Last updated 4 months ago
Households with consistent incomes may find that Chapter 13 is the best option for them. In particular, those who are behind on a mortgage and/or car loan will find filing Chapter 13 is the best way for them to keep their home and/or car. Your situation may vary, so consult an experienced lawyer who specializes in bankruptcy before filing any paperwork with the court. Here is a look at how Chapter 13 bankruptcy works:
Restructuring Loans
Filing for Chapter 13 bankruptcy can adjust your loans to terms that are more favorable to you. Even if your lenders are unwilling to negotiate before your Chapter 13 filing, a judge can force them to cooperate and change the terms of your loan. For example, Chapter 13 can help you lower the interest rate on a car loan and force the lender to only accept what the car is worth (instead of what you owe under your contract). Chapter 13 can help you cure defaults on many loans. In the case of a delinquent mortgage, you can give yourself 3-5 years to pay your delinquency without interest. Often, Chapter 13 forces unsecured creditors to accept only a percentage of what you owe them and, in some cases, Chapter 13 can eliminate what’s owed entirely. Sometimes, you can use Chapter 13 to modify your mortgage and, in some cases, you may be able to eliminate an unsecured second mortgage entirely.
Creating a Payment Plan
One of the benefits of Chapter 13 is allows you to pay-off your debts over a period of three to five years. Your Attorney will help you file a plan that consolidates your debts and has the effect of lowering the amount you must pay each month. Your Attorney will then work to get this plan approved (confirmed) by the Court. The rules regarding what you can and cannot propose in your plan are complicated and it is important that you hire an attorney who can get a plan confirmed that contains terms that are most advantageous to you and your family.
Keeping Your Home
Chapter 13 helps you keep your home. If you are behind, you can use Chapter 13 to help you cure your default over 3-5 years. The bankruptcy’s automatic stay allows you to immediately halt any pending foreclosure proceedings. If you file Chapter 13 in the Eastern District of Wisconsin, you may also be able to modify your mortgage through the Court’s unique mortgage modification mediation program. Through this program, the Court appoints a mediator and a meeting between the lender, the lender’s attorney, the borrower and the borrower’s attorney is conducted to see if a permanent mortgage loan modification can be reached. Typically, these Court-approved modifications are effective in settling mortgage defaults and, in many cases, lowering the amount of your monthly mortgage payment. To participate in this program, you must meet certain criteria. Many who have been trying to modify on their own without success find this program very helpful, as their attorney works with them to modify and the Court helps to set them up with a mortgage representative who has the authority to modify.
Milwaukee attorney Andrew Sapinski can help you determine whether bankruptcy or non-bankruptcy debt-relief options will benefit your financial future. Schedule a free consultation with Sapinski Law Office S.C. by calling (877) 939-1739. Our firm is dedicated to helping clients rebuild their credit, and their lives.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 4 months ago
Some areas of law are more complicated and technical than others. Filing bankruptcy can give rise to may pitfalls and traps. It is important to consult with an experienced bankruptcy lawyer who knows the ins and outs of the federal bankruptcy code and rules before you file bankruptcy. Here are four ways a bankruptcy lawyer can help:
Determine What Type of Bankruptcy is Right For You
Most individuals file for bankruptcy under either Chapter 7 or Chapter 13. A bankruptcy lawyer can quickly help you determine whether you are eligible to file under Chapter 7, Chapter 13 or both. They can also help you determine whether Chapter 13 or 7 is the right option for you.
File Documents Properly
Bankruptcy law is complex, and the rules are very technical. If you make a mistake in filing, it can affect the outcome of your bankruptcy case. For example, if you fail to file a credit counseling certificate, your case can be subject to immediate dismissal. If you fail to provide a required document and your case is dismissed, this may affect your rights to file another case. An experienced bankruptcy attorney will understand the intricacies of bankruptcy law and will ensure that your documents are filed properly.
Ask the Right Questions
Some bankruptcy cases are more complicated than others. A bankruptcy lawyer will know the right questions to ask. He or she will ask about your debts, assets and income to determine how complicated your case will be. An attorney will also be able to determine whether there are any problematic aspects of your case that will need to be addressed. Sometimes cases require careful planning and your attorney can help you create a plan that will ensure your case goes through without any problems with the Court or your bankruptcy Trustee.
Answer Your Questions
You will undoubtedly have questions about the bankruptcy process, and your lawyer is the best source of information. Bankruptcy lawyers know the law, and your lawyer can answer questions about the facts and laws that pertain to your case.
Are you considering filing for bankruptcy in Wisconsin? Do you have questions about whether this is the best option for you? If you are in the Milwaukee or Waukesha area, contact Sapinski Law Office. We understand how stressful this time is and we are here to help. Call (877) 939-1739 to schedule a free consultation to discuss your case.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 4 months ago
For some debtors, Chapter 7 liquidation may not be their ideal solution. If you are having problems paying your creditors, Chapter 13 bankruptcy could be the right option for you.
This short video discusses the basics of Chapter 13 bankruptcy. Instead of facing a liquidation of your non-exempt assets, Chapter 13 can allow you to repay your debt over a three-to-five-year period. Indviduals and couples may file for Chapter 13, so long as a court approves their Chapter repayment plan.
If you think Chapter 13 bankruptcy is the right option for you, contact Sapinski Law Office S.C. of Milwaukee. Over the past 13 years, Mr. Sapinski has helped thousands of people regain control of their finances. Call our office today at (877) 939-1739 and get one step closer to absolving yourself of debt.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 5 months ago
According to the Administrative Office of the U.S. Courts, nearly 1.5 million businesses and individuals filed for bankruptcy in 2011. However, most experts agree that bankruptcy is a last resort. If you’re deep in debt, you should know that bankruptcy is not your only option—you may be able to negotiate with your creditors. Here are a few reasons why some people choose debt negotiation over bankruptcy:
You have too many assets:
Many who file bankruptcy have assets that are not exempt and stand to be taken by a Trustee if they file Chapter 7 bankruptcy. The seized assets are then liquidated and the proceeds are used to pay creditors. Many who have non-exempt assets that they wish to keep will avoid bankruptcy and hire an attorney to negotiate their way out of debt
Protecting your credit score:
Though filing for bankruptcy can eliminate a wide range of debts very quickly, it comes with certain financial consequences. Chapter 7 bankruptcy stays on your credit report for 10 years, and Chapter 13 bankruptcy for 7. During that time, you may have some trouble obtaining loans, buying a car, or renting an apartment. You can avoid having this bankruptcy notation on your credit reports if you negotiate. Though debt negotiation will also have some negative affect on your credit score, many find it preferable to bankruptcy. Some people have brought their credit scores into the 700s one year after debt negotiation.
Your Income is too high:
There are income requirements when it comes to bankruptcy. If your income is considered too high, you may not be eligible to file Chapter 7 Bankruptcy and your only option may be Chapter 13. How much you pay under a Chapter 13 also can be contingent on your monthly income and, if your income is really high, your Chapter 13 debt repayment plan may require you to pay most, if not all, of your debt. Many faced with this scenario find debt negotiation to be a better alternative than bankruptcy.
For more information about debt negotiation, contact Sapinski Law Office S.C. Over the past 13 years, Mr. Sapinski has negotiated extraordinary debt reductions on behalf of his clients. Give us a call at (877) 939-1739 to see if debt negotiation is an option for your situation.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
Last updated 5 months ago
When debts and late fees become insurmountable, bankruptcy is sometimes the only viable option. You might want to consider eliminating your debts through Chapter 7 liquidation. Though Chapter 7 bankruptcy won’t eliminate all debts such as child and spousal support payments, criminal restitution, and most student loans, it may be a great way for you to eliminate most of your unsecured debts. Here are a few of the specific types of debt you can eliminate under Chapter 7 bankruptcy:
Credit Card Debts
Credit card debt is perhaps the most common form of unsecured debt, and the most common reason why people file for bankruptcy. Luckily, credit card debt is easily dischargeable under Chapter 7 bankruptcy, including late fees. However, recent charges to your credit card may not be dischargeable in bankruptcy, especially luxury purchases aggregating more than $600 that are made on a particular credit card within the 90 day period before your bankruptcy case is filed. Using credit cards when you know you are going to file bankruptcy can be considered fraudulent and, therefore, non-dischargeable in bankruptcy. Your bankruptcy attorney can help you determine whether your credit card use will be dischargeable in bankruptcy.
Medical Bills
People who are uninsured or under-insured incur great debt whenever they undergo extensive or ongoing medical care. Once medical bills get out of hand, these individuals may have no choice but to file for Chapter 7 bankruptcy.
Utility Bills
Becoming unemployed can make it difficult to pay essential utility bills, such as your electric bill. If you’ve fallen behind on your utility bill and have incurred several late fees in the process, you’ll be glad to know that Chapter 7 bankruptcy can put you back on even financial footing.
Personal Loans
When you’re in a pinch, you may decide to borrow money from friends, family members, a payday loan store or a bank. If you become delinquent in payments, however, your lenders can proceed against you and your property. Not only can Chapter 7 stop legal actions against you and your assets, but it also eliminates your obligation to re-pay personal loans.
Other Debts
In certain situations, several other kinds of debt may be eliminated (discharged) under Chapter 7 bankruptcy. For example, income tax debts may be discharged if they are old enough. Generally speaking the return for the income tax debt you are seeking to discharge must have been due on a date that was at least three years before the date your bankruptcy case was filed. The return also must not have been assessed within the 240 days prior to the date you filed bankruptcy (“240 day rule”). If you are seeking to discharge income tax debts that were due more than 3 years ago and were not recently assessed, the returns for those taxes must be filed with the appropriate government unit and the filing must have occurred at least two years before the bankruptcy case is filed. Other rules may be applicable. Determining whether your income taxes will be discharged can be complicated and someone with a large amount of income tax debt should always consult with a good bankruptcy attorney and, possibly, a tax attorney before they file bankruptcy. They should also get a tax transcript from the IRS or the State before they file bankruptcy.
You may discharge secured debts in bankruptcy; however, you will likely need to surrender the collateral securing those debts if you chose to discharge them. Therefore, if you want to keep your vehicle and/or home, it is always advisable that you continue to pay the loans that are secured by those assets.
If you currently have any of the above kinds of debt, contact Sapinski Law Office S.C. of Milwaukee. We’ll do everything we can to help you avoid bankruptcy; but if bankruptcy is inevitable, we’ll ensure that the process is as painless as possible. Call our office today at (877) 939-1739 to set up a free consultation.
Disclaimer:
The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.
