| Author |
Message |
adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
|
Post subject: |
|
|
You may either file Chapter 13 bankruptcy or Chapter 7 bankruptcy but it is not easy to file one. You will have to take the help of an bankruptcy attorney. I would suggest you to get hold of a clear estimate of how much you owe to your creditors. You may be able to sell off some of your properties and pay off the debts. This will save you from the embarrassment of filing bankruptcy.
If you're planning to file Chapter 7 bankruptcy, you would have to clear the Mean's Test. If your income is lower than your state's median income, then you can file for Chapter 7. If you qualify for it, the bankruptcy trustee can liquidate all your assets (apart from the exemptions) in order to pay off the dues to your creditors. If your income is above the state median income, you would be forced to file the Chapter 13 bankruptcy which will give you a repayment plan to pay off your debts.
_________________
Procrastination is the enemy of your financial sucess |
|
|
Tracie
Guest
|
|
Post subject: Bankruptcy |
|
|
| I am currently with a debt collection agency and not able to afford the payments can I still file bankruptcy or am I stuck pauing it off thru them? |
|
|
smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
|
|
Post subject: |
|
|
Hi Tracie!
Welcome to forums!
As you cannot afford the payments, you can definitely go ahead and file bankruptcy. Contact a bankruptcy attorney and discuss your situation with him. He will suggest you whether to file Chapter 7 or Chapter 13 bankruptcy.
Feel free to ask if you have further queries.
Sussane |
|
|
Saira Cruz
Guest
|
|
Post subject: |
|
|
| Should I file bankruptcy in order relieve myself from the back taxes? I simply want to eliminate these back taxes. I owe a lot to the IRS and I'm currently out of a job. Do you think filing bankruptcy can help me? |
|
|
sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
|
|
Post subject: |
|
|
Hi Saira,
There are certain taxes which can be discharged through bankruptcy filing. However, there are certain conditions which you need to follow. Income taxes can be discharged if you had filed for bankruptcy. If you've committed a fraud or willfully evaded the payments, then your taxes will not be removed. The debt should be at least 3 years old. Also, you should have filed for a tax return for that specific debt two years prior to filing for bankruptcy. You will also have to pass the "240 day rule," i.e. the IRS should have assessed the income tax debt at least 240 days before your filing for bankruptcy.
Other taxes which do not fall under the above qualifications are considered to be "priority taxes". These taxes are not 100% dischargeable. Tax debts that are assessed within 240 days before the bankruptcy case was filed will not be dischargeable. You'll have to pay them in full. In such cases, you can also try to set up an Installment Agreement with the IRS. This will help you in paying off your back taxes in a 3-5 year period.
Take Care. |
|
|
Debbie Moore
Guest
|
|
Post subject: |
|
|
| We've incurred a lot of debts. Thus, I and my husband have filed for Chapter 7 bankruptcy. The present value of our property is now around $294,000. We've a first mortgage of $290,000 and a second mortgage of around $110,000. Our second mortgage lender had approved us got a loan modification before we filed for bankruptcy. But as we filed for bankruptcy they rescinded the approval. After this, we haven't paid our mortgage dues for the last three months. Can they try to foreclose our property? |
|
|
Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
|
|
Post subject: |
|
|
Hi Debbie
It would have been better if you could have completed the loan modification process first and then filed for bankruptcy. Now, as you've filed for bankruptcy, your lender may not want to work with you and will wait for the court's order.
However, most of the second lenders do not foreclose the property though you're upside down because it will not help them in any way. If the second lender forecloses the property, he'll have to first clear off the mortgage dues of the first lender. Thus, there are chances that if the second lender forecloses the property, he may not get anything from the sale of the property.
As you've already filed for bankruptcy, I think the second lender may ask you to sign a "reaffirmation agreement". This is an agreement with the lender which will make you personally liable for the second mortgage dues. The second lender may also ask for a court approved reaffirmation agreement in order to modify your loan after bankruptcy. You should consult your bankruptcy attorney before signing any agreement with your lender. The attorney will be the best person to tell you what steps you need to take in order to deal with your second lender.
Thanks.
_________________
Good is the Enemy of Great. |
|
|
Jason Moore
Guest
|
|
Post subject: |
|
|
| Hi there…due to the market situations right now, I'm facing a tough situation and now I find no other way but to file bankruptcy. My question is that do I need to qualify for filing bankruptcy?? Is there a chance that my bankruptcy filing would be denied??? I've heard there's something called credit counseling. What is it??? And lastly, how much would bankruptcy cost me? Sorry for multiple questions…I'm pretty new to this and don't have much idea about this. Thanks for any help... |
|
|
sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
|
|
Post subject: |
|
|
Hi Jason,
There are certain criteria which you need to fulfill if you want to file bankruptcy. I guess you want to file personal bankruptcy. In such a case, you'll have to decide whether you want to file Chapter 7 or Chapter 13. If you want to file Chapter 7, you'll have to qualify under the Means Test. If you don't, then you can file Chapter 13. Also, you'll have to undergo a mandatory credit counseling course before filing bankruptcy.
Credit Counseling Course is a mandatory counseling which makes the consumer aware of the other options that he/she has apart from filing bankruptcy. This counseling should be approved by the U.S. Trustee's office. Also it should be completed within 180 days before filing bankruptcy. This counseling session will help you evaluate your financial situation as well.
There are certain conditions on which your bankruptcy filing can get dismissed. If you hide certain facts from your bankruptcy trustee intentionally, then your case may be considered as a fraud and it can be dismissed. If it is found that you have taken debts by lying about your income, then your case may be dismissed by the bankruptcy court.
As far as I know, in order to file Chapter 7 bankruptcy, you will have to pay fees of around $299. If you're filing Chapter 13, you'll have to pay $274. Apart from this, you'll have to pay your lawyer's fees as well.
Take care. |
|
|
Guest
|
|
Post subject: |
|
|
| Is it true that keeping my payments current is same as reaffirming the mortgage??? I would also like to know that if I don't reaffirm the mortgage will it get discharged in bankruptcy??? I've recent filed bankruptcy and I’m getting conflicting answers from attorneys. |
|
|
Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
|
|
Post subject: |
|
|
Hi Guest
When you file Chapter 7 bankruptcy, normally the mortgage debts get discharged. However, if you sign the reaffirmation agreement with your lender, then you again become personally liable for the mortgage dues. Once you reaffirm the mortgage, you'll have to make regular payments towards the mortgage dues. If you don't make timely payments, the lender will have the right to foreclose the property.
If you sign the reaffirmation agreement, then the lender would report the payments to the credit bureau which will help you in improving your credit score. If you do not sign the reaffirmation agreement but keep on making the payments, the lender may not report it to the credit bureaus.
Thanks.
_________________
Good is the Enemy of Great. |
|
|
RG
Guest
|
|
Post subject: |
|
|
| Hello…I'm filing bankruptcy due to some credit card debts and some medical bills. I want to know that if we file for bankruptcy, will it affect our business? I don't wish to include my business in bankruptcy. Can I do that?? |
|
|
Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
|
|
Post subject: |
|
|
Hi RG,
Though you file personal bankruptcy, you'll be able to keep your business active. However, there are certain things which you should keep in mind. You will have to mention your business as your asset while you are filing the paperwork for bankruptcy. Your business can have value to you but it won't be the same case for others. Others may not think that your business any value. Your trustee will find out those assets that you cannot protect and sell them to pay your creditors.
You'll also have to check whether or not your business has any valuable assets or inventory. You must know about the value of these assets prior to filing. However, your bank can take money from your checking account to pay off your business credit card if you have accounts in the same bank.
Thanks.
_________________
Good is the Enemy of Great. |
|
|
Annette
Guest
|
|
Post subject: I do not want to lose my Mobile home/car paid in full |
|
|
| I owe 34K in credit cards. not behind in any pmts. but need help. SS is only 1339. mth Home is worth 44K Car 4,000. I have no other means of support. |
|
|
adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
|
|
|
Mortgage Problems and Solutions Forum
Previous 1 2 3 4 5 Next 
