NO NEED TO FEAR
Call Now for a Free Consultation
We offer free initial consultations. To schedule yours, call our office at 781-848-8545. You may also contact us online. We can arrange evening and weekend appointments to accommodate your schedule.
You may not get that, but in some cases, bankruptcy can mean Freedom! Credit card companies and collection agencies can hound you for cash, but they already have enough cash. In the process, they also cause you stress and can damage your credit for life.
If you’re trying to pay your bills or have to decide between paying a bill and paying your mortgage, call Nashawaty & Rand, Attorneys at Law. We’re dedicated to serving the citizens of Braintree MA, Boston MA, Quincy MA, Weymouth MA, Milton MA, Brookline MA, Dedham MA, Norwood MA, Newton MA, Cambridge MA, Somerville MA, Medford MA, Brockton MA, Franklin MA, Norfolk County MA and we are all set to listen to you and prepare a plan of action for you debt free. Do not wait. Pick the phone up today!
READY TO GET STARTED?
If you are seeking help with a financial crisis or disabling injury, we are here to listen. We want to provide you with the support and guidance that will maximize your rights under the law.
Contact us now, and we promise to listen carefully to your story and give you the best legal service possible.
Why Choose Nashawaty & Rand?
Nashawaty & Rand, Attorneys at Law serve residents from the South Shore (Braintree, Weymouth, Milton, Quincy, Randolph, etc.), Greater Boston (Boston, South Boston, Dorchester, Mattapan, etc.), and many other towns and cities across Massachusetts making it convenient for individuals in many areas to utilize our professional legal services. We understand that you have many options available when choosing a bankruptcy attorney; however, selecting the right one will only help to increase your chances of success.
Bankruptcy is not the end of the world! Bankruptcy is not the end – it’s a beginning!
You aren’t alone on your financial distress!
A number of our customers feel angry or afraid about filing a bankruptcy case. Please note that there is no reason to feel it means you are a failure or to have feelings of submitting. Very likely you’ve got friends, neighbors and coworkers have registered, and you just don’t know about it. Additionally, many people and companies have gone bankrupt including:
Should you face foreclosure, wage garnishment, or are just tired of harassment from creditors, call us today. Today, we can help.
Chapter 7 bankruptcy is an efficient way for a household or a person to deal with debt. It effectively copes with all creditors in an orderly fashion. Chapter 7 bankruptcy is also fast. A normal Chapter 7 bankruptcy will take approximately 4-6 months and will discharge all debts, except student loans, child support, spousal support, property tax, excise tax, and many income taxations.
The impacts of Chapter 7 are immediate. All creditors must stop contact. This includes letters, phone calls, suits, and wage attachments. There is a trustee appointed by the court to manage the situation. The trustee will liquidate all non-exempt resources and turn the proceeds over to your creditors.
Typically, all your assets will be protected by exemptions. When you have a mortgage or car payment and are current, you continue to cover the monthly payments directly to the creditor, and you will not lose your vehicle or house.
If you’re overwhelmed by debt or are being pursued by your lenders, contact Nashawaty & Rand, Attorneys at Law for a free consultation.
Chapter 7 bankruptcy is cost-effective. It deals with all your creditors at once. Most people only appear at a ten-minute hearing. Our office utilizes flat fees to keep costs down.
The bankruptcy code commissioned by Congress is intended to give a beginning to families and individuals. You will eliminate all dischargeable debts and keep your home, automobile, and most retirement savings account. Most of all, your future income is kept by you. That means that you can use your cash to get ahead in life rather than spending it to support debts that drag you down.
About Chapter 13
Chapter 13 bankruptcy is often known as “reorganization” since we are creating a 3 to 5-year plan to restore your financial health. Regular monthly payments will be made by someone in Chapter 13 to a trustee. In many cases, this payment is less than the amount owed. Chapter 13 bankruptcy is a great option for people and families that might not be qualified for Chapter 7 bankruptcy because they transcend income limits. Contact our office today to schedule an appointment.
Chapter 13 bankruptcy may do the following:
• Stop foreclosure
• Stop vehicle repossession
• Allow time to catch up on missed mortgage payments
• Cease IRS and DOR levies
• Payback income taxes owed to the IRS or Department of Revenue
• Remove second mortgages and home equity lines in certain circumstances
• Change auto loans in certain circumstances
• Strip judicial liens from property
The court appoints a trustee to manage your situation. The Trustee will collect your monthly payment payments and disperse the funds to your creditors according to the reorganization plan filed with your attorney. This repayment to your creditors can be less than the total amount owed, without any tax implications.
Save Your Home Today: Is your lender trying to auction off your property? Are exemptions lingering within your head? Are you behind on payments? No matter the situation, Nashawaty & Rand can stop foreclosure. After the bank stops, we can help you reorganize and get you started on a payment plan that is more manageable.
Eliminate Tax Debt
Bankruptcy Law Can Protect You Eliminating tax can be tough, but Nashawaty & Rand can make it happen. Your odds of saying farewell is very high if the taxes are three or more years old. We could work with Chapter 13 law to save a large amount of money and steer clear of any penalties if the taxes are less than three decades old.
Chapter the moment a case stops foreclosure is registered. It permits you to resume making monthly mortgage payments while catching up on missed payments in fixed payments over three to five years. So long as you meet your duties under the plan, your creditors cannot foreclose on your property.
Bankruptcy Can Help You
Most people dread the idea of bankruptcy, but that should not be the case. Bankruptcy laws are set up to safeguard you and to provide you the opportunity. Will use practices assist debt-free to reside again and also to wipe your credit slate clean. We will erase information and help you get the fresh start you deserve.
Stop Wage Garnishment
They Can’t Take What You’ve Earned Wage garnishment hurts. You work hard all week, making every cent of your paycheck, and unexpectedly, the IRS strips a substantial amount to pay your debt off away. You do not find out before pay day. Nashawaty & Rand will stop this from occurring or fix it if it has already happened. Will allow us to receive your cash back where it goes, and bankruptcy law is set up to protect you.
Cease Vehicle Repos
Get Back On The Road Odds are, you rely on your vehicle to get you from point A to point B. If you’re behind on payments, there’s no need to worry about the repo guy. Nashawaty & Rand will stop him from paying you a trip or can help you recover your automobile if it has already been taken. Under Chapter 13, the finance company must return the vehicle. We could also put a strategy to decrease your auto payments.
Remove Liens and Judgements
Take Back What’s Yours Since they think it’s a guaranteed method of getting creditors set liens. Nashawaty & Rand can put an end to this treatment. We will file a motion with the court to help so it’s possible to live knowing your home or automobile can’t be accumulated by creditors release these exemptions and judgments.
Eliminate Second Mortgages
One Mortgage is Enough. To Have you been stuck paying two mortgages? Nashawaty & Rand can help. There is not any reason for you to need to cover the lender more than your home is worth. We would like you to feel comfortable and secure in your home rather than worrying about how you can continue to afford it. Massachusetts law will let us wash off that instant mortgage if your home isn’t worth more than your initial mortgage. It is that easy!
Eliminate Credit Card Debt
Quit Worrying Today Let’s face it. Charge card debt happens. It won’t be, although it may feel like the world’s end. Bankruptcy laws exist for a reason, and that reason is to protect you. Nashawaty & Rand can do everything in its power to get you the fresh start you deserve. We will help you wash clean your credit report and rebuild your credit score so that you can proceed with your life.
Remove One Less Worry Debt settlement can be hard and shouldn’t be tackled alone. That’s why you should hire one of Massachusetts’ best bankruptcy companies, Nashawaty & Rand. Debt settlement could be a very smart decision if handled properly. Let us create debt settlement work for you, not from you. We are on your side.
Should you face foreclosure, wage garnishment, or are just tired of harassment from creditors, call us today. Today, we can help.
Massachusetts Chapter 7 bankruptcy information
Massachusetts Chapter 7 bankruptcy info. In Chapter 7 bankruptcy, you wipe out your debts and get a”Fresh Start.” Chapter 7 bankruptcy is a liquidation where the trustee collects all of your assets and sells any assets that aren’t exempt.
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court or has its principal place of business or principal assets. Debtors should also provide the assigned case trustee with a copy of the tax return or transcripts to the most recent tax year in addition to tax returns filed during the case (such as tax returns for prior years which hadn’t been filed when the case started). Individual debtors with primarily consumer debts have document filing requirements that are additional. They need to document: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified tuition or education accounts. A husband and wife may file a joint petition or individual petitions even if filing wife and a husband are subject to the document filing requirements of individual debtors.
The courts charge a fee of $335, which may be paid in installments or can be waived in certain circumstances.
The Bankruptcy Code allows an individual debtor to protect some land (that is, to maintain it as exempt) from the claims of creditors and by the trustee. Many states have taken advantage of a provision in the Bankruptcy Code that allows each state to adopt its exemption law in place of the exemptions. In different jurisdictions, the individual debtor has the option of choosing between a federal package of exemptions or the exemptions. Thus, whether certain property is exempt and may be kept by the debtor is often a matter of state law. The debtor should consult an attorney to find out the exemptions offered from the state where the debtor lives.
Filing a petition under chapter 7 “automatically stays” (stops) most collection actions against the debtor or the debtor’s land. But filing the request does not stay particular kinds of actions, such as criminal prosecution, and the remain might be effective for a short time in some scenarios. The stay requires no action by a judge unless you’ve filed more than one case in a year and usually arises by operation of law. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are supplied by the borrower.
Between 20 and 40 days after the petition is submitted, the case trustee (described below) will hold a meeting of creditors. The debtor must attend the meeting and answer questions regarding the debtor’s financial affairs and property. If a husband and wife have filed a joint petition, they both must attend the creditors’ meeting and answer questions. The situation trustee and determine whether or not a chapter 7 discharge is appropriate and the US Trustee will review.
It’s important for the debtor to cooperate with the trustee and to provide any financial records or documents that the trustee requests. The Bankruptcy Code requires the plaintiff to ask the debtor questions in the meeting of creditors to ensure that the debtor is aware of the potential consequences of seeking a discharge in bankruptcy like the impact on credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt. Advice is provided by some trustees on these subjects at or prior to the meeting. To be able to maintain their independent judgment, bankruptcy judges are prohibited from attending creditors’ meeting.
To be able to provide the complete debtor relief, the Bankruptcy Code permits the debtor to convert a chapter 7 case so long as the borrower is qualified to be a debtor underthe new chapter. However, a condition of the debtor conversion is the case has not been converted to chapter 7. The debtor will not be allowed to convert the case repeatedly from 1 chapter to the next.
Chapter 7 Discharge
A discharge prevents the creditors from taking any collection actions against the debtor. Since a chapter 7 discharge is subject to exceptions, debtors should consult competent legal counsel before filing to discuss the range of the discharge. Excluding cases which are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases. In most cases, unless a party in interest files a complaint objecting to the discharge or a motion to extend the opportunity to thing, the bankruptcy court will issue a discharge order comparatively early in the case — normally, 60 to 90 days following the date set for the meeting of creditors.
The basis for denying an individual debtor a discharge in a chapter 7 case are narrow and are construed in the debtor’s favor, generally. Among other reasons, the court may deny the debtor a discharge if it finds that the borrower failed to keep or produce adequate books or financial records; failed to explain satisfactorily any loss of resources; committed a bankruptcy crime like perjury; failed to obey a lawful order of the bankruptcy court; fraudulently transferred, concealed, or destroyed property that would have become property of the estate; or failed to complete an approved instructional course concerning financial management.
Secured creditors may retain some rights to seize property securing an underlying debt even after a discharge is allowed. Depending on individual circumstances, if a debtor wishes to keep certain secured property (for example, an automobile), he or she may decide to”reaffirm” the debt. A reaffirmation is an agreement between the creditor and the debtor that the debtor will remain liable and will cover all or a portion of the money owed, even though the debt could otherwise be discharged from bankruptcy. In return, the lender claims it will not repossess or take back the automobile or another land as the debtor continues to pay the debt.
She or he must do this until the discharge is entered if the debtor decides to reaffirm a debt. A reaffirmation agreement that is written must be signed by the borrower and file it with the court. The Bankruptcy Code requires that reaffirmation agreements contain an extensive collection of disclosures. The disclosures must notify the debtor of the amount of the debt being reaffirmed and how it’s calculated, and that reaffirmation implies that the debtor’s liability for this debt will not be discharged from the bankruptcy. The disclosures require the debtor to register and file a statement of his or her income and expenses that shows that the equilibrium of income is sufficient to pay the debt that is reaffirmed. There’s a presumption of undue hardship if the balance isn’t enough to pay the debt to be reaffirmed, and the court might decide not to approve the reaffirmation agreement. Unless a lawyer represents the debtor, the reaffirmation agreement must be approved by the bankruptcy judge.
An individual receives a discharge for most of his or her debts in a chapter 7 bankruptcy situation. A creditor may initiate or continue any actions against the debtor to collect a debt. However, not all of an individual’s debts are discharged in chapter 7. Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the land of another entity, debts for death or personal injury caused by the debtor’s operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances, and debts for certain criminal restitution orders. The debtor will continue to be liable for these sorts of debts that they are not paid in the chapter 7 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will soon be discharged unless a timely creditor files and prevails in action to have such debts declared non dischargeable.
The court may revoke a chapter 7 discharge on the request of the trustee, a creditor, or the U.S. trustee if the discharge was obtained through fraud by the debtor, if the debtor acquired property that’s property of the estate and knowingly and fraudulently failed to report the purchase of such property or to surrender the land to the trustee, or if the borrower (without a satisfactory explanation) creates a material misstatement or neglects to supply records or other information in connection with an audit of the debtor’s case.
Chapter 7 Eligibility
To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.” The debtor has no liability for debts. In a chapter 7 case, however, a discharge is available not to businesses or partnerships. Though a single chapter 7 case usually results in a release of debts, the right to a discharge is not absolute, and some kinds of debts aren’t discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property (for instance, an attachment or execution) unless the bankruptcy judge issues a specific arrangement concerning the lien.
How do I file Chapter 7 bankruptcy in Massachusetts?
To document for bankruptcy, you have to complete the Ideal kinds and document them bankruptcy Court. The forms you need include a “request” and “schedules” that give information regarding your finances — the Bankruptcy Court fees filing fees: $335 for Chapter 7 bankruptcy.
How often can you file bankruptcy in Massachusetts?
New legislation is in place that dictates filing for bankruptcy (and getting a discharge) is limited to 8 years to get Chapter 7 bankruptcy in Massachusetts and every four years for a Chapter 13 bankruptcy in Massachusetts. A lot of individuals may still document –they simply won’t receive the discharge.
Does bankruptcy stop foreclosure in Massachusetts?
As I have written before, Massachusetts requires lenders to supply borrower the last opportunity to “cure” their mortgage debt before starting foreclosure. Bankruptcy provides a debtor with an automatic stay, which will automatically stop a foreclosure.
Can Bankruptcy Stop Foreclosure?
The moment you file for bankruptcy relief (including an emergency petition) an automatic stay goes into effect that prohibits your lender from going forward with the foreclosure sale. This usually means that bankruptcy may nevertheless postpone or stop the foreclosure process so long as the home hasn’t been marketed yet.
How long does it take to foreclose on a home in Massachusetts?
Based on the timing of the variously required finds, it normally requires approximately 75-90 times to effectuate an uncontested non-judicial foreclosure. This process may be delayed if the borrower seeks adjournments and delays of sales, contests the actions in court, or files for bankruptcy.
How can I stop a foreclosure auction immediately?
5 Ways to Stop the Foreclosure Process
Foreclosure Workout. Until the time your home is scheduled for auction, many creditors prefer to work out than simply take your home in a foreclosure.
- Short Sale. …
- Bankruptcy. …
- Deed in Lieu. …
Just how long does the foreclosure procedure take?
Notice of Default. The foreclosure procedure that is official is not started by the notice of Default. This note is issued 30 times after the fourth missed a monthly payment. From this point onwards, the borrower will have 2-3 weeks, depending on state law, to reinstate the loan and stop the foreclosure process.
Is Massachusetts a recourse state?
The matter is that in a refuge state, for example, Massachusetts, you could face the lender coming after you for what you owe them. In certain states, for example, California, a mortgage is known as a “non-recourse loan.”
Could I sell my home to avoid foreclosure?
You can sell up your home until it is sold at auction or the lender takes ownership of your residence. One way to prevent foreclosure is to sell your property (with the assistance of an experienced agent) and to pay off everything you owe the creditor, such as back mortgage obligations, penalties, and fees
Can a loan modification hurt your credit score?
Depending on how your lender accounts it to the credit bureaus, a loan modification can result in a fall in your charge score. But at precisely the same time, it is likely to have much less negative effect than a foreclosure or chain of late payments; therefore, in this case, it can help your rating in the long run
Can Chapter 7 save my House from foreclosure?
Although you may ‘t grab on past-due mortgage obligations at a Chapter 7 bankruptcy, it may allow you to postpone a foreclosure. But if you have serious debt difficulties, you can also remove those debts through a Chapter 7 bankruptcy, then it might make sense to file and get some additional time on your house as well.
Can I keep my home and car in Chapter 7?
By using bankruptcy exemption laws to their lists of resources, most people filing chapter 7 bankruptcy can maintain their homes and cars if: Their budgets enable them to keep up using a mortgage and car loan obligations. Insurance loan payments and taxes are up to date.
Is it bad to file Chapter 7?
Typically, most people who file Chapter 7 bankruptcy do not own more assets than they can protect. If that is your situation, all of your debts may be removed without losing. You can be given a Chapter 7 discharge once every eight years. A means evaluation is going to be done by your bankruptcy lawyer.
What will I lose in Chapter 7?
In Chapter 7 bankruptcy, the bankruptcy trustee’s job is to get as much cash as possible for your unsecured creditors. The trustee does this by selling it taking your property and distributing it to your creditors. If your condition exempts up to $50,000 at a house, you will likely lose your home in Chapter 7.
What resources can I keep in Chapter 7?
In Chapter 7 insolvency, exemptions decide what property you get to maintain if it is your house, vehicle, pension, private belongings, or another land. If the property is exempt, you may keep it through and after insolvency. The trustee is allowed to sell it to pay your unsecured creditors when land is nonexempt.
Do I need a lawyer for a foreclosure?
Exception: When You May Want to Employ a Lawyer. While you probably don’t need a lawyer that will assist you in staying in the property during the foreclosure, you may have to hire an attorney if the lender or servicer prematurely affects the locks or removes your personal property from the house in the name of “property preservation.”
Can you stop a foreclosure after it begins?
Once you default on your monthly home loan payments, your lender has the right to begin the process of foreclosure. But, though your bank has initiated the foreclosure process, you do have some options to try throughout the pre-foreclosure period to try and prevent losing your house.
How bad does a foreclosure hurt your credit?
Based on FICO, should your credit score is 680, a foreclosure will drop your credit score average by 85 to 105 points. If your charge score is good at 780, foreclosure will drop your score by 140 to 160 points. Foreclosure, short sale or deed-in-lieu: 85 to 160. Bankruptcy: 130 to 240.
What happens to charge after foreclosure?
Foreclosure happens when you default on your mortgage, and your creditor takes ownership of the home. A foreclosure will stay on your charge account for seven decades and bring off your credit score. Following the period, the foreclosure mark should automatically drop off your account.
Can you sell your home after Chapter 7 discharge?
Though you can sell a home immediately after bankruptcy, you can’t purchase one unless you can pay money. Should you can’t afford to cover your debts, bankruptcy may help you discharge your debts and begin. As soon as the insolvency situation is closed, you’ll be able to market some of the assets you still possess, including your own home.
Just how long can Chapter 7 stay on your credit score?
Ten years Chapter 13 bankruptcy is deleted seven decades from the filing date because it requires at least a partial repayment of those debts you owe. Chapter 7 bankruptcy is deleted ten years in the filing date because none of the debt has been repaid.
Do I qualify for Chapter 7?
To qualify to get a Chapter 7 bankruptcy, the borrower must make less than the state income on a monthly basis and submit to a “means test” that assesses their financial records, such as income and expenses, together with bonded (mortgages and car loans) and unsecured debt (credit card bills, personal loans, and medical)
How long does the foreclosure procedure take in Massachusetts?
Based on the timing of the many required finds, it usually requires approximately 75-90 days to effectuate an uncontested non-judicial foreclosure. This procedure might be delayed in the event the borrower files for bankruptcy, attempts adjournments and delays of earnings, or competitions the action in court.
GETTING ON WITH YOUR LIFE
Most creditors are banned from calling you or seeking to collect a debt which has been recorded in the bankruptcy strategy when the judge issues the Order of Discharge. A lender will attempt to collect an old debt. If that’s the case, you need to contact your lawyer.
As we are to get the duration of your strategy with you, don’t hesitate to phone us any time an issue is up to five years later the case has been registered.
Debts for court requests for restitution, alimony, taxes, student loans, and child support are.
The discharge doesn’t influence the right to waive the mortgage of the bank, and that means you MUST stay current on the mortgage. From time to time, if you’re behind in your mortgage through the scenario, you may make alterations to grab, but if you do not, you may not get a discharge.
A couple more debts can be discharged by chapter 13 compared to chapter 7!
If you believe there is a creditor attempting to collect a debt from you, let us know, and we’ll take of the proper actions to halt the lender, such as suing the creditor.
Using the information we organize a succession of documents for example, program. A filing fee of $310 charges. Cannot be waived, although, under certain conditions, the court’s commission could be paid in installments. After we file the request, a meeting is scheduled with the bankruptcy trustee (known as a “341 meeting” or “first meeting of creditors”) that you MUST attend. We are going to go with you, naturally! We’re with you every step along the way.
Filing the request under chapter 13 ” automatically stays” (stops) most collection actions against the debtor or the debtor’s land. Assessing the request does not retain certain kinds of activities, such as charges, and the remainder might be successful just. The stay arises by operation of law and requires no action. So long as the stay is in effect lenders may not commence or continue lawsuits, wage garnishments, or make phone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case.
In a chapter 13 case, to participate in distributions from the bankruptcy estate, most of the creditors (such as mortgagees) should file their claims with the court within 90 days following the first date set for the meeting of creditors. If there aren’t any objections to the policy, the bankruptcy judge “affirms” the policy, along with the trustee then distributes the funds to creditors according to the terms of the plan, which might provide some creditors less than full payment on their promises. The plan shouldn’t pay unsecured claims in full as long it provides the debtor will cover all projected”disposable earnings” within an”applicable commitment period,” as long as unsecured creditors receive at least as much under the policy since they’d get if the debtor’s assets were liquidated under chapter 7.
Within 30 days after filing the bankruptcy case, even if the court has not yet accepted the program, the debtor must begin making plan payments. If the court confirms the plan, the chapter 13 trustee will distribute funds obtained under the program” as soon as is practicable.” If the judge won’t confirm that the plan, the debtor could file a modified program, or the situation could be disregarded (which generally is undesirable, of course).
On occasion, the debtor’s ability may be compromised by a change in the situation. By way of instance, a creditor may object or threaten to object to some strategy, or the debtor may inadvertently have failed to list all creditors. In such cases, the program may be modified either before or after confirmation. Modification after confirmation isn’t limited to an initiative by the debtor but might be at the petition of an unsecured lender or the trustee.
If you would like to attempt and prevent foreclosure of your house mortgage, then this is the thing for you.
This chapter of the Bankruptcy Code provides for “modification” of debts of an individual with regular income. Chapter 13 enables a debtor to keep property and pay debts. Even though a debtor shouldn’t have a project A chapter 13 bankruptcy is referred to as a wage earner’s plan. It empowers people with steady and regular earnings – in ANY source – to create a plan to refund portion or all of the debts. Under this chapter, debtors propose payments to be made by a repayment plan . Unless the court orders otherwise while the strategy is in effect, the legislation prohibits creditors.
Chapter 13 offers several advantages over liquidation under chapter 7 to people. Most importantly, chapter 13 offers people a chance to save their homes. People can stop foreclosure proceeding and might cure mortgage payments up to five decades by submitting under this chapter. But they have to make still all mortgage payments that come due during the chapter 13 plan. Another advantage of chapter 13 is that it enables people to change secured debts (other than a mortgage because of their main residence, typically) and expand them over the life span of their chapter 13 plan. By doing so, the obligations may be lowered. Chapter 13 also includes a unique provision which shields third parties (such as your partner or a friend) who’re obligated with on “consumer debts” (like co-signers). Chapter 13 behaves as a consolidation loan where the program payments are made by the person. Folks will have no immediate contact pre-filing lenders while under chapter 13 protection. Any person, even when self-employed or operating an unincorporated business, is eligible for chapter 13 relief and secured debts are less than $1,149,525. These numbers are adjusted to reflect fluctuations. A company or partnership might not be a chapter 13 debtor.
You need to offer information concerning your expenses and income for the six weeks before the date, in getting ready for submitting, and you need to make certain your tax returns will be filed. We’ll also require advice on all your debts and your premises. You also need to have a credit counseling session with a counselor; your bankruptcy case is certain to be disregarded if you do not possess the session.
Chapter 13 Discharge – The “Home Run”!
When you have made all of the obligations the courtroom will be notified by the chapter 13 trustee, and the judge will issue an Order of Discharge, relieving you of this duty. The discharge releases the debtor from all debts provided for by the plan or disallowed. Creditors may no longer initiate or continue any actions against the debtor to collect the discharged obligations.
With the exclusion of debts, the discharge releases the debtor from all debts provided for by the plan or disallowed, as a rule of thumb. Debts not discharged in chapter 13 include certain long-term obligations (such as a home mortgage), debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury brought on by driving while drunk or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor’s conviction of a crime. To the extent they are not completely paid under the chapter 13 plan, the debtor will still be responsible for these debts after the bankruptcy case has concluded. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for restitution or damages awarded in a civil case for malicious or deliberate activities by the debtor that cause personal harm or death to a person is going to be discharged unless a creditor timely files and prevails in an action to have such debts declared non- dischargeable.
The discharge in a chapter 13 case is wider than in a chapter 7 case. Debts dischargeable in chapter 13, but not in chapter seven, comprise debts for willful and malicious injury to property (rather than some person), debts incurred to pay non-dischargeable tax obligations, and debts arising out of property settlements in divorce or separation proceedings.