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Written by Canterbury Law Group

Difference Between Chapter 7 and Chapter 13 Bankruptcy

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Here are some of the major differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Read on to learn more.

Chapter 7 Bankruptcy

This is a liquidation bankruptcy that wipes out the majority of your unsecured debts including medical bills and credit cards without the necessity of a repayment plan. Certain income requirements must be met. if you earn in excess of theses requirements, you will need to look at Chapter 13 bankruptcy.

An order known as an “Automatic Stay” prevents the majority of creditors from pursuing collections. In additional bankruptcy trustee is appointed. They will review your papers and documents and our responsible for selling nonexempt property that will pay back your creditors. If you do not have any qualifying assets, the creditors will not receive anything. Chapter 7 bankruptcy is a good option when you have little to no assets and have a low income. it can also be advantageous to those whose discharged debt is greater than the value of the property sold.

Consider the following:

  • Businesses and individual may file
  • Your income must be under the limit for the Chapter 7 means test
  • it takes three to four months to receive a discharge under normal circumstances
  • The trustee has the authority to sell nonexempt property to satisfy creditors
  • It does not allow the removal of insecure junior liens via lien stripping
  • Tangible personal property can reduce the principal loan balance on secured debts
  • There is no mechanism to make up missed payments to avoid repossession or foreclosure

Chapter 13 Bankruptcy

This is a reorganization bankruptcy for debtors with a regular source of income who have excess over every month and pay part of their outstanding debts as per a plan for repayment. Most filing Chapter 13 are in excess of the Chapter 7 financial requirements – but there are many advantages to Chapter 13 bankruptcy. In Chapter 13 bankruptcy you keep your property but you’ll have to pay creditors an amount equal to the value of your nonexempt property. When you need debt relief but do not qualify for Chapter 7 nd when you have debts that are non-dischargeable debts that you can pay off over a three to five year period you can without losing your property.

Consider the following

  • Only individuals can file including sole proprietors
  • Cannot have in excess of $419,275 of debt that is unsecured and $1,257,850 of debt that is secured
  • Discharge only occurs on completion of payment plans
  • Debtors Keep All Property But Must Pay Unsecured Creditors an Amount Equal to Value of Nonexempt Assets
  • Allows the removal of unsecured junior liens from real property by means of lien stripping
  • It allows for reducing the principal loan balance on debts that are secured

Source: https://www.nolo.com/legal-encyclopedia/what-is-the-difference-between-chapter-7-chapter-13-bankrutpcy.html

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 RepresentationChapter 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

How Long Does Chapter 7 Bankruptcy Stay On Your Credit Report?

Chapter 7 Bankruptcy

Chapter 7 bankruptcy will remain on your credit report for ten years although bankruptcy filing takes only three to six months. Financial hardship from unforeseen circumstances is the leading reason people give for declaring bankruptcy. Chapter 7 bankruptcy will have a negative impact on your credit and may lower your credit score for years to come. Read on to learn more.

In Chapter 7 bankruptcy – those who file will no longer have to pay debt that is unsecured such as medical expenses, credit card of personal loans but settling secured loans will require the sale of their assets.

Credit Score Impact

The impact the bankruptcy has on your credit score will lesson as the years go by. So, expect a large drop at the beginning but for it to lessen over time. If you miss a credit card payment when you have a high score can take away more points than having a lower score – the same applies with bankruptcy. It also similarly applies if there is only a small number of accounts on your bankruptcy filing, the impact will be less on your credit score.

Some online sources suggest a score of around 780 will have between 200 and 240 points taken off their credit score but someone with a score of 680 will only lose between 130 and 150 points. Clearly it must be considered only when it is the final option on the table.

Source: https://www.cnbc.com/select/how-long-do-bankruptcies-stay-on-credit-report/

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 RepresentationChapter 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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Is Chapter 13 Worth It?

Is Chapter 13 Worth It

 

When you have no assets Chapter 7 bankruptcy may be your best choice but when filing Chapter 13 bankruptcy you have the ability to maintain assets that are non-exempt as long as you comply with the Chapter 13 terms and conditions. The main danger of liquidation is the equity you may have in your home. Read on to learn more.

When you have equity greater than the limit of the exemption, the property can be protected but is likely to be liquidated should you file for Chapter 7 bankruptcy. If your state permits federal exemptions to be utilized it can protect just over $25,000 worth of equity. In a chapter the value of your home that is non-exempt becomes part of the estate for bankruptcy permitting the trustee to sell the home and distribute the funds to those owed money.

Chapter 13 bankruptcy is deal when a person does not qualify for Chapter 7 or they have assets in need of protecting. Chapter 13 works like a debt consolidation.

A Chapter 13 case will permit you to make payments to all creditors and you can save your home from foreclosure by maintaining the payments. Another advantage is you will only be required to pay a certain percentage of your debt. For example, if you were ordered to pay ten percent, the other 90 percent will be discharged on completion of the case.

Depending on your assets an income, a Chapter 13 bankruptcy may be best for you especially if you have non-exempt assets you wish to protect and maintain.

Source: https://upsolve.org/learn/is-chapter-thirteen-bankruptcy-worth-it/

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 RepresentationChapter 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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How Much Does a Lawyer Charge For Chapter 7 Bankruptcy?

How Much Does a Lawyer Charge For Chapter 7 Bankruptcy

The average cost a lawyer charges for Chapter 7 bankruptcy is $1,350 with costs varying from $1,200 to $1,500 for the US in 2020. That said, the charges can vary and be greater than this depending on your location, the complications associated with the case and the experience your lawyer has. For example, you may find it costs as little as $4,500 but sometimes can be upwards of $2,200.

Factors Affecting Fees

  • If you live in certain states, Attorneys will charge more for the same services. The cheapest state in the US to file bankruptcy is North Dakota while the most expensive states are Nevada, Maine and New Hampshire, often up to three times as much.
  • Chapter 11 bankruptcies for businesses wishing to continue operations are far more costly and complicated than a Chapter 7 bankruptcy, hence the lower cost of Chapter 7 bankruptcy filing. Chapter 13 bankruptcy is usually somewhere between the price of Chapter 7 and Chapter 11 cases.
  • A simple case where you have just one [profession, simple credit card debt and only basic assets will probably cost less than when you have a spouse, six children, winnings from betting on horses, tax debt, a mortgage, a vacation home in Florida and a wide range of physical assets.
  • An experienced attorney will cost more than an inexperienced one but if your case is complex, it may be worthwhile to have the experienced attorney.

Excessive Fees

Courts do not want people paying too much in attorney fees when they file for bankrupt. An attorney has to disclose the fees charges on a special form called “Disclosure of Compensation.” The appointed trustee reviews this and if they consider excessive fees to have been charged, a motion can be filed requesting the judge to return part of the fee or cancel the fee. The person filing for bankruptcy can also file that charge.

Source: https://www.thebankruptcysite.org/resources/typical-attorney-fees-chapter-7-bankruptcy.htm

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 RepresentationChapter 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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What is Chapter 7 Bankruptcy?

What is Chapter 7 Bankruptcy

A liquidation or straight bankruptcy is also called a Chapter 7 bankruptcy. This bankruptcy type is one that can remove unsecured debts. If you have quite a few bills and are not able to afford all of the monthly payments as well as living expenses, then filing for Chapter 7 bankruptcy could be one way that you can reset all of your finances. However, you could end up losing some of your possessions, and it can negatively impact your creditworthiness.

How Chapter 7 Bankruptcy Works

Whenever you file for a chapter 7 bankruptcy, the court will put a stay on all of your current debts. What this does is stop any creditors from garnishing your wages, turning off your utilities, evicting you, repossessing your property, foreclosing on your home, and stops them from collecting wages.

The job of the trustee is to review your assets and finances while overseeing your bankruptcy. The trustee will sell certain things that bankruptcy will not let you keep, which is called nonexempt property. The money from this gets used to repay your creditors. Trustees also deal with meetings between you and any creditors where you show up to a courthouse and answer questions about filing.

The property that you do not have to turn over to creditors or items you do not have to sell, which is called exempt property and the value of what you can claim as exempt, will vary based on the state where you are residing. Some states allow you to choose between federal exemptions and the state exemption list. However, Chapter 7 usually is a no-asset case, which means that either all of the property is exempt or there are valid liens on the property.

During the end of this process, around six months after you file for bankruptcy, the court will then discharge remaining debts, which means that you no longer need to pay them. Although, there are some types of debts that cannot get discharged during bankruptcy like student loans, tax debts, court fees, alimony, and child support.

The Differences Between Chapter 13 and Chapter 7 Bankruptcy

Chapter 13 and Chapter 7 are the most common types of bankruptcy, which affects a person. Either can help when you do not have the means to pay off your bills, but there are some significant differences between these types of bankruptcies.

Chapter 13 bankruptcy will allow you to keep all of your items and get a much more affordable repayment plan with all of your creditors. You will need to have enough income for you to afford to make the payments and be below the maximum total limits of your debts, which is $1 million or more for secured debts and $400,000 for unsecured debts.

The court will then approve a repayment plan for Chapter 13 bankruptcy. It is a payment plan that will last up for five years, and a trustee collects your money and distributes it to your creditors. Once the plan gets completed, the remaining unsecured debt will get paid off.

Who is Eligible for Chapter 7 bankruptcy?

If you want to apply for Chapter 7 bankruptcy, some conditions need to get met:

  • The average monthly income for the first six months will need to be under the median income of a family of the same size in your state, or you must pass a means test to decide whether your disposable income can cover partial payments to creditors. If you fail the means test, you can still apply for Chapter 13 bankruptcy protection.
  • In the past six years, you have not been able to apply for Chapter 13 bankruptcy protection.
  • If you try to file a Chapter 7 or Chapter 13 bankruptcy petition and your case is dismissed, you must wait at least 181 days before you can try again.
  • Generally, you must complete an individual or group credit counseling course from an approved credit counseling agency within 180 days before applying.
  • You may be eligible to file a lawsuit, but if the court decides that you are trying to defraud creditors, the court may dismiss your case. For example, if you take out a loan or use a credit card, then declare bankruptcy to avoid repaying the debt.
  • In the past eight years, you have not been able to apply for Chapter 7 bankruptcy protection.

What Debts Get Gorgiven in Chapter 7 Bankruptcy?

Chapter 7 bankruptcy usually releases your unsecured debts, such as credit card debt, medical expenses, and unsecured personal loans. At the end of the lawsuit, the court will usually clear these debts within four to six months after you start the lawsuit.

Certain types of unsecured debts do not usually get discharged through Chapter 7 bankruptcy, including:

  • Unsecured debts that you intentionally did not mention during the filing
  • Personal injury debts owed because of an accident caused by your intoxication
  • Court penalties and fees
  • Homeowners association fees
  • Tax debts
  • Student loans
  • Alimony
  • Child support

Your creditors can also object to and prevent specific debt relief. For example, a credit card company may object to the recent purchase of luxury goods or prepaid cash debts, and the court may decide that you still need to repay the credit card balance.

Besides, Chapter 7 bankruptcy may discharge your debts owed to the secured loan. A secured loan is secured by a mortgage, as in a home loan or the creditor has a property lien. However, even if the debt gets paid off, the creditor still has the right to cancel or recover your property.

How Long Does it Take to File for Chapter 7 Bankruptcy?

Usually, the entire Chapter 7 bankruptcy process starting from the first consultation of your credit to the court’s discharge of the remaining debts, is something that can take up to six months to finish.

However, your case may take longer, for example, when the trustee asks you to submit other documents, or whether they must sell your property to pay creditors. Or maybe you want to try to get your student loan discharged in bankruptcy. That is possible, but challenging, and may require a lengthy trial.

How Long Does Chapter 7 Bankruptcy Remain in your Credit Report?

Chapter 7 bankruptcy is a significant derogatory sign, and it may damage your credibility. From the filing date, Chapter 7 bankruptcy records can get retained on your credit report for up to 10 years, and from the filing date, a complete Chapter 13 bankruptcy can get retained on your credit report for seven years.

The accounts included in the bankruptcy may be deleted from your credit report earlier, as most negative signs will get deleted after seven years.

Life After Bankruptcy

Filing for bankruptcy can consume much energy financially, physically, and emotionally. However, this may be your best choice when bills continue to pile up, and you are unable to pay your creditors. You can also recover from bankruptcy and rebuild your finances and credit, but it will take time.

Source: https://www.experian.com/blogs/ask-experian/what-is-chapter-7-bankruptcy/

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 RepresentationChapter 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

When To Declare Bankrupt

When To Declare Bankrupt

When your faced with mounting debts you are unable to repay or when you are behind with the mortgage and foreclosure is looking or the phone calls from people looking for payment never stops, declaring yourself bankrupt may be a solution. Or is it? Read on to learn more.

If the key is the elimination or reduction of debts bankruptcy may permit you to keep the bill collectors away and save your residence but there are serious things to take into account. You may find it tough to get a loan in the future because of the negative impact on your credit score as well as increased insurance rates and in certain circumstances can make obtaining a job fraught with difficulty. Consider the following:

  • You can escape overwhelming debt by a declaration of bankruptcy, but the results of those actions may last many years
  • Chapter 13 and Chapter 7 bankruptcy remain on your credit history for seven and ten years
  • You may want to contact those you owe monies too prior to filing for bankruptcy to see if there is room for negotiation. For example, there are often programs offered by lenders for those who fall behind on mortgage payments

Bankruptcy Types

  • Chapter 7 bankruptcy also known as a liquidation or straight bankruptcy. A court appointed trustee may sell some of your property and pays those you owe from the creditors and then the debts are discharged. There are exceptions from liquidation, for example, your clothing, your vehicle, the tools of your job, your household property, equity in your home and pensions.
  • Chapter 13 bankruptcy is where a plan approved by a court to make repayments on all or a part of your debt owed over a time period of three to five years. It is also possible to get some debts discharged. You may keep your home as asset liquidation is not mandatory, but payments on the home must be maintained.
  • With both kinds of bankruptcy some debts cannot be discharged, Examples include alimony, certain tax payments, student loans and child support.

Bankruptcy Consequences

You can only file for bankruptcy during certain periods, For example, Chapter 7 bankruptcy can only be filed once every eight years if you have had your debts discharged. It can also have an extremely negative impact on your credit score.

Do You Need A Lawyer?

You can file for bankruptcy without the services of a lawyer. However, it is not a simple process and most people commend the services of a lawyer to help navigate the intricacies of the process.

When To File?

Bankruptcy offers a fresh start, but a good ending is by no means a certainty. Make sure you explore all other avenues of approach before committing to the process. By using credit with caution in the future and ensuring bills are paid before or when they are due, you can restart the building of your credit once more.

Source: https://www.investopedia.com/articles/personal-finance/100714/when-declare-bankruptcy.asp

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 RepresentationChapter 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 Is The Downside Of Filing For Bankruptcy?

What Is The Downside Of Filing For Bankruptcy

You can obtain a new financial start with bankruptcy, but it is a matter to be taken seriously. Understanding the decisions, you make may have consequences is especially important before you commence bankruptcy.

Long Time Effects

When you apply for a loan of $150,000 or more, your bankruptcy will appear on your credit report for longer than the standard ten years. How this impacts your credit will be determined by your credit status prior to filing. If your credit was poor it will not matter as much, if it was good, it may cause a severe decline in your credit score.

Sometimes bankruptcy can help you improve your credit score more rapidly than people who do not file for bankruptcy. By addressing your debt to income ratio, paying bills on time, and developing a positive financial outlook as opposed to not filing and mounting up late payments, repossessions, and delinquencies.

Mortgage And Car Loans

You will have to wait for a while when you have filed bankruptcy to obtain a car loan or a mortgage and more than likely you will have higher interest rates to pay on the loan.

Bankruptcy Discharges

Usually:

  • When completing a Chapter 7 Bankruptcy you cannot get another for eight years.
  • When completing a Chapter 7 Bankruptcy you cannot obtain a Chapter 13 Bankruptcy for four years.
  • When completing a Chapter 13 Bankruptcy you can’t get a Chapter 7 Bankruptcy for six years.
  • When completing a Chapter 13 Bankruptcy you cannot get a Chapter 13 Bankruptcy for two years.

This may cause issues in the future. For example, if you declare Chapter 7 Bankruptcy and fall on hard times, you cannot file again until the time limits have expired.

Non-Dischargeable Dates

Not all debts can be discharged in bankruptcy, such as:

  • Recent tax debts.
  • Student Loans.
  • Alimony
  • Child Support.

Source: Nolo. What Is the Downside of Filing for Bankruptcy? 4 Sept. 2014, www.thebankruptcysite.org/resources/bankruptcy/filing-bankruptcy/what-is-the-downside-in-filing-for-bankruptcy.

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 RepresentationChapter 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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What Is Chapter 13 Bankruptcy?

What Is Chapter 13 Bankruptcy

While it may be thought that bankruptcy is the final stage before economic ruin, it is not always so – Chapter 13 of the federal bankruptcy code can ease some of the financial stress. If you can repay some or all of your creditors – it may be possible to avoid liquidation. And it is ideal if your primary issues are dealing for payment straight away from creditors versus having sufficient income. Another appealing aspect of Chapter 13 bankruptcy is you may not have to lose your home. Read on to learn more.

Chapter 13 bankruptcy permits individuals to have between three and five years to complete resolution of their debts by the means of applying all of their income that is considered disposable to the reduction of the debts. This option incorporates allowing an individual the option of eliminating the unsecured debts while they catch up of mortgage payments that were previously not met. Undoubtedly to many people keeping their home is of primary significance. But the downside is you will spend some years with a trustee appointed by the court, who will be responsible for collecting payments from you and then distributing them accordingly.

How does Chapter 13 Bankruptcy Work?

Chapter 11 bankruptcy (that applies to businesses) has some similarities to Chapter 12 bankruptcy. In both scenario’s the petitioner has to submit a financial plan of reorganization that safeguards assets from foreclosure or repossession and in normal circumstances requests forgiveness of other accrued debts. They both have little in common with Chapter 7 bankruptcy where all available assets are liquidated with the exception of certain assets that may have exemption from liquidation.

Not all debts are eliminated when a person files for bankruptcy. Payments that cannot be discharged include alimony payments as well as child support, taxes that have not been paid and outstanding student loans. However, Chapter 12 bankruptcy can eliminate other debts that may be outstanding, but it will be highly likely the individual has many issues with borrowing money in the future from financial institutions.

Here is a breakdown of the financial figures to be eligible for the filing of a Chapter 13 Bankruptcy. Note, these figures can change as they are adjusted from time to time to be in line with the current consumer price index figures.:

  • A person may have no total amount greater than $394,725 in debt that is unsecured such as personal loans or credit card bills.
  • An individual may have no total amount greater than $1,184,200 in debts that are secured including auto loans and mortgages.

Regarding your home, filing for Chapter 13 Bankruptcy puts a suspension on outstanding proceedings for foreclosure and payment of other debts that may be owed. This will obtain you time while your plan is under consideration from the courts. However, it does not mean the debt is automatically eliminated. Ideally, the plan for bankruptcy will make enough of your income available to make mortgage payments on a regular basis so you may retain your home.

The Chapter 13 Bankruptcy Process

The first order of business is to discover a bankruptcy attorney. They usually offer a free evaluation and an estimate of the costs to file and commence the process. There is a fee of $235 payable to the bankruptcy court for filing as well as $75 for administrative costs. The following is also required:

  • A list of the claim amounts and the names of creditors.
  • The debtors income and sources need to be disclosed.
  • The debtors property needs to be listed as well as all leases and contracts held in the name of the debtor.
  • The monthly living expenses of the debtor.
  • The debtors most recently filed tax return as well as a statement if there are taxes that have not yet been paid.

A petitioner for Chapter 13 Bankruptcy cannot have had a dismissal of a bankruptcy petition dismissed within the previous 180 days before filing due to the unwillingness of them to make an appearance in court. The applicant must also go to an approved agency for credit counseling within 180 days of the petition being filed.

Very soon after, a repayment plan must be submitted by the debtor. An administrator or bankruptcy judge will instigate a heating and make a determination to decide if the plan is fair and meets the requirements of the bankruptcy code. There may be objections from creditors, but the final determination resides with the court.

Delinquent payments can be addressed by the debtor making the payments up over a period of time, but Chapter 13 rules state all new payments for mortgages at the time of filing for bankruptcy must be made on time, henceforth.

A trustee or mediator must also be worked with as they will be responsible for the distribution of monies owed to creditors. Under Chapter 13 Bankruptcy, it is not mandatory for a debtor to directly contact their creditors. And if all the agreement terms are being abided by, it is required by law that creditors stop efforts to recover the debt they are owed. That said you must never fall behind on mortgage payments. Late payments are not permitted on monies owed. You are permitted to increase your payments so the agreement may be discharged sooner. On the other hand, if your financial situation becomes worse, you need to let the trustee know and establish whether the plan can undergo a modification. If the terms of the agreement are not met may result in the bankruptcy claim being dismissed in court.

Qualifications For Chapter 13 Bankruptcy

If you can prove you have the income to address your debts, you meet eligibility to file. The individuals sources of income must be disclosed and submitted to the court within fourteen days of the petition being filed. Income can include payments from Social Security, pensions, royalties, money from a property sale or rents as well as compensation for unemployment. Your tax filings need to be current and you will have to show evidence of federal and state tax filings for the previous four years. When you cannot meet this, your case will be delayed until you meet this requirement and will be dismissed if you cannot produce the documentation.

From there, the bankruptcy court’s role is to overlook the income statements and debts, arrange meetings with people to who monies are owed and then decide on a hearing date with the purpose of ascertaining if the plan will be acceptable. On the completion of repayments, usually between three to five years, the Chapter 13 case can then be discharged, ending the process.

Source: https://www.debt.org/bankruptcy/chapter-13/

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 RepresentationChapter 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

How To Find A Bankruptcy Lawyer

How To Find A Bankruptcy Lawyer

Every profession has great, good, and poor practitioners and lawyers are no exception. We have all heard about lawyers who appeared to have no clue (as illustrated in popular culture by Lionel Hutz, Attorney at Law, in “The Simpsons”) but there are also lawyers who are hugely talented. It should go without saying they are the ones you should aim for. Read on to learn more.

Experience

Do years count? Not always! An attorney may have practiced bankruptcy law for a quarter of a century but never really mastered the intricacies of the law. Similarly, although they may have twenty plus years great experience in certain fields, bankruptcy may not be one of them and it is more doubtful they will have the skills you require. You need to seek out a lawyer who has ample experience in small business and consumer bankruptcy law – an attorney who has the respect of his fellow professionals, including judges.

Training

Once an attorney has graduated from law school and passes the state bar examination, it really can be said their learning is just commencing. In essence, that’s why its called the “practice of law” in that a lawyer is always learning.  Attorneys prime their established skills with educational seminars. Education is absolutely essential with the totally different bankruptcy laws. Older concepts just do not apply any longer. Even the most skilled attorney cannot master the subject simply bey reading up on it. There are organizations that conduct continuing education and seminars like the American Bankruptcy Institute (“ABI”), the  National Association of Consumer Bankruptcy Attorneys (“ NACBA”), and various bar associations.

Listening

You need an attorney who will listen to you before they tell you what you should be doing. A one-size-fits-all method is not suitable when it comes to the dispensing of legal advice and never more so than when it does not deal with the issues that need addressing. It is vital you find an attorney who is willing to listen to the facts of your situation and ask the questions they need too so they are fully able to comprehend the particular circumstances of your case. Above all, they must listen to what you have to say and then review the facts within the context of existing law. This is the only way they can give you the finest advice.

According to NerdWallet, one of the best ways to find a bankruptcy attorney is to “seek personal referrals from friends or family or your own attorney.”  With today’s technology, another good way to find one is through the internet and various online review sources.

Source: “How to Find a Good Bankruptcy Lawyer.” NACBA, 18 Aug. 2015, www.nacba.org/what-we-do/consumer-assistance/how-to-find-a-good-bankruptcy-lawyer/.

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 RepresentationChapter 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

How Much Does It Cost To File For Bankruptcy?

How Much Does It Cost To File For Bankruptcy

The average cost of bankruptcy is between $1,500 and $4,000 when combining fees both the court and the attorney. Read on to learn more.

The Cost Of Bankruptcy

There is not a simple answer. While the court fees are established set fees, the cost of an attorney can differ of many factors such as who you choose to hire, your location and whether your case is simple or complicated.

Filing Fees

Chapter 7 Total Filing Fees: $335

  • Filing fee: $245
  • Administrative fee: $75
  • Trustee Surcharge: $15
  • Re-opening a Chapter 7 filing: $260

This is not an actual quote. If you need an experienced bankruptcy lawyer contact Canterbury Law Group to start your initial consultation.

Chapter 13 Total Filing Fees: $310

  • Filing fee: $310
  • Administrative fee: $75
  • Re-opening a Chapter 7 filing: $235

Using data collected by the American Bankruptcy Institute between 2005 and 2009 shoed $1,072 to be the average price of a Chapter 7 bankruptcy with assets. Prices varied primarily by location. The high end was $1,530 in Arizona all the way down to just less than half ($781) in some states. The same study states that for a Chapter 12 bankruptcy the average cost was $2,564. North Dakota had the lowest costs at $1,560 all the way up to $4,950 in Maine.

With such price variance, let’s look at some of the reasons for this:

  • Some of your debts are  non-dischargeable debts such as unpaid taxes, alimony, child support and student loans
  • You have varied income sources
  • You exceed your state’s median income threshold for your household size
  • Trying to prevent a legal action such as a foreclosure filing against your property, a bank levy or loan that served as collateral for a current debt
  • A bankruptcy filing in the previous eight years
  • Having many individual creditors
  • Filing for both a personal and business bankruptcy
  • When you face accusations of fraud that may be proven correct.

In cases of Chapter 7 bankruptcy is standard practice for attorneys to insist on payment before services are rendered. Payment plans may be an option, but they will not go forward unless payment has been forthcoming. This means additional vulnerability to creditors as you try to obtain the money for the fees going to your attorney.

Attorney Costs In Your Area

It is very likely fees may have increased since the study we quoted. In Chapter 12 bankruptcy cases, the attorney’s fees will be reviewed by the judge unless they fall beneath what is a baseline in the state when the case is being foiled. You can meet with several attorneys and their fees are public record and can be accessed through the federal PACER website. There is a small charge for this service, but it may save you a great deal of money!

Generally, in larger cities and metropolitan areas the charges will be greater because the general cost of living will be higher in those communities. Also, lawyers with many years of experience in this field are far more likely to charge more than those with lesser experience. Also, think about how complicated your case is. If your case is a simple one, a less expensive lawyer may work out fine, however the more complex the issues are, the more experienced a lawyer you will want to have on your side. This would also apply if one major reason for your bankruptcy is medical debt.

Education Courses

There is a 450 fee for the two credit counseling courses you must undertake if you are filing for either Chapter 7 or Chapter 13 bankruptcy. A nonprofit credit counseling agency must be the ones to hold the course and the Office of the U.S. Trustee sets the fees that top out at $50 and go all the way down to free, depending on your circumstances. The course may be taken online or in person.

Saving Money On Costs

Obviously, some cases of bankruptcy are more burned with debts that are unmanageable than others. Either way it is essential to fully document your entire financial situation before you approach a bankruptcy attorney. You may be able to obtain a fee reduction if you are elderly, disabled or a low-wage earner. An attorney can help on these areas as well as us there are other mitigating factors that are relevant, an attorney may be willing to discuss lowering their fees.

Remember in Chapter 7 bankruptcy cases, attorneys will want their fees paid upfront and in Chapter 13, they usually demand a set amount of the fee to start with and will obtain the rest through the bankruptcy plan the court orders.

Consider how long it takes to recover from bankruptcy. In the case of Chapter 7 bankruptcy, although it may be a success, it may be up to ten years before it disappears from your credit report. It is true that Chapter 13 bankruptcy may do less damage, but it involves sticking resolutely to a payment plan for a period of three to five years, even if the court does help by reducing the amount of your debts.

There is always the option of filing the bankruptcy yourself however there may be some considerable consequences for doing so. If you do run into trouble or forms are filled out incorrectly or in error, your case may be dismissed and that will generate additional expense as well as having to start over once more.

Paying For Bankruptcy

You will also need to consider how you are going to pay for your bankruptcy. Legal fees are often a headache to deal with, but you will also face court costs as well as the fee for the statutory credit counseling. You may be looking at a total bill of several thousands of dollars when all is said and done.

Other avenue for obtaining the needed money include:

  • You may wish to put a temporary hold on credit card repayments and sell off some household assets for cash to raise the fees.
  • If you earn less than 150% of the poverty income level for your state you may qualify for reduced or a pro bono legal assistance or help from the Legal Aid Society.
  • Find a bankruptcy lawyer who will work with you on a pro bono basis but some of the law firms they represent will insist on between ten and fifteen percent being on a pro bono basis.
  • File under Chapter 13 instead of Chapter 7. As lawyers can incorporate their fees into your repayment plan.

Source: “How Much Does It Cost to File Bankruptcy: Filing Fees and Attorney Fees.” Debt.org, 11 Feb. 2020, www.debt.org/bankruptcy/cost/.

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 RepresentationChapter 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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