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.