With the holidays behind us and a new year just starting, we know that a popular resolution is to clear up personal debt. For those who face mountains of debt, filing for bankruptcy in Arizona may seem like the best option.So how do you know for sure if bankruptcy is the best option for you? The best way to guarantee you’re making the right choice is to consult with an experienced Arizona bankruptcy attorney. That attorney will help you assess your bills and exemptions and determine if debt consolidation or filing for bankruptcy is the best option for you.
Should You File for Bankruptcy this New Year?
After assessing your finances, your Arizona bankruptcy attorney or specialist may come to the conclusion that bankruptcy would provide you with the best opportunity to reorganize or discharge your debt obligations to creditors. So not what? You’re deemed broke. How are you going to be able to cover your Arizona bankruptcy legal fees?
How will you pay for Arizona bankruptcy legal fees?
At the start of this New Year, a financial tool you should think about tapping is your income tax refund. Using your income tax refund to pay for the legal fees related to the expense of filing a bankruptcy with an experienced bankruptcy attorney may be the best investment you make this year.
Contact an Arizona Bankruptcy Attorney for Answers
When you are not sure what you “should” do, consult with an Arizona bankruptcy attorney at Lerner and Rowe. Our staff is available to guide you through the often perplexing steps of filing for bankruptcy in Arizona; alleviating many financial burdens and also, giving you a bright new future. So, take the first step toward financial debt relief today! Just make one call, that’s all to 602-667-7777, or submit a free online bankruptcy case review form now.
Marijuana is currently legal in 33 states medicinally and 10 states recreationally. While the cannabis products are becoming more and more accepted, there are significant issues to consider when mixing marijuana and bankruptcy. People that work in or with the cannabis industry may be unable to file for Chapter 7 or Chapter 13 bankruptcy. If you find yourself in that situation, a Lerner and Rowe Law Group bankruptcy attorney may be able to help you.
Federal vs. State Legality
Although marijuana and other cannabis-derived products are becoming legal in more and more states, they are still illegal at the federal level. Current federal law prohibits the use, cultivation, and distribution of marijuana. That conflict can be exercised by the U.S. Trustee Program, the government organization that monitors bankruptcy proceedings. That’s exactly what happened to Washington couple Claude and Kerri Hayes.
The couple were denied bankruptcy because Claude Hayes worked as a “budtender” at a medical marijuana cooperative. For those unfamiliar with the term, a budtender is a sales clerk that advises and sells goods to customers at a medical or recreational marijuana store. They’re the equivalent of a sales clerk you’d encounter at Gap or Macy’s store. Although marijuana is legal in Washington state, the U.S. Trustee Program used its federal illegality to deny Mr. Hayes Chapter 13 bankruptcy.
Indirect Involvement with Marijuana and Bankruptcy
Being denied bankruptcy is also a possibility if you work indirectly with the cannabis industry. Washington’s Cook Investments is a real estate company that was denied Chapter 11 bankruptcy by the U.S. Trustee Program because it leased some of its land to a company that grows cannabis.
Similar to the Hayes family, the reason for Cook Investments’ denial was that cannabis is federally prohibited. The matter is being contested in Garvin v Cook, with the most recent decision by the U.S. Court of Appeals for the Ninth Circuit being in favor of Cook.
Even though this particular matter applies to a company that tried to file Chapter 11, the legal interpretation could apply to an individual seeking debt relief through Chapter 7 or Chapter 13. If that individual worked with a party in the cannabis industry, it’s conceivable that a U.S. Trustee would deny them bankruptcy.
Contact an Arizona Bankruptcy Lawyer
Legal issues with marijuana and bankruptcy are still in their infancy. After all, the State legalization of medical and recreational marijuana is relatively new. In Arizona, medical marijuana is currently legal and many expect recreational marijuana to be legalized in the near future.
As the state legality of cannabis products evolves, expect changes to how marijuana laws are interpreted. This can lead to confusion, especially in complicated matters like bankruptcy. There are also growing issues concerning a medical marijuana patient’s use of marijuana and operation of a motor vehicle.. Arizona law provides little guidance to its medical marijuana community about their use of medical marijuana and driving.
Thankfully, the attorneys at Lerner and Rowe Law Group are keeping track of the latest developments. Our talented and knowledgeable Arizona bankruptcy lawyers are here to provide you with prudent counsel and competent representation.
You can contact the bankruptcy attorneys at the Lerner and Rowe Law Group between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. We’re also available 24/7 by phone at 602-667-7777. You can also contact us through the Internet using our convenient online form and LiveChat features.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
The Student Borrower Bankruptcy Relief Act of 2019 was introduced to Congress on May 9, 2019 by Senator Richard Durbin. If this bill is signed into law, it would have massive ramifications for people struggling to pay off student loans. Below is an explanation of what the bill is and what it could mean for those burdened by student debt.
What is the Student Bankruptcy Relief Act?
The Student Borrower Bankruptcy Relief Act of 2019 is a simple and straightforward proposal that calls for private and federal student loans to be dischargeable, like most forms of consumer debt. Since 1976, student loans have been classified as non-dischargeable debt; the law makes exceptions for severe hardship, but those cases are extremely difficult to prove.
Non-dischargeable debts include taxes, alimony, and child support. Few people believe that student loans belong in the same category. Although the bill was introduced by Democratic legislators, it enjoys support from both sides of the aisle. Skopos Labs gives the bill a 90-percent chance of being enacted.
How Does the Act Affect Bankruptcy?
As of June 2019, student debt in America has risen to $1.5-trillion, with no signs of slowing down. Higher-education tuitions are rising and many lenders are taking advantage of that. There have even been outrageous cases, like ITT threatening students with expulsion if they do not agree to loan terms. Many graduates have a hard time making ends meet because of cumbersome student loans.
If signed into law, the Student Borrower Bankruptcy Relief Act would be an enormous boon to those struggling with student debt. People that are experiencing tremendous difficulty making ends meet because of student loans would have an opportunity to start over with a clean slate. With an estimated 44.2-million people encumbered by student debt, this proposed law is a huge game-changer.
Contact a Bankruptcy Lawyer
The bankruptcy lawyers at Lerner and Rowe Law Group are keeping a close eye on the Student Borrower Bankruptcy Relief Act. Although researchers and analysts like Skopos Labs have high hopes that the bill becomes law, there are still many unknowns. Nobody knows if the proposal will be altered, when the bill will be signed, or even if it will be signed at all.
For now, if you need a bankruptcy consultation, the attorneys at Lerner and Rowe Law Group are ready and willing to work for you. We are available by telephone at 602-667-7777 and online through our LiveChat and form features. We are also available in person Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. While bankruptcy can be a stressful process, Lerner and Rowe Law Group will do everything possible to make your experience as straightforward and uncomplicated as possible.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
Wondering what to do after bankruptcy? Lerner and Rowe Law Group is here to help.
Filing for chapter 7 or chapter 13 bankruptcy isn’t the end of the world. Yes, it’s frustrating at first, but there are plenty of things you can do to get where you’d like to be. For instance, rebuilding financial security is not as difficult as it may seem, but there are some important details you should follow. Your experienced bankruptcy Phoenix attorneys for Lerner and Rowe Law Group and legal team are here with some tips on what to do after bankruptcy.
Know the Types
If you haven’t yet filed for bankruptcy, you should make sure you understand the difference between a Chapter 7 and 13 are. Here with the Lerner and Rowe Law Group, our experienced Phoenix bankruptcy lawyers will determine which of the two would benefit you best. For chapter 7 bankruptcy, your non-exempt property and assets are sold to pay off your debts, and any remaining debt is forgiven.
Once you file this type of bankruptcy, with the help of your Phoenix bankruptcy attorney, you cannot file a subsequent chapter 7 for eight full years from your filing date. Most consumer debtors are able to keep most of their property as exempt property.
Contact our best bankruptcy attorneys to learn more about exempt property and exemption planning for a chapter 7. A chapter 13 bankruptcy involves negotiating to find a suitable plan for you to repay a portion of your debt. With this type of bankruptcy, you can retain your property and assets.
Keep the Paperwork
After filing for bankruptcy, keep all the paperwork. Don’t throw any of it away. Documents such as your bankruptcy petition, notice of filing, discharge of debts, and all other documents are crucial to preserve and share with your bankruptcy attorneys and trustees.
These documents may also help you later on when you apply for a loan from a lender who is suspicious of your financial history, or if creditors try to collect money from you even after filing for bankruptcy. If this does occur, you’ll then have the documents handy to prove what exactly was discharged. Additionally, this will show others that you are trustworthy and to be taken seriously.
Check Your Credit Reports
While it can be frightening to check your credit reports, especially after filing for bankruptcy, it’s important to monitor your credit. By doing so you make sure nothing unusual is going on with your debts and credit score.
For example, an unusual debt shows up on your credit report that you believe should have been discharged when you filed for bankruptcy. You are now aware of it and can dispute it. This is just one example of how inaccurate information on your credit reports can hurt you. It’s also not something you want to deal with when trying to rebuild your financial security.
Rebuild Your Credit Score
Luckily, there are plenty of ways to rebuild your credit score after bankruptcy. One option you may consider is taking out a secured credit card, which is a credit card with a limit based on how much you have in your bank account. If you pay the money up front and pay off the debt on time each month, your credit will improve.
In addition, you may consider taking out a secured loan. There are two types of secured loans: the first involves borrowing against money you already owe. The second involves paying toward a savings account.
Either way, you do not have access to your funds until the debt is paid in full. The financial institutions will report your activity to credit bureaus, which is why these loans are excellent tools for rebuilding your credit score.
One final thing you should consider is a co-signed credit card/loan. This requires someone of good financial history to vouch for you and hold you responsible for your payments. Be careful, though; the co-signer will have to pay back the debt themselves if you fail to pay your bills. This can ruin relationships and cause stress, so take this route only if you’re certain you can pay your bills on time.
Still Wondering What to Do After Bankruptcy?
If you have questions about what to do after bankruptcy, contact Lerner and Rowe Law Group today! Our experienced Phoenix bankruptcy lawyers are here to answer any questions and help get you back on track towards financial freedom.
Drop in during our office hours Monday – Friday, from 8:00 a.m. to 5:00 p.m. or give us a call at 602-667-7777. You can also contact us online and check out our awesome LiveChat feature. Consultations are absolutely free, so make that call to Lerner and Rowe Law Group today!
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
Have questions about filing for bankruptcy during tax season? Contact Lerner and Rowe Law Group!
Consulting with an experienced Phoenix bankruptcy lawyer is essential when trying to make the most of your tax refund while also dealing with a bankruptcy filing. Your Phoenix bankruptcy lawyers here at Lerner and Rowe Law Group have years of experience in representing clients all throughout the state of Arizona during their bankruptcy filings. We can carefully advise you as to which chapter is right for you and how to best protect your tax refund along with other assets.
Bankruptcy is a chance to get your financial life back in order, and our Phoenix Chapter 7 and Chapter 13 bankruptcy attorneys strive to help you during this challenging time of your life. To find out which bankruptcy chapter is right for you and what options to protect your refund are available to you, contact our Phoenix bankruptcy lawyers today to schedule your free consultation.
Your Phoenix bankruptcy attorneys have compiled some information for you to consider when considering a bankruptcy during tax season.
DO’S
1.) File your taxes as soon as you can.
2.) Provide our office with a copy of the Federal and State tax returns.
3.) Ask for an electronic deposit of the refund to your bank account.
4.) Keep receipts for all items you spend your tax refund on. (The Court may ask for proof of what you used this money for.)
5.) You can spend the money on anything considered a living expense (utilities, insurance, rent, and even pay your bankruptcy attorney fees) and you can buy food, clothing, furniture, appliances and other necessities. If you have questions about what you can spend this money on then please contact the Lerner and Rowe Law Group.
6.) You can use your tax refund to pay any of your outstanding Phoenix bankruptcy attorney and filing fees
DON’TS
1.) Do NOT do a rapid refund loan; just wait for the government to deposit the money to your account.
2.) Do NOT pay back any friends or family members for any loans you may owe them. (This has to wait for after your bankruptcy is over.)
3.) Do NOT make any major purchases without speaking to your Phoenix bankruptcy lawyer first.
4.) Do NOT take the money out of the bank and use cash unless you intend to hold on to EVERY receipt you spend it on.
5.) Do NOT pay any creditor more than $600.00 without first talking to your Phoenix bankruptcy lawyer.
Have Questions About Filing for Bankruptcy During Tax Season?
These essential points are only the beginning to making the most of your tax refund while also dealing with a bankruptcy. Each individual’s situation is unique. If you have any questions, contact Lerner and Rowe Law Group for experienced and professional advice. Come by during our office hours, which are Monday – Friday from 8:00 a.m. to 5:00 p.m. Give us a call anytime at 602-667-7777, contact us online, or check out our LiveChat feature. Consultations are free, and affordable payment plans are always available. Don’t wait to get in touch with an expert; contact Lerner and Rowe Law Group now!
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
Most households, whether a single person or married couple, have a variety of different debts and sometimes struggle to make the payments. If you’re in need of debt relief, contact our experienced Phoenix bankruptcy attorneys.
Dischargeable Debts
A Chapter 7 bankruptcy isn’t for everybody, which it is why it is important you contact a Phoenix bankruptcy lawyer for a free consultation. A Chapter 7 bankruptcy, with the help of an experienced Phoenix bankruptcy attorney, can discharge the following unsecured debts:
Credit Card Debt– Often credit card companies raise your interest rate for just a single late payment, which then creates an additional burden to come up with the extra money. When this happens, it’s easy to fall behind on payments. In the event that you find yourself unemployed or underemployed, you might, unfortunately, rely on your credit cards for everyday living expenses such as: rent, car payment, phone bills, etc. Interest payments pile up and late fees can be excruciating. If your minimum payments are not making a dent in your credit card debt, it is time to contact a Phoenix bankruptcy lawyer to explore your options.
Medical Debt – Medical debt is unavoidable. Taking care of your health should always be number one priority on your list. Medical debt is one of the biggest reasons a single individual or a family files for bankruptcy. Even if an individual has insurance, sometimes it may not be possible to completely cover treating serious conditions which could lead to catastrophic medical debt.
Personal Loans – Individuals often turn to personal loans as a way to pay off debts. Although it might take care of some, if not all, sometimes coming up with the money to pay off that personal loan can be difficult.
Title Loans– Title loans are more of a traditional secured loan. The lender will keep your title as collateral until you have paid off your loan. People go this route because of the need for quick cash to pay off other debts or personal reasons. Interest rates on this type of loan may make it difficult to pay off timely. Title loans can be discharged in bankruptcy as long as you are willing to surrender your vehicle along with the title loan and the title loan isn’t attached to any current vehicle you operate.
Payday Loans – These loans are used in a form of “advanced pay” in order to be able to pay of personal debts or expenses. Usually, the lender will lend you an amount of money at a high interest rate with the agreement that it gets paid by your next paycheck.
Registration Loans – Registration loans are a cash loan using your car that you are still making payments on as collateral. These are fast and easy solutions for quick cash. Again, with high interest rates, these can be difficult to payback.
Car Repossession – Whether you might’ve had your vehicle repossessed or you voluntarily turned it in because you simply couldn’t keep up with the payments, you still are liable for the debt. These finance companies for the most part become an “aggressive” creditor by serving you with a lawsuit to appear in court and pursuing wage garnishment. Deficiency balances are dischargeable.
Most Items in Collections– Anybody who has bills in collections understands how stressful the daily harassment calls can be. You probably spend most of your day avoiding calls because you know where it’s coming from. Filing bankruptcy is the easiest way of ending harassment from these creditors.
Most Judgments – Generally, most judgments are dischargeable through a Chapter 7 bankruptcy. However, if you’ve received a judgment from an insurance company for an auto accident that you caused while drinking under the influence, that cannot be discharged. Similarly, criminal restitution is not eligible for discharge.
Most Wage Garnishments -I f a creditor obtains a wage garnishment against you, it’s likely making life more difficult. If you’re being garnished, a creditor can only take up to 25% of your wages. Filing bankruptcy, with the help of a Phoenix bankruptcy lawyer, is the best way of stopping the garnishment.
Non-Dischargeable Debts
The following debts are generally not eligible for discharge under a Chapter 7 bankruptcy:
Most state and federal taxes
Child support and alimony
Medical expenses incurred by other due to accidents caused while under the influence
HOA fees
Criminal fines, penalties and restitution
Penalties owed to the government
Attorney fees related to child support or alimony
If you have Bankruptcy questions, call the Lerner and Rowe Law Group at 602-667-7777 or contact us online to schedule a free consultation. The bankruptcy lawyers at the Lerner and Rowe Law Group have been helping clients all across the valley get a fresh start. Often, people delay seeking help for their financial situation. Don’t put it off any longer. Contact us today to see if filing bankruptcy is right for you. We offer affordable payment plans.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
What Is a Chapter 13 Bankruptcy? And How Does It Work?
A chapter 13 bankruptcy is a proceeding under the federal law in which the a consumer seeks relief under the Bankruptcy Code. A chapter 13 bankruptcy allows a person to repay all or a portion of his or her debts. This is done under the supervisions and protection of the bankruptcy court. A person who files a chapter 13 bankruptcy is called a debtor. The debtor submits to the court a plan for the repayment of all or a portion of his or her debts, of course with the help of your Arizona bankruptcy attorneys. The court must approve the plan in order for it to become effective. If the court approves the debtor’s plan, creditors will not be able to collect their claims from the debtor.
The debtor must make regular payments to the chapter 13 trustee. The trustee collects the money paid by the debtor and disburses it to creditors according to the plan. Upon completion of the payments, the debtor is no longer liable for the remaining general unsecured debts. Generally, the debtor must pay all back taxes, back alimony and child support in full in a Chapter 13.
How Does a Chapter 13 Bankruptcy Differ from a Debt Consolidation Service?
In a chapter 13 bankruptcy, with the help of your experienced Arizona bankruptcy attorneys, the bankruptcy court can provide relief to the debtor that a private debt consolidation service cannot provide. The court has the authority to prohibit creditors from attaching liens or foreclosing on the debtor’s property. The court can also force unsecured creditors to accept a chapter 13 bankruptcy plan that pays only a portion of their claims and to discharge a debtor from those claims. Private debt consolidation services can not do this; they do not have any of these powers. The immediate relief a bankruptcy debtor receives is the automatic stay. The stay stops or stays creditors from most collection activities against the debtor.
How Is a Chapter 13 Bankruptcy Different from a Chapter 7 Bankruptcy?
The basic difference between a chapter 13 bankruptcy and a chapter 7 bankruptcy is that in a chapter 7 bankruptcy, the debtor’s nonexempt property, if they posses any, is liquidated to pay whatever portion of the debtor’s debts it can cover. That person then receives a discharge and then released the debtor from liability for the most debts. In the chapter 13 bankruptcy, a portion of the debtor’s future income is used to pay as much of the debtor’s debt as feasible. The debtor usually retains his or her nonexempt property. However, they must pay off as much of his or her debts as the court deems reasonable. They then receive a discharge and release from liability of dischargeable debts.
How Long Should I Expect the Chapter 13 Bankruptcy Plan Last?
The required length of a chapter plan depends on the debtor’s income. If the debtor’s annual income is less than the median income for Arizona, the length of the plan must be three years. If the annual income exceeds the median income for Arizona, the length of the plan must be five years. Unless payment of all unsecured debts occurs in a shorter period. You calculate the annual income by taking your gross monthly income and multiplying it by 12. Your Arizona bankruptcy attorneys will assist you at all phases of your case.
Is It Possible to Dismiss a Chapter 13 Bankruptcy Case?
Yes. It’s possible to dismiss a chapter 13 bankruptcy case for a number of different reasons. If for example you were to move out of state and did not notify your chapter 13 trustee, that could be a reason for dismissal. Any time a debtor plans on moving, they need to let the trustee know in advance or notify the bankruptcy attorney. This will help to avoid dismissal. If the debtor is temporarily out of work, injured or otherwise unable to make the payments required under a chapter 13 plan, they would need to contact their experienced Arizona bankruptcy attorneys to attempt and get the plan modified. If it appears that the debtor will be unable to continue making their chapter 13 payment, the case may be dismissed. It is not generally possible to dismiss a chapter 7 bankruptcy case.
Where to Find the Top Experienced Arizona Bankruptcy Attorneys?
The process of filing for bankruptcy, whether it be chapter 13 or 7, can be a daunting and confusing task to face on your own. You should have a team of qualified and experienced Arizona bankruptcy attorneys on your side to help clear up questions and misconceptions. Lerner and Rowe Law Group has the bankruptcy lawyers you need to help you figure out if filing for bankruptcy, and what type, is the right option for you. You can reach out to us anytime, 24/7, by calling 602-667-7777. Stop by our offices Monday-Friday, 8am to 5pm, or use the convenient LiveChat feature on our website to start. We give free initial consultations and have flexible payment options available. But we won’t ask for any fees until after we’ve been successful in your claim. Don’t put it off any longer. Contact us today!
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
A Chapter 13 bankruptcy enables individuals with above-average income to develop a plan to repay all or a portion of their debts.
Under this chapter, debtors; with the help of a Phoenix bankruptcy attorney, propose a repayment plan to make installments to creditors over three to five years.
One of the most attractive features of a Chapter 13 bankruptcy is the chance to stop home foreclosures and car repossessions.
Advantages of Filing a Chapter 13 Bankruptcy
Filing a Chapter 13 bankruptcy suspends any current repossession and foreclosure proceedings and payment of any other debts owed. This provides a debtor time while the court considers the plan – but it does not eliminate the debt. With the help of experienced Phoenix bankruptcy lawyers, a debtor can free up enough income to be able to make regular mortgage payments and keep their house.
Another advantage of the Chapter 13 bankruptcy is that it allows individuals to reschedule secured debt. It also extends payments out over the life of the Chapter 13 plan. This may lower payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on consumer debts.
This provision protects co-signers. Lastly, a Chapter 13 bankruptcy acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under the Chapter 13 protection.
Kick-Starting a Chapter 13
A Chapter 13 case begins by filing a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. Unless the court orders otherwise, the debtor must also file the following with the court:
Schedules of assets and liabilities
A schedule of current income and expenditures
Schedule of executory contracts and unexpired leases
A statement of financial affairs
The debtor also files a certificate of credit counseling; evidence of payment from employers; a statement of monthly net income and any anticipated increase in income or expenses after filing. The debtor must provide the Chapter 13 case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case is started).
Court Fees to Know When Filing for Bankruptcy
A filing fee of $310 must be paid to the clerk of the court upon filing. A husband and wife may file a joint petition. If filing a joint petition, only one filing fee is charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case. To avoid a dismissal, for any reason, its recommended working with an experienced bankruptcy lawyer to assist with the preparation and filing of the bankruptcy petition.
Required Key Information
In order to complete the Official Bankruptcy Forms, debtors need to collect the following information:
A list of all creditors and the amounts and nature of their claims;
The source, amount, and frequency of the debtor’s income; and,
A list of all of the debtor’s property and a detailed list of the debtor’s monthly living expenses: food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
Most individuals must gather this information for their spouse regardless of whether they are filing a joint petition or a separate individual petition. In a situation where only one spouse files, the income and expenses of the non-filing spouse is still required. This make it so the court, trustee and creditors can evaluate the household’s financial position.
The First 30 Days After You File
Within 30 days after filing the Chapter 13 bankruptcy, the debtor must start making plan payments to the trustee. This deadline applies even if the plan has not yet been approved by the court. If any secured loan payments or lease payments come due before the debtor’s plan is confirmed (for example a home or automobile payment), the debtor must make adequate protection payments to the secured lender directly.
45 Days After You File
No later than 45 days after the filing of a case, a Meeting of the Creditors takes place to establish a payment plan. Once confirmed, the debtor becomes responsible for making all Chapter 13 payments for the remainder of their agreed term. If for some reason the debtor cannot make a payment, they should contact their bankruptcy attorney immediately.
Common Misconceptions Put to Rest by Experienced Phoenix Bankruptcy Attorneys
A common misconception is that a plan provides for the repayment of all unsecured debt. This is not true! While a plan must provide for the payment of all home arrears, most back taxes and all back alimony or child support, the vast majority of plans provide for only a small portion of the unsecured debt being paid. An experienced Phoenix bankruptcy attorney will help you get the maximum benefit of a Chapter 13 bankruptcy. They do this all while minimizing the burdens of the plan.
Filing a Chapter 13 bankruptcy can be a complex, which is why you should find a qualified Phoenix bankruptcy attorney to guide you through the process. Contact the experienced bankruptcy lawyers with the Lerner and Rowe Law Group today to help you determine whether bankruptcy is right for you. We answer our phones at 602-667-777724/7.
A bankruptcy trustee’s job varies depending on the type of case.
Besides Phoenix bankruptcy lawyers, trustees are often the most important people in bankruptcy cases. The court assigns a bankruptcy trustee to almost every consumer bankruptcy case. Whether you are filing Chapter 7 or Chapter 13 bankruptcy, you should expect to meet one. Bankruptcy trustees are not employees of the bankruptcy court. They are independent contractors who have various duties and powers, depending on the case, and the specific circumstance of the debtor and the creditors involved.
The Role of a Bankruptcy Trustee
Part of the trustee’s job is to review the bankruptcy petition and related documents to ensure everything done is consistent with bankruptcy rules and procedure. Your bankruptcy documents include personal and financial information about your income, debts, property and overall financial situation. Typically, you must also provide supporting documentation to the trustee, including; pay stubs, tax returns and information regarding your assets. The trustee reviews and verifies all your information. Your Phoenix bankruptcy attorney will help you ensure your paperwork is complete and filled out accurately.
A bankruptcy trustee’s job varies depending on the type of case:
Chapter 7 Bankruptcy
When filing a Chapter 7 liquidation bankruptcy, the trustee has several primary duties. The trustee is in charge of: collecting all non-exempt property, liquidating nonexempt property, challenging creditors’ claims, distributing proceeds to individual creditors and objecting to a discharge of debts, if grounds exist.
Chapter 13 Bankruptcy
Now, when you file a Chapter 13 reorganization bankruptcy, the role of the trustee differs. Since you keep virtually all your property, instead of collecting and selling your property to pay creditors, the trustee’s duties focus on handling your repayment plan. The trustee: reviews your proposed repayment plan, makes objection if necessary, collects required payments based on your confirmed plan, distributes payments to your creditors and ensures you are satisfying your repayment agreement.
Consumer Bankruptcy
In consumer bankruptcy cases, part of the bankruptcy trustee’s role is to review your petition and other bankruptcy paperwork to look for inaccuracies, fraud and any signs you are abusing the bankruptcy system.
Meeting of the Creditors
Bankruptcy trustees oversee and preside over the Meeting of the Creditors. You will need to be responsible for bringing in a valid photo ID, your social security card and copies of all your bankruptcy paperwork and supporting documentation. During this meeting, you will swear under oath and your trustee asks you questions about the information contained in your bankruptcy documents. Your Phoenix bankruptcy attorney also attends this meeting. They can explain or clarify something you do not understand and help with objections.
Creditor meetings are for the most part very short. Your Phoenix bankruptcy lawyer will explain that although it has the name “Meeting of the Creditors,” creditors often do not attend. Once the trustee finishes with the questioning, he or she concludes the meeting and administers any none exempt assets. A Chapter 7 discharge is usually granted by the court 60 days after the conclusion of the meeting. A Chapter 13 discharge is granted at the end of the payment plan.
Contact a Bankruptcy Attorney Today
The Phoenix bankruptcy lawyers with the Lerner and Rowe Law Group have helped clients all across the state file Chapter 7 and Chapter 13 bankruptcies. Our experienced bankruptcy attorneys will help you understand the bankruptcy process. We will give you all the information you need in order to determine whether bankruptcy is right for you.
Contact our office today to schedule your free consultation, or fill out the online intake form. We’re available 24/7 to take your call at 602-667-7777, and offer affordable payment plans.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
Are you overwhelmed with bills? Do you wish you had won the lottery to alleviate you from all your debt? Although the answer to that last question is more than likely a “yes please” that’s not the only way of making you debt free. There are some federal laws that can help you relieve your debt. A Lerner and Rowe Law Group bankruptcy attorney can help you file for chapter 7 bankruptcy or chapter 13 bankruptcy.
Are you ready for your fresh start?
Chapter 7 Bankruptcy
Let us explore the single most common type of bankruptcy, chapter 7. A chapter 7 bankruptcy is the most common type of bankruptcy. A chapter 7 bankruptcy seeks a discharge or a release from personal liability such as:
Credit cards,
Medical bills,
Personal loans,
Title loans and payday loans,
Most judgments,
Car repossession deficiencies, and
Broken leases.
Furthermore, a chapter 7 bankruptcy will stop most wage garnishment filings. However, some debts are not dischargeable in a chapter 7 bankruptcy such as: HOA fees, criminal restitution, IRS debt, child support debt, alimony or student loans.
Part of the preparation process, the debtor will have to bring in all financial documents like bank statements, credit card statements, loan documents, paystubs and cooperate in the preparation of the bankruptcy papers. A credit counseling course is a requirement to file. Additionally, one class needs to be taken before the case is filed and the other one has to be filed post filing. Out of the comfort of your own home, you are able to take these courses on the internet or over the phone. These courses are very basic. Upon filing chapter 7 bankruptcy, the bankruptcy court will give notice of a debtors’ meeting of the creditors, which creditors rarely attend. Normally this meeting takes place 4-5 weeks after the filing of chapter 7 bankruptcy. During the meeting, your appointed trustee will ask various questions to establish all the information collected is true and correct.
In a chapter 7 bankruptcy, the debtors get to keep or retain “exempt” property and must turn over “non-exempt” property to their trustee for the benefit of their creditors. Claiming the appropriate exemptions and “exemption planning” is why you need an experienced bankruptcy attorney. Most of the necessities of life are exempt and retained by debtors.
The ultimate goal of a chapter 7 bankruptcy is to receive a “discharge” (that release of personal liability) of unsecured debt. Secured debt generally requires current payments to keep the items financed such as a house or a vehicle. The goal of any bankruptcy lawyer is to maximize the debtor’s benefits and minimize the burdens of filing a chapter 7 bankruptcy. A bankruptcy attorney may also be able to save you money or personal property by offering pre-bankruptcy advice.
Lerner and Rowe Law Group Can Help
If your debts are continuing to pile up and you think bankruptcy might be a good idea for you, our experienced Arizona bankruptcy attorney at Lerner & Rowe Law Group can answer your questions and help you make sense of the process. Contact us for a free initial consultation to see if a chapter 7 bankruptcy would benefit you. Feel free to stop by our office Monday through Friday, from 8:00 a.m. to 5:00 p.m. Or, you can call us anytime at 602-667-7777.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
