Debt Loves Company
Debt doesn’t just consume one person at a time, in the event there is a co-debtor, (and several of your debts include co-debtors). Also known as co-signors, the people who sign with you on a debt are often family members and the closest friends you have.
By signing a legal document guaranteeing that your debt would be paid, the co-debtor is now in a precarious situation as you file for bankruptcy.
If your goal is to wipe out as much of your debt as possible, as quickly as possible, Chapter 7 would be a good choice. However, under Chapter 7, co-debtors are not protected. If you receive a Chapter 7 discharge, you would no longer have any legal responsibility to repay the debt that was also signed by your co-debtor. But creditors would then be able to collect from the co-debtor.
The only way to protect a co-debtor is to file a Chapter 13 repayment plan, although that virtually guarantees a 60-month schedule to pay your disposable income, after necessary expenses, to your creditors.
Understanding The Benefits Of Bankruptcy.
Benefits Of Bankruptcy
Many people are afraid of bankruptcy. The very word sends shivers down their spine. It’s the financial world’s scarlet “a”. That’s a general misconception held by many. Filing for bankruptcy is often times a beneficial experience when one is saddled with insurmountable death. People worry about it showing up on their credit report–and it will, but it is still better than nothing. Bankruptcy, with all of it’s taboo, is in fact doing something.
Having good credit after bankruptcy is possible, you could even obtain a good credit score within several years of your bankruptcy case being discharged. The first step is receiving the notification from the courts that all of your debt has been discharged. This form will be titled “Discharge of Debtor.” Keep this form in a safe place because you may need to show this to creditors as proof your debts are gone.
Review your credit reports and score closely and clear up any errors. Request your credit report from each of the three major credit agencies. Make sure that all of your debts are listed as “discharged.” and contact your Bankruptcy Attorney Gregory J. Wald.
Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
www.gregorywald.com
Gwald314@msn.com
What’s the difference between Chapter 7, 11 and 13 of the Bankruptcy Code?
…A commonly asked question. Commonly asked because many are truly unaware of the differences between the two.
Chapter 7.
Chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets.
Chapter 13
Chapter 13 issues a payment plan to repay some debts, with the rest of the permitted debts being discharged. Keep in mind, not all tax debts are able to be discharged in bankruptcy, but taxes that are eligible to be discharged in a Chapter 7 are also eligible for discharge in Chapter 13. When you file for bankruptcy, your tax debts must meet a certain standard in order to be discharged.
If you file for Chapter 13 bankruptcy, money owed to the IRS that does not meet the qualifications to be discharged can be repaid through a payment plan that lasts anywhere between three and five years without penalties or continuing interest. (Although in some cases interest and penalties must be paid if there is a tax lien).
One of the benefits of filing a Chapter 13 bankruptcy is if the IRS rejected your previous payment plan, this is a way to get them to accept one.
Chapter 11
Debtors should be aware that there are several alternatives to chapter 7 and 13 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.
It is recommended that you speak with your attorney regarding this matter before deciding between filing Chapter 7 or Chapter 13 to get rid of or aid with the burden of tax debt.
Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
The Problems That Occur When Filing Bankruptcy Without An Attorney
WHAT HAPPENS AFTER I FILE FOR BANKRUPTCY?
Filing bankruptcy can be a daunting and emotionally draining experience. Going it alone will only make the task even more monumental. It doesn’t have to be so bleak though. Sometimes in life we need a reboot, if you will. Many of great financiers, moguls, and millionaires alike have filed for bankruptcy. As well have average salary earners, college students, contract holders et al. The point is, at one time or another many of us have been “in over our heads”.
Once you file the petition there are a number of documents you must submit to the court and your Trustee within specific time frames. Failure to comply may cause your case to be dismissed. Unfortunately, if you file without an attorney, there is no one who will tell you what has to be filed and when. Which is why whenever dealing with anything above parking ticket a lawyer is your best course of action.
The Bankruptcy Court sends out a notice of your bankruptcy filing to all of the creditors listed in your schedules. This notice advises the creditors that you have filed for protection, which chapter you filed and advises them that an “automatic stay” is in effect, preventing creditors from pursuing any further efforts to collect the debt. This would include staying a foreclosure sale, wage garnishment, and even a civil court proceeding or trial. Criminal cases are not stayed, nor are child support hearings.
For more information regarding bankruptcy, chapters, filing bankruptcy, or simply answering any questions you may have, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at www.gregorywald.com for a consultation.
There Are Strict Laws In Place That Limit What A Creditor Can And Cannot Do When Seizing Your Vehicle
What Rights Do I Have When Facing Vehicle Repossession?
Getting behind on your credit card payment can be a hassle but when you go into arrears on your car payment, your life can be drastically interrupted. Whenever you enter into a lease/credit agreement with a finance company, they have the right to recover their property, any time of day or night and still invoice you for the balance due on the loan as well as late fees and towing fees. Pretty harsh huh? However, there are strict laws in place that limit what a creditor can and cannot do when carrying out a Vehicle Repossession.
What Can Creditors do
According to state law, and likely the contract you signed while purchasing the vehicle, your creditor can legally seize your vehicle when you default on your loan. The seizure can legally occur immediately. The contract between you and your creditor will usually define “default”, but it normally means a failure to make timely payments. One missed payment may be just enough, but typically not. This is because your creditor can agree to accept a late payment or can change the payment date, however this may change the terms of your original contract. These changes can occur by speaking with the creditor, by writing, or by the creditor simply accepting multiple late payments without objection.
When default occurs, state law may permit the creditor to repossess your vehicle at any time of the day – even in the middle of the night while you sleep. Creditors do not need to give proper notice, and may come on to your property to repossess.
What Can’t They Do?
Creditors cannot “breach the peace” while confiscating your vehicle. Examples of breaching the peace violations can be using force or threats of force to repossess, seizing your vehicle over protest, or removing it from a closed garage.
If a breach of peace is committed when your vehicle is repossessed, you can be entitled to money damages or your creditor may be required to pay a penalty. Importantly, your creditor may also lose the right to enforce a deficiency judgment against you. A deficiency judgment is the difference between the remaining amount on the loan and the resell amount obtained by the creditor.
If you or someone you know has had their vehicle repossessed or is facing repossession, call us now. There are limited, but effective actions that can be taken such as bankruptcy, that allow you to keep your vehicle. Remember, time is of the essence. Once they’ve repossessed your vehicle you have ten days to pay the debt. In some cases the creditor may even refuse the payment and keep your vehicle. Eventually they will sell it and reduce it from the debt you owe them. Don’t let it get to this.
For more information regarding your specific situation when facing vehicle repossession, contact Minneapolis Bankruptcy Attorney Gregory J. Wald at 952-921-5802 for a consultation.