Chapter 13 and Chapter 7 Bankruptcy Attorney - YouTube
In this video, I give a short description of Chapter 13 and Chapter 7 bankruptcy. Chapter 13 is often referred to as the “catch your breath” provision of the bankruptcy code. Chapter 13 is a great tool to catch up past due house payments, past due car payments, or some other secured debt. In contrast, Chapter 7 is often referred to as the “fresh start” provision of the bankruptcy code. Chapter 7 wipes out your debt and enables you to get a new start. I have office locations, Rome, Dalton, Dallas and Cartersville, Georgia. I can be reached at 1-888-832-8249. Call today.
How does a divorce affect bankruptcy? Getting divorced during a bankruptcy presents major ethical considerations for your Georgia bankruptcy attorney when a husband and wife file a case together (See Georgia Model Rules of Professional Conduct). In an individual case, your Georgia bankruptcy attorney may simply need to file amendment reflecting the loss income of the spouse and a new expense list. In either situation, the bankruptcy attorney will need to sit down with the client and review the entire case.
Many people like to refer to Chapter 13 bankruptcy as the “catch your breath” provision of the Bankruptcy Code. It is designed for people who have money to pay back their creditors but who can’t do it all tomorrow like the creditors are demanding. Chapter 13 bankruptcy allows you stop the harassing phone calls and lawsuits. Chapter 13 bankruptcy gives you time to catch your breath while you pay your creditors. Chapter 13 bankruptcy stops garnishments, foreclosures, and repossessions of your car. You do not need the permission of your creditors to obtain Chapter 13 bankruptcy protection.
Data breach level to maximum modern conceptual meter, isolated on white background
Yes, you can freeze your credit while you are in an active Chapter 13 bankruptcy. There is nothing in the bankruptcy code that would prohibit freezing your own credit.
This past week, we have received many calls from concerned clients asking this question in light of the recent Equifax data breach. The Atlanta based Equifax credit reporting agency recently announced that as many as 143 million people may have had their social security numbers and birth dates released to hackers in the breach.
If you would like to know if you are affected by the Equifax data hack, you can go to this website. If you have been a victim of the breach, Equifax will give you one free year of credit monitoring.
WSB Consumer Expert Clark Howard recommends that the best way to protect yourself is to freeze your credit with Experian, Transunion, and Equifax. Here is a link to Clark Howard’s page.
What is a credit freeze?
A credit freeze is basically a lock or a seal on your credit report. The only way to open it is with a pin number that will be issued to you by the credit reporting agency. If you lose the pin, you could be in big trouble if you ever need quick access in the future. If you have a credit freeze in place, identity thieves will not be able to establish new credit in your name using your credit reports even if they have your personal information.
Personally, I think this disaster for Equifax will mark the end of the day and age where we use social security numbers and birth dates to access credit. I have no idea what the new system will be but the old one is now useless.
Reminder to all my clients: While you are in an active Chapter 13 case, you are not supposed incur any new debt without permission from the court.
If you are sending a certified letter, this is how is should read:
Dear ______(name of credit agency):
I would like to put a complete freeze on my credit. My full name is ________. My birth date is ______. My maiden name is _____. My current address is ____. My prior addresses are ____. My social security number is _____. My Drivers license state and number is _____. (You will need to check with each agency to find out how much they will charge you for the freeze).
Closeup view of Modern Suburban Home for Sale Real Estate Sign in front of modern home
The current real estate market is hotter than it has been in years. As a consequence, we have recently seen some Chapter 13 clients who would like to cash in and sell their house. Can you do it while you are in an active Chapter 13? The answer is yes as long as you get permission from the court.
How do you get permission from the bankruptcy court to sell your house?
The first step is that your bankruptcy attorney will have to file a motion. To file this motion, your case worker will need a copy of the sales contract. Before you sign any contract for the sale of your house, make sure there is a provision that clearly states that the sale is subject to approval by the bankruptcy judge. Please keep in mind that after the motion is filed, your bankruptcy attorney will apply to the court for additional attorneys fees for drafting and presenting the motion.
The trustee is going to want to know the relationship of the buyer to the debtor. The reason for this is that a person in bankruptcy cannot just give away a valuable asset to a relative. The transaction must be for fair market value.
A hearing will have to set with the bankruptcy court in order to give creditors time to object to the sale if they so choose.
As a general rule, do not set a closing date until the bankruptcy court has granted approval.
What happens to any extra money after the sale is completed?
The answer to this question depends on the amount of money that is left over. In Georgia, a single filer can exempt a maximum of $21,500 of equity in their house. A married couple can exempt a maximum of $43,000.00.
If I pay the extra money to the trustee, will my case end sooner?
The answer to this questions depends on whether or not your case is a composition plan. In a composition plan, unsecured debts like medical bills and credit cards are being wiped out in the case. Any extra money you pay to the trustee in a composition case will be applied towards debt that otherwise would have been wiped out. If you are paying 100 percent of your debts, then any extra money paid to the trustee will shorten the time of your case.
Thousands of people across this country are currently enslaved by student loan debt. The Wall Street Journal and many other great newspapers have written articles detailing the effects of student loan slavery. Marriages are being put off. People cannot afford to buy houses. New businesses never get started. It is a huge drain on our economy. The solution is to make student loans dischargeable in bankruptcy. Thankfully, there is currently a bill pending in Congress to do exactly that. Click hereto read about it.
This is a bipartisan bill that is sponsored by Republican John Katko from New York and Democrat John Delaney from Maryland.
Congressman Delaney is absolutely correct when he states that the current student loan loophole that currently exists in bankruptcy law is “hurting real people.” I see these real people every day and it is heartbreaking.
Congressman Katko states that “it should not be the case that student loan debt is the only form of debt that cannot be discharged.”
The current student loan debt stands at 1.3 trillion dollars.
The current bill has little chance of succeeding unless we start a movement to get it passed. Even if the bill fails, we all need to contact our respective members of Congress and let them know that you want student loans to be dischargeable in bankruptcy. Eventually, I am confident that we will win this fight.
Since making student loans nondischargeable in bankruptcy, market forces have been distorted in college education. Our federal government has handed out over a trillion dollars in student loans and colleges have responded by raising tuition rates sky high. As a consequence, most college graduates finish school with degrees that don’t lead to jobs that will enable them to pay the student loans back.
Our society has drilled into teenagers, you must go to college at all costs if you want to succeed in life. As a result, many young student signed up for college and student loans expecting success but unknowingly have sold themselves into slavery. Then, graduation came with no job offers. Now, the student loan spirals out of control and compound interest works it magic against the people. Our current policy punishes those who cannot pay their student loans for their entire life.
What can you do?
Call and write your congressman and express your support for this bill. To find the contact information for your representative in the United States House of Representatives, click here. To find out the contact information for your Senators, click here.
Post a link to this blog on your facebook page so that all of your friends can read it.
On my facebook page with this post on this, write “I support the new law to discharge student loans in bankruptcy.”
Run for Congress and make this issue central to your platform.
Please tell your members of Congress, “Pharoah, let my people go!” All that is necessary for the triumph of evil is for good people to do nothing.
A chapter 7 bankruptcy is often called the “fresh start” provision of the bankruptcy code because it allows you to wipe out all of your debt and get a fresh start. In a chapter 7 bankruptcy, we show the Court that you are unable, based upon your budget, to pay the debt that currently hangs over you. Approximately 90 days after we file your chapter 7 bankruptcy, you are granted a discharge which means that your are no longer liable for the debt.
A Motion for Relief from the automatic stay is basically a request from a creditor to the Bankruptcy Court for permission to take back collateral. Motions for Relief are set down for hearings before the Bankruptcy Court. In Northwest Georgia, these hearings are held at the Federal Building in downtown Rome GA. Debtors and their bankruptcy attorney have the opportunity to defend against the motion. If a creditor has good cause for filing the motion, it will be granted. If the debtor and the bankruptcy attorney can mount a reasonable defense, the request will be denied.