Can An Unsecured Creditor Get Paid In A Chapter 7 Bankruptcy?

Most unsecured debt is wiped out entirely in a Chapter 7 case, which is why most people prefer to file a Chapter 7 rather than a Chapter 13 case. Unsecured debt, like credit cards and medical debts can reach astronomical balances, making it almost impossible to ever pay in full. But if you were not tied to having to make minimum payments that get you nowhere on the debt, you could free up a large part of your monthly disposable income. When your paycheck is no longer being used to service insurmountable debt, you can put your money to use on other needs such as groceries and car insurance. 

The likelihood that unsecured debt would get entirely discharged in bankruptcy was one of the motivating factors behind the change to the Bankruptcy Code in 2005. The laws were changed then, to include a more in depth look at the finances of a person filing bankruptcy and how their bottom line related to the amount of secured debt owed. If the ratio was a certain amount, indicating that even after paying secured loans like home and auto notes there remained any amount that could be paid to unsecured lenders; a debtor would have to file a Chapter 13 case. But if the computation showed no funds available for unsecured debt, a Chapter 7 would be allowed.

As you might imagine, credit card companies much prefer to be paid something toward their debt rather than receiving zero. So, if a Chapter 13 bankruptcy is the way you are required to go when filing your case, your unsecured lenders will get paid something. But what about a Chapter 7, where the whole point is to eliminate your unsecured debt all together? A lender can get paid in a Chapter 7 if they are unsecured, and here is how:

•         If there are assets available that are not exempt or encumbered by a lien, those assets can be sold and the money made given to unsecured lenders.

•         You can opt to reaffirm a debt, even an unsecured debt. If you do, that lender will get paid.

Most debtors do not reaffirm unsecured debts, because there is little benefit to doing so. If you reaffirm a debt it is like signing a new contract, and that makes the debt still due even after your discharge is entered. It is critical to discuss these options with your attorney before and during your case, so you can make a choice that best meets your needs.

For more information about how lenders get paid during bankruptcy, call us today or reach us online at www.law-ri.com. We will help by looking at the facts of your case and giving you options to reach your financial goals.

Why Might The Trustee Try To Seize Property During My Bankruptcy

The Trustee assigned to your case is an impartial person, charged with the duty of administering your bankruptcy case. The Trustee is also responsible for looking out for unsecured creditors, and trying to find assets to satisfy some of your unsecured debt. In most cases, there are not assets for the Trustee to go after, but that is not always the case. If the Trustee begins asking you questions about your assets, allow your attorney to discuss the matter with you and handle the issue with the Trustee. Most times the questions are harmless, but there can be times when the Trustee is trying to figure out if you have an asset that is available for seizure.

The bankruptcy trustee might try to seize property during your case if he believes there is a chance the property can be sold and the proceeds used to pay some of your unsecured debt. It works like this:

•         Debts are typically secured by collateral, as a promise to repay the debt. For instance, your house loan is a secured debt where repayment of the debt is secured by mortgage or deed and your car loan is secured by your vehicle; meaning until the debt is paid in full the lender keeps a security interest in the property. But, if the lender failed to properly note their security interest, the trustee might be able to declare their interest as unsecured and seize the property for the benefit of the unsecured creditors. If that happens, the Trustee will file a notice in your case setting forth the reasons he or she thinks the lender is not a secured lender, and ask the Court for a ruling. If the Court agrees, the property can be sold and the proceeds given to the Trustee to distribute.

•         In order for an unsecured creditor to get a part of the money the Trustee is able to get under this type of scenario, the creditor has to ask for a disbursement by filing a proof of claim.

•         The property also has to be nonexempt property, which means the Trustee cannot take things from you for which you have a valid legal exemption. Most homes and cars are exempt, so you should not worry about the possibility of being homeless or on foot.

This type of procedure within your bankruptcy case is not a personal attack on you, and is merely the Trustee doing his or her job. But, we understand it can be unsettling to learn the Trustee is looking at your assets, and are here to protect your rights.

For more information about the Trustee’s role in your bankruptcy case, call us today or reach us online at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations for more convenient one on one office visits.

Three Tips For A Successful Bankruptcy Case

Taking advantage of the protections bankruptcy has to offer can really help you improve your financial condition. But the rules are complex, and in order to have a successful case you have to be willing to put in a little bit of work. The payoff is worth the work, especially if you are not able to pay all of your bills each month and need a little breathing room. The first step is to gather your debts and income, and sit down with a knowledgeable bankruptcy and debt management attorney to review your options. Once you have decided that bankruptcy is the answer you need, doing a few simple things will help ensure you get the results you need.

Three tips for having a successful bankruptcy case include:

●          Give all of the information you have to your attorney, even if you think it is insignificant. In order to make sure your case is complete and accurate, you have to tell your attorney everything there is to know about your financial condition. If you accidentally leave off some information, don’t worry, you can ask for the opportunity to add it later. But intentionally omitting data is not permitted, so it is best to let your attorney know all there is to know.

●          Complete your debtor education courses as soon as possible. You are required to complete one course prior to filing, and one prior to obtaining a discharge of your debt. If you have the time, do the second course very soon after your case is filed. With this requirement out of the way, you can rest easy knowing you don’t have a deadline looming.

●          Make a plan to avoid future financial distress. It does not do as much good as it could to discharge debt only to have it accumulate again. Once you have eliminated certain debts, sit down and make a plan to stick to a reasonable budget.

It might seem like a lot to do in order to get out of financial trouble, but the alternative is to avoid collectors or have collection lawsuits filed against you. While it may not be much fun to buckle down and make a financial plan, it is a lot less enjoyable to constantly be under financial pressure. If you want more information about how bankruptcy can help you, call our office today.

For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Is A Chapter 7 Discharge Different From A Chapter 13 Discharge?

If you have more debt than you can handle, bankruptcy is a good way to eliminate some or all of the things you are having a hard time paying. For most people, finances get tight when there is too much unsecured debt, like a high interest rate credit card. Many times making only the minimum payment on a credit card debt gets you nowhere fast, and in order to see any progress you have to think outside the box. Filing bankruptcy can help, because it will allow you to discharge some of your debts. A bankruptcy discharge is a legal entry in your case that the debts contained within your bankruptcy are no longer due. But there can be confusion over how the discharge actually works, because there are two main types of consumer bankruptcy cases.

The most desirable type of consumer bankruptcy is a Chapter 7, because it allows you to discharge all of your credit card debt. But some people file cases under Chapter 13, and this type of case will require you to pay back at least a portion of your unsecured debt. A discharge is a discharge, regardless of the chapter of bankruptcy you file, but you do need to know some key differences between a Chapter 7 and a Chapter 13 bankruptcy. Here are the major differences between the two:

•         A Chapter 7 is more like a liquidation of debt, and all of your debt can be discharged. Most people do agree to continue paying for their house and car, but in a Chapter 7 you get to get rid of all of your unsecured debt. Chapter 7 cases usually take around 6 months to complete, and this timeframe gets you to the discharge of debt pretty quickly.

•         A Chapter 13 is a reorganization of your debt, and requires you to file a plan of proposed repayment. You will have to propose to pay back part of your unsecured debt, while being allowed to discharge what is not repaid. In this way, the discharge is a bit different, because you do not get to eliminate unsecured debts in their entirety. A Chapter 13 can take up to five years to finish, and you will be given this entire time to pay back the part of your unsecured debt that will not be subject to the discharge.

In either case you benefit by reducing your total debt. If you are under financial pressure, consider filing for bankruptcy to relive the stress. Call us today for more information.

For more information about how bankruptcy can help you, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Can I Change Bankruptcy Chapters After I File?

Even if you don’t have much information about bankruptcy, you have probably heard that there are Chapter 7 cases and there are Chapter 13 cases. A Chapter 7 case is a liquidation of your debt, and it allows you to completely get rid of all of your unsecured debt. Unsecured debt is debt where there is no property pledged as security for repayment of the loan, like a credit card or a medical bill. By contrast, secured debt is that debt for which a piece of property is put up as collateral for the loan. Common forms of secured debt include auto and home loans. Being able to eliminate unsecured debt is one of the most popular reasons people prefer a Chapter 7 over a Chapter 13, but a Chapter 13 also has benefits. A Chapter 13 case is similar to a debt consolidation, and requires you to come up with a plan for repayment of your debts, including a portion of your unsecured debt. You are given up to 5 years to make all the payments under a Chapter 13 case, and for some people this is too long, but others like this structure because it reduces all of your debts to one monthly payment.

If you have decided to file bankruptcy and are not sure which chapter is best for you the first thing to know is that not everyone qualifies for a Chapter 7. But if you do and decide to file a Chapter 13 instead you might be wondering if you can change your mind later. You can, but there are some limitations, such as:

•         In order to convert from one chapter of bankruptcy to the other, the local rules might require you to ask the court for permission first.

•         If you are required to file an application to convert, we can help.

•         Once you get approval to convert, you have to file a notice of conversion in the case and will have to attend another initial meeting of creditors (the 341 meeting).

Converting bankruptcy chapters is not necessarily ideal, but in certain circumstances can benefit you. In order to find out if you are allowed to change your mind about the type of case you have filed, call our office for a review.

For more information about converting bankruptcy chapters, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

What Is Repossession And Can It Be Stopped By Filing Bankruptcy?

When debts go unpaid the lender usually takes steps to either collect the money that is due, or to take back the property that was bought with the loan proceeds. If the loan in question is a mortgage loan, a foreclosure case is likely. But with other types of loan where the collateral is not real property, the lender might try to repossess the collateral pledged as security for the loan. The most common type of repossession is auto repossession. If you do not make your car payments it is possible that your auto lender will try to take back your car. This can be a real hardship because without a car you will not be able to go to work and earn the living needed to make not only your car payment, but also to pay your other bills.

If you are in danger of having property repossessed, consider bankruptcy as an option to stop that process. Filing bankruptcy will have this impact on repossession:

•         The automatic stay, which is a provision of the bankruptcy law that prohibits a creditor from pursuing collection of a debt or taking back any property the instant a bankruptcy case is filed, protects you from repossession.

•         If your car has already been repossessed, you can ask for the return of the vehicle as long as you are willing to provide for the payment of the auto loan debt within the bankruptcy.

Bankruptcy not only stops foreclosures and repossessions, but it also stops any other collection activity that is pending against you. This is one of the biggest benefits to filing bankruptcy, and gives most debtors the chance to take a moment to regroup after their case is filed. Once you have decided to file a case and that case actually gets filed, you can take the steps needed to keep possession of the things you need to live. This includes your home and your car, and knowing those items are safe can really ease the burden you’ve been carrying around with all of your debt.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

 

Three Ways The Right Bankruptcy Attorney Can Help You

When certain life events come up it is important to know who to call for help. Some good examples are knowing which doctor to call if you have the flu, where to go if your child needs a an after school tutor, and what company offers the best deals on services you need to keep your household running smoothly. If the life event you are currently facing has to do with having more bills than you can pay, it is critical to find the right bankruptcy attorney to help you get a fresh financial start.

Partnering with a qualified bankruptcy attorney benefits you in more ways than can be counted. But perhaps the three most important ways the right bankruptcy attorney will help you include:

•         The right attorney will know how to perform the means test, which is a complex mathematical computation that is required to be performed before you file your case. Depending on how the calculation turns out you will be eligible for either a Chapter 7 case or a Chapter 13 case. Most debtors prefer a Chapter 7 because it is faster and allows you to eliminate all of your unsecured debt, while a Chapter 13 requires you to pay back some of your unsecured debt and can last up to five years. But not everyone will qualify for a Chapter 7 case and the way to find this out is to perform the means test calculation and report it to the Court. If you do not qualify under the means test for a Chapter 7 but file one anyway, you run the risk of  having your case dismissed. But with the right attorney, you can rest assured the calculation will be performed properly and your case filed the right way.

•         The right attorney will make sure you understand the process and answer your questions without leaving you feeling confused. If you do not get answers that satisfy you, you should continue looking for an attorney that answers your questions fully.

•         The right attorney will make sure your case is filed completely, so the Trustee does not ask for additional documents. It is hard enough and time consuming enough to get the documents needed to file a case gathered, the last thing you want to do is get a call saying you need to provide more information.

We have experience with all types of cases and can give you the help you need.  For answers to your most important bankruptcy questions, call our office.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you get prepared for what comes after we file your case, and have multiple locations where we schedule appointments.

What If I Can’t Pay The Bankruptcy Filing Fee?

It has always seemed odd that people who are not able to pay their bills and need the help bankruptcy offers have to pay a fee to file a case. But that is the way the system is set up, and in order to file your case you will have to come up with the funds to pay the court fees. The cost to file can be more than most consumer debtors have on hand, but this should not deter you from filing a case if you are in need of financial assistance.

Filing bankruptcy when you don’t have enough money to pay the filing fee can still happen, you just have to take a few extra steps. Those steps include asking the Court to allow you to pay the fee in installments. Here is how it works:

•         You must file an application asking for permission to pay the court fee in installment payments.

•         The application has to contain information on how you propose to pay the fee in installments, setting forth a proposed payment schedule.

•         If you cannot even make installment payments you can ask that the fee be waived in its entirety.

•         In order to have the fee waived all together you have to show that you are not able to follow an installment payment plan and your income must be significantly below the poverty level.

We know money is tight and coming up with the fees to file bankruptcy can be hard, but the advantages of bankruptcy and are well worth putting in a little work to come up with the money needed. You can cancel certain services such as cable TV or your land phone line if you still have a home phone. You can also sell some of your personal belongings on websites like EBay or take them to a consignment store. Cutting out your morning cup of coffee from Starbucks is also a good way to save some money each month, and so is brown bagging it when it comes to lunchtime. These changes might seem difficult to do at first, but will only be temporary until you have saved enough money to file your case. Then, once your case is filed you will have the benefit of eliminating or reducing some of your debt, so your monthly cash flow should improve. If you have questions about how to save what is needed to file a bankruptcy case or how bankruptcy can help you get out of debt, call our office today.

For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

What Is A General Bankruptcy Timeline?

If you have decided to file bankruptcy you are probably wondering what the next step is and how long the case will take to complete. It is always a good idea to have some working knowledge about the things that impact your life, and a timeline of events will help you to prepare. Depending on the type of bankruptcy case you qualify for, your timeline will be different from someone else’s timing.

A general bankruptcy timeline includes the following critical events:

•         Gathering your financial documents, including paystubs and all of your bills, and going over them with your attorney. You will need to have copies of the most recent bill you have received from each lender, so you can contact the lender for a balance and give a mailing address for the lender to your attorney. You will also need about the past 6 to 9 months’ worth of paystubs available, so your attorney can analyze your debt to income ratio pursuant to the bankruptcy code requirements. It is also important to have all house and car titles in hand when you sit down to talk with an attorney about filing a case.

•         Once you have given all of your information to your attorney, your case will be prepared for filing. As soon as your case is ready to file, your attorney will ask you to review the documents for accuracy and if there are no changes needed the case will be filed electronically. The ability to electronically file gets your case filed right away, and the benefit of the automatic stay is in place the moment your case is filed.

•         You will be asked to appear at an initial creditor meeting shortly after your case is filed, and this is probably the only time you will need to go to Court during your case, absent extraordinary circumstances.

•         If you filed a Chapter 7 you can expect your case to finish in about 4 months, if you filed a Chapter 13 your case can last up to five years. During those years you will be required to make monthly payments towards your Chapter 13 Plan and once all of the plan payments have been made you will receive the bankruptcy discharge.

We understand it is preferable to get things started sooner rather than later when you are having a hard time paying your bills, and we work quickly to get your case prepared and filed once we have received all of your information. If you are ready to talk about how bankruptcy can help you and have a case filed, call us to schedule an appointment.

If you have more questions about bankruptcy or need help deciding what to do about overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Two Types Of Debtors And How Bankruptcy Can Help

The world is full of all types of people, and this is a good thing because it takes all kinds to make the world go around. There are people who like sports and are glued to the TV from September to February to see who wins the college football championship or the Super bowl, and then there are people who have never even seen a touchdown. There are people who like to read, and there are those that prefer to spend their time at the movies or hiking. Some people are outgoing and make friends easily while others are perfectly content to spend their time alone. For every type of person in this world there is an interest and a hobby to take up, as well as things to help them make decisions about how to spend their lives and deal with conflict when it arises.

For people who have more debt than they can pay, there are two general lines of thinking on how to manage this debt. One type of debtor will stick their head in the sane and hope their financial troubles disappear. But, we all know that ignoring a problem is not the answer and will only makes things worse. The second type of debtor is the type that tackles their debt load head on and finds ways to overcome the burden that is associated with overwhelming debt. One of the best ways to do this is to file for bankruptcy. Here are some ways bankruptcy can help a distressed borrower:

•         Bankruptcy will eliminate or reduce your total debt load, and this gives you a little breathing room in your monthly budget.

•         Bankruptcy laws prohibit creditors from trying to enforce their debt, either by sending it to a collection agency or by calling you in an attempt to collect what is due.

•         Bankruptcy gives you the chance to rewrite some of your debts, so the terms are more favorable and easier to manage.

The exact benefit you will get from filing bankruptcy will depend on your personal circumstances, and on the type of bankruptcy you file. There are some legal gymnastics that need to take place before you can file a case, but a skilled bankruptcy attorney will know how to perform the tasks needed. If you are behind on your bills or have more debt than income, call us for help. We will go over your finances and let you know your options so you can begin the process with confidence.

If you have more questions about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Three "Symptoms" Of Bankruptcy

Just like when you are coming down with a cold there are tell-tale symptoms, if you are in dire financial straits there will also be signs you should not ignore. Just like a cold can turn into the full blown flu or something worse if not treated, difficult finances can quickly spiral out of control if you do not take action. The “medication” that helps the most when money is tight is to buckle down and figure out how to eliminate some of your monthly obligations so your money is freed up to put towards necessities. One way to do this is to contact your lenders and see if they will lower your interest rates or will rewrite your loan and another option is to try and take out a consolidation loan so you only have one lump payment a month to make towards all of your debts. But a second choice also exists, and it is by filing bankruptcy.

Bankruptcy will eliminate certain debts, and will also put a stop to harassing collection calls and letters. If you are not sure you need bankruptcy, here are three “symptoms” to be on the lookout for when you are going over your monthly expenses:

•         Are you behind on any payments?

•         Have any of your creditors charged you late or over the limit fees?

•         Are you relying on credit to pay for everyday needs like groceries?

If you answered yes to any of these things, you might be an ideal candidate for bankruptcy. Another good one to watch for is collection activity being taken against you. If you are being sued for a past due bill, are being garnished, or are facing possible repossession of your car or foreclosure of your home, it is likely you need to file bankruptcy. You should also think about filing for bankruptcy is you are receiving collection calls or letters, and have been unable to work out a manageable agreement with the collector. When you file bankruptcy, these calls and letters are required to come to an immediate stop and this can give you the break you need to figure out your next step.

For help with managing overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

 

What If All My Family's Debts Are In My Spouse's Name, Do I Need To File Bankruptcy Too?

Not all married couples take out debt in the name of both spouses. Sometimes a loan is taken out in only one name because the credit rating of the other spouse is not as robust, or for some other strategic financial planning reason. Whatever your reasons for structuring your family’s debt entirely in your spouse’s name you do need to know how this decision can impact you both if bankruptcy becomes necessary. Both spouses do not have to file a joint bankruptcy case, and making the choice to file as a married person without your spouse also filing can have serious benefits for your spouse.

When only one spouse files bankruptcy some of the following benefits may flow to your spouse who has not filed:

•      The non-filing spouse will not have the notation on their credit that a bankruptcy has been filed. This means that if you, as a couple, need to take out a loan down the road it might be easier to obtain an extension of credit if only your spouse makes the application.

•      If your spouse can trace monies in a joint account to a source that shows your spouse was solely responsible for a deposit of funds, those funds should be outside the reach of the court as long as the asset was properly classified.

Another situation to think about is the situation where most of the debt is in one person’s name, but there is a small amount held jointly. If this is your situation it is natural that your first instinct might be to file a bankruptcy case without your spouse. But keep in mind that if you make this decision your spouse can be left as the only responsible party for that jointly held debt. This can become problematic if your financial condition does not improve right away and the better decision for most couples is to file a joint bankruptcy case from the outset. If you need help trying to decide what type of case to file when you are married and only one spouse holds the debt (or most of it), call our office.

For more information about bankruptcy cases for married couples, call us today or reach us online at www.law-ri.com.

 

What Is A Bankruptcy Exemption?

When you file bankruptcy you are allowed to list out certain pieces of property that are exempt from the trustee’s reach, in his or her efforts to locate an asset that can be used to pay some of your creditors. Each state has a list of property that is exempt, and the federal bankruptcy law also contains a list. Depending on whether you decide to go with the state or federal exemptions, a certain value in things you own will be untouchable by the bankruptcy trustee.

Common bankruptcy exemptions include a set value amount in things like:

•         Your home.

•         Your car.

•         Your checking or savings account.

•         Personal property such as clothing and jewelry.

The reason it is important to know what your exemptions are, and how they work is because if you have an asset that is worth more than the exemption you might be in danger of having the Trustee try to seize the asset and sell it for the equity. The Trustee would do this in an attempt to find an asset that is available to repayment of at least a portion of your debt, most times in a Chapter 7 because it is a Chapter 7 case where you are allowed to discharge all of your unsecured debt. But, if there are assets available to cover repayment of part of those unsecured obligations, the bankruptcy scheme is such that those assets will be used for that purpose. It is also possible to fall into a sticky situation if you have just recently moved to Rhode Island. Depending on the timing of your move and the state from which you moved from, you might have to opt for the exemptions allowed for in your prior state. This can be detrimental to your case if the value of the exemption in the prior state is less than what you would be entitled to after your move to RI. But this cuts both ways, and if the exemptions you are able to claim here are of a greater value you will want to time the filing of your case just right so you are sure to get the most out of your exemptions. It sounds confusing, and it certainly can be, but with the right bankruptcy attorney by your side you will get the information needed to make the right choice.

For more information about bankruptcy exemptions, call us today or reach us online at www.law-ri.com.

 

Is My Bankruptcy Discharge Still Valid If I Move To Another State?

We live in a mobile society, and when you move you have to go through some basics in your new town. You will have to sign up for electricity, find a school for your kids, locate the nearest grocery store, and figure out if your neighbors are trustworthy enough to borrow your tools. Some of these parts of moving to a new place are fun, but some are less enjoyable. And, regardless of the reasons for your move, one thing is for certain and that is that moving is expensive! If you have already encountered burdensome debt, but made the best of it by seeking the protection bankruptcy has to offer, you might be wondering if you will need to notify the local bankruptcy court of your case, or if you will have to file a new one in your new hometown.

The thing about a bankruptcy discharge is that it is global. This means that the debts you had discharged in a case in another state are still considered discharged if you move somewhere new. This is helpful because you will not need to file anything new, at a new court and you will not have to let your previous creditors know that you have moved. Here are some examples of the types of debts that are discharged in bankruptcy, and the discharge is effective regardless of where you live:

•         Credit card debt.

•         Medical bills.

•         Past due EBay and Amazon accounts.

•         Auto and home loans that were not reaffirmed.

Moving out of town without financial baggage helps you to start over with your budget, and in your new surroundings. But do keep in mind that the information you have filed bankruptcy will still be on your credit, and that data will follow you from state to state. So if you are in need of a new home loan or are looking to rent an apartment that does a credit check, the fact you have received a bankruptcy discharge out of state will still be visible. This is not fatal to your efforts to find a new place to live, it is simply information you need to be aware of when relocating.

For more information about what the bankruptcy discharge means, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

 

What Do I Do If I Need To File An Emergency Bankruptcy?

Let’s face it; the things worth doing in life take time. You probably didn’t buy the first house you stepped foot into or the first car you test drove. And chances are you dated a few people before deciding on whom to marry. Another good example rolls around every April, when taxes are due. But in that case it is a good bet you spent a few weeks or maybe even a month or two getting your paperwork together so a tax preparer could get your return done for you faster. When it comes to money matters, it just seems like things either take time, or hit you all at once. And while it can take some time to get your documents in order to give to a bankruptcy attorney to help you out when you have more debt than you can manage, sometimes life doesn’t give you the time you need. It might be that your wages are being garnished; your car repossessed, or you are looking at a foreclosure and if you don’t act right away you could lose valuable assets. If that is the case, don’t worry, there are provisions that allow for an emergency bankruptcy filing with fewer documents than what is normally required.

If you need immediate financial relief from an emergency bankruptcy filing, please do keep these things in mind though:

•         The emergency case can be initiated by filing the petition and social security number verification.

•         You do have to file the rest of the required documents, and if you fail to do so within 14 days of the initial filing, your case will be dismissed.

•         You are still required to participate in a debtor education course, or you will not be granted a discharge and all of your quick work will have been for nothing.

This is sometimes referred to as filling a bare bones petition, and while it is not the preferred method it is acceptable. If you are in immediate need of bankruptcy help, call us today. We will make every effort to get your case filed when you need it done, and to do the necessary follow up so you have a successful case and satisfactory result.

For more information about an emergency bankruptcy call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.