People often end up spending more than they earn making them unable to pay their dues. One of the best ways to protect yourself, according to Los Angeles based law firm Recovery Law Group is to file for bankruptcy. This offers a fresh start to people who are unable to pay their dues. They can liquidate their assets to clear their dues or form a repayment plan. Bankruptcy laws can be used to help protect financially unstable businesses too. (more…)
Tag: Chapter 13 Bankruptcy
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All You Wanted to Know About Bankruptcy Basis Process
The Bankruptcy Code is a uniform federal law which is used to govern all bankruptcy-related cases. According to U.S. Constitution Article I, Section 8, Congress is authorized to enact “uniform Laws on the subject of Bankruptcies”. The “Bankruptcy Code” (title 11 of United States Code) was thus enacted by the Congress in 1978 and has undergone several amendments since then. The bankruptcy process proceedings are governed by the Bankruptcy Rules (Federal Rules of Bankruptcy Procedure) and local rules of each bankruptcy court. As per bankruptcy rules, a certain set of official forms are to be used in bankruptcy cases. Thus, both Bankruptcy Code and Local Bankruptcy Rules are used to conduct legal proceedings while dealing with debt issues of both individuals and businesses. (more…)
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What is Homestead Exemption Bankruptcy?
Filing for bankruptcy is traumatic and shameful for many people. However, it doesn’t mean that you lose all your belongings when you file for it. Homestead exemption can help protect your home from going under the hammer, if it has more value than what you owe to the debt lender. If you file for bankruptcy under chapter 7, the bankruptcy trustee won’t sell your home if homestead exemption covers entire equity. In case you file under chapter 13, you get to keep your home but have to pay your creditors, as per your repayment plan, an amount equalling the non-exempt equity (the portion which isn’t covered by exemption) (more…)
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Everything You Wanted to Know About Non-Exempt Property Bankruptcy
Property which isn’t protected in bankruptcy is known as non-exempt property. This doesn’t mean that you will lose everything you own in life when you file for bankruptcy. The entire purpose of bankruptcy filing is to offer a fresh start to people who have had some financial troubles. As per your state’s exemption statutes, you can protect all property listed in it as well as things you will require to maintain a home, such as:
- Modest amount of equity in car
- Household fixtures and clothes
- Tools needed for your profession
- Your retirement account
As per Los Angeles based law firm Recovery Law Group any property that is not mentioned in the exemption list comes under non-exempt property. The course of action taken for non-exempt property depends on the chapter under which bankruptcy is filed.
Fate of Non-Exempt Property in Chapter 7 Bankruptcy
When you file for bankruptcy under chapter 7, the court appointed bankruptcy trustee sells your non-exempted property to pay off your creditors. The trustee uses the sale proceeds to clear any pending bills as per bankruptcy laws. Priority is given to domestic support (child or spousal support) and tax debt. In case there are no priority debts, the non-priority unsecured debts like credit card balance, utility bills and personal loans are paid off by the trustee.
Fate of Non-Exempt Property in Chapter 13 Bankruptcy
The non-exempt property is not sold off by the trustee in this case, but you are expected to pay your unsecured creditors, an amount equal to the value of your non-exempt property. Unsecured creditors are those whose dues aren’t assured by collateral. For example, if you are unable to exempt an asset or a timeshare of half its value, you will be required to pay your unsecured creditors an amount which is the sum total of both, over a 3-5 years repayment plan.
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Bankruptcy Exemptions: An Overview
Filing for bankruptcy is a last resort for many people struggling immensely with financial issues and non-payment of dues. In this trying time, bankruptcy exemptions play a massive role in both chapter 7 & chapter 13 bankruptcy. While exemptions in chapter 7 bankruptcy help determine how much property can you keep, those in chapter 13 are used to keep your repayment plan payments low. Before delving deeper, it is important to know about bankruptcy exemptions. (more…)
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Know More About Chapter 13 Bankruptcy Exemptions
Bad financial decisions can cause a change of fate. This can happen to anyone, anytime. Filing for bankruptcy offers a way to salvage not just your property but also allows you to get a fresh start. Bankruptcy can be filed by an individual or company under various chapters. Chapter 13 or wage earner’s bankruptcy is for people with a steady source of income. Like other chapters, exemptions are available under chapter 13 reimbursement proposal. They are also helpful in calculating the amount that the debtor will pay. Under chapter 13 bankruptcy, one can keep all their property, but they are required to pay their creditors the value of all things not covered under exemption within a 3-5 years frame. (more…)
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Worried About Bankruptcy? Here’s an Overview of Exemptions Granted during Bankruptcy
What if an investment you thought was your ticket to millions causes your downfall? Unable to pay your debts, many people and/or companies file for bankruptcy which offers them a lifeline. Your assets and liabilities are assessed by court trustees and judges to conclude whether your debts could be discharged. However, there are some bankruptcy exemptions too, which are used to determine how much property you can keep.