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CHAPTER SEVEN LIQUIDATION OF DEBTS

A Chapter 7 bankruptcy is the quickest and generally most painless way to eliminate credit card debt, loan debts, mortgage debt, automobile debt, medical bill debt, check cashing loan debt, loan company debt. Chapter & requires complete disclosure of everyone you owe money to whether or not you intend to pay them back. The creditor gets notified you have filed a Chapter 7 and the debt is eliminated in all but some cases. A complete analysis of your credit and asset situation at the time of filing is important and necessary to the debtors case. If the debt is secured, the collateral is either returned or arrangements are made to continue paying. Student loans and federal taxes owed within the last three years are generally non did-chargeable in Chapter 7. Often the creditor will send a 1099 Q to the debtor after completion of the bankruptcy. This informs the debtor the debts was reported as a loss by the creditor and a gain to the debtor. Nevertheless, the IRS code lets this not count as gain if discharged in bankruptcy. Just remember TK for your BK. Consultations for Chapter 7 or Chapter 13 bankruptcy are free whether in person or over the phone. Call 601-925-9482 or email tkbyrnelaw@gmail.com for your appointment.

Older Debts and Past Repossessions

Although there are published methods of cleaning your credit reports of incorrectly reported information, it is not a guarantee that the matter gets resolved at all levels. Credit collection agencies and debt collectors purchase old debts for pennies only to turn around and renew collection efforts of debts that may have past a statute of limitations with the original creditor. It is often not worth the time and effort to wrangle with these unscrupulous characters and many attorneys do not see merit in pursuing battle against them on clients behalf without the guaranty of paid attorney fees while the matter churns through the state courts. A chapter 7 will eliminate the old debts and even wipeout repossessions from past due vehicle surrenders, repos, or turn ins. A Chapter 7 is a debt elimination and zeros out unsecured debts collectors often suspiciously resurrect. Chapter 7 stops repossessions, lawsuits, garnishments, collections, and liens in most cases. It is a United States Constitutional protection available to those qualifying individuals, businesses, and also married couples. It protects your assets from being attached and seized. The Chapter 7 is an orderly process and involves disclosure and truthful answers by the filers.

Foreclosues Repossessions Divorce and Bankruptcy

All too often Divorce and financial problems go hand in hand. Money , How to spend it , who creates the budget, joint accounts and elements of trust all converge into the marriage dynamic. Unfortunately, this mix all too often ends poorly in conflict , stress, and recrimination. While Chapter 7 and Chapter 13 do not solve the underlying marital issues, they may provide an alternative to the stress and money problems couples experience. Both bankruptcy’s eliminate debts but in different ways. For most the Chapter 7 is the best way to proceed. It eliminates credit card debt, check cashing loans, loan debt and much secured debt such as a house , automobile, furniture note, appliance note. This does not mean the bankruptcy filer gets free goods. It provides an opportunity for the debtor to select what they can afford or wipe out all debts and provide a fresh start to their financial picture. There is life after Chapter 7 and/or  Chapter 13. The filer rebuilds his and her credit incrementally through better choice management and the understanding that they have a new start free of debt. They often find more disposable income and are less likely to make the same choices that lead to the filing . Nevertheless, medical issues, job loss and economic slowdowns are real world factors that may have brought about the cascade of debt. Bankruptcy law is here to provide the debtors protection from foreclosure, automobile repossession, property seizure and creditor harassment. TK for BK.

STOP AUTOMOBILE REPOSSESSIONS AND AND FORECLOSURES

Chapter 7 and Chapter 13 both prevent foreclosures and repossessions. However the Chapter 7 is used when the debtor either can get current or desires to surrender and discharge these debts, along with medical bills, credit card debt, loan companies, check cashing companies and some times federal income taxes in limited situations. Chapter 13 is a repayment plan for past due mortgages and car payments. The interest rate with the car will drop in many cases to 6 per cent over the 60 month or less plan period. The mortgage arrearage also gets repaid over the plan period in smaller chunks than most creditors afford. Chapter 7 and Chapter 13 are unique constitutional guarantees. The chapter 13 sends out a wage order, not garnishment, to your employer to pay the plan expenses. You cannot get fired for filing either bankruptcy. Debtors will need to disclose income,, debts, all real and personal property , retirement accounts and apply the exemptions that these items of property are permitted under Mississippi State law.

Chapter 7 and Chapter 13 and taxes

Taxes and Chapter 7 and Chapter 13 are not a complicated matter provided the debtor is a regular tax filer. It is the omission of filing taxes that appears more significant in bankruptcy than owing or paying. Provided you file your taxes every year and have not falsified any of the contents Chapter 7 may eliminate older tax debts and Chapter 13 will help you pay those tax debts. maybe at reduced or zero interest . This applies to federal taxes and not state taxes. If a levy has been filed on your property (personal or real) then that is a secured debts and will need to be paid for the levy to be removed. The levy removal may be negotiated depending on the debtors unique situation. However, it is advisable not to let a levy action occur. The IRS and US Attorneys Office will be thorough with thier tax scrutiny of your filings. Properly filed tax returns over three years of age with debt maybe discharged in Chapter 7 or Chapter 13 bankruptcy.

Feeling Overwhelmed by Credit cards and medical expenses

Every month the bills arrive in your mailbox or email account. They are relentlessly arriving like clockwork. All to often we find ourselves overwhelmed by circumstances beyond our control. medical expenses from accidents, health problems, genetic issues all require expensive and sometimes extensive medical care and treatment. we reach for our credit cards, if we are fortunate to have them for initial payment and all too often long term payment which may be astronomical. The bill may come due but not today. If you make partial or small payments the interest on the cards will eat up you catch up ability. As they take more of your household income , it becomes a burden on a household budget. Electricity and food costs may be reduced but not eliminated. Gasoline and entertainment will be reduced but not eliminated. Rent is fixed , as is a car payment for a period of time.  It is a matter of choice but in reality, your necessaries of life expenses are more important. Chapter 7 bankruptcy discharges/eliminates these credit card and medical expenses. It also eliminates other expenses, Stops garnishments, lawsuits , repossessions, foreclosures if you want to eliminate and give up those possessions.

New Year Fresh Start

As the new year  2018 commences, many new year resolutions are viewed and set. Getting out of debt is one resolution many make. Chapter 7 can provide a means to a fresh start with existing debts and life style spending miscues. It will stop garnishment, lawsuits, collection calls and often provided the debtor with a legal mechanism to write off secured and unsecured debts. While this will not free you of your student loans or federal/state income tax debts, it does clear your expense sheet and frees up income for other choices like savings or retirement, The old stigma of Chapter 7 does not seem to exist in this day and age. Many Creditors evaluate new debt quite differently than before. With depressed interest rates they are willing to take chances of debtors coming out of Chapter 7 for the necessaries of life at terms and conditions new to the world of credit.

Over your budget. due to Holiday expenses

If you have accumulated significant holiday debt due to the lure of bargains, easy credit only to discover out your job has suddenly vanished, a spouse has left you with all the bills and foreclosure, repossession, and /or garnishment is looming, Chapter 13 and/or Chapter 7 may benefit your financial situation. Both Chapter 7 and Chapter 13 resolve debt accumulation but somewhat differently. Chapter 13 is for individuals or couples who may have filed Chapter 7 in the past eight years, or are facing foreclosure on their home and also repossession of a motor vehicle . Chapter 13 requires the debtor/filer to have a stream or source of income either employment, social security, other disability payments, etc. Chapter 7 is not always income dependent if you are surrendering collateral to extinguish a debts or have unsecured debts like , credit cards, loan company’s, check cashing companies, medical bills. Chapter 7 is debt liquidation and is means tested. Call my office to discuss which bankruptcy options suits your situation.

Past Due House and or Car payments

Should you find yourself past due with car and or house payments all is not lost. Chapter 13 Bankruptcy provides a safe and secure method to get your payments and past due amounts back and up to date. With car payments often we can lower the interest rate. That is not available for home mortgages at this time. A chapter 13 provides the tools if you are a wage earner with sufficient income or receiving social security , disability payments, or retirement income to save your house from foreclosure and your car from repossession. It also allows you to combine all your bills into one payment that often is less than your current payments. Since it is under Court supervision creditors are barred from annoying you with telephone contact, harassment and dunning letters. Do not let creditors wear you down on their terms. Consult this bankruptcy attorney for results you may be able to live with and have some financial freedom and peace of mind.

Already filed a Chapter 7 or 13 . What Can I do to stop foreclosure garnishment repossession?

If you have filed a chapter 7 or Chapter 13 bankruptcy in the past you may still file bankruptcy again if needed. Chapter 13 repayment plans are usually favored in these circumstances. The factors you and your attorney will have to consider are; will you get a discharge , can you file within the filing limitation periods. What is causing the repeat filing. Discharge is the first calculation to overcome. Did you receive a discharge in your past bankruptcy filing? If so are you time barred? Often you can resolve the time bar with a chapter 13 . Its best to consult with an attorney to resolve these conflicts before you spend the money to file.