Is My Cell Service Put At Risk When I File Bankruptcy?

Most everyone has a cell phone today, with very few consumers resorting to use of a land line phone. In fact, cell phone use is so commonplace that there are people who have likely never even seen a land line in their lifetime! Today, a cell phone is not just a luxury item used only by high powered businessmen or physicians, even teens and young adults carry phones around in their pockets. And, most phones do more than just make phone calls or send text messages. Constant advances in technology have made it possible to use a phone in much the same way a laptop or PC is used, and a lot of people rely on their smart phones to conduct business every day. So if your service is interrupted or put at risk of being lost altogether, the end result can be devastating to your ability to earn a living.

If you are in need of financial help and have made the choice to turn to bankruptcy to get a fresh start with your money, it is important to know what types of services you can expect to maintain. Some examples of services you are allowed to keep when you file bankruptcy include:

•         Heat and air.

•         Cell phone service.

•         Cable or satellite television services.

•         Internet and high speed modem connections.

•         Satellite radio service.

That said, you might come to the conclusion that all of these services are no longer necessary. When you file bankruptcy and try to re-work your budget, some concessions do have to be made. But this does not mean the service provider has the blanket authority to disrupt your service just because a bankruptcy case has been filed. This also does not mean that you are allowed to enjoy these services without payment, and this is why tough choices have to be made. If you are behind on payments, you do have the chance to get current without harassing calls or letters. This alone can benefit you by giving you the peace of mind in knowing that you are making headway on your account without having to dodge phone calls or other collection efforts.

For more information about how your cell phone service is affected by bankruptcy, call us today or reach us online at www.law-ri.com.

 

Can I Be Evicted If I File Bankruptcy?

One of the most important assets a person has is their home. Not only is a house the most costly item most families purchase during their lifetime, but it also a safe haven and the place you go to relax and unwind. This is true even if you are not a buyer, but merely renting a place to lay your head each night. One major difference between home ownership and renting is that when you own your home and are not able to make the mortgage payments, the lender will initiate foreclosure proceedings but if you are a renter the action taken is an eviction. If you are behind on rent and many of your other bills you may be considering bankruptcy, but are probably wondering if you will be evicted if you file

Filing bankruptcy puts an immediate stop to several actions by creditors, including:

•         An eviction case.

•         A wage garnishment.

•         A repossession.

•         A collection lawsuit.

•         A foreclosure.

This is because the purpose of bankruptcy is to give the honest, but unfortunate debtor, a fresh financial start. People cannot get ahead with their budget if they are constantly worried about how to respond to collection calls, letters, or lawsuits. So the law provides that the minute a bankruptcy case is filed, all of these types of actions must come to an immediate stop. This includes an action to evict a tenant from their home. But, be careful, because the immediate stop can only be temporary. If the lender (in the case of a home or apartment rental, the landlord) seeks to have the Court lift the stay that is in place upon filing a case, the types of actions listed above can begin or resume. In order to find out what you need to do to keep your home, or be able to stay in your rental, call us today. We will give you the information needed to make a decision that meets your needs. Our goal is to help get you back on your feet, so you can make plans for a future that is free from financial distress.

For more information about how bankruptcy impacts an eviction, 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.

 

Can I Change My Mind After I File Bankruptcy And Dismiss My Case?

Coming to the decision to file bankruptcy is not easy. For some people, once the decision is made there can be emotions similar to “buyer’s remorse”. Perhaps you prefer to do the best you can with your debts so your lenders will still negotiate with you or offer a new loan in the future. Or maybe your financial picture took a turn for the better not long after you filed bankruptcy and you prefer to pay off what you can and keep the notation of bankruptcy off of your credit report. Whatever your reasons are for changing your mind and deciding bankruptcy is not for you, it is important to know your options.

If you change your mind after you file and want to have your case dismissed, you might have to ask for Court permission, or your case may be one that can be dismissed of your own voluntary act. Whichever type of case you have, keep the following things in mind when thinking about dismissing a bankruptcy:

•         The automatic stay that prevented creditors from contacting you is no longer in place, so any collection actions that were pending against you when you filed bankruptcy can now be resumed.

•         Dismissal is not the same as discharge, so you will still owe the debts you had prior to filing your case.

•         If there was an adversary proceeding filed against you during your case, dismissing your case is not an automatic dismissal of the adversary. An adversary is like a lawsuit within the bankruptcy case, and sometimes lenders initiate these proceedings after you file bankruptcy because they believe there was some wrongful action taken with respect to their loan. Dismissing your case does not resolve the allegations contained in an adversary and you may still be required to defend that action.

Before dismissing a bankruptcy, talk it over with a qualified bankruptcy attorney. There can be benefits to dismissal, but there can also be consequences. It is critical to understand the impact dismissal will have, before you take that action. We are knowledgeable in all aspects of bankruptcy litigation and can help you to learn the things you need to know to make an informed decision.

For more information bankruptcy and what you can do if you change your mind after you file, 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 Happens If I Can’t Make My Chapter 13 Plan Payments?

A Chapter 13 bankruptcy is different from a Chapter 7 case in that with a Chapter 13 the person filing has to make monthly payments to the Trustee assigned to their case. When a Chapter 13 is initiated, a plan of debt repayment is proposed and eventually confirmed by the Court as a manageable plan. But sometimes, during the pendency of the case, the debtor’s financial situation takes a turn. It could be that the debtor loses their job, gets divorced, or experiences a host of any other life changing events that negatively impact their cash flow. If you have filed a Chapter 13 case and are now not able to make the payments called for in your Chapter 13 Plan, you do have options.

Some things a Chapter 13 debtor can do when they are no longer able to make the payments on their plan include:

•         Asking the Court to modify the plan, to reduce the monthly plan payment and allow the debtor to be considered current on the past due amount. This might require surrendering some property back to a lender that was initially included in the plan for repayment, which is one way to reduce the amount of the plan payment due.

•         Seeking to convert from a Chapter 13 case to a Chapter 7 case. This might also require return of some property that was being provided for in the Chapter 13 plan, but that is not always the case.

If you convert to a Chapter 7 case, you no longer have to pay even a portion of the unsecured debt that was being paid through your Chapter 13 Plan. This savings just might be enough to allow you to keep all of the things you intended to keep, and pay for in your Chapter 13 (like your house and your car), while still receiving the benefits of bankruptcy. For more information, or for help if you are struggling with making payments to the Chapter 13 Trustee, call our office today. We have experience in all types of consumer bankruptcy filings, and know what to do to help you get a fresh financial start.

For more information about chapter 13 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.

 

Three Characteristics Of A Typical Chapter 13 Debtor

Not everyone who files for bankruptcy files the same type of case. There are two types of consumer bankruptcy filings, and they are classified as chapters. A Chapter 7 is a liquidation of your debt while a Chapter 13 is more like debt consolidation. In a Chapter 13 the debtor proposes a play of repayment, and once the terms of that plan are acceptable to the creditors and the trustee, the Court will approve the plan and enter an order confirming the proposal. Once the plan is confirmed, the debtor will make one monthly payment to the Chapter 13 Trustee and the Trustee will disburse the funds to the creditors pursuant to the terms of the plan.

Three characteristics of a typical Chapter 13 debtor include a person or couple who:

•         Have enough income each month to pay all of their secured debts as well as pay something on their unsecured obligations. The amount of money available to put towards unsecured debt does not have to pay the debt in full, or even be the monthly payment amount the creditor seeks, there just has to be some income at the debtor’s disposal to put towards the unsecured debt.

•         Has a secure job with a steady paycheck, and so is able to make a monthly plan payment to the Chapter 13 trustee on a regular basis.

•         Is not significantly behind on the majority of their monthly obligations, but may be having to make a choice as to which unsecured bills get paid on time and which have to wait.

Chapter 13 can help a debtor reorganize their debt, and can also allow for repayment on some secured debts at a lower amount than the current balance. It might also be possible to propose a Chapter 13 plan that contains lower interest rates than what the contract or loan includes. These two things help out by reducing the payment amount and making it easier for the debtor to meet all of their obligations. If you are experiencing financial difficulty, call us today to find out what type of case is right for your circumstances.

For more information about chapter 13 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.

Three Characteristics Of A Typical Chapter 7 Debtor

Chapter 7 is a form of bankruptcy that allows a person to get rid of most of their debt, and most importantly Chapter 7 is the chapter of bankruptcy that allows a debtor to eliminate unsecured debts. Most unsecured debt is made up of medical bills, signature loans, and credit card debt. The monthly payments on these debts can be quite high, given the interest rates charged, and when a consumer has too much of this type of debt it can be near impossible to manage it without going into default. If you qualify for a Chapter 7 case you can discharge these debts, freeing up money each month for other expenses.

Qualifying for a Chapter 7 depends on your entire financial picture. Three characteristics of a person or couple who typically qualify for Chapter 7 bankruptcy include:

•         Those people or couples who have an income in a lower bracket.

•         Those people or couples with a lot of unsecured as well as secured debt.

•         Those people or couples who are not able to pay even a portion of their unsecured debt each month, after first having paid secured obligations such as car and home loans.

If you simply have more debt than money coming in each month, you are likely the picture definition of a Chapter 7 debtor. The appeal of filing a Chapter 7 case is that the entire balance on unsecured debts is discharged, meaning the debt does not have to be repaid in any amount. This is a huge relief for those people that are unable to make ends meet because it gives you the freedom to pay your secured debts and still have money left over for necessities. Just think about what you could do with your paycheck if most of it were not earmarked for credit card payments! When the money you would normally put towards those payments can go to other things like auto insurance or groceries, you can sleep a little better knowing that you have disposable income to fall back on each month. Eliminating unsecured debt also eliminates the possibility of making a late payment, which results in late fees and potentially increased interest rates being charged. When fees and interest start to accumulate, unsecured debt quickly becomes something you will never get out from under, and this can be financially devastating. If you need help with your bottom line, call us today. We will look at your case and let you know what type of bankruptcy you qualify for, and how you will benefit from filing.

For more information chapter 7 bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.

Can I Get Out Of A Reaffirmation Agreement After It Has Been Signed?

When you file bankruptcy one of the things you have to decide on is what things you will keep and continue to pay, and what things you will give back to the lender. Lenders prefer it if you keep their collateral and continue to pay them for it during your bankruptcy. One incentive commonly offered in order to convince debtors to keep making payments is to offer a lower interest rate, but only if the debtor agrees to sign a new agreement to make the payments. This is done through agreeing to reaffirm the debt, and signing a reaffirmation agreement. A reaffirmation agreement is like a new contract, so even after your bankruptcy is over the debt is due and the creditor can call you to collect if you miss a payment.

So while reaffirming a debt can benefit you, like in the case of getting a lower rate and thus a lower payment, it can also have serious consequences. Because the debt remains due after your case is over, it is important to carefully consider your options before agreeing to sign a reaffirmation agreement. However, if you do agree to reaffirm a debt and then change your mind later, you are able to ask that the Court rescind the agreement. This has to be done timely, and with the help of a knowledgeable bankruptcy attorney you can rest easy knowing the deadline will not be missed. But, you do have to take action on your part to put these wheels in motion, including doing the following:

•         Immediately telling your attorney you want to rescind the agreement, as soon as you make the decision that you want to get out of the reaffirmation you have signed.

•         Provide your attorney with your budget, showing why your finances do not permit you to make the payments under the reaffirmation agreement.

•         Ask that your attorney communicate your intent to rescind the agreement to the creditor in question, so you are not contacted by that lender while the request to rescind the agreement is pending before the Court.

If you have questions about what debt to reaffirm and what debt is tied to collateral that you can live without by surrendering to the lender during your case, call our office. We will help you to make choices that meet your needs, and that will benefit you in the long run. We put our focus on helping distressed debtors find solutions to their financial problems and look forward to working with you.

For more information about reaffirmation agreements, 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.