filing a bankruptcy under chapter 13 what questions you can ask to attorney

Generally, your bankruptcy filing will include official forms that ask for the following information: Names of creditors, the amounts they are owed and the nature of their claims Your income source and the amount and frequency of payment

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Why should someone file a bankruptcy Chapter 13?

 · Generally, your bankruptcy filing will include official forms that ask for the following information: Names of creditors, the amounts they are owed and the nature of their claims Your income source and the amount and frequency of payment A list of your property

What to do before filing Chapter 13 bankruptcy?

833-890-0666. Free no obligation consult with a lawyer. master:2022-04-19_10-08-26. by: Baran Bulkat, Attorney. Whether you file for Chapter 7 or Chapter 13 bankruptcy, you have to attend a hearing called the meeting of creditors (also called the 341 hearing) to answer questions about the information contained in your bankruptcy paperwork.

What do you need to know about a chapter 13 bankruptcy?

There are five typical reasons for filing a chapter 13. These are: saving your home from foreclosure, saving your car from repossession, a prior Chapter 7 bankruptcy, failing to qualify for Chapter 7 due to high income, and non-exempt assets. If a Chapter 13 has been recommended, then you should ask why. A typical attorney's fee for a chapter 7 will range from $1,500 to …

What to expect during a chapter 13 bankruptcy?

 · 6. Have you previously filed bankruptcy? If so, under what Chapter, what is the case number and when did you receive your discharge? 7. What is the address of your current employer? 8. the copy of the tax return you provided a true copy of …

What kind of questions do they ask at bankruptcy court?

Common Bankruptcy Trustee QuestionsDid you review your bankruptcy petition and schedules before you filed them with the court?Is all of the information contained in your bankruptcy papers true and correct to the best of your knowledge?Did you disclose all of your assets?

What Cannot be discharged in Chapter 13?

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 caused by driving while intoxicated ...

What will I lose in Chapter 13?

A Chapter 13 bankruptcy can remain on your credit report for up to 10 years, and you will lose all your credit cards. Bankruptcy also makes it nearly impossible to get a mortgage if you don't already have one.

Does Chapter 13 trustee check your bank account?

Does Chapter 13 Trustee Check Your Bank Account? Yes, it's highly likely that your appointed trustee will check both your personal bank accounts and any business-related bank accounts which you may have under your name.

Can the IRS take my tax refund if I filed Chapter 13?

Can a Bankruptcy Trustee Take Your Tax Refund After a Discharge? There are two types of bankruptcy for individuals, Chapter 7 and Chapter 13. The bankruptcy trustee can keep your tax refund in both, though with Chapter 7 it will happen only once. With Chapter 13, it can happen every year of your repayment plan.

Does Chapter 13 wipe out all debt?

In a Chapter 13 bankruptcy, you must repay some debts in full through your Chapter 13 plan. Most debtors pay unsecured, nonpriority creditors in part through the plan, and then the remainder of the debt is discharged at the end of the bankruptcy.

What is the downside to filing Chapter 13?

Although a Chapter 13 bankruptcy stays on your record for years, missed debt payments, defaults, repossessions, and lawsuits will also hurt your credit and may be more complicated to explain to a future lender than bankruptcy.

What is the average credit score after Chapter 13?

The average credit score after bankruptcy is about 530, based on VantageScore data. In general, bankruptcy can cause a person's credit score to drop between 150 points and 240 points. You can check out WalletHub's credit score simulator to get a better idea of how much your score will change due to bankruptcy.

What is the success rate of Chapter 13?

Success Rate for Chapter 13 Bankruptcy The ABI study for 2019, found that of the 283,313 cases filed under Chapter 13, only 114,624 were discharged (i.e. granted), and 168,689 were dismissed (i.e. denied). That's a success rate of just 40.4%.

What if my income goes up during a Chapter 13?

An Increase in Income During Chapter 13 You can use Chapter 13 to retain some of your assets, but discharge all or a lot of your debts. The court will give you three to five years to pay your debts on a set schedule rather than the original rate determined.

Can you rebuild your credit while in a Chapter 13?

Yes. Credit cards, vehicle loans, and even residential mortgage loans can be obtained during a chapter 13 case. The most difficult of the loans is the mortgage loan but it is possible after the bankruptcy case has been pending for a period of time.

What happens if your income decreases during Chapter 13?

If your income goes down during your Chapter 13 bankruptcy and you can no longer afford your monthly plan payment, you can ask the court to modify your Chapter 13 repayment plan and reduce your payment amount. Whether the court will allow you to lower your plan payment will depend on several factors.

1. Should I be filing for bankruptcy?

We know that whilst cases may appear similar, each person’s situation is unique, and so we’ll listen to everything you’ve got to say, and then give you our honest opinion and recommendation as to whether you should file for bankruptcy.

3. Is there anything worrying you about my case?

As previously mentioned, many cases are similar, and since 1977 we have helped over 40,000 families become free from debt.

5. How long will the process take?

Chapter 7 Bankruptcy typically takes around 3 months, whilst Chapter 13 Bankruptcy usually lasts for 3-5 years as it is a debt repayment plan.

7. How will you keep me updated?

We’ll let you know the process, what to expect, and what you need to do next.

8. What are your fees?

Whilst we try and remain competitive, because we know that many people want to utilize our skills and experience in successfully filing for bankruptcy.

10. Do you offer payment plans?

Yes. We fully understand that you’re struggling to pay your bills, and so spreading our costs makes sense to us as well as you.

Conclusion

Now you know what questions to ask a bankruptcy attorney before you choose them, you’ll feel confident that you’re getting the help and advice you need for your financial situation.

What does a Chapter 13 trustee do?

As a result, a Chapter 13 trustee will usually go into more detail about your monthly income and expenses to make sure you are paying all of your disposable income to your creditors through your repayment plan.

What is the difference between Chapter 7 and Chapter 13?

In contrast, Chapter 13 is a reorganization bankruptcy that allows you to keep your nonexempt property in exchange for paying a portion of your debts through a repayment plan.

What does Chapter 7 bankruptcy do?

In Chapter 7 bankruptcy, the trustee pays your creditors with proceeds obtained from the sale of your nonexempt assets. This means that most of the trustee's questions in Chapter 7 bankruptcy will typically focus on your property and bankruptcy exemptions.

What does a trustee do when administering a bankruptcy case?

When administering your case, the trustee must verify the information disclosed in your bankruptcy paperwork and determine whether you have any property that can benefit the bankruptcy estate.

What are the red flags in bankruptcy?

In addition to making sure that your paperwork is accurate and complete, the trustee will be on the lookout for omitted or undervalued assets, undisclosed income, fraudulently transferred property, and any other red flags that can benefit your creditors or indicate abuse of the bankruptcy process.

What is the job of a trustee in bankruptcy?

At the hearing, the trustee's job is to have you verify under oath that all of the information you disclosed is correct and ask you questions regarding any discrepancies, errors, or items that don't comply with applicable bankruptcy laws.

What is the meeting of creditors called?

Whether you file for Chapter 7 or Chapter 13 bankruptcy, you have to attend a hearing called the meeting of creditors (also called the 341 hearing) to answer questions about the information contained in your bankruptcy paperwork. The meeting of creditors is conducted by the bankruptcy trustee appointed in your case.

What are the exemptions for Chapter 7 bankruptcy?

Typical bankruptcy exemptions include some or all of the equity in your home, a car, your clothing, household furnishings, and the tools of your trade; to find out more about exemptions and look at the exemption list in your state, see In exchange, your debts will be discharged (wiped out), except for some types of debt that can't be discharged in bankruptcy, such as back taxes, child support, and student loans (in most situations).

How much does it cost to file for bankruptcy?

Ask the attorney how much you will have to pay, in total. The court charges filing fees (currently $338 to file a Chapter 7 case and $313 to file for Chapter 13 bankruptcy; $335 and $310 respectively until December 1, 2020). You'll pay additional costs, such as administrative fees to the trustee in your Chapter 13 plan.

How long do you have to pay back Chapter 7?

However, you must enter into a three- to five-year repayment plan to pay back some or all of your debts. Filers whose income exceeds the median income in their state and who have at least a minimum amount of disposable income each month after paying their reasonable expenses might not be allowed to use Chapter 7.

Why do you have to pay Chapter 7?

Chapter 7 lawyers require full payment to avoid having the balance owed discharged, making it uncollectable. By contrast, most filers pay less than the agreed amount to start a Chapter 13 case and pay the remainder through the repayment plan.

Do you pay fees for Chapter 13?

You'll pay additional costs, such as administrative fees to the trustee in your Chapter 13 plan. And of course, the attorney will charge you a fee to handle the case. The attorney will tell you what your fees will cover and how future services will be paid going forward.

Can you use Chapter 7 or Chapter 13?

This requirement -- called the means test -- is intended to force filers who can afford Chapter 13 to use it. When you talk to a bankruptcy attorney, the attorney should be able to tell you whether you can use Chapter 7. If you can choose between Chapter 7 and Chapter 13, the lawyer should explain the pros and cons of filing each chapter.

How does bankruptcy benefit you?

How will bankruptcy benefit me? You should have a clear understanding of the benefits associated with a bankruptcy filing. For example, a Chapter 7 may discharge most or all of your debt, and stop collection activity. A Chapter 13 may allow you to catch up mortgage payments, or restructure other debt.

What are the benefits of filing for bankruptcy?

For example, a Chapter 7 may discharge most or all of your debt, and stop collection activity. A Chapter 13 may allow you to catch up mortgage payments, or restructure other debt.

Who will go to court with me?

The answer should be an attorney, not a paralegal. Some law firms will have one attorney handle all the court cases on a given day, and as long as the attorney is familiar with your case, that should be fine. But, you should meet that attorney before you go. It will increase your comfort level just to know a familiar face. Some attorneys have formal or informal agreements to cover each other’s cases from time to time, and occasionally emergencies come up. At the very least, you should know who to look for, and be comfortable that the attorney has been briefed on your case.

Is bankruptcy a difficult process?

Filing bankruptcy is a serious step, and a difficult one for most folks. In addition to being a step most people are very reluctant to take, it is a totally unfamiliar process, too. It can be confusing and stressful. How do you know that you’re asking the right questions? A lot has been written here about the importance of having an experienced bankruptcy attorney (see here and here for just a couple of examples). But how do you know that’s what you’re getting? Below are a few questions to ask your prospective bankruptcy attorney, just to get you started.

Do I have any non-exempt assets?

Do I have any non-exempt assets? Each state has created a list of assets considered to be protected or "exempt" from creditor attachment or seizure, and thus, from your trustee in bankruptcy.

If I have non-exempt assets, what options do I have?

If I have non-exempt assets, what options do I have? Your attorney must advise you that these items are non-exempt and guide you through the five possible strategies for handling the non-exempt asset, such as making an offer to the Chapter 7 trustee or liquidating the asset under legally permissible conditions prior to filing.

Do I have any preferential payment issues?

Do I have any preferential payment issues? A preferential payment is a payment to one creditor at the expense of or in absence of payments to other creditors.

Are any of my transfers in the past two years possible fraudulent transfers?

Are any of my transfers in the past two years possible fraudulent transfers? You probably have tried to avoid bankruptcy and in doing so may have had some yard sales or sold assets to raise money to pay bills or even to get by.

Do I pass the means test? In other words, do I qualify for chapter 7?

Do I pass the means test? In other words, do I qualify for chapter 7? Your attorney should review your income and review your paystubs at the Initial Consultation to determine whether you qualify for Chapter 7 bankruptcy. If your circumstances may change prior to filing, then timing could be an issue to be considered.

How many 707b objections have you handled? What were the circumstances and who prevailed?

How many 707b objections have you handled? What were the circumstances and who prevailed? Most lawyers will encounter an objection to a Chapter 7 case over the course of representing clients in bankruptcy.

If a chapter 13 is recommended, what is the estimated monthly Plan payment?

If a chapter 13 is recommended, what is the estimated monthly Plan payment? I am astounded that some attorneys fail to provide an estimated Chapter 13 payment at the Initial Consultation.

How long does Chapter 13 bankruptcy last?

These monthly payment plans are usually designed to last for three to five years, depending on your monthly income.

What happens if you file Chapter 7 bankruptcy?

An asset that is exempt in one state may not be exempt in another, but any asset that you own which is not exempt from seizure will be liquidated if you choose to file chapter 7 bankruptcy. If you are filing for chapter 13 bankruptcy, ownership of non-exempt assets may result in a higher monthly payment plan. Knowing which assets you are eligible to keep in your possession and which ones you may lose in bankruptcy will be informative as you decide on your next steps.

How long do you have to pay off your debts before filing bankruptcy?

You might remember when tackling the first few questions to ask before filing bankruptcy that filing for chapter 13 means that, instead of liquidating your assets, you are allowed the opportunity to work with a judge to establish a payment plan over three to five years. During that time period, your creditors will not be allowed to continue their collection efforts. If all of your payments are made successfully throughout the amount of time determined by you and the judge, the remainder of your debts will be discharged. While this is an excellent option for individuals who have a mortgaged car or home or other assets that they don’t want to lose to chapter 7 liquidation, planning ahead is essential. You will want to ensure that you fully understand the number of months in your payment plan, as well as the amount you must pay each month.

What is Chapter 7 bankruptcy?

In other words, filing chapter 7 bankruptcy allows you to sell your assets for money which will then be distributed amongst your creditors to pay your debts.

Is bankruptcy free?

You may be reading this line again and again in disbelief, a sinking feeling in your stomach, but filing for bankruptcy is, counterintuitively, not free. You will want to consider this question and make thorough inquiries about filing fees when you consider how filing bankruptcy will positively or negatively affect your financial future.

Can bankruptcy lawyers help you?

Your bankruptcy lawyer will want to help you, so don’t be afraid of asking personal or complex questions. With an experienced legal team accustomed to working in bankruptcy court, there is no question too small or too complex. Filing bankruptcy isn’t an ideal situation, but communicating well with your attorney and knowing all the right questions to ask before filing bankruptcy can make the process more bearable and minimize unpleasant surprises.

What to do if you have questions about bankruptcy?

Also, if any information has changed or you have other questions, call your attorney prior to the hearing or talk to them at the courthouse before you go into the meeting. Your attorney works for you and is your advocate during the bankruptcy case, so be 100% honest with them to get the best results.

What happens when you file for bankruptcy?

When you file for bankruptcy, a Trustee will be assigned to your case. Your Trustee will be at any formal hearings you must attend for your bankruptcy. With a Chapter 7 case, this is the 341 Meeting of Creditors. With Chapter 13, there is the 341 Meeting of Creditors plus the Confirmation Hearing to approve your bankruptcy repayment plan.

What to do if you are unsure what a question means?

If you are unsure what a question means, you can consult your bankruptcy attorney during the Meeting of Creditors. Your attorney will be there with you while the Trustee asks you questions about the case.

What is a check for bankruptcy?

This is a check to make sure that you know what financial information is included in your bankruptcy filing. You should get it since you were the one that provided the documents to your attorney who then used that information to complete your petition.

Do you have to tell your lawyer about HOA fees?

If you live in a neighborhood or condo where there is an HOA, the Trustee may ask if you have past-due HOA fees and how much your annual or monthly obligation is to the HOA. Again, this is something you should already have told your attorney about, so it should be a simple answer.

Is it illegal to leave debts off when filing bankruptcy?

It’s illegal to try and leave off any debts when you file bankruptcy. Some people may try to hold back a credit card or try and leave out a personal debt to a relative (like if your parents loaned you money). It’s a bad idea to leave any off. Be honest with your lawyer so you can answer yes to this question.

Can you transfer assets to friends before filing for bankruptcy?

It’s critical that you never try to shield any assets or property, transfer them to friends or family before the filing, or do anything else to sidestep bankruptcy law. North Carolina bankruptcy exemptions are generous and allow a reasonable amount of assets to be protected during the case.

What form do you file for Chapter 13?

The first form is the Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period, Official Form B122C-1 .

How many forms are required for Chapter 13?

Chapter 13 debtors must file either one or two forms that together determine the duration and available income for a Chapter 13 repayment plan.

Can you include your car payment in your bankruptcy?

It is possible to include your entire car payment in the plan and even adjust your interest rate or the amount of the principal you will repay if your car loan was at least 2 ½ years old when you filed the bankruptcy case. 6 7