The post What Steps Should I Follow for Chapter 7 Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>Firstly, you may be expected to collect and submit a significant amount of financial documentation for your Chapter 7 bankruptcy. Such documentation may entail, but may not be limited to, the following:
Secondly, before your proceedings can officially commence, you may have to attend a credit counseling course. This is so you may determine, once and for all, whether you undoubtedly require a bankruptcy declaration to return to a financially stable situation.
Then, you may have to attend a section 341 meeting of creditors. This is so you may get a better understanding of the proceedings ahead; along with allowing interested parties to inquire about your assets, debts, and overall financial situation.
Lastly, you may have to attend a debtor’s education course. This is so you may discharge your eligible debts; along with teaching you financial skills that may prevent you from ever having to go through these proceedings again. Only then will your Chapter 7 bankruptcy proceedings have officially concluded.
So long as you do not encounter any complications during your Chapter 7 bankruptcy proceedings, you may anticipate these steps to take anywhere between four to six months to complete. Of note, it is required that you attend a credit counseling course within six months of your filing date. Also, it is expected for your debts to be discharged within 60 days of your section 341 meeting of creditors.
All in all, you may be intimidated by the bankruptcy proceedings that lie ahead of you. But one way to alleviate some of this worry is to have a competent Louisville, Kentucky consumer bankruptcy lawyer stand by your side throughout. Contact Schwartz Bankruptcy Law Center at your earliest possible convenience.
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]]>The post What Happens to My Alimony Obligations After Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>Your alimony obligations are considered a type of nondischargeable debt. In other words, alimony cannot be released from your legal obligation when you file for bankruptcy. Of note, all domestic support obligations, like child support, fall under this category. This is because alimony is something that was ordered by the Kentucky family court in your divorce decree. Therefore, the Kentucky bankruptcy court does not have the jurisdiction to go against this order.
On the flip side, you must rest assured knowing that you may have dischargeable debts that are to be extinguished upon your bankruptcy filing. Meaning that your monthly alimony payments may be made more affordable during your proceedings.
Regardless of whether you are filing for Chapter 7 or Chapter 13 bankruptcy, the Kentucky bankruptcy court may grant an automatic stay. With this, all collection efforts on your outstanding debts may be halted, including that of your alimony obligations.
So if you are specifically filing for Chapter 7 bankruptcy, your outstanding alimony payments may be considered a priority debt. With this, you may have to pay off this remaining balance with your available funds before any other unsecured debts. And if you are filing for a Chapter 13 bankruptcy, your outstanding alimony payments may be incorporated into your repayment plan. With this, you may have to pay off this remaining balance within three to five years.
All the while, you must remember that your obligation to make future alimony payments may not change. This is unless you file an official petition for a post-judgment modification with the Kentucky family court. But if you simply fail to meet your alimony obligations without being granted this modification, you may be facing the following consequences:
You cannot stay silent if you are being overburdened by your alimony obligations during bankruptcy. Rather, you must retain the services of a talented Louisville, Kentucky consumer bankruptcy lawyer. Contact Schwartz Bankruptcy Law Center today.
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]]>The post Can I Keep My Car During Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>First things first, your car loan is a type of secured debt. Meaning that your car serves as collateral if you are unable to make your monthly payments to the lender of your car loan. In an event like this, the lender of your car loan has the legal authority to repossess your car. In turn, you must understand that your bankruptcy trustee may not allow you to keep your car if you are behind on your monthly payments.
Rest assured, there may be exceptions that allow you to keep your car during your Chapter 7 bankruptcy proceedings. For one, you may make an agreement with the Kentucky bankruptcy court in which you promise to pay off your outstanding car loans throughout the bankruptcy process. Though such an agreement may only be possible if you can prove the following as true:
Without further ado, other exceptions that may allow you to keep your car read as follows:
At the end of the day, the best way to protect your assets is to retain the services of a skilled Louisville, Kentucky consumer bankruptcy lawyer. So please do not hesitate to contact Schwartz Bankruptcy Law Center today.
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]]>The post Can Bankruptcy Eliminate Tax Liens? appeared first on Schwartz Bankruptcy Law Center.
]]>Simply put, if you are a homeowner who fails to pay the taxes on your property, then the city or county in which you reside has the authority to place a lien on it. A tax lien on your property is essentially a legal claim to the unpaid amount of taxes that is owed. Meaning that you are inhibited from selling or refinancing your property until you pay off your back taxes and subsequently have the lien removed.
Unfortunately, a tax lien on your property cannot be directly eliminated upon your Chapter 7 bankruptcy filing. For example, say that a tax lien worth $50,000 is placed on your property. Then, say that your property holds equity worth $25,000. Well, this means that $25,000 worth of your property may be considered secured debt while the other $25,000 is unsecured debt. In other words, this $25,000 worth of unsecured debt may be discharged in your Chapter 7 bankruptcy proceedings.
Further, you must understand that your other tax debts may be eligible for discharge. This is so long as the following circumstances are true:
It must be reemphasized that even if you qualify to have your tax debts discharged in a Chapter 7 bankruptcy filing, the tax lien on your property remains. That is, you may still live in your house during your bankruptcy proceedings, but you cannot sell it to pay off your due creditors without first paying off the lien.
There may be many benefits in a bankruptcy filing, so long as it is first carefully considered. So please seek the assistance of a talented Louisville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center. We look forward to having a conversation with you.
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]]>The post What Is the Purpose of Credit Counseling in Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>The primary purpose of credit counseling is so that an agency can evaluate your current financial standing and advise whether you should go through with filing your bankruptcy petition or rather consider alternative credit relief options. Evidently, this is a pre-filing step so that you do not have to unnecessarily go through the hassle of bankruptcy. More specifically, you must fulfill this step within 180 prior to your filing date. So if an agency urges you to forgo bankruptcy, it may instead recommend any one of the following alternative credit relief options:
You may view the pre-filing requirement of credit counseling to be a roadblock in the way of your already extensive bankruptcy proceedings. While this may not be entirely true, you may find yourself in a dire financial state that requires an urgent bankruptcy filing. Though rare, you may qualify for one of the following exceptions to fulfilling this required step:
Undoubtedly, there is a lot to consider before attending this counseling. So your next order of business should be to initiate a conversation with a competent Louisville, Kentucky consumer bankruptcy lawyer. Someone at Schwartz Bankruptcy Law Center will be awaiting your phone call.
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]]>The post Should I File for Bankruptcy While Renting? appeared first on Schwartz Bankruptcy Law Center.
]]>Arguably the most significant benefit of filing for bankruptcy while renting an apartment or house is that the Kentucky bankruptcy court may enforce automatic stay protection. Meaning, your landlord may be barred from serving you with an eviction notice as you undergo your Chapter 7 or Chapter 13 bankruptcy proceedings. All the while, you may work to pay off your overdue rental payments and meet your current rental payments each month. This may ultimately better your chances of maintaining a permanent residence at your rental apartment or house even after these proceedings.
Before pulling the trigger and filing your bankruptcy declaration, you must understand that this may not protect you from eviction under all circumstances. That is, your landlord may present a case in the presence of the Kentucky bankruptcy court that argues your violation of other tenancy conditions besides missing rent payments. For example, they may claim that you have overstayed the term of your tenancy or went against the disclosed limits on occupancy. With this, the Kentucky bankruptcy judge may be prompted to order your eviction.
Besides the matter of eviction, you must also make the following considerations before filing for bankruptcy:
So even if you are just considering a bankruptcy declaration, it is best that you first consult with a skilled Louisville, Kentucky consumer bankruptcy lawyer. Please contact us at Schwartz Bankruptcy Law Center today.
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]]>The post Can I Have All My Debts Erased in Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>While you cannot have every last debt erased in your Chapter 7 bankruptcy proceedings, you may still have the opportunity to benefit from significant financial relief. This is because a Chapter 7 bankruptcy recognizes certain debts are dischargeable debts, which are types of debts that may be eliminated from your immediate liability. Namely, these dischargeable debts may include your credit card debts, your outstanding medical bills, your personal loans from loved ones, and your overdue utility bills.
However, you may not be able to have every last debt erased in your Chapter 7 bankruptcy proceedings. This is because there are also recognized nondischargeable debts, which are, contrastingly, types of debts that may not be eliminated from your immediate legal obligations. Examples may include your student loan debts, your child support and spousal support payments, your federal/state/local taxes, and the money you borrowed to pay for your federal/state/local taxes.
Unfortunately, the debts you may be entitled to discharge in a Chapter 13 bankruptcy may be more limited than what is offered through a Chapter 7 bankruptcy. Rest assured, debts from your willful and malicious injury to property, debts from paying nondischargeable taxes, and debts from divorce property settlements may still be erased. But such erasure may only be possible under the following circumstances:
To reemphasize, these eligible debts may not be discharged until after the completion of your repayment plan. But if extenuating circumstances require you to obtain this relief sooner, then you may file for a hardship discharge with the Kentucky bankruptcy court. Essentially, a hardship discharge argues that circumstances beyond your immediate control have inhibited you from completing your repayment plan; and a modification to your repayment plan may not be an adequate solution.
Without a doubt, your next step should be to employ a talented Louisville, Kentucky consumer bankruptcy lawyer. So please reach out to us at Schwartz Bankruptcy Law Center immediately.
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]]>The post What Are Kentucky Bankruptcy Exemptions? appeared first on Schwartz Bankruptcy Law Center.
]]>Generally speaking, upon the commencement of your bankruptcy proceedings, your appointed trustee may take inventory of your assets. They then may go as far as seizing certain assets, so that they may be sold to pay back your creditors. Well, bankruptcy exemptions may work to protect your essential assets from being taken by your trustee in the first place. That is, such assets may be excluded from your bankruptcy estate and continue to be used in your day-to-day life.
Of note, you must choose between the bankruptcy exemptions that the state of Kentucky offers and what is offered at the federal level, not both. However, the bright side to this is that you may receive double the exemption amount if you are filing jointly with your spouse. This is so long as you both opt for Kentucky exemptions or both opt for federal exemptions.
The exemption amounts slightly vary for each category. But a general rule of thumb is to select Kentucky bankruptcy exemptions if you are filing a no-assets Chapter 7 bankruptcy. This bankruptcy type is for when all your assets are exempt or otherwise subject to valid liens. Without further ado, below are the Kentucky versus federal bankruptcy exemptions:
All in all, to thoroughly preserve your assets throughout your proceedings, you must turn to a talented Louisville, Kentucky consumer bankruptcy lawyer. So please get in touch with us at Schwartz Bankruptcy Law Center as soon as you get the free chance.
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]]>The post Can I Get Approved for a Credit Card After Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>While you can still get approved for a loan after your bankruptcy filing, it may be difficult to do so, and unideal for that matter.
This is because, with your bankruptcy proceedings, you may only pay back your lenders a portion of what you originally owed them, if any sum at all. So when prospective lenders see a bankruptcy filing on your credit report, they may be doubtful about your ability to hold up your end of this contractual financial agreement. And even if they do approve you with an “older” bankruptcy filing date, they may still impose heightened interest rates and fees.
Similarly, getting approved for a credit card after your bankruptcy filing may pose a challenge; while also only posing unfavorable options to choose from.
This is because, in the aftermath of your bankruptcy proceedings, your credit score may drop anywhere from 150 to 240 points. Rest assured, there are measures you may take to build your credit score back up and diversify your credit card choices. They read as follows:
In conclusion, you require the services of a skilled Louisville, Kentucky consumer bankruptcy lawyer before submitting your bankruptcy petition. So please schedule your free initial consultation with us at Schwartz Bankruptcy Law Center today.
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]]>The post Can My Unpaid Utility Bills Be Discharged in Bankruptcy? appeared first on Schwartz Bankruptcy Law Center.
]]>Firstly, you must understand the consequences of neglecting to pay off your overdue utility bills. They read as follows:
For these reasons alone, you must promptly respond to a disconnect notice a utility company sends to you (i.e., within 10 days for electric and gas and five days for water, sewer, and telephone). You may respond by paying off the overdue balance, negotiating a payment agreement, or most notably, filing a bankruptcy petition.
If you are facing a serious issue with your overdue utility bills, then it may be in your best interest to file an emergency petition for bankruptcy. This is so the Kentucky bankruptcy court may immediately order a utility company to keep your services connected. In the meantime, you may be afforded 14 days to submit other necessary bankruptcy documents.
To effectively discharge your overdue utility bills, you must disclose them in your bankruptcy schedule. However, you must understand that only the utility debt you incurred before the date of your bankruptcy filing may be eliminated. Meaning that you may still be held responsible for paying off the monthly utility bills you receive throughout your bankruptcy proceedings. Further, the court cannot protect you from the activities of a utility company for the overdue bills you incurred during this time.
Understandably so, you may believe that a bankruptcy filing is too drastic of a measure for your overdue utility bills. Well, you may rest assured knowing that there may be alternative resolutions at your disposal.
For one, the Kentucky Low Income Home Energy Assistance Program (LIHEA) is a federally-funded program that helps low-income households pay their home heating and/or cooling bills. There are also winter-related programs such as the Home Energy Assistance in Reduced Temperatures (HEART) and Temporary Heating Assistance in Winter (THAW) programs.
At the end of the day, your bankruptcy filing requires a competent Louisville, Kentucky consumer bankruptcy lawyer in your corner. So please get in touch with us at Schwartz Bankruptcy Law Center.
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