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Common Bankruptcy Terminology That Every Person Should Know

The legal process of filing for bankruptcy and seeking a discharge of your debt(s) can be daunting. Although an experienced bankruptcy lawyer can walk you through all of the steps, it can be helpful to first familiarize yourself with the basic vocabulary. Some of the most common terminology used during the bankruptcy process includes:

Secured Debt

This is a loan or debt that is backed by property. The most common secured debts include mortgages and car loans. In the event of non-payment on a secured loan, the creditor can take or repossess the property  (their collateral) and sell it.  The money received from the sale is then applied to the balance you owe.

Unsecured Debt

No property is pledged as collateral on this type of loan. Credit cards are the most common type of unsecured debt, as the creditor cannot directly take away any of your property if you miss a payment.

Chapter 7

This type of bankruptcy is perfect for Americans with a large amount of unsecured debt who want to eliminate their debt and start all over. It is an effective way to get creditors to stop calling and wipe away overdue credit card balances. However, only those who meet certain income requirements are eligible to file under Chapter 7.

Chapter 13

If you are behind on your mortgage or car loan and wish to keep the collateral securing the loan, Chapter 13 is the appropriate type of bankruptcy.  It may also be required if your income is too high for Chapter 7.  Chapter 13 can allow you to keep your home and/or car, modify the loan terms and consolidate your debt so that you can get debt free in 3-5 years by making just one low monthly payment.

It can be difficult to decide on the right type of bankruptcy for your specific financial situation. If you live in Wisconsin, contact bankruptcy lawyer Andrew Sapinski with the Sapinski Law Office, S.C. by calling (262) 782-9400. Our Milwaukee-based bankruptcy and debt relief team is dedicated to applying the law to improve your financial situation. Call today for a free and confidential evaluation.

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.

Bankruptcy: Important Facts You Should Know About

The current recession has left many American families scrambling to make ends meet. If you are drowning in credit card debt or struggling to make your mortgage payments, bankruptcy may offer a solution to your problems. There are many misconceptions and myths.  Before filing bankruptcy, many incorrectly fear they will be discriminated against or will never have credit again. This is not true. 

You Will Not Be Discriminated Against

Although it may seem like declaring bankruptcy is a very public process, the truth is that few will find-out you have filed and you will not face discrimination.  For example, your employer is not likely to find out about this action and cannot use bankruptcy filing against you in the workplace. Generally, aside from your bankruptcy lawyer or anyone directly involved in the process, no one else will know about your bankruptcy unless you decide to tell them. Student loan creditors also cannot discriminate if you file bankruptcy. Further, governmental units cannot discriminate against bankruptcy debtors in regards to employment and to licenses and permits.

You Can Still Use a Credit Card

Obtaining a secured credit card backed by a bank account or other assets is a feasible course of action following bankruptcy. In fact, obtaining a secured credit card can even help your financial situation. A secured credit card may allow you to shop online, carry fraud protection, and rebuild your credit by paying off the balance every month.

Your Credit Score Will Not Be Destroyed

Depending on the condition of your finances, bankruptcy can often improve your credit score by wiping away bad debts. Once the overdue balances are discharged, you can take steps to improve your financial history. Sapinski Law Office, S.C. routinely helps people re-build their credit score after bankruptcy. Many who follow our program find their credit to be better with bankruptcy (than if you had not filed).

If you are overwhelmed by your loans and creditors will not stop calling, it may be time to talk with a bankruptcy lawyer to discuss your options. Milwaukee residents should contact Sapinski Law Office, S.C. to schedule an appointment with our dedicated bankruptcy and loan modification team. Call (262) 782-9400 to schedule an appointment in the Milwaukee-Waukesha area.

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.

Tax Experts at Turbo Tax Share Bankruptcy Tips in This Video

The last thing you want to do when filing for bankruptcy is to jeopardize your bankruptcy eligibility by not complying with IRS guidelines. Therefore, the most important IRS compliance step is making sure to file tax returns for yourself and your estate. This video features a Turbo Tax employee explaining how to avoid tax issues when filing for bankruptcy.

As your bankruptcy lawyer will tell you, the IRS can have your bankruptcy case dismissed if you fail to file a tax return during your proceedings.

Bankruptcy lawyer Andrew Sapinski can help you avoid IRS pitfalls. If you live in Wisconsin and are thinking about bankruptcy, call the Sapinski Law Office, S.C. at (262) 782-9400. Our bankruptcy team in the Milwaukee area can apply the federal tax and bankruptcy laws to best help your financial situation.

Sapinski Law Office S.C. Review on Cast page - Andrew Was a Pleasure to Work With

Are You Considering Bankruptcy? Browse Through These Websites for More Information

If you’d like to know more about the bankruptcy topics we’ve covered in our recent blog entries, you can take a look at the websites listed below, which will tell you more about many aspects of bankruptcy.

• Check out this article to learn more about how a credit score is calculated.
• Recovering from bankruptcy can be a difficult process, but these tips will help you out.
• Between March 2011 and March 2012, bankruptcy filings dropped 13%, though the number is still higher than usual.
• If you’d like to improve your credit score after bankruptcy, consider obtaining a secured credit card.
• If you’re not sure whether bankruptcy is right for you, the American Bankruptcy Institute can help you decide.

If you need help with bankruptcy in the Milwaukee or Waukesha areas, call (877) 939-1739 to schedule a consultation with Sapinski Law Office, S.C.