Welcome To Dillenbeck Law Bankruptcy
Chapter 7
Chapter 13
HOME
BANKRUPTCY OVERVIEW: Information on the various chapters of bankruptcy
as well as some frequently asked questions about Bankruptcy.
• Exempt and non-exempt property:
(1) Chapter 7 is often times referred to as liquidation bankruptcy because you turn over non-exempt property to the trustee assigned to your case.
(2) Non-exempt property can include not only property you owe in full but also property that you still have a continuing obligation to make payments on. Typically property you still are making payments on will be non-exempt when:
(3) REST EASY, most property is exempt! Even if the property is not exempt you may still be able to keep it by filing for Chapter 13. (See below).
(4) Specific Exemptions: If you are married the following exemption levels should be doubled:
REAL PROPERTY/RESIDENCE: A person can exempt up to $18,500.00 in equity (where the fair market value of the property exceeds the remaining debt owed for it) in an individual's residence;
WILD CARD EXEMPTION: If a person cannot claim a real property residential exemption, then that individual gets a wild-card exemption that he or she can use to protect equity of up to $5,000.00 in any property of his or her choice;
AUTOMOBILE EXEMPTION: A person can exempt up to $3,500.00 in equity in any one automobile;
TOOLS/EQUIPMENT EXEMPTION: A person can exempt up to $2,000.00 in equity in tools or equipment used in his or her trade or business;
HOUSEHOLD GOODS EXEMPTION: A person can exempt up to $5,000.00 in equity in household goods, plus $1,000.00 per dependent (a max of four dependents allowed);
MISC. EXEMPTIONS: Certain other property including, but not limited to, certain personal injury proceeds, certain life insurance policies, certain retirement plans, and social security benefits.
NOTE: For the fair market value of exemptible property is not measured by what you originally paid for it. Its measured by what you would get for the property if you sold it on the open market.
• Selectivity in the debts you wish to wipe out (discharge):
(1) A person agrees to keep paying the debts which he wants to keep, the other debts get wiped out, for the most part.
(2) If a debt has any collateral a person MUST agree to keep paying the debt or must give the collateral back.
• Scope of the discharge:
(1) If a person gives back some collateral the debt for the collateral will be wiped out.
oThere are some debts which cannot be wiped out, in most instances. These include taxes which are less than 3 years old, back alimony and child support, criminal fines and restitution, student loans and debts which occurred because of fraud.
(2) Any debt not listed in one of the categories mentioned above can be completely wiped out, in most instances.
• Filing fees:
(1) The Bankruptcy Court charges $299 filing fee for a Chapter 7 case. This fee must paid in addition to attorneys fees.
(2) Attorneys fees: Sean assess fees for Chapter 7 bankruptcy on a case by case basis. Consult Sean to determine how much he will charge for your case.
•Reorganization Bankruptcy:
(1) Chapter 13 is a consumer debt reorganization. This allows debtors to restructure payments by combining many debts into their "plan" and paying ONE monthly payment to the Chapter 13 Trustee for all the debts included in the plan.
•Payment Plan overview:
(1) How much: In a Chapter 13 a person has to pay all of their monthly disposable income to the Chapter 13 Trustee.
(2) To whom: Instead of using your disposable income to pay your debts (car payment, etc) you would pay the money to the Chapter 13 Trustee. The Chapter 13 Trustee would then pay your debts for you.
(3) In What Order: The Trustee pays the secured creditors first. Secured creditors are the ones who have a right to repossess or reacquire collateral (such your car or home). The secured creditors must be paid 100% of the value of their collateral.
(4) How Long: A Chapter 13 case can last as long as 5 years.
(5) Advantage: By refinancing their debt over this five year period, most people are able to significantly lower their monthly payments.
To determine how much your payments can be reduced, please call Sean and make an appointment to speak with him.
I have debt problems. How should I go about resolving them?
* Take a deep breath, relax for a moment and take this advice: If you are struggling to pay all of your debts and are falling further and further behind your monthly obligations, it is perfectly natural to feel highly stressed. With that said, you owe it to yourself to take a deep breath, relax for a moment and heed the following words of wisdom.
1. Believe in yourself! Millions of Americans have found themselves in your position and most of them have managed to get themselves out of debt. So can you! But you are going to need a clear mind and a little bit of self-confidence to do it.
2. Your are not alone! If you are being constantly harassed by uncaring creditors on a nightly basis, it is easy to feel as if the whole world is against you. Moreover, due to the sensitive nature of personal finances, you may feel too embarrassed to disclose your struggles to loved ones and friends. Please realize that you are not alone in this struggle! Although, we have never formally met, I have put together this step-by-step approach that you can utilize to help you get through this tough time. So if you have no one else, you have me by your side.
3. Filing for Bankruptcy will not permanently ruin your credit! If you do need to file for bankruptcy, take comfort in the fact that your credit will not be permanently ruined. If you do not believe me, ask Donald Trump. Mr. Trump has filed for bankruptcy on numerous occasions and has managed to bounce back from it successfully every time! While Mr. Trump had lawyers to help him navigate through the bankruptcy process, so can you! I am here, ready, willing and able to stand by your side if the need for you to file for bankruptcy so arises. Before getting to that point, lets look at some options you should explore before filing for bankruptcy.
* Negotiate a repayment plan with your creditors ON YOUR OWN (not through a debt relief agency): In the current economic recession, many creditors may be willing to work out a repayment plan with you. Why? Because many creditors realize that they will be financially better off by working with you rather than allowing you to resort to other options including bankruptcy. Two perfect examples are credit card companies and home mortgage companies.
1. Credit Card Companies: With respect to credit card companies, they know that if you are eligible to file for bankruptcy and in fact do so that there is a strong possibility that they will not recover anything from you. On the other hand, if they work with you and allow you to continue making monthly payments they will make money (due to interest fees on the principal).
2. Mortgage Companies: Due to a combination of the subprime mortgage crash, plummeting real estate values and high foreclosure rates, many mortgage companies are struggling to make money right now. Not only do mortgage companies have a lot of foreclosed homes in their possession, they are also unable to sell these homes for a profit. Thus, the last thing they may want to do is to have to foreclosure on another home that they will not be able to resell for a profit in the immediate future. Thus working with you on a repayment plan is a venture in which both parties can come out with something they desperately need. You come out with your home and the mortgage company comes out with money necessary to stay afloat in the current recession.
* If your creditors are unwilling to work with you personally, utilizing a debt/credit relief agency is a viable BUT POTENTIALLY DANGEROUS option!
1. The Good: While filing for bankruptcy neither permanently ruins your credit nor your ability to obtain future credit, if you can pay off your debts without having to file for bankruptcy, I would certainly pursue that option over filing for bankruptcy. After all, why file for bankruptcy if you do not have to? Debt/credit relief agencies purport to offer this opportunity and thus seem to be an attractive alternative to filing for bankruptcy. BUT BE CAUTIOUS, UTILIZING A DEBT/CREDIT RELIEF AGENCY IS ALSO A RISKY OPTION!
2. The Bad:
1. Creditors are not legally obligated to work with debt/credit relief agencies: Unlike a bankruptcy case, your creditors cannot be forced to cooperate with you when you hire a debt/credit relief agency. Thus your creditors may be no more willing to cooperate with a debt/credit relief agency than they were with you personally. Moreover, even if some of your creditors are willing to cooperate with a debt/credit relief agency, theres no guarantee that all of them will. Hence, utilizing a debt/credit relief agency may still result you being sued by one or more of your creditors.
3. The Ugly:
1. There is a possibility that you will pay a large sum of money to a debt/credit relief agency and still end up having to file for bankruptcy: What the debt/credit relief agency commercials do not tell you is that many debt/credit relief agencies keep your first few monthly payments to pay themselves exclusively and thus allow you to fall further behind with your creditors. In the mean time, you creditors continue to call and harass you. Eventually your creditors grow impatient with the lack of payment, sue you and thus force you to file for bankruptcy. Thus with many debt/credit relief agencies, you are paying to be sued. Why take that risk? If your going to hire someone to negotiate with creditors on your behalf, hire a sure thing. Using bankruptcy law, I can force all of your creditors to cooperate with you in a bankruptcy proceeding. See step 4 for how to schedule an appointment with me.
* By the time you reach this step, your creditors will have attorneys hard at work for them and so should you! If you have been unsuccessful in utilizing the proceeding options, the time has come for us to meet in person and discuss how best to protect your legal rights. Even if you have not successfully utilized the proceeding steps but have nonetheless been sued or have received a notice of foreclosure or repossession, the time has come for us to meet and determine how best to protect your interests. DO NOT DELAY! Initial consultations are FREE! To schedule an appointment, call me at (704)-236-0184 or email me at dillenbecklaw_gmail.com.
Copyright © 2010 charlottencdwi.com All Rights Reserved
