May 1st, 2008
Filed under: BANKRUPTCY admin |
The Bible says that people are to pay their debts. Leviticus 25:39
However, the Bible also says that:
“At the end of every seven years you shall grant a remission of debts. And this is the manner of remission: every creditor shall release what the has loaned to his neighbor; he shall not exact it of his neighbor and his brother, because the Lord’s remission has been proclaimed.” Deuteronomy 15:7-10
So if you need to file bankruptcy, I think you’ll be fine.
April 28th, 2008
Filed under: BANKRUPTCY admin |
Under the amendments to the 2005 Bankruptcy Code, Section 1328(f), a debtor may not obtain a Chapter 13 discharge in a case filed within 4 years of receiving a discharge in a previous Chapter 7, 11 or 12 case, or within 2 years of a previous Chapter 13 case.
April 23rd, 2008
Filed under: BANKRUPTCY admin |
A Statement of Intention must be filed in all Chapter 7 bankruptcies that involve secured loans leases, or mortgages. It is not, however, required in a Chapter 13 case.
The Statement of Intention states what you intend to do with your property that is secured by a loan, lease, or mortgage. The debtor, in a Statement of Intention, says whether the property will be surrendered or retained, whether the property will be claimed as exempt, whether the debtor intends to redeem the property, and whether the debtor intends to reaffirm the debt secured by the property.
Under the rule, the Statement of Intention must be filed within thirty (30) days after the debtor files a petition under Chapter 7 or on or before the 341(a) Meeting of Creditors, whichever is earlier. Usually, it is filed with the Petition.
April 23rd, 2008
Filed under: BANKRUPTCY admin |
Under Chapter 13 §1322(b)(2) of the Bankruptcy Code, it is clear that a Chapter 13 plan may modify the rights of holders of secured claims. An exception is that a Chapter 13 Plan cannot modify a claim secured by “a security interest in real property that is the debtor’s principal residence.” In other words, the answer to the question of whether a mortgage can be modified in a Chapter 13 is currently: “NO”.
Attempts are being made to amend this provision of the Code. However, according to published reports, those attempts are being blocked by the Mortgage Bankers Association.
April 18th, 2008
Filed under: BANKRUPTCY admin |
A payday loan is designed to be a short term loan to provide consumers cash between pay days. Often times, however, they are a rip off that can cause large financial problems and hardships.
The problem with these loans are the large fees associated with the loans, and their astronomical interest rates. Instead of helping people, these loans end up causing more difficulties.
The only good news about these loans is that the are dischargeable in bankruptcy which means that they do not need to be paid back.
April 13th, 2008
Filed under: BANKRUPTCY admin |
Once your car is repossessed, it will be sold at an auction. If your car loan company get less than what you owe at the auction, as is usually the case, you will owe the difference. The car loan company may then file a lawsuit against you to recover the deficiency. If they win the lawsuit, as they usually do, your creditor will get a judgment against you. If you have any bank accounts, those accounts can be garnished in order to satisfy the judgment. The creditor may also take other actions against you to collect the money they are owed.
April 13th, 2008
Filed under: BANKRUPTCY admin |
The following is a list of debts that will not be discharged in a Chapter 13 Bankruptcy:
1. Debts that were paid outside of the plan and are therefore not covered in the plan;
2. Debts such as for alimony, maintenance, or support;
3. Debts for death or personal injury caused by the debtor’s operation of a motor vehicle while unlawfully intoxicated;
4. Debts for restitution or criminal fines included in a criminal sentence imposed on the debtor;
5. Debts for most student loans or educational obligations;
6. Installment debts whose last payment is due after the completion of the plan; and
7. Debts incurred while the plan was in effect that were not paid under the plan.
March 30th, 2008
Filed under: BANKRUPTCY admin |
According to published reports, Sen. Barack Obama supports the the idea that modification of loans to avoid foreclosure or bankruptcy should be allowed. “It’s also time to amend our bankruptcy laws,” Obama said, “so families aren’t forced to stick to the terms of a home loan that was predatory or unfair.”
March 30th, 2008
Filed under: BANKRUPTCY admin |
Before you can get this discharge order, you must complete a course called the Financial Management Education course.
As is the case with pre-bankruptcy credit counseling, the financial managment counselor must be approved by the Trustee in your filing jurisdiction. The purpose of the financial management course is to educate you about:
Developing a budget and living within your means;
Developing better spending habits;
Learning about money management, including saving, budgeting and checkbook control; and,
Wise use of credit - what to avoid when accessing available credit.
Generally financial management courses last about two hours and can be done in person, on the web or via telephone. As is the case with credit counseling, the fee will be in the $35 to $50 range.
The financial managment counseling company will fax or email a certificate to you and/or your lawyer. This certificate must be filed with the clerk of court. If you do not file this certificate prior to the time your case is closed, you will not receive a discharge.
March 30th, 2008
Filed under: BANKRUPTCY admin |
Before you file for bankruptcy, you must complete a “credit counseling” course. This counseling requirement applies whether you are filing Chapter 7 or Chapter 13. The certification certificate that you receive upon completion of this course is part of our standard filing paperwork. Pre-filing credit counselors must be Trustee approved.
Here is what will be covered:
The counselor will evaluate your financial situation;
The counselor will provide information about consumer debts (i.e., credit cards and consumer loans) and will discuss alternatives to bankruptcy;
The counselor will discuss budgeting and help you evaluate whether you have enough in your budget to pursue a debt workout rather than bankruptcy;
If requested, the counselor will refer you to a debt management agency for the creation of a personal debt management plan;
The counselor will attempt to offer a long term view of your financial activities and habits;
Generally the credit counseling courses last anywhere from 60 to 90 minutes and can be done in person, on the web or via telephone. Most of the credit counseling agencies we have seen offer this counseling for between $35 and $50 per person. If you cannot afford to pay the counselor’s fee, you may request a fee waiver from the counselor’s office. All fees and payment should be discussed and agreed to prior to the session.
Warner Mariani, Esquire WARNER MARIANI, LLC 428 Forbes Avenue, Ste 220 Pittsburgh, PA 15219
Phone: 412-281-3360
Fax: 412-281-7360
E-mail us: info@askthepalawyer.com
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