The most common types are Chapter 7, Chapter 13, and Chapter 11.Chapter 7 Bankruptcy forgives you of most of your debt. You can keep most or all of your assets with a few exceptions. ... Chapter 13 Bankruptcy is more common than Chapter 7 Bankruptcy. ... Chapter 11 Bankruptcy is generally for small business owners.
There are six chapters of bankruptcy in the United States, Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13 and Chapter 15, with Chapter 7 and Chapter 13 bankruptcy being the most common forms filed.Sep 22, 2017
More than likely, you would only be dealing with the two most common types of bankruptcies for individuals: Chapter 7 and Chapter 13. (A chapter just refers to the specific section of the U.S. Bankruptcy Code where the law is found.2) But we'll take a look at each type so you're familiar with the options.Feb 3, 2022
You always have the option to file bankruptcy without a lawyer. Representing yourself is called filing “pro se” and it is an option in any legal proceeding.Nov 12, 2021
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
Chapter 7 Bankruptcy Discharge Wipes Out Most Debts Forevercredit card debt.medical bills.personal loans and other unsecured debt.unpaid utilities.phone bills.your personal liability on secured debts, like car loans (if there's no reaffirmation agreement)deficiency balances after a repossession or foreclosure.More items...•Oct 20, 2020
Top 5 Reasons Why People Go Bankrupt1) Medical Expenses.2) Job Loss.3) Poor or Excess Use of Credit.4) Divorce or Separation.5) Unexpected Expenses.The Bottom Line.
Chapter 7Chapter 7 and Chapter 13 bankruptcy are the most commonly filed types of bankruptcy, likely because they're available to individuals. However, there are other types of bankruptcy that apply to businesses, individuals and other entities.Feb 22, 2021
Filing Chapter 7 bankruptcy wipes out most types of debt, including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.Dec 12, 2021
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.
If you're experiencing severe debt problems, filing for bankruptcy can be a powerful remedy. It stops most lawsuits, wage garnishments, and other collection activities. It also eliminates many types of debt, including credit card balances, medical bills, personal loans, and more.
There are also debts which are non-dischargeable in a bankruptcy case. Non-dischargeable debts include things like child support, alimony, most tax debt, etc. If the bulk of your debts are non-dischargeable a Chapter 7 bankruptcy may not offer the relief you are seeking.
A Chapter 7 is what you think of as a traditional bankruptcy, where you walk away from your debt and get a fresh start. A Chapter 7 case lasts for a significantly shorter amount of time than a Chapter 13 case. A Chapter 13 can be much more complicated. A Chapter 13 involves a repayment plan that will run for three to five years.
After you have attended your 341 hearing and presuming there is no follow-up needed (such as filing amendments to your documents) you simply need to wait to receive your Notice of Discharge, which is the successful ending to your case. Make certain to keep a copy of this document somewhere safe.
Court Appearance. There is a single court appearance in a Chapter 7, which is called a section 341 hearing or a Meeting of Creditors. You need to attend this meeting when scheduled, and you will appear before a Trustee and answer questions about your paperwork.
First you will need to determine if you are eligible to file a Chapter 7 by passing the means test. If you are below a certain threshold for your state you will qualify, otherwise you need to complete both parts of the means test calculation to determine your disposable income.
Bankruptcy is most helpful to people with unsecured debt, like credit cards and medical bills, because these kind of debts are dischargeable. You can potentially walk away from them completely. Secured debts are those which are tied to a specific item as collateral.
You are not required to hire an attorney to file bankruptcy. You can do so for free, or with a legal aid organization. Written by Attorney Eva Bacevice. Updated October 7, 2020.
If you did not file all of the required documents with the petition or you owe a fee, the Court will send you a notice of things that must be done. Most documents needed in a bankruptcy case are time sensitive. If you do not file everything required within that time period, your case may be dismissed.
If you believe you have been a victim of a mortgage modification scam, contact the Federal Trade Commission at 1-877-382-4357 or the South Carolina Department of Consumer Affairs at 1-800-922-1594.
Learn About Bankruptcy - Filing for bankruptcy is an important decision. The help provided by the bankruptcy law can get rid of your obligation on some debts, provide you with a breathing spell from creditors, and, in a chapter 13 case, a chance to catch up on mortgage and car payments.
Call 803-765-5436 for more information. Make an Appointment for Bankruptcy Ask-a-Lawyer .
A bankruptcy chapter is a set of related laws. Most individuals file under chapter 7 or 13. Chapter 7 is generally for individuals who have less income than expenses. Individuals in chapter 7 can keep some or all of their property but some property may be sold to pay creditors. Chapter 13 is for individuals with regular income.
No employee of the Court is permitted to give legal advice or to respond to questions which may constitute legal advice. General information regarding filing a bankruptcy case, fees, forms, trustees, Court locations, calendars, etc. is available on this site at no charge.
Under limited situations, the Court may waive the requirement to complete financial management . To fulfill the financial management requirement, do one of the following: Find an Approved Financial Management Provider (link is external), take the course, and file the certificate of completion with the Court; or.
The trustee may ask you for additional documents, like copies of tax returns, house papers, car papers, and bank account statements. Your meeting of creditors may take longer than for filers who are represented by attorneys so the trustee can do a thorough job of examining you under oath.
Carron Armstrong is a bankruptcy and consumer lawyer, and an expert in debt and bankruptcy for The Balance. She has been helping educate consumers and businesses about finances for more than 40 years through her firm, Carron Nicks Law Firm, her work teaching paralegal and real estate courses at Texas colleges, and her writing.
For the same reason, your creditors will often look more carefully at your paperwork. Keep in mind that the information you provide the court has to be complete and accurate . You will sign your paperwork under penalty of perjury, and later you will have to testify as to its accuracy under oath.
Even if it looks like you will not have any non-exempt assets , filing a Chapter 7 case pro se is still a daunting task. Since your situation is somewhat out of the ordinary, your trustee will likely take special interest in your case, if only to ensure you have listed everything properly. The trustee may ask you for additional documents, like copies of tax returns, house papers, car papers, and bank account statements.
To some extent, legal representation can indeed be costly. To get quality representation, like most things, you'll need to pay for it. However, before you jump to any conclusions, you may find that it's more affordable than you think. Many consumer bankruptcy lawyers offer a free initial consultation.
If you don’t have much more than the furniture in your house and a car or two, it might not be too difficult to keep your property—the key is to carefully list everything you own at a reasonable value. These exemptions vary by state, so this is another area in which your ability to research legal issues will be vital.
No debtor in bankruptcy is left with nothing at the end of a case. In every state, a debtor is allowed to keep a certain amount and value of assets needed to get a fresh start. These are called exemptions, and the amounts differ from state to state.
How a bankruptcy lawyer can help. Our advice is to avoid the risks of pro se filing and seek the proper legal services. After you choose a bankruptcy attorney, they help you through the filing process. An attorney can help you: Decide if bankruptcy is right for you, and if so, which chapter.
Decide if bankruptcy is right for you, and if so, which chapter. Understand which debts can be discharged and which cant. Accurately fill out your bankruptcy forms. Know what tax consequences to expect. Understand which assets you can keep. This is just a small sample of what a bankruptcy attorney can do for you.
It’s called filing pro se, and it can apply to individual bankruptcy filings, too. “Pro se” is a Latin phrase that means “for oneself” or “for one’s own behalf.”.
In personal bankruptcy, if your Chapter 13 plan is rejected and you don’t qualify for Chapter 7 under a means test then you won’t be able to file. Bankruptcy is a complex process with lots of regulations and steps to follow. If you don’t do this correctly, your petition to file can be dismissed. If you don’t file correctly, discharge can be denied. ...
The last thing you want to do is give up an asset when you don’t have to. Redeem or reaffirm your debts. This may involve filing multiple motions with the court. Fill out and file the forms. They can be confusing, and it’s important to fill them out correctly. Pay the filing fee or request a fee waiver.
If you don’t do this correctly, your petition to file can be dismissed. If you don’t file correctly, discharge can be denied. You can always file again with an attorney if your case is denied the first time, but it can be problematic to get discharge approved on the same debt if it’s already been denied once.
The trustee is an administrator and does not represent you in your case. Attend a meeting of creditors and attend a confirmation hearing. Without a lawyer, you must explain your case to the court and your creditors on your own. Complete a debtor education course. Get your discharge.
I’ve taken over many cases where a debtor prepared and filed the various bankruptcy documents without the help of an attorney, what is called a pro se or pro per filing. Apart from the fact that the schedules generally have to be completely redone (the exemptions are usually wrong, debts are not listed, assets are not listed or are listed or valued incorrectly, the Means Test uses the wrong figures, the Statement of Financial Affairs is incorrect, and the budget is generally wrong), and a number of these people lost their homes, cars, jewelry, and even their discharge as a result of not being advised about what was required, how the process worked, how to value assets, how to deal with various types of debts, etc.–something an attorney is required to do.
Brett Weiss, a senior partner at The Weiss Law Group, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases, and in Chapter 11 Small Business Reorganization Act restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his colleague, Daniel Press, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the previous Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute and the Bankruptcy Bar Association of Maryland. He has received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, the United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
Advise you on whether to file a bankruptcy petition. Advise you under which chapter to file. Advise you on whether your debts can be discharged. Advise you on whether or not you will be able to keep your home, car, or other property after you file. Advise of the tax consequences of filing.
If you are unable to afford an attorney, you may qualify for free legal services. 8:30 A.M.. – 4:30 P.M.. Monday through Friday.
Most individual debtors filing for bankruptcy relief are required to complete either Official Bankruptcy Form 122A-1 or 122C-1 (Statement of Current Monthly Income and calculations). Bankruptcy Form 122A-1 is the form chapter 7 debtors will complete for "means testing" purposes; Form 122C-1 is the form chapter 13 debtors will complete.
If your application to pay in installments is approved, you will be permitted to complete payment of the fee over the course of three months.
Assist you with most aspects of your bankruptcy case. Pro se litigants are expected to follow the rules and procedures in federal courts and should be familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the local rules of the court in which the case is filed.
Social Security Card and 121 - Statement of Social Security Number (s) is required at the time of filing. If you do not have a Social Security Card, contact your local Social Security Office. Locations, phone numbers, and office hours for the Social Security Office are available at: www.socialsecurity.gov or (800) 772-1213.
Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights. Court employees and bankruptcy judges are prohibited by law from offering legal advice.