How Long Will It Take To Eliminate My Debts If I File Bankruptcy?

When you are looking for ways to help with your budget, it is natural to want to find the quickest way out of debt. There are several debt repayment methods out there, which work well for those that are able to stick to a plan. For instance, there are credit card repayment methods that suggest you pay off the card with the highest rate first and then move on to the next highest rate card. The thought is that once one card is paid off, you take that monthly payment and add it to the monthly payment being made on the next card so that the debt is repaid faster. The theory is that if you do this, you will pay off your debt in a shorter amount of time than if you just paid the minimum on each debt. But what works for your friends or neighbors may not work for you, and in order to make some headway you have to find a plan you can follow.

A good plan to eliminate debt quickly is to file bankruptcy. The general timelines for debt elimination under bankruptcy are:

●          Chapter 7: a Chapter 7 bankruptcy will wipe out all of your unsecured debt. The total time to complete a Chapter 7 case, from start to finish, is about 6 months. This means that the debts discharged in a Chapter 7 case are no longer considered due on the date discharge is entered, between 3 and 6 months after the date your case is filed. And, you do not have to continue paying your debts during the case. This means you get instant financial relief the moment you file a case.

●          Chapter 13: a Chapter 13 bankruptcy case is a reorganization of your debts. In a Chapter 13 you come up with a repayment plan, your creditors can object to what you propose to repay them, and once you come to an agreement about who gets what the Court will confirm your plan. You will make plan payments for the entirety of your Chapter 13 case, which can last up to 5 years. The benefit is that when you file a Chapter 13 case, you get to pay what you can afford to pay, rather than struggling to make ends meet.

For help getting your debts in line, by filing bankruptcy, call our office today. We will look at your case and let you know what type of bankruptcy you can file. Our goal is to help you find a way to solve your money troubles, and start fresh.

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.

Four Financial Pitfalls And How To Avoid Them

Let’s face it, life is expensive. It costs to do almost anything, including something as small as renting a movie from Redbox or Netflix. With large expenses like house and car payments, and the smaller ones like a daily run to Starbucks, it is easy to see how a budget can quickly spiral out of control and make money tight. If you have a budget, you may be having a hard time sticking to it or it may not be taking into consideration all of your expenditures. When having enough money becomes a problem it is tempting to find a quick fix, but doing so oftentimes makes the problem worse.

Here are four financial pitfalls, and what you can do to avoid them:

•         Taking a pay day loan: the interest rate on these loans is extremely high, making it hard to break the cycle of debt. If you take out a pay day loan, you may end up paying back two or three times the amount borrowed. Most people don’t have this financial ability, and so continue to borrow just to repay. Doing this will cause your total debt to add up quickly, and make it near impossible to repay.

•         Transferring balances from card to card: while this seems like a good idea when the new card offers a lower rate, the only way to make this work is to pay off the balance before the promotional rate expires.

•         Taking equity out of your home: it is tempting to take out a second or even third mortgage on your home in order to come up with some extra cash, but doing so will only add to what you owe on your home and eat up any equity. Without an equity cushion, you will be in an unlikely position to sell your home if the need to do so arises.

•         Paying only the minimum amount due: when all you can pay is the minimum payment, you do keep the lender off your back for collection, but you make little to no headway towards full repayment. If you can pay a little more than the minimum, do so.

The best way to avoid these pitfalls is to stick to a budget. But when that is not possible, you should think about filing bankruptcy. Bankruptcy will put an end to the need to pay back your debt at high rates, and will help to free up your money so you can make your payments without problem.

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.

Do I Have To Tell My Boss I Filed Bankruptcy?

Some people who file bankruptcy are worried enough their friends or neighbors may find out, but some people are even more concerned about their boss knowing a case has been filed. If you work in the financial industry this fear may be well-founded, but for most jobs the fact you filed bankruptcy should hold no significance. Bankruptcy is not a determination that you are a dead beat who is trying to rack up bills and not pay them, but rather is a legal way of helping the “honest but unfortunate debtor” get a fresh start. There is nothing wrong with using the bankruptcy laws to your benefit, especially if you are struggling to make ends meet.

If you have filed bankruptcy you are not obligated to tell anyone, and that includes your boss. Here are some things to know about your job, and how it is impacted by filing bankruptcy:

•         You cannot be fired for filing a bankruptcy case.

•         You cannot be discriminated against at work for filing bankruptcy. This includes harassment or being denied a promotion, if you can show that these were the result of you having filed bankruptcy.

•         If you have taken a salary advance, your employer will be made aware of your filing because you will have to list them as a creditor. But if that is the case, chances are the relationship you have with your boss is positive and the filing should not cause you to suffer at work.

The bottom line is that if you need to file bankruptcy, you should not let your employer’s attitude about the process factor into your decision. Bankruptcy helps thousands of people each year get back on their feet, and it can help you too. There is no better feeling than that of not having the stress that comes with being unable to pay your bills. Bankruptcy can help you get to this place, and the lessons you learn along the way can help to keep you there in the future. If you are under overwhelming financial pressure, call us today for help. We will explain how bankruptcy works, and let you know what you can expect from your case.

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

Will Everyone Know If I File Bankruptcy?

The internet is full of information, and not all of it is something you want everyone to know. Unfortunately, there are no privacy settings or controls in place to prevent someone from entering your name in a search engine and reading up on your life. We understand the desire to keep your personal information out of the public eye, and when that information pertains to your financial situation those feelings can intensify.

When you file bankruptcy the case information does become public record, sort of. The cases are filed electronically, which is how the Court is able to give notice to your creditors so quickly. But in order to access a case, a person has to have an account to login to the Bankruptcy Court site. Here is a short list of who might learn you have filed a bankruptcy case:

•         Your creditors, which is a good thing. You want your lenders to know that you have filed a case, so they will no longer ask you to pay their debt.

•         If you file a Chapter 13 and opt to have your Chapter 13 plan payments taken out of your check, it is possible your employer may learn of your filing. If you want to prevent this from happening, you should make other arrangements to make your Chapter 13 plan payments.

•         The friends and family members you decide to tell you have filed a case. This is entirely up to you, and completely within your control.

•         People with access to the Court’s online filing system, who may just happen to be curious enough to enter your name.

While we know that having your personal information shared with your neighbors or co-workers is not what you might want, filing bankruptcy does not have the stigma of days past. It is no longer considered a negative to file bankruptcy, and even the President elect has been involved in bankruptcy cases. In addition to Trump, there is a long list of celebrities that have taken advantage of the bankruptcy laws. If you are having a hard time paying your bills, don’t let the fear of someone finding out keep you from filing bankruptcy.

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

Will Reaffirming A Debt Help Or Hurt Me?

It is a common thought that filing for bankruptcy will damage your credit. But if you are behind on your debts chances are your credit has already taken a hit. Filing bankruptcy at this point can only help you to get back on your feet. Bankruptcy will help to eliminate or reduce certain debts, but there are some rules about what you pay and what you can get out of paying.

In a Chapter 13 bankruptcy you will be allowed to pay your secured debts, and be considered current on those debts, while paying only a small part of your unsecured debts. In a Chapter 7 you can wipe out unsecured debt, while still paying for the things you want to keep that are secured by a loan – like your car our house. The most common way to keep making these payments is by signing a reaffirmation agreement. A reaffirmation agreement is like a new contract for the debt, and the money will still have to be paid even after your case is over. This fact might give you pause and wonder whether you should agree to reaffirm a debt. Here are some of the advantages, and disadvantages of reaffirming a debt:

•         When you reaffirm a debt, your lender retains the ability to talk to you about the loan. So, if you get behind again or need some help down the road, the lender will have the legal ability to work with you.

•         When you reaffirm a debt, it is still due after bankruptcy. So if you run into more money troubles after your case, you can still be sued for the debt.

•         A reaffirmed debt will be reported as such on your credit, and the payments you make will show as being made. This can boost your credit score faster after a bankruptcy, but can also hurt if you do not pay on time.

In order to determine if you should sign a reaffirmation agreement, you have to look at your total financial picture. This includes knowing what debts you will no longer pay after your case is over, so you know how much money you have to put towards the debts you will be paying. We have experience helping people who are considering reaffirmation, and can help you too.

For help with bankruptcy deciding whether you should reaffirm a debt during your bankruptcy case, 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.

How Do Auto Lenders Decide What To Sell My Car For After It Has Been Repossessed?

An auto repossession can happen if you don’t make your car payments. But if you think the repossession is the end of the matter, you could be mistaken. The process lenders go through once they repossess a car is to send you notice of their intent to sell it, and give you a chance to pay what is due. If you are unable to redeem your property, the car will be sold and you will get a notice of the sale details. Most repossessed cars are sold at auction, and the prices they go for can be quite low…at least in comparison to what you owe. The difference between what the car sells for and the balance on your account is called the deficiency, and lenders can ask you to pay this amount. But what if you disagree with the price the car sold for at auction is there anything you can do.

The sales price obtained for a vehicle that has been repossessed must be commercially reasonable. This means:

•         The sale was one that is generally accepted in the industry, and auto auctions are typically considered a generally acceptable method of auto sales.

•         The price obtained is one that is considered a price for the market. It is not enough to say that a higher price could have been obtained, if the price the car sold for was in line with market norms.

Even with these safeguards in place, it is rare to find a vehicle owner who thinks the auction price was reasonable. You can challenge the sales price in state court, within the action against you for collection of the deficiency, or you can avoid paying it altogether by filing bankruptcy. A bankruptcy will eliminate this type of debt, without the need to prove the auto lender engaged in an unreasonable sales practice.

For more information about how to handle auto deficiencies, 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.

Does Foreclosure Wipe Out My Mortgage Loan?

For homeowners that have not made their mortgage payments in a while, the possibility of a foreclosure is very real. A foreclosure is an action by the bank to take back possession of a house and resell it to recoup some of the loss for the defaulted loan. Many times the homes are sold at public auction, for much less than what is owed. This causes the problem of having a deficiency amount due, and the chance that the lender will still look to you for payment. It can be shocking to be kicked out of your house, and then also asked to pay for part of the loan. Most people who are struggling with their finances are not in a position to come up with a large deficiency sum to get the mortgage lender off their back, but that does not mean you are stuck with having to pay the balance of your mortgage loan.

While a foreclosure does not wipe out your mortgage loan in full, if the home sells for less than what is owed during the foreclosure process, you can avoid being held liable for the deficiency balance by filing for bankruptcy. Here is how bankruptcy can help eliminate a mortgage deficiency:

●          The deficiency balance is a debt you owe, and when you file a bankruptcy case you will include all of your debts in the case. Including the deficiency balance will mean that balance is discharged upon successful completion of your bankruptcy case.

●          If the mortgage lender has filed a lawsuit to collect the deficiency balance, that lawsuit will be put on hold when you file bankruptcy.

One thing to watch out for on mortgage deficiencies is a situation where the house went to foreclosure as a result of a divorce action. Usually one party or the other is ordered to pay the mortgage in a divorce, and letting the house get foreclosed on can leave the non-liable spouse holding the bag for the debt. But if you file bankruptcy, you can avoid having to pay a large deficiency.

For more information about bankruptcy and how it can help you erase mortgage debt, 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.