Sep
07

Should I file for Bankruptcy if i am separated or divorcing?

I always ask clients what their marital status is and whether they have joint debts with their spouse says Charlotte Bankruptcy Attorney Victorianne C. Maxwell of Maxwell Law Firm, PLLC.

FILING BANKRUPTCY WHEN YOU ARE SEPARATED

If you are separated you are still legally married and have to disclose this on your bankruptcy petition. What does this mean? You must list that you are married and that your spouse lives in a different household.

DO I HAVE TO FILE WITH MY SPOUSE?

No you do not have to file with your spouse. You can file bankruptcy individually even if you are still living together. The difference in filing married individually vs. married and separated is that you will not need to include your spouse income on the later filin status. However, if you wish to elect to file together both of your incomes must be included on the bankruptcy petition even if you are separated.

WHAT HAPPENS TO JOINT DEBTS WHEN I FILE AND MY ESTRANGED SPOUSE DOES NOT

Depends on the Chapter of you file. If you file a chapter 7 bankruptcy, then you will receive a discharge on unsecure debts and those you have chosen not to affirm. What this means is that your spouse will remain liable and you will be discharged of liability. Filing a chapter 13 bankruptcy is a little more tricky. Since a payment plan is set up in a Chapter 13 case, the creditor must accept the payment provided by one spouse for that debt if their debt is secured and modified by the plan. But if the debt is unsecured the creditor can seek full or partial payment from the other spouse.

WHAT YOU SHOULD DO IF YOU ARE CONSIDERING BANKRUPTCY

Divorce itself can be quite a long and arduous process. Many times a lot of divorce squabbles stem from property and debt. Consulting with a qualified bankruptcy attorney can save you time and effort on fighting over who should pay for what. In the end creditor does not discriminate and can go after on or both of you for those debts. In some instances it may be beneficial to file jointly in others it may not be, but you will not know unless you consult with a Bankruptcy Attorney.

 

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, Tax Services and loan modifications. You may schedule your appointment by calling 704-780-1100 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations

Sep
07

How does Chapter 13 Bankruptcy work?

Chapter 13 Bankruptcy is often referred to as the wage earner’s bankruptcy. Generally, people with incomes above the median can qualify for a chapter 13 in certain circumstances.

How Chapter 13 Works

A payment plan is developed by your Bankruptcy Attorney and approved by the Bankruptcy Trustee to pay off your creditors within three to five years time. Instead of certain debts being discharged at the close of your bankruptcy, as in chapter 7, only some the debts will be discharged at the end of the plan. Also, the debtor must make monthly plan payments to the trustee for certain debts. Failure to make these payments could lead to the dismissal of the debtors case. If a debtors case gets dismissed before the conclusion of their plan then they will not receive a discharge

Qualifying for Chapter 13 Bankruptcy

One factor for qualifying, is if a debtor fails the means test for Chapter 7, the will more than likely qualify for a Chapter 13. In addition, if the debtor has non-exempt property that would have been liquidated in Chapter 7, it may be in there best interest to file for chapter 13 Bankruptcy.

Benefits of filing a Chapter 13

1.Creditors will be forced to abide by the payments setup by your Attorney and approved by the Trustee.

2.You have the opportunity to modify the terms of your loans and interest.

3. You can reduce the amount of debt to value of the property. This is called lien stripping.

Chapter 13 is a lot more in depth process taking anywhere from three to five years. You want to make sure your Bankruptcy Attorney informs you of entire process and what you must do to insure that the bankruptcy will be completed

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, Tax Services and loan modifications. You may schedule your appointment by calling 704-780-1100 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations

Sep
02

Will i loose my house if i file for bankruptcy?

By Bankruptcy Attorney

Generally, yes there is something called a homestead . The homestead exemption is applied to the in a debtors home. The debtors property is from seizure to creditors to the extent provided by state and federal law.

In North Carolina the homestead exemption varies depending on the debtors marital status and age. Debtors who are married and over the age of 65 have a greater exemption in their home than a single debtor under the age 65.

If you are being sued by a creditor, particularly in the state of North Carolina you will need to claim this exemption. Even if you claim this exemption, a creditor can still file a lien against your home.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100 or save 25% off the fees and schedule online.

 

 

Sep
01

BANKRUPTCY ALTERNATIVES

Often times debtors are faced with one or more debts that they can not manage to pay and have defaulted and they ask what are my options beside ?

DO NOTHING

Most people try to ignore the debts and hope they will go away. Funny thing is that there is something called a statute of limitations. Statute of limitations is the amount of time the creditor has to sue to collect on the debt. Not everyone is judgment proof (this where the creditors will have nothing to take when they receive a judgment). Even if you are presently judgment proof, the judgment will hinder you from being able repair your credit, hurt you with employment opportunities, and getting property in the future.

VALIDITY OF THE DEBT

In some very rare cases there can be a loop hole in the law that would render a debt uncollectible. When consulting with an ask them to look over the paperwork to see if there are any flaws. In less than 5% of cases, creditors have failed to follow the protocol or the law invalidating the .

DEBT SETTLEMENT

A settlement is where you offer an amount less (20-40%) than the debt owed to the creditor in full satisfaction of the entire debt. The creditor must accept this settlement and they will report the . In addition, the settlement will be reported on your credit history. What this means is that your settlement will reflect negatively on your credit history or report.

Bankruptcy is a federally enforced debt protection program where debtors can save their homes from foreclosure, wipe away or discharge most of their debts, and modify certain other debts. It cleans up many of the negative collection items on debtors credit reports and allows debtors to start anew. If you are considering bankruptcy, I suggest you contact a Bankruptcy Attorney for a .

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-461-1883 or save 25% off the fees and schedule .

Sep
01

FLAVORS OF CONSUMER BANKRUPTCY

BY

There are several types of bankruptcies, but mainly are two types of , chapter 7 and chapter 13. Consumer Bankruptcy is available for non- consumer debtors. In some certain circumstances smaller businesses can file under these chapters. This is something I will discuss at a later time.

CHAPTER 7

A is a liquidation bankruptcy. Once debtor files for , there debts and assets become a part of the Bankruptcy Estate they are then assigned a case number and trustee is appointed in their case. is available for debtors who have very little income and a lot of debt, much more goes into the analysis but that is the general idea.  A debtor receives has a certain amount of property that is from the creditors.  The trustee then takes non-exempt assets and liquidates them. The proceeds are then used to repay eligible creditors of the debtor according to their rank and . Priority is determined according to debt type and time when debt was entered into. If a business files for Chapter 7 bankruptcy, a company must cease all operations turn over its assets to the Trustee. Generally Chapter 7 bankruptcy proceeding last anywhere from 3 to 4 months. Once the bankruptcy is completed, the individual or the company will be relieved of most of their liabilities and will be able to have a .

CHAPTER 13

Chapter 13 Bankruptcy is a court approved payment plan that can last from anywhere from three to five years. This type of bankruptcy is more suited for individuals who have reliable sources of incomes to pay all or a fraction of their debts under protection and supervision of the  bankruptcy court. Under the law requires that the payments must be equal to what would have paid out in a Chapter 7 liquidation case. An important feature of Chapter 13 is that you will be permitted to keep all your assets while the plan is in effect and after you have successfully completed it. Once you complete it the plan, unsecure debts are discharged and other secured or priority debts may continue.

If you are considering bankruptcy and would like to know your options and which chapter you qualify for, you should contact a Bankruptcy Attorney in your area.

 

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and . You may schedule your appointment by calling 704-461-1883 or save 25% off the fees by scheduling your appointment 

Aug
31

Will filing for bankruptcy help remove items from my credit?

You have a score and a record before filing for bankruptcy. Negative items like foreclosures, repossessions, late payments, the number new of inquires, and the overuse of credit (maxing out your limits) reduce your credit score.

When you , particularly a chapter 7, essentially some of your debts are discharged. Typically unsecured debts are discharged and those liabilities display this information on your credit report after you file. This will clear up the negative items and it will help increase your credit score.

You should consult with a Bankruptcy Attorney if you are considering your options and looking for a fresh start to see if you qualify.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations

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