Tag Archive for: Chapter 13

Time Limits Between Bankruptcy Filings

Many people are now wondering since I previously filed Chapter 7, can I file bankruptcy again?   Yes of course, there is no lifetime limit on filing.  There are however limits between filings.  Chapter 7 bankruptcies must have eight years between the filing date and the new Chapter 7  filing date.  If you previously filed Chapter 7 and are now thinking of filing Chapter 13,  you should wait four years in order to receive a discharge in Chapter 13.

  • If you file Chapter 13 within four years of filing Chapter 7, you cannot discharge your debts after you complete the three- to five-year Chapter 13 plan. You can still file Chapter 13 to keep creditors from suing you, garnishing your paychecks, or levying your bank account.  You may want to file another Chapter 7 bankruptcy when you have passed the eight-year mark.
  • If you file Chapter 13 four years after filing Chapter 7, you can have a very low monthly Chapter 13 payment plan and receive a full discharge of all remaining balances after you complete the three- to five-year plan.

There are some circumstances where you may want to file a Chapter 13 right after receiving your discharge in Chapter 7,  even though you will not be eligible for a discharge in Chapter 13.   These are called Chapter 20 cases. This would be done to save your home for example, since there is not a way to do this under Chapter 7 if you are behind on payments.

In some cases you can file a new Chapter 13 before your previous Chapter 13 is discharged. It also is possible to convert your case to Chapter 7 if your financial situation has drastically changed.   Give us a  call to discuss your particular case at (727) 410-2705.

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney

 

 

Difference Between a Chapter 7 and a Chapter 13

Difference Between a Chapter 7 and a Chapter 13 Bankruptcy

Chapter 7 is a liquidation bankruptcy, it has two primary functions: reviewing your assets to see if you have non-exempt assets that can be turned into cash the trustee can liquidate to pay back some of your debts, while attempting to eliminate your remaining debts. Creditors will receive notice of the automatic stay upon your filing, which means they must stop contacting you about unpaid bills and seize any legal actions.   Unsecured debts, like medical bills and credit card balances, can usually be wiped out in Chapter 7 bankruptcy.  You must pass a means test in order to qualify for this bankruptcy.

Chapter 13 is a reorganization bankruptcy,  your attorney creates a detailed plan for you to pay back creditors while prioritizing your debts and forcing lower payoff amounts.  Unsecured debts like credit cards and medical bill receive cents on the dollar and they the balances are discharged. In Chapter 13, you will pay only disposable income, or the amount above your living expenses, toward unsecured debts for a period of three to five years. It also gives you a chance to catch up on secured debts like mortgages or car loans and work on regaining your good standing with creditors. You must have regular income to qualify.

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

April-July Special- Chapter 7 at $795

Clearwater Bankruptcy Attoreny

Chapter 7- $795 excludes filing fee includes personal property appraisal and credit report.

Chapter 13 -$1,500 down balance through plan capped at $4,500 plus administrative fees excludes filing fee, includes personal property appraisal and credit report, does not include loan modification ( additional $1800 through plan).

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Chapter 13- MEANS TEST

Chapter 13 is a section of the Bankruptcy Code which allows individuals who are in financial difficulty to pay their creditors over time, while under the protection of the Bankruptcy Court. The Bankruptcy Court issues an order, preventing creditors from taking any action against you the moment the bankruptcy is filed just as in a Chapter 7.

You are required to pay your “disposable income”, which is defined as income that is not reasonably necessary for the maintenance and support of you or your dependents, during the “applicable commitment period” . What the Court says is your disposable income may differ greatly from what you think is your disposable income.   The Trustee looks   at the IRS code if it is not allowed as a deduction there, you probably can not take it on the DMI. If you want to take additional expenses you need to have all the receipts to prove the expense for at least 6-12 months. You will need to provide these receipts for expenses to the Trustee. For example all those school supplies you have to buy each year- not an allowable expense.

Prior to October 17, 2005 under the bankruptcy code, disposable income was calculated by subtracting reasonable monthly expenses from actual monthly income. This system was changed by the passing of BACPA.  The new law is not consumer debtor friendly.

Under the current law, however, this is no longer true. pursuant to the required “means test” the amount of your monthly income is equal to your average monthly income received during the previous six months, and not actual income received at the time of filing. This will include any bonus you received, even if they were only a one time payment.   I know this sounds ludicrous! For example, consider the example of a debtor who, during the six months before filing, enjoyed a high income, but whose income now is much lower. The bankruptcy code, as written, requires the use of the higher, but no longer real, income. A debtor who during the last six months had a comparatively low income but who now earns a high income would not have to use the higher income in calculating disposable income.  Bankruptcy courts have struggled to attempt to reconcile the disposable income as determined by the means test with the amount left after deducting actual expenses from actual income. The court might allow the lower disposable income amount calculated by subtracting actual expenses from actual income, but require interest to be paid to unsecured creditors. The Trustees in the Middle District of Florida- Tampa want 5.25% per month interest paid to unsecured creditors for an over the means debtor who pays 100% plan over 60 months at less then the amount determined by the DMI.

Disposable Income is determined by allowing you to deduct “reasonable” expenses.   Higher income Debtors those above with income above the state median for a household of the same size as yours, are not necessarily the expenses you actually incur.  These expenses are based on national or regional standards determined by the IRS and enforced by the US Trustee Office through the Chapter 13 Trustee, they are irrespective of what you actually spend.

Needless to say, this can require involved and detailed analysis, and determining the amount you will pay in a Chapter 13 plan can be very difficult, time consuming and frustrating for you. This is why you need an attorney to file Chapter 13.  Contact my office to schedule an appointment at (727) 410-2705 or you can use our contact form.

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

How Do I Qualify For a Chapter 13?

    • I Have Regular Income
    • I Don’t Qualify For A Chapter 7 under the Means Test
    • I want to Save a House in Foreclosure
    • I want to Save A Car From Repossion
    • My Unsecured Debts (Like Credit Cards) Are Under $419,275*
    • My Secured Debts (Like Mortgages) Are Under $1,257,850*  

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

  • *As of April 1, 2019

What Does Chapter 13 Do?

  • Stop Foreclosures
  • Cure Mortgage Loan Delinquency
  • Reduce Principal Debt On Car Loans
  • Wipe Out Second Mortgages
  • Stop IRS Collections

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Chapter 13 Bankruptcy Overview

This is a slide show presentation on Chapter 13 click  the link to continue

https://www.haikudeck.com/copy-of-haiku-deck-in-action-business-presentation-74c47b369e

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

In Debt? Need A Way Out?

Can Bankruptcy Wipe Out Your Debts? Are you having trouble making ends meet?

Do you feel like this:

Behind on bills and can’t afford to catch up?

Can’t afford more than the minimum payment on your cards?

Harrassed by bill collectors?

Being sued for unpaid debts?

Car reposed?

Wages being garnished for unpaid debts?

Stressed out to the max?

Don’t know how you are ever going to get out from under all this debt? You could see available services here.

Get the help you need, and stop feeling this way! It’s not hopeless! We can wipe out your debts by filing a Chapter 7 or reduce them by filing a Chapter 13 Bankruptcy. Millions of Americans file bankruptcy each year, you are not alone. Call me for a Free Consultation today, (727) 410-2705.

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Filing For Bankruptcy Can Stop Wage Garnishment

Mounting Debts can result in Wage Garnishment. What is Wage Garnishment and how does it happen you ask.   The steps to wage garnishment are as follows:

The Creditor seeks legal help to collect your debt.  The Creditor obtains a Judgment against you. The Creditor does discovery for your employer and bank accounts. The Creditor obtains a Court order that requires the debtor’s employer to withhold part of the wages and pay it to the creditor. The Creditor can obtain 25% of Debtor’s disposable income.

Filing for Bankruptcy can stop 0 this kind of wage garnishment. Filing for Chapter 7 or Chapter 13 invokes an automatic stay that stops all collection activities by creditors, including wage garnishments. Resumption of any collection activities requires permission from the bankruptcy court.  After your Chapter 7 discharge, the creditor can no longer collect the debt, or garnish your wages. In a Chapter 13 Bankruptcy,  the automatic stay will last the full 3-5 years till your discharge is entered.   A portion of the debt will be paid along with other unsecured creditors, the balance will be discharged.

Contact our office today at (727)410-2705 to schedule your free consultation.  Regardless of the laws that are applicable to all, each situation is unique.  We will offer you the best advice on the specific course of action to take depending on your unique situation.  We will then guide you through the process.

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate