Legal ethics allows me to give a second opinion to people who already have a bankruptcy lawyer. (I don’t like to do that because it really hacks off the other lawyer.) These folks didn’t have a bankruptcy lawyer. Chuck’s Chapter 13 The first guy, Chuck, had hired one of those bankruptcy lawyers who advertises a low, $ 899, legal fee.
Full Answer
A lawyer may provide a second opinion to a potential client regarding the quality of work done by another lawyer. The lawyer may not inform the other lawyer of the client's request unless the client consents or another exception to the duty of confidentiality is applicable.May 26, 2017
Your attorney will understand how to use the exemption rules to protect as much of your assets as possible. Determine Discharge of Debts. Some debts don't get wiped out (discharged) in bankruptcy. ... Your attorney will explain which debts will get eliminated and which will survive your case.
Filing for bankruptcy can halt most civil lawsuits because of an automatic stay, which is issued the moment you file for bankruptcy. This injunction prevents your creditors from continuing their collection activities, including their attempts to obtain a money judgment in a lawsuit.
Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.
When you declare bankruptcy, you will file a petition in federal court. Once your petition for bankruptcy is filed, your creditors will be informed and must stop pursuing any debt you owe. The court will then request certain information from you, including: The total amount of debt you owe.
Disadvantages of Bankruptcy: A bankruptcy may impede your chances of getting a mortgage or car loan for some time. Not all debt will be discharged. Examples of debt that cannot be discharged include child support, alimony, some student loans, divorce settlements and some income taxes.
Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.
The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.
Unlike most judgments against a defendant, punitive damages awards are not dischargeable in bankruptcy so long as the relevant cause of action was based upon willful and malicious actions. This rule is important for creditors, as debtors may try to hide behind bankruptcy to avoid large judgments against them.
Reasons to Consider Filing for BankruptcyYou are getting a divorce.Creditors are suing you for payment of debts.The home you own is under water and in danger of foreclosure.The only way you can pay for things is using a credit card.You use one credit card to pay off another.More items...
Creditors will also be permitted to ask you questions. However, usually creditors do not attend these meetings if you have filed for Chapter 7 bankruptcy. If you file for a Chapter 7 Bankruptcy, you normally do not need to return to court.Jan 17, 2022
Technically a debtor could file Chapter 13 bankruptcy within four years of filing Chapter 7 bankruptcy but they would not be able to get a discharge. The debtor needs to determine if going through bankruptcy without receiving a discharge will offer them some benefits.
If a debtor’s debts are mostly secured or even nondischargeable, then filing bankruptcy the second time around might not be beneficial. For example, if the debtor had $40,000 in secured, priority, nondischargeable debt and only $5,000 in unsecured debt, bankruptcy might not offer the benefits they need.
If you received a discharge of debts in your first case, you must wait eight years to file your second Chapter 7 case. Chapter 7 to Chapter 13.
As before, when deciding whether bankruptcy will be beneficial, you’ll want to consider: whether you have the type of debt that’s dischargeable. the amount of property you can keep (or potentially stand to lose), and. the differences between Chapter 7 and Chapter 13 bankruptcy and which would be the best fit for you.
You can always file another bankruptcy case. However, if you’d like to receive a second discharge of your debts, you must wait until a fixed period elapses. The amount of time will depend on: the type of bankruptcy you previously filed. the bankruptcy type you plan to file.
Filing multiple cases can get you into trouble with the court if you file too many too close together. This practice, known as serial filing, will draw the court's attention and the Office of the United States Trustee. If an investigation leads the trustee or the court to conclude that you are abusing the bankruptcy process, the court can dismiss your case with prejudice, meaning that you’ll be prohibited from filing another bankruptcy case for a period. Most dismissals are limited to six to 12 months, but the court can permanently prohibit you from ever filing another bankruptcy case in extreme circumstances.
A bankruptcy petition is a document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) which opens the bankruptcy case. It is required at the time of filing. The form is Official Form B 101: Voluntary Petition.
Failure to appear may result in dismissal of the case. If a continuance or change in the hearing date, time, or location is sought, the trustee assigned to the case must be contacted. Such requests are not filed with the court.
A 341 (a) meeting is presided over by the trustee assigned to the bankruptcy case and is considered a meeting of creditors. This meeting is held approximately 40 days after the new petition is filed.
The law states that credit-reporting agencies may not report a bankruptcy case on a person's credit report after 10 years from the date the bankruptcy case is filed. Other bad-credit information is removed after seven years .
The policy of the Associated Credit Bureaus is to remove Chapter 11 and Chapter 13 cases from the credit report after seven years to encourage debtors to file under these chapters. You may contact the Federal Trade Commission's Bureau of Consumer Protection (link is external) in Washington, D.C.
Example: Secured creditors retain some rights which may permit them to seize property, even after a discharge is gran ted. Spousal and child support obligations and most tax debts are not dischargeable. Within 14 days of the filing of a bankruptcy petition, schedules of the debtor's assets and liabilities must be filed.
Under the federal bankruptcy statute, a discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged.