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Issues with delay and inertia at reaching a filing decesion

All too often clients coming to file Chapter 7 or Chapter 13 have waited until they are at the edge of a financial cliff. They have relied on incorrect information learned through Google, friends, family or creditors. If you cannot pay back a debt owed to a creditor, the creditor will take action. That action may be non stop harassment through telephone calls, visits to your home or business or employment . It may also involve threats of lawsuits, actual lawsuit, and attachments of pay, bank accounts and personal property. It did not have to get this far down the road of ruin . Often debtors wrongly are persuaded or convince by those who know nothing, what is the best action to take! If you do not earn enough to pay your bills and live on ( food, rent, transportation utilities), it is highly unlikely delay is going to improve your situation and will add to the stress of the situation. A fresh start exists with a Chapter 7 or a Chapter 13 debt reorganization. It will either wipe the slate clean and provide a fresh start or halt the debts and provide a mechanism for a wage earner to repay their bills without interest or with a reduction or both. Loan companies, check cashing companies, credit cards, bank loans , mortgages, car payments , medical bills can all be eliminated in Chapter 7 or consolidated in or chapter 13. Should the debtor owe student loans, or back state and/ or federal taxes they are also addressed but generally are not dischargeable. The key to peace of mind and ceasing harassment is prompt action. It will save the consumer money in the long run

Hot summer and High vacation or repair bills due

As summer slowly increases its temperature, air conditioning units break or need replacement. These are expensive and extensive repairs for the majority of consumers. A complete change out of central air conditioning equipment can cost anywhere between $5,000.00 to $15,000.00 dollars. Repairs may be less but can still be come costly to consumers. Car cooling repairs can add up quickly. Exposure to high temperatures may cause medical issues with elderly and small children requiring medical attention that rapidly gets expensive. Add to that total is the vacation, travel, meals away from home all which is often placed on the credit cards which must be paid. and the overall summer debt picture becomes heated. Chapter 7 or Chapter 13 may benefit consumers experiencing serious or potentially serious debt payment shortfalls . Summer also is a time of layoffs from employment. or reduced working hours, factors which affect the earnings bottom line. Dont’ wait until its too late.

Who is filing Chapter 7 and Chapter 13

It can be anyone who is overwhelmed by secured and or unsecured debts, medical bills, lawsuits or threats of lawsuits, garnishments, taxes, and even past due child support. While all debts are not always dischargeable debts like past due child support may be scheduled for repayment in Chapter 13, preventing a debtor from losing a drivers license, job, or their ability to pay their debts with scheduled results. Often individuals and couples are looking for a fresh start that a Chapter 7 may help them achieve. They discharge all unsecured debts and may also discharge any secured debts by abandoning the collateral. This also stops repossessions, foreclosures, lawsuits and garnishments of income from employment or money in a third party account. A chapter 13 is also a method to get to the same result. It can schedule tax repayments or most other debts to the government. and child support, along with late house and car payments that may have accumulated due to injury, loss of employment, or just bad luck. All too often individuals wait till the last possible moment to file, when it was apparent they would benefit ( less stress, creditor contact, worry) if they had pulled the trigger earlier. Even though a garnishment can be stopped before it bites your paycheck, if you wait till the last moment, it may be lost wages before the debtors payroll catches up to the cease and desist all garnishments notice. It is important not to be overtaken by events. File early.

Summer vacation bills and car payments

As summer approaches often times individuals become overextended with their credit card debt. The planned vacation comes off the rails with last minute expenses for medical bill, or car repairs often straining the limits of monthly income available to pay monthly bills. Chapter 7 Bankruptcy may provide the fresh start assistance one needs to recover from unexpected unplanned financial strain. If your employment is seasonal and summer affects your working hours and limits your monthly income Chapter 7 may assist you . Many of us have unsecured debts such as credit cards, medical bills, check cashing loans that are not being paid timely and causing creditor calls at all hours. These calls are one step a creditor exerts pressure on a debtor to pay. Incrementally , the creditor increases the frequency of the calls and tone of the collections effort. It starts out reasonable and escalates to lawsuits, garnishment , repossession, foreclosure as the case might be. Before it comes to all that contact T.K.. Byrne for help understanding your rights and obligations under the United States Bankruptcy Code.

Chapter 13 or Chapter 7 bankruptcy filingn

Either Chapter 13 or Chapter 7 bankruptcy relief is a measurement of what is trying to be accomplished with existing debts. If the debtor is wanting to liquidate secured and unsecured debt a Chapter 7 is generally the preferred bankruptcy filing. It also a qualified debtor to eliminate or discharge all secured and unsecured debts with the exception of student loans and taxes or debts owed to the government , child support, fines, and restitution. A debtor qualifies by having not filed a Chapter 7 with discharge in the past eight years or a discharged chapter Chapter13. Debtors may opt to retain their house and car provided the remain current with their payments and reaffirm the debt. Chapter 13 filings are more a consolidation of all debt. It allows repayment of past due amounts on automobiles and mortgages. This also requires that the debtor have income of some sort, social security, employment, or other income streams. Often interest rates may be reduced in a Chapter 13. In some cases the debt may be reduced to value. Unsecured debt is paid partially without interest and the rest discharged or paid in full. Chapter 13 are income driven. A Chapter 7 requires a means test . Both Chapter 7 and Chapter 13 require credit counseling prior to filing.

Consumer Debt Spiraling Upward

Recent government reports have shown consumer debt and spending are exponentially headed upward outpacing income. Furthermore many consumers are facing higher interest rates, and unusual financing schemes when they purchase automobile , seek loans , or use payday lenders. While these schemes may be lawful, they are often misunderstood by consumers who lack the necessary fiscal sophistication to understand what kind of purchase agreement they are entering. Some have drag net causes, others have very high interest rates that may not be easily understood. Still some have up charges for road service, insurance, and other less than fully disclosed service charges disguised into the loan purchase agreement. While these may run afoul of truth in lending laws, that is of little comfort when you wallet is being fleeced.

Indecision in Chapter 7 and Chapter 13

All to often debtors become indecisive when discussing Chapter 7 and Chapter 13 with their attorney. That is not a good way to start a discussion that greatly affects the bottom line and prevents potential disclosure issues that could criminally impact a debtor. Debtors are responsible for knowing who they owe money to. Credit reports and monthly bills are a start to gathering this information. DEBTORS MUST INCLUDE EVERYONE THEY OWE MONEY TO WEATHER OR NOT THE DENTOR INTENDS TO PAY THEM. YOU MUST ALSO LIST ALL YOUR SOURCES OF INCOME FOR THE PAST SIX MONTHS. These conditions are not negotiable. Omitting them may become a criminal action. Bankruptcy is a procedure complete and truthful disclosure, Debtors have an opportunity to correct potential misstatements but it is limited. Of course, this sounds more ominous than it truly is. The overwhelming amount of debtors are honest and disclose complete information. Since Chapter 7 and Chapter 13 bankruptcy are included as (bankruptcy) guarantee under the United States Constitution. Such a constitutional right should not be squandered or misused and needs to be carefully followed. Weather the end result is a fresh start of debt consolidation, it is vital to provide truthful, accurate and complete information.

Bankruptcy Planning for Chapter 7 and Chapter 13

When a consumer or business is contemplating filing Chapter 7 debt elimination or Chapter 13 repayment/consolidation bankruptcy it is good practice to consult with a bankruptcy attorney. Their are real and personal property exemptions to consider and a frank discussion about what debt/collateral should be retained by the filer and what debt/collateral should be discarded or surrendered. While these initially maybe emotional choices for filers after a thoughtful discussion and quiet reflection of what the bankruptcy goal is the solution becomes self evident to the majority of debtors and filers. There is no good use of money to pay for a rapidly depreciating asset with a high interest rate. For many debtors, this may be the first reflection is how much debt is enough. Income maybe projected, but injuries, employment disruptions, family additions, accidents are hard to predict and impact our lives all to often.

CHAPTER 13 Basics Part 1

Chapter 13 bankruptcy filing is a fast , legal, and often only affordable method to prevent foreclosure of a home, repossession of a car, Lawsuit and garnishment and collection harassment. The Chapter 13 creates a bankruptcy estate and an automatic stay is issued  which precludes all of the above collection actions ( Foreclosure, Repossession, lawsuit , garnishment)from proceeding while a reorganization of debts is scheduled. Often a Chapter 13 may benefit an individual or married debtor by lowering interest rates on automobile purchases and loans. It will not lower a home mortgage interest rate at this time but it allows unpaid mortgage arrearage to be paid out in a 60 month plan that is monitored and supervised by the Chapter 13 Trustee. This prevents continued creditor harassment. During a Chapter 13 debtors should not apply for credit without permission from the United States bankruptcy Court. It is neither a good idea and may dismiss end with dismissal of your Chapter 13 case.