 7: Guidelines for Bankruptcy Filers

Each individual filing for bankruptcy must fulfill the Bankruptcy Code’s requirements. Following the filing of your Chapter 7 bankruptcy case, you have the following obligations:

Apply for a fee waiver or pay the court filing fee.

Your final federal income tax return should be turned in to their bankruptcy trustee.
Attend the creditors’ meeting.
Finish the second bankruptcy course, also known as financial management or debtor education.

That is, of course, the absolute minimum. Additionally, you must work with your bankruptcy trustee. This usually entails providing them with additional paperwork in advance of the creditors’ meeting, such as bank statements. At times, this entails informing the trustee if, within six months of your filing date, you are qualified to inherit something. It all depends on the circumstances surrounding your case.

Additionally, in the event that your contact information changes, you must make sure to notify the trustee and the bankruptcy court.

What Part Does the Trustee Play in This Whole Thing?

Finding non-exempt assets that can be sold to pay off unsecured creditors is the trustee’s responsibility. This entails going over tax returns, bank account statements, and bankruptcy forms, among other documents. Asset cases remain open for as long as the trustee needs to complete them, and even after the bankruptcy discharge is approved, the filer must keep collaborating with them.

Since most Chapter 7 bankruptcy filers do not possess any nonexempt property, the trustee’s duties are restricted and frequently completed prior to the debts being discharged.

Guidelines for Handling Secured Debts

Secured debts are associated with a particular item of property. One common type of secured debt in Chapter 7 proceedings is auto loans. If you possess this kind of debt, you must file a Statement of Intentions to inform the secured creditor of your plans. That’s not all, though.

There isn’t much more to do if you are returning the car. But the Chapter 7 bankruptcy rules demand that you actually follow through on any plans you may have to redeem the car or reaffirm the loan. That typically entails signing a reaffirmation agreement or submitting a motion to redeem. The automatic stay expires and the bank is free to come pick up the car whenever they choose if you don’t act within 45 days of the date of the creditors’ meeting.

Chapter 7: Rules for Creditors in Bankruptcy

The most significant of these is the previously mentioned automatic stay found in the Bankruptcy Code. In addition, if creditors wish to object to anything in your case, they must submit their objections by a specific date. Unsecured creditors frequently take no action at all in no-asset cases. Credit card debt, personal loans, the majority of tax debt, and student loans are examples of unsecured debt.

Having a trusted legal team on your side is critical during bankruptcy. Call Canterbury Law Group today to schedule your consultation. 480-744-7711.

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Written by Canterbury Law Group

Guardianship Versus Custody

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Custody and guardianship are not the same thing. Although they are not interchangeable, both are made to ensure that kids receive the care they need.

There are other characteristics that set the two apart, but the primary distinction is that custody is usually based on parentage.

A legal guardian: what is it?

A person designated by a court to look after a child and make decisions that are best for them is known as a legal guardian. The phrase’s legal component is not always required; it merely indicates that the guardian has been approved by a judge.

Each type of legal guardian has different authority and responsibilities.

A person’s guardian is in charge of a child’s welfare and makes decisions on the child’s behalf. The guardian is responsible for providing for the child’s basic needs, including food, housing, healthcare, and education.
The guardian of the estate is in charge of a child’s money. Guardianship of the person and the estate is typically assigned to the same guardian.
A foster parent is an example of a temporary guardian, or interim guardian. Compared to guardians of the person and of the estate, they have less authority, and they must obtain the consent of the court before taking certain actions on behalf of the child.
By default, parents are their children’s guardians. However, a court may name a guardian for a child whose parent is absent or unfit to raise them.

After a guardian is appointed, parents typically keep their parental rights and may petition to take on the role of guardian once more.

What is a caretaker?

A child is under the custodian’s custody. Usually, they are the child’s parents, but they could also be relatives or someone else who has a close relationship with the child.

Physical and legal custodians are the two categories of custodians.

The parent who resides with the child and is responsible for their primary care is the physical custodian. When parents share physical custody, they both have to put in a lot of time caring for the child.
The parent with the power to make decisions on behalf of their child is known as the legal custodian. When parents have joint legal custody, they can decide jointly or separately.
Parents have the option to jointly draft a parenting plan that specifies their custody agreement.

The distinctions between custody and guardianship
States differ in how they define guardianship and custody. However, generally speaking, the primary distinctions between the two are who can fill each role, what those roles entail, and how long the arrangement will last.

As previously discussed, guardianship is assigned to an individual other than a parent, whereas custody is given to parents or someone with a parental relationship.

Guardians have more limitations than legal custodians, who make all significant decisions for a child. A guardian typically only makes routine decisions that have an impact on the welfare and care of the child.

Final custody orders are regarded as permanent, even though a court may alter custody at any point until the child reaches legal maturity. In contrast, guardianship is frequently a transient arrangement. A parent may designate a guardian while they are ill, for example.

Comparisons between custody and guardianship
The terms custody and guardianship have a lot in common. Both are established by a court and pertain to legal relationships with children.

The daily responsibilities of a custodian and a guardian typically don’t differ all that much. These consist of:

supplying the child with food, clothing, shelter, medical attention, and education
Keeping the youngster safe
The child’s best interest is always the court’s primary consideration when selecting a guardian or custodian.

Speak With Our Guardianship Lawyers in Arizona

Contact Canterbury Law Group today if you need an experienced child custody lawyer or guardianship lawyer in Phoenix or Scottsdale, Arizona to help with your case. Our experienced family law attorneys will work with you to achieve the best outcome for your situation. Call today for an initial consultation! 480-744-7711

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Written by Canterbury Law Group

Co-Parenting With a Narcissist: Tips and Strategies

Parental Alienation In Arizona

While co-parenting can be difficult, it might seem unachievable if your ex is a narcissist.

Regretfully, you are aware of how a narcissist prioritizes their own self-interest over their parental duties and disregards the welfare of their children. You know how they deceive, how they manipulate, how they abuse emotions in an attempt to gain respect and control.

Additionally, if you’re divorcing a narcissist, you’re probably coping with the fallout from a highly contentious custody dispute and attempting to work out a complicated custody arrangement.

But don’t give up—if you have the correct attitude and parenting resources, you can create plans to lessen conflict and successfully co-parent with a narcissist.

Narcissism: What is it?

When sharing custody with a narcissistic ex, it’s critical to understand exactly what narcissism is. This makes it easier for you to deal with them and lessen the harm they cause to your child by enabling you to understand what drives their behavior.

Narcissism is more than just a propensity for selfishness or self-centeredness; rather, it is an extreme form of self-involvement in which the individual is indifferent to the needs of others or the consequences of their actions.

Remember that a person with narcissistic personality disorder (NPD) is not the same as someone who just has a narcissistic personality. NPD is a mental health condition that a psychiatrist or psychologist will diagnose. An individual must continuously display at least five of the following characteristics in order to be diagnosed with NPD:

  • Excessively lofty and conceited feeling of importance
    Obsession with grandiose fantasies Belief in their own superiority over others
    Excessive need for validation, praise, and adoration
    Possession of rights and anticipation of favorable treatment
    Lack of empathy and unwillingness to take other people’s feelings into account Believing that other people are envious of them
    Extreme conceit and snobbishness. While exhibiting any of the aforementioned behaviors on a regular basis, a person with narcissistic personality traits may not fit the NPD diagnostic criteria or receive an official diagnosis.

Thinking of narcissism as a spectrum, with narcissistic personality disorder at the other end, and someone with a few narcissistic traits that negatively impact others at the other, can be helpful. Your co-parenting techniques take into account your ex’s particular behaviors, where they are on the spectrum, and the dynamics of your relationship.

A narcissistic parent: what is it?

A narcissistic parent puts themselves before their child; rather than fostering the child’s growth into a mentally sound adult, a narcissistic parent is only interested in utilizing the child to further their own self-serving agenda.

Instead of viewing their child as an individual, a narcissistic parent views them as an extension of themselves. When their child doesn’t live up to their irrational expectations, they frequently try to live through them and punish them. Their child’s independence and interactions with other people, particularly with the other parent, make them feel threatened and possessive. On the other hand, a narcissistic parent may be careless or even completely ignore their child if they are unable to use them to further their own agendas.

Narcissists are erratic people who frequently lose their cool and become furious with their kids and other people. To increase their own sense of value, they purposefully undermine their child’s confidence and sense of self-worth. In order to get their way, they frequently lie, guilt-trip, gaslight, and employ other emotional manipulation techniques. They can also become obsessed with controlling both their child and their co-parent.

Children who grow up with a narcissistic parent face serious, lifelong psychological consequences such as low self-esteem, internalized guilt and shame, and trouble developing safe emotional attachments.

Strategies for co-parenting with a narcissist

You must approach co-parenting like a business partnership in order to effectively share custody with a narcissist: create clear guidelines, impose strict boundaries, and keep meticulous records of everything. In addition, you must learn how to be an emotionally detached parent, learn how to talk to narcissists and ignore them, and detach emotionally from your child.

Make a thorough parenting strategy.

The rules governing the division of parenting duties between co-parents are outlined in a parenting plan. Experts always advise having a parenting plan, and the majority of states mandate them as part of custody orders.

One of the most crucial things you can do to make co-parenting with your narcissistic ex manageable is to have a comprehensive, personalized plan that gives you the ability to set firm boundaries with them.

Specifically crafted to meet your child’s needs, your plan should shield both you and your child from the negative impacts of your ex’s narcissism. It ought to contain particular clauses and requirements for every facet of co-parenting, such as:

  • Guidelines for communication (between parents and between each parent and the child when they are alone)
    shared parenting principles, including rules about screen time, bedtimes, curfews, and punishment.
    Guidelines for making decisions regarding the education, health care, and religious upbringing of your child
    Procedures for resolving disputes when you can’t agree on shared parenting decisions
    Guidelines for allocating parenting costs that your child support order does not cover
    regulations prohibiting parents from disparaging one another in front of their children, using them to exchange information, or using them to learn more about one another
    Are there any additional guidelines to support a positive co-parenting dynamic and safeguard your child’s welfare?
    There are standard plans that you can or must use in many family courts, along with guidelines for what information to include. But in high-conflict situations, these templates are rarely comprehensive enough—particularly when one of the parents is a narcissist.

You must have a thorough plan to manage and prevent conflict with a narcissist because they will likely seize any opportunity to control and manipulate. If your court permits it, you may submit your own customized parenting plan in addition to adding special provisions to the standard plan. (You can easily complete both using Custody X Change’s parenting plan template.)

Parenting plans are only enforceable by courts if they are formally declared by a judge. Ask your court to make your supplemental provisions or custom parenting plan into a court order during the legal process (i.e., during a trial or settlement). In the absence of a court order, a parenting plan is merely an unofficial agreement that parents are expected to follow, which is unlikely for a narcissist to do.

Adhere to a thorough parenting timetable.

The physical custody arrangement—when the child will be with each parent—is explained in a parenting time schedule. It is also known as a visitation, residential, or time-sharing schedule and is frequently included in a parenting plan.

The rules of your local court and the custody laws in your state will determine how specific your schedule needs to be. Sometimes, family courts just mandate a parenting time division (such as a 50/50 split) and leave it up to the parents to work out a detailed schedule on their own. When you co-parent with a narcissist, you should avoid doing this because they will use any room for maneuvering to gain more control and manipulation over you and your child.

Rather, you ought to have a comprehensive parenting timetable that takes into account your child’s needs, specifies the beginning and ending times of each visit, and lays out ground rules for the times and locations of interactions. In the majority of states, courts will impose strict physical custody orders on both parents in the event of a high-conflict custody dispute or at the request of one parent. The other parent may request that the court enforce or amend the custody orders if the other parent doesn’t comply.

Plan to spend less time with the other parent when creating your custody schedule (either as part of a settlement or as a request in court). Less time spent interacting with your ex and fewer exchanges result from longer visits for each parent. For instance, think about scheduling four-day visits every other weekend rather than every weekend. You see your former partner every other week rather than every week, but the weekend parent spends the same amount of time with the child.

To find out how much time you and your partner spend with your child, you should also compute your scheduled parenting time. This is automatically computed with the Custody X Change app.

When your child is in school or with a caregiver who is not their parent, you can also record third-party time. You can see with greater accuracy how much time your child spends with each parent because this time is not included in the calculations.

Parenting time data is frequently needed for child support calculations, and it will also be necessary if you need to return to court to have your orders upheld or changed. You can track your actual parenting time and present the court reports as proof, for instance, if your ex frequently cancels visits or exceeds their allotted parenting time.

Establish strict limits on communication.

When co-parenting with a narcissist, you must set and adhere to strict boundaries regarding communication. Narcissists will use hostile and manipulative communication strategies to try to control you and keep you in their toxic orbit. It can be stopped by establishing guidelines and learning how to communicate with narcissists.

Establish guidelines in your parenting plan to safeguard you from unwelcome, needless, and unhealthy communication from your former partner. Declare that you will only talk to them about your child and co-parenting concerns, and calmly and quickly cut off any attempts to bring up forbidden subjects. Establish deadlines for responses and demand that they plan phone calls ahead of time.

Furthermore, avoid getting into disputes with them and resist their attempts to provoke you. Since narcissists, as you are aware, love attention, the best course of action is frequently to ignore them.

It’s important to remember that when co-parenting with a narcissist, experts advise against talking to them on the phone or in person. Not only is it more difficult to ignore them, but the tension can quickly turn into open conflict, frequently in front of the child, and there’s no record of what’s said.

Try to limit your communication with the other parent to text or email instead, and think about using a messaging app like Custody X Change that is specifically made for high-conflict co-parenting.

Before sending messages, it highlights aggressive language, allowing the sender to make changes. In the event that these messages are sent, the hostile language is noted explicitly in conversation logs, which, if required, can be provided to the court. To maintain structured and well-documented communication with your ex, you can also add attachments to conversations and arrange them according to topics.

Record everything.

Having already gone through the legal process of getting a divorce and determining child custody from a narcissist, you probably already know how important it is to keep meticulous records. Regretfully, the issuance of final orders does not mark the end of record-keeping. You never know when a narcissist will try to manipulate you further by modifying court orders or making up false allegations, so it’s critical to be ready with documentation of all co-parenting-related matters.

Keeping a parenting journal makes this enormous task more doable, even simple. Keep track of your child’s behavior patterns, take notes on your interactions with the other parent, electronically organize pictures and documents, and document instances where your child is impacted by the narcissistic behavior of the other parent.

To keep track of parenting costs and payments made to one another, use an expense tracker. Additionally, you can use it to ask the other parent for reimbursement for shared expenses, which keeps things businesslike and reduces needless communication.

Be the parent who is emotionally stable.

The emotional needs of their children are not given priority by a narcissistic parent. This implies that you should make it your mission to be your child’s safe haven, watching out for their wellbeing and sound emotional growth.

Give your kids the freedom to express their emotions without fear of criticism. Observe the emotional harm that the narcissistic behavior of the other parent causes to your child and devise plans to stop it or deal with it when it does.

Naturally, this presents difficulties because of the intricate psychological fallout from having a narcissistic parent. Experts advise mental health counseling for kids of narcissists because of this. Additionally, you might think about getting counseling for yourself, particularly if you exhibit signs of narcissistic abuse syndrome. Your ability to support your child will improve with the extent to which you are able to move past your relationship with a narcissist.

Think about coordinating your parenting.

You can co-parent with a narcissist more easily if you get professional help in the form of parenting coordination. A parenting coordinator is a specialist in child custody (typically a mental health specialist) who is hired by parents following custody orders or appointed by the court in cases involving high levels of conflict.

A parenting coordinator evaluates parents and makes recommendations to the judge regarding custody and parenting plan provisions during a court case. Following a case, coordinators help parents communicate and make decisions by ensuring that they adhere to the parenting time schedule. They occasionally even have the authority to decide when parents cannot agree.

When co-parenting is ineffective, consider parallel parenting.

If a narcissist is unwilling to cooperate or make concessions, co-parenting with them can be nearly impossible to manage, even with the best techniques and tools. If this describes your circumstances, you might want to think about parallel parenting. When you parent in parallel, you have very little contact with the other parent and you both raise your children independently of one an

Need a Family Lawyer in Scottsdale?

Our experienced family law attorneys will work with you to obtain the best possible outcome in your case.  Proven trial lawyers in family court, you can trust the firm to represent you fully so you can get on with your life. Call today for your initial consultation. Our family lawyers can help with divorce litigation, collaborative divorcedivorce mediationchild custodylegal guardianshippaternityprenuptial agreements, and more.

*This information is not intended to be used as legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs. 480-744-7711 or [email protected]

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Written by Canterbury Law Group

Is Filing for Bankruptcy Bad?

Is Filing for Bankruptcy Bad?

We are committed to providing accurate content that helps you make informed money decisions. Our partners have not commissioned or endorsed this content. Read our editorial guidelines here

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Bankruptcy is a legal option that can provide relief for people who can no longer keep up with their debts. While this route can alleviate an excessive financial burden, there are pros and cons of filing for bankruptcy. For instance, while it can provide you with a fresh start, it can make it difficult to be eligible for new forms of credit down the road.

 

The decision to file for bankruptcy should be considered carefully, weighing not only the benefits and the potential relief it can bring but also the drawbacks. So, what are the pros and cons of filing for bankruptcy?

 

There are a lot of misconceptions about what it means to file for bankruptcy, which can lead to unnecessary stigma.

 

For instance, there is a commonly held belief that those who file for bankruptcy are irresponsible when it comes to managing money. In reality, the high cost of medical expenses is one of the leading causes of bankruptcies.

 

Other misconceptions are that if you file for bankruptcy, you can lose all of your belongings or never be eligible for credit again. Neither of these statements is true. Your assets are often protected by federal or state exemption laws — though you may have to sell some of your belongings in a Chapter 7 case — and many bankruptcy filers are able to secure forms of credit again.

 

There are six types of bankruptcy, but the average consumer will usually file one of two:

 

  • Chapter 7: This is the most common form of bankruptcy for individuals. With this method, valuable assets are liquidated to settle debts. Chapter 7 is typically split into asset cases and no-asset cases; if you are determined to be a no-asset filer, you won’t have to give up your belongings. Chapter 7 bankruptcy can stay on your credit report for up to 10 years, starting on the filing date.
  • Chapter 13: This is the second most common form of bankruptcy that individuals file. With Chapter 13 bankruptcy, a three-to-five-year repayment plan is created. This form of bankruptcy can stay on your credit profile for up to seven years.
  • The type of bankruptcy you qualify for may depend on your income and the value of your assets. For example, to see if you qualify for Chapter 7 bankruptcy, you’ll have to take a means test to determine your eligibility. If you’re not eligible for Chapter 7, you may have to file for Chapter 13.

 

 Filing bankruptcy: The Good

While it shouldn’t be undertaken lightly, bankruptcy can be a much-needed life raft for consumers who are drowning in debt. Here’s a look at some of the benefits of filing for bankruptcy.

 

  You’re granted an automatic stay

The instant you file, you are protected under a provision in bankruptcy law called the automatic stay. Creditors cannot pursue payment of your debts or take other actions against you until the bankruptcy is discharged or a repayment plan has been finalized.

 

  You’ll get relief from dealing with multiple creditors

Filing bankruptcy can mitigate the pressure and overwhelming nature of handling numerous creditors. In fact, you may experience immediate relief once your debts are discharged and you no longer have to repay some or all of your financial obligations.

 

  You’ll receive a court-appointed representative

Once you file your petition for bankruptcy, you’ll be assigned a trustee who will see your case through to discharge. They will operate on your behalf throughout the process, including handling all communication between you and your creditors, and in the case of Chapter 13 bankruptcy, they will be the one to receive and process your payments.

 

  Bankruptcy can prevent further legal action

One of the largest benefits of bankruptcy is that you could be legally cleared of responsibility for your debt. On top of that, it could potentially prevent any future legal trouble related to the nonpayment of that debt. Keep in mind that not all debts are dischargeable, but most forms of unsecured consumer debt can be wiped out in bankruptcy.

 

  You may be able to keep some assets

In Chapter 13 bankruptcy, you are likely to be able to keep your assets as you repay your debts, but even when your assets are liquidated under Chapter 7, some valuables may be protected by federal or state exemption laws, depending on where you live.

 

  Some back taxes can be addressed

Filing bankruptcy can be an effective way to deal with back taxes, especially in a situation in which wages are being garnished. While most tax debts cannot be dismissed in bankruptcy, some older tax debts can be discharged. To be eligible, your tax debts must be at least 3 years old and must be income taxes. Fraud penalties and payroll taxes are never eligible for discharge.

 

  Bankruptcy may prevent home foreclosure or car repossession

Chapter 13 bankruptcy can be a tool to delay or stop a foreclosure or car repossession. You may also be able to keep your vehicle if it is covered under exemption laws.

 

For example, a federal exemption allows you to have up to $4,450 in equity for your vehicle. If your vehicle is worth $4,000, for example, you may be able to keep the car because it falls under a federal exemption.

 

  Your debts may be settled for less than what you owe

Your creditors will be forced to accept whatever payment is determined in your bankruptcy case, which sometimes means receiving no payment at all. If you qualify for a Chapter 7 bankruptcy, you could have all of your unsecured debts dismissed, including credit card debt, personal loans and medical debt.

 

However, Chapter 13 bankruptcy can be trickier because you may have to repay some of those debts over the course of three to five years.

 

  Some debts will be completely written off

Once your bankruptcy case is closed, any debts that are discharged are gone for good. Your creditors cannot come back and try to collect on any debts that were dismissed during bankruptcy.

 

  Bankruptcy could potentially increase your credit score

It’s no secret that bankruptcy can hurt your credit. But if your credit score wasn’t great before you filed for bankruptcy, you could potentially see an increase after your debts are discharged. Debt elimination could help lower your credit utilization ratio, which is one of the factors that determine your credit score.

 

  You can take on new credit after your debts are discharged

The process of rebuilding your credit after bankruptcy can start immediately after your debts are discharged. In some cases, individuals are approved for credit cards almost immediately after they receive their discharge order. You will face some limitations as you attempt to take on new credit, however, especially since your credit score is likely to be low. A good place to start may be a secured credit card.

 

  You’ll get a fresh start

Bankruptcy can potentially provide you with a much-needed clean slate to begin rebuilding your financial life. This new start can help consumers reestablish their credit and build healthy habits around money.

 

 Filing bankruptcy: The Bad 

Of course, filing bankruptcy also comes with many drawbacks. Given the complex nature of the process, we recommend contacting an experienced bankruptcy attorney to assist with your case.

 

  You could lose assets of value

Depending on which type of bankruptcy you qualify for, your income, the equity in your assets and other factors, you may lose your home, your car and other valuable items. Your trustee may be required to sell these items to repay your creditors.

 

  Bankruptcy can be expensive

You’ll need to cover the costs of bankruptcy, including service and court fees. The average Chapter 7 bankruptcy case costs between $1,000 and $1,750 in out-of-pocket costs, while the average Chapter 13 bankruptcy costs around $3,300.

 

  Federal student loans are exempt from bankruptcy

In most cases, federal student loans are not dischargeable; there are some exceptions, but they are rare. Instead, if you’re struggling to keep up with your federal student loan payments, you may have to look into forbearance, deferment or income-based payment plans.

 

  You may still be responsible for some debts

While most debts can be discharged, there are some debts you will still be responsible for repaying. Besides federal student loans, certain other liabilities are not dischargeable, including taxes, alimony, child support, court orders and debts incurred through illegal activity.

 

  If you have joint accounts, the other party is still responsible

Creditors can demand payment from the nonbankrupt debtor or any cosigners you have. This is an important factor to consider before adding a co-applicant to a credit application, and you’ll want to be sure your co-borrower understands this as well.

 

  You could face criminal charges if you aren’t honest

The information you provide when filing for bankruptcy will be scrutinized. If you provide inconsistent or false information, you could face legal action. It is in your best interest to be completely honest about the assets you own and any income you receive.

 

  Bankruptcy is a long process

A Chapter 7 bankruptcy moves pretty quickly and typically discharges within a few months after filing. A Chapter 13 bankruptcy, however, is a much longer process since you’ll have to follow a three-to-five-year payment plan before your case is discharged.

 

  You could lose your business

If you own a business and the trustee in your case determines it has value, you could be forced to sell it. In some instances, the trustee may operate the business until the sale is complete.

 

  You may face eviction

If you rent your home and are behind on your payments, you could be forced to leave the property once the bankruptcy is discharged. However, if you are current on your rent payments, it is uncommon to be evicted over a bankruptcy filing.

 

  You’re likely to have trouble renting in the future

You could experience difficulty renting a home after declaring bankruptcy, as some landlords or management companies may automatically reject prospective tenants who have a bankruptcy in their credit history.

 

  Bankruptcy can impact your job or career

Bankruptcy may disqualify you from holding certain positions, though it’s rare for this to happen. Filing for bankruptcy is most likely to cause trouble for those who work with money, including jobs in accounting or payroll. When you apply for a new job, a potential employer could see your bankruptcy filing during a credit check for employment since it’s public record.

 

  Your bankruptcy will be made public

Bankruptcies are publicly reported, so people you know could potentially discover that you filed. This includes if someone runs a background check on you for employment or housing.

 

  Your trustee may continue to administer your assets after discharge

Depending on the specifics of your case, the trustee may pursue the sale and distribution of your assets after your debts have been discharged. This can include any assets and income acquired within 180 days of the discharge, such as an inheritance or divorce settlement.

 

  Your credit score is likely to drop

Depending on your credit score before filing, you could see a significant drop. If you had a good credit score before you filed for bankruptcy, you may see a pretty big drop. However, if your score is already low, there may not be much of an impact on your credit score.

 

  You’ll experience difficulty gaining future credit

Your bankruptcy will follow you for quite some time. Chapter 13 can stay on your credit report for up to seven years, while Chapter 7 can remain for up to 10 years. If you apply for a form of credit and the lender runs a credit inquiry, it will be able to see your bankruptcy and may not approve your funding request.

 

  You’ll receive high interest rates and low credit limits

Even though you may qualify for new credit after filing for bankruptcy, it may come at a premium. You’re more likely to be charged high interest rates, as creditors may see you as a risky borrower, and you may only be eligible for low amounts of credit.

 

  You’ll have to wait to purchase a home

Before you can qualify for a mortgage, you’ll have to wait anywhere from one to four years, depending on the type of mortgage. If you file for Chapter 7 and plan to apply for a conventional mortgage, the waiting period is four years. With a Chapter 13 bankruptcy, you’ll have to wait two years from your discharge date.

 

  Your car insurance premiums will go up

Car insurance companies use an industry-specific credit report based on your credit file, so if you need to secure auto insurance after filing bankruptcy, your rates will likely be impacted.

 

  Bankruptcy stays on your credit report for up to 10 years

Your bankruptcy will remain on your credit report for up to 10 years from the date of discharge. While the impact will lessen over time, it can play a factor in any financial moves that require credit inquiries.

 

  It doesn’t address the cause of your financial trouble

While bankruptcy can be a solution in certain circumstances, it doesn’t fix what led to the problem in the first place. Without a solid plan in place, you could repeat your mistakes and end up needing to file bankruptcy a second time.

 

  It cannot be undone

Bankruptcy is final. You cannot change your mind once your case is finalized. This is why it’s important to fully understand what you’re signing up for when you decide to file for bankruptcy. Credit counseling — which is required when filing for bankruptcy — can help you determine whether it’s the right move for you.

 

Source

https://upsolve.org/learn/is-it-bad-to-file-for-bankruptcy/

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Written by Canterbury Law Group

Types Of Bankruptcy

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The Chapter 7 income limits were added in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Since Chapter 7 bankruptcy doesn’t involve a repayment plan of any kind, Congress worried about an abuse of the bankruptcy process by filers who could afford to pay their debts.

The Chapter 7 income limits were added in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Since Chapter 7 bankruptcy doesn’t involve a repayment plan of any kind, Congress worried about an abuse of the bankruptcy process by filers who could afford to pay their debts. 

To prevent this, Congress added a credit counseling requirement for anyone filing any type of bankruptcy and set income limits for Chapter 7 relief. The bankruptcy means test calculation determines whether someone can afford to pay a portion of their consumer debts as part of a Chapter 13 bankruptcy. 

The Chapter 7 Income Limits and the Bankruptcy Means Test

The bankruptcy means test is a calculation laid out in the Bankruptcy Code. The starting point for this calculation is your state’s median household income. Median income can be part of the Chapter 7 income limits. If your household income is less than the median household income for the same household size of the state you’re filing in, you make less than the income limit. This means you pass the Chapter 7 means test and qualify for Chapter 7 bankruptcy. 

If your household income is greater than the median, you may still qualify for Chapter 7 bankruptcy if your household expenses under the means test calculation don’t leave you with any disposable income. More on that in Part 2, below. 

Part 1: Comparing Your Household Income to the Median Income 

The first part of the means test compares your average income to the median household income for the same household size in your state. 

Determining the Median Income for Your Household Size

The income limit for your state and household size is based on data from the Census Bureau, and it changes multiple times per year.

To find the most up-to-date information, go to the means testing page from the United States Trustee (UST) and choose the current option in the drop-down menu titled “Data Required for Completing the 122A Forms and the 122C Forms.” This will bring you to a new page on the Justice Department’s website that provides a link titled “Median Family Income Based on State/Territory and Family Size” provided by the Census Bureau. From there, you can pull up a table showing median incomes by household size, for each state.

Calculating Your Current Monthly Income

Your current monthly income under the means test is based on your monthly income in the six months before your bankruptcy filing. This doesn’t include the month your bankruptcy case is filed in. For example, if you file for Chapter 7 bankruptcy in July, calculate your current monthly income based on how much you earned from January 1 to June 30. 

Step 1: Add up all income from the last six months.

Your monthly income is calculated by adding up all countable gross income you received in the six-month period you’re using for your means test. Gross income is not the same as your take-home income. Gross income is the amount you make before taxes and other deductions are taken out. 

Countable income includes income from wages, alimony, child support, rental income, and any other money you receive on a regular basis. Social Security income (SSI or SSDI) is not added when calculating your current monthly income. If your only source of household income is SSI or SSDI, you pass the Chapter 7 means test without having to do any math. 

Step 2: Divide the result by six.

Once it’s all added together, divide the total by six. The result is your current monthly income under the bankruptcy means test. If your income fluctuates each month, your current monthly income under the means test may surprise you. Remember, it’s an average taken over the last six months. 

If you received significant overtime pay, income from extra gigs, or a bonus during the six months, your average monthly income will be higher than what you’re actually earning now. Similarly, if you were out of work for four out of the last six months before finding a new job, your average income under the means test will be much lower than what you’re making now.  

Step 3: Use your current monthly income to determine your annual income.

Take your current monthly income as calculated and multiply it by 12. This is your annual income according to the means test calculation. Compare that number to the annual income for your household size in your state. 

If your annual income is less than the median, you pass the Chapter 7 means test. If your income is greater than the median household income, you’ve failed the first part of the means test. But you may still be eligible to file Chapter 7 bankruptcy based on the second part of the means test.

Part 2: Comparing Your Current Monthly Income to Your Household Expenses

The second part of the means test calculation determines whether you have any money left over after paying your monthly living expenses. If the answer is yes, you have disposable income. If you have a high disposable income, the Bankruptcy Code requires that you use it to pay down your debts in a Chapter 13 bankruptcy before you can get a bankruptcy discharge. 

Only Certain Expenses Are Considered

This is where things get very technical, as only some types of monthly expenses are taken into consideration. So hiring a bankruptcy lawyer can be useful. The purpose of this part of the test is to determine whether your income is enough to cover your living expenses and repayment of your debts. A bankruptcy lawyer can give you legal advice on what’s an allowed monthly expense and what isn’t. 

Expenses Are Forward-Looking

Your average monthly income is calculated by looking at the past. Your expenses, on the other hand, are forward-looking and based on your actual monthly expenses. If your old healthcare plan cost $600/month but you were able to switch to a cheaper plan for $300/month, the means test calculation will show this as a $300 monthly expense. 

Paycheck Deductions

Paycheck deductions for income taxes, Social Security, health insurance, disability insurance, term life insurance, and health savings account expenses are considered allowed monthly expenses. The same is true for deductions you didn’t really have a choice over that are required as part of your employment. Examples include mandatory retirement contributions, union dues, and uniform costs. 

Wage Garnishments

While it’s probably an involuntary deduction, wage garnishments aren’t automatically allowed as an expense in the means test calculation. If the wage garnishment is the result of a lawsuit filed by a credit card company for an unsecured debt, the automatic stay stops that garnishment once you file your petition for bankruptcy relief. And since the unsecured debt will be discharged, it’s not going to be an expense for you going forward. 

The only exceptions are garnishment orders in place to make monthly payments for ongoing child support or alimony obligations. These domestic support obligations aren’t dischargeable and will continue to be deducted from the filer’s paycheck. They are an allowed monthly expense. 

Regular Living Expenses Are Based on National Standards

To make sure things are as fair as possible to everyone filing bankruptcy, there are limits to the amounts for regular living expenses. To account for regional differences, some of these expenses are based on national standards, while others are based on local standards. Monthly expense allowances under these standards vary by household size and are broken down as follows:

National Standards

  • Food (groceries and eating out)
  • Clothing and services (think dry cleaning)
  • Housekeeping supplies
  • Personal care (haircuts)
  • Healthcare expenses

Local Standards

  • Utilities and housing maintenance
  • Mortgage or rent expenses
  • Transportation expenses, including public transportation
  • Vehicle operating costs

Actual Necessary Expenses

These are expenses that you actually pay every month that aren’t already accounted for in the local or national standards. If the United States Trustee in your district picks your case for an audit, you’ll be required to show documentation that you’re making these monthly payments. 

They include the following: 

  • Term life insurance for yourself
  • Education for employment that is a condition of your employment
  • Expenses incurred for the health or welfare of physically or mentally challenged child
  • Child care expenses, like babysitting, daycare, and preschool
  • Medical bills exceeding the national standards for healthcare expenses
  • Certain insurance premiums
  • Charitable contributions (up to 15% of gross income) 

Ongoing Debt Payments: Secured and Priority Debts

If you have a car or house that you plan on keeping after filing bankruptcy, you’ll also keep the monthly payment on your car loan or mortgage. You can deduct the monthly payments for these secured debts, at least to the extent that they exceed the local and national standards. 

If you owe a tax debt that won’t be eliminated in your bankruptcy case, you’re able to deduct a monthly payment toward this priority debt as well. 

What’s Left After Allowed Monthly Expenses Determines Chapter 7 Eligibility

When you subtract your allowed living expenses from your monthly income, if the number is negative you don’t exceed the Chapter 7 income limits. You pass the means test and can proceed with filing for bankruptcy relief under Chapter 7.

If the result is a positive number, you have disposable monthly income because your income exceeds the allowed expenses. In this case, you may not qualify for Chapter 7, but you can file Chapter 13. Keep in mind that Chapter 7 and Chapter 13 provide different types of debt relief, and there are pros and cons to each.

If your disposable monthly income is less than a certain amount (adjusted every three years) when multiplied by 60, you meet the income limits. The means test calculation has determined that you don’t have the ability to repay a meaningful amount of your unsecured debts and you qualify for Chapter 7 bankruptcy. If you exceed the limit, it’s assumed that filing a Chapter 7 would be an abuse of the bankruptcy process. Chapter 7 bankruptcy relief may still be possible, but only if special circumstances exist. 

Not Everyone Is Subject to the Chapter 7 Income Limits

If the majority of your debt is business debto or if you’re part of the military, you may be excpeted from the Chapter 7 income limits.

Exception for Non-Consumer Debt: If more than 50% of your debt is considered non-consumer debt, you’re automatically exempt from the means test calculation. Non-consumer debt is also called business debt because it’s incurred with a business or profit motive. If you’re not sure if you have business debt, consider speaking to a bankruptcy attorney about your situation and the types of debt you have. 

Exception for Qualifying Service Members and Veterans: Disabled veterans, reservists called to active duty, and members of the national guard don’t have to count compensation connected to their service as part of the bankruptcy means test. This protection was recently expanded when the HAVEN Act was passed by Congress.

Anyone who qualifies for one of these exceptions to the bankruptcy income limits has to file a Statement of Exemption from Presumption of Abuse Under § 707(b)(2) instead of their bankruptcy means test form. This form lets the bankruptcy court know that you’re not subject to the income limits. 

Let’s Summarize…

The means test is one of the most complicated bankruptcy forms. If the bankruptcy means test shows that your household income is less than the median household in your state, you pass the Chapter 7 means test. If your average income exceeds the median income, you may still be eligible for Chapter 7 bankruptcy based on the extended means test calculation. 

Source

https://upsolve.org/learn/chapter-7-bankruptcy-income-limits/

Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale

Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business BankruptcyChapter 7 BankruptcyCreditor Representation, Chapter 5 ClaimsChapter 13 Bankruptcy, Business RestructuringChapter 11 Bankruptcy, and more.

*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.

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