Yes, You Can File Bankruptcy Again!

Orlando bankruptcy attorneys are not generally fans of repeat customers. I repeat customer is someone who has met with financial difficulties again, after having received a bankruptcy discharge in the past. Even though I would prefer my previous clients send referrals my way, rather than see them in a tough situation again, I am glad to say that I can usually help them receive debt relief again.

Many people believe that bankruptcy is a “once-in-a-lifetime” deal. In other words, they think that once you have filed, you cannot file again. This is simply not the case. When a previous client calls me about possibly filing bankruptcy a second, or even a third time, I explain the following:

Since life can be “unfair” and it is impossible to predict a future financial disaster, bankruptcy laws do not prohibit you from receiving debt relief by filing bankruptcy again. In light of the recent economic downturns, people have lost their jobs, incurred medical bills or other unforeseen emergencies that put them in a position in which they again feel their best solution is to file bankruptcy.

So, let’s break it down. First, you may file a Chapter 7 bankruptcy once every 8 years. Section 727(a)(8) of the Code says as much.

If your last case was a Chapter 7, and you are within the 8 year window and cannot file another Chapter 7, then you may file a Chapter 13 bankruptcy if 4 years have passed from the time you filed the Chapter 7. See Section 1328(f)(1) for that one.

If your last case was a Chapter 13, then you must wait 6 years from the time you filed the Chapter 13 before you can file a Chapter 7. However, you can still get a Discharge from a Chapter 7 case filed within the 6 years from filing the previous case if the Chapter 13 payment plan paid either 100 percent of all allowed unsecured claims or paid 70 percent of such claims, was proposed in good faith, and represented your best efforts. Section 727(a)(9) is where to go for this.

Finally, if your last case was a Chapter 13, then you may file another Chapter 13 once two years have passed.

While not always viewed favorably, filing multiple Chapter 13 cases within the required 2 years is possible. Frequently these “serial filings” occur while trying to avoid foreclosure on a home. A favorable ruling from the Judge is required to proceed with the filing. You will need to show how your circumstances have changed and that you can afford a Chapter 13 payment plan.

Each situation is unique. Speaking with experienced Orlando bankruptcy attorneys will help with your decision to file bankruptcy or not. An experienced attorney can help with the timelines for all these scenarios.

Your 2nd Mortgage May Be Eliminated In A Chapter 13 Bankruptcy Filing

It probably won’t surprise you, as an Orlando bankruptcy lawyer, I have seen it first hand: Orlando home values are on the decline, according to an article published recently in the Orlando Sentinel.

Sadly, this is true for much of the country and just about all of Florida. These days, it appears as though everyone is upside down on their homes. Luckily there is some relief for people who are filing bankruptcy under Chapter 13. It has become common place in Orlando for me to file a motion in my client’s Chapter 13 bankruptcy case, petitioning the court to completely eliminate their 2nd mortgage balance.

To benefit from this relief option, an appraisal must be done on the home, showing that the home’s value is below the balance owed on the 1st mortgage. A respected Illinois and Wisconsin bankruptcy lawyer, David Leibowitz, blogged recently about options available to those stripping a 2nd mortgage .

A bankruptcy Judge here in Orlando recently issued an opinion stating that a 2nd mortgage can only be stripped in a Chapter 13 bankruptcy filing and is not an option for those filing bankruptcy under Chapter 7. Additionally, in order to receive the benefit of stripping the 2nd mortgage and eliminating your liability on that mortgage, you must successfully make all of your payments under the Chapter 13 and receive your Discharge from the Court.

Eventually, we should start to see a reverse in the declining home values plaguing Orlando, Florida, and the rest of the county. At that time, those who took advantage of the lien stripping option in Chapter 13 bankruptcy and successfully completed their payment plan, will, hopefully, again have equity in their homes.

With the help of an experienced Orlando bankruptcy lawyer, my clients can achieve this goal, as well as other goals such as eliminating credit card debt and saving money on car loans, all by filing Chapter 13 bankruptcy.

Are you considering filing for bankruptcy? Check out K. Hunter Goff’s FREE eCourse. Hiring a lawyer is an important decision, make sure you have an experienced bankruptcy lawyer to work for you.

Frequently Asked Bankruptcy Questions

What Exactly Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, occasionally referred to as a straight bankruptcy, is a liquidation proceeding. The debtor relinquishes all non-exempt assets to the bankruptcy trustee who then turns it to funds for distribution to the collectors. The debtor will get a discharge of all dischargeable financial obligations usually inside of 4 months. In the majority of cases the borrower has no assets that he or she would lose so Chapter 7 will provide that person a relatively quick “fresh start”.

One of the most important functions of Bankruptcy Law is to provide somebody, who is hopelessly burdened with debt, a clean start by clearing out his / her debts.

People who file for chapter 7 bankruptcy must agree to enroll in credit counseling. After declaring chapter 7 bankruptcy, it can be challenging to get credit for several years, and you will not be able to file for personal bankruptcy again for a set amount of time.

It has become more difficult to file for chapter 7 bankruptcy in the US, thanks to laws which substantially stiffened the bankruptcy rules in the early 2000s. It is a good idea to consult a lawyer and an accountant prior to investing in a bankruptcy filing, because although the professional charges for the consultation may be high, there might be an option that has not been thought about. A professional consultation can also smooth the way to move forward with bankruptcy filings, if a debtor decides to carry on with bankruptcy proceedings.

What Is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is also identified as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by people who would like to pay off their debts over a time period of 3 to 5 years. This type of bankruptcy is of interest to individuals who have non-exempt assets that they want to keep. Additionally it is only an option for individuals who have predictable earnings and whose income is adequate to pay their reasonable expenditures with some sum remaining to pay off their financial obligations.

Hiring an experienced Stoneham debt attorneys is an important decision that should not be taken lightly. Make sure to setup a consultation with the Maryland bankruptcy legal professional so that you can better understand your available options.

Bankruptcy Lawyers In Massachusetts – How They Can Assist You To Get On Your Feet Again.

If you are unable to meet your monthly debt repayments, if your credit card statements are simply getting more and more in arrears and your medical bills remain unpaid for months on end, you might have only one alternative: file for bankruptcy. If you happen to live in Massachusetts, you can make use of one of the many Bankruptcy Lawyers in Massachusetts.

What exactly do we mean by bankruptcy? It is simply a way in which someone who is burdened with unmanageable debt can apply to the courts to have his debts wiped out so he can start from fresh. Valid reasons that have been accepted by the court include unemployment, big medical expenses, and marital problems.

It’s highly inadvisable to try to handle the whole application without the help of a lawyer. Unless you want to have many sleepless nights and end up with nothing of course.

Your lawyer will file for bankruptcy with the court. The court, in turn, will inform all your creditors about the application and set up a meeting between you, your lawyer and your creditors presided over by an officer of the court. This will usually happen within 40 days after filing your application.

At this meeting your lawyer will then provide to the court a complete picture of your financial affairs. This must include your monthly income and expenses, as well as a statement of all your assets and liabilities. After the meeting you can safely refer your creditors to your lawyer if they should turn up at your house.

If your application is approved, the terms will be made known to everyone involved. Unfortunately all your assets will form part of the now bankrupt estate. You will therefore not be able to keep anything, except those assets which have been exempted by the court.

Bankruptcy Lawyers in Massachusetts are law experts. They know bankruptcy law like few people know the Bible. They are also totally familiar with the whole application process. It’s therefore in your own interest to use one of them to represent you during the application and afterward.

Filing for bankruptcy is an important and difficult decision. Speaking with a Arlington Heights Bankruptcy Lawyer can help you to make a sound decision for you and your family. Speaking with an experienced Massachusetts Bankruptcy Lawyer will help you understand your options.

Chapter 13 Consumer Bankruptcy

One question that most men and women thinking of filing for consumer bankruptcy in Chicago more often than not would like to ask a Chicago bankruptcy attorney is: “What is the distinction between Chapter Thirteen and Chapter 7?” While Chapter Seven is basically a “liquidation” — the use of your current possessions to pay back your creditors — Chapter Thirteen is designed to grant you an opportunity to reorganize your current economic position in a way that will let you pay off some or all of your financial obligations while using the money you receive in the future. Despite the fact that a number of assets can be guarded from being sold to pay lenders in Chapter Seven, in the event the value of your interest in any property surpasses the federal or state exemption amount, that property might be liquidated with the profits applied towards your debt.

Possessions are not liquidated in a Chapter 13 bankruptcy. Rather, you’ll be able to keep and still make use of all your assets regardless of if it is protected with an exemption. Your obligations are paid for via a bankruptcy plan that has been accepted by the court. When you complete the plan, you obtain a discharge like the discharge in a Chapter 7.

There can be exceptions to your Chapter 13 bankruptcy discharge. By way of example, long lasting obligations with last installments owed after the plan is completed which are “cured” in the plan aren’t discharged. A variety of tax debts are not discharged. Neither are debts incurred by means of fraud, ones not listed in the bankruptcy, most student education loans, or drunk driving debts along with other criminal fines or civil penalties.

Even if a discharge can’t always be granted in your exact circumstance, there are occasions when it could be to your advantage regardless. Even when a discharge is unavailable under Chapter 13, if you’re behind on your mortgage loan and in danger of losing your property to the lender, Chapter 13 can allow you to prevent a foreclosure and get caught up on your mortgage payments over the course of plan.

A large number of people today are convinced that in the event that they have to file for bankruptcy that they will lose anything and everything they’ve got. This, though, is not so. While both Chapter 7 and Chapter 13 have their particular distinct strengths,Chapter 13 bankruptcy is most often the favored chapter for those wishing to save their homes from foreclosure.

Chicago bankruptcy lawyer, and author of Chicagoland Bankruptcy Help, John Kunes works hard to be the bankruptcy lawyer Chicago can depend on.

Real Cost Of Bankruptcy – Understand the Impact of Personal Bankruptcy

While many do not know this prior to making their decision to file for bankruptcy, a discharged bankruptcy comes with serious consequences in both your personal and professional life.

For many, personal bankruptcy is often a “last resort,” driven partly by harassing demands of credit and debt collection companies. Although bankruptcy might seem like a quick and easy fix to the harassing calls and sleepless nights, one must never rush into making such a decision. While filing for bankruptcy can momentarily end the consequences of your financial condition, almost all others who have gone bankrupt admit that it was one of the biggest mistakes they ever made.

Like everything else in life, personal bankruptcy comes with consequences. Here are some of the most popular consequences that you can expect in your personal and financial life:

One of the biggest risks that bankruptcy poses to the debtor is that assets are often sold by the trustee to settle debts. Assets are anything of value, including property, investments, and other items of value.

While current assets are obviously at risk, a lot of people do not realize that future assets such as inheritance money can also be subject to claims by creditors.

In addition to the sale of assets, the impact of personal bankruptcy includes harmful records on your credit bureau. Bankruptcy will impact your intentions to act as a company director and obtain non-personal credit for the rest of your life.

Perhaps the worst impact of personal bankruptcy comes after the bankruptcy order is advertised locally. This damages the reputation of an individual’s name and personal business dealings. Unlike companies, individual debtors cannot trade under a different name. So for the debtor who has declared bankruptcy in the past, all of this information is available in the public domain.

What is likely the harshest impact of personal bankruptcy is something that comes after the bankruptcy notice is advertised. Given the public nature of bankruptcy, the debtor’s name and personal business dealings are in jeopardy. Unlike companies who can operate under different trade names, individuals have just one name. And since bankruptcy are publicly available, anyone can access the details of your bankruptcy.

Personal bankruptcy will have an impact on your reputation. With your financial affairs being examined in an open court, the process will not only prove to be extremely stressful, but others have found the whole experience rather humiliating.

In addition to the items discussed here, bankruptcy also impacts your financial condition given that there are court costs and other fees. You need to have at least some money in order to go bankrupt.

If you are considering bankruptcy as a debt clearance option, then try gaining some knowledge about other alternatives. For more information on the impact of personal bankruptcy and its alternatives refer to e-books and manuals available on the net.