When a person has filed bankruptcy in the past, they may want to know how long they must wait to file bankruptcy again. If a person has filed a Chapter 7 bankruptcy petition and received a discharge of their debts, they must wait 8 years before they can file another Chapter 7 petition. However, the waiting period to receive a discharge in a Chapter 13 case after a previous Chapter 7 case is only 4 years. Sometimes unfortunate circumstances create a need for a second bankruptcy in less than 4 years after the filing of a Chapter 7 case. You can file a Chapter 13 case less than 4 years after filing a Chapter 7 case and receive court protection from your creditors, but you won’t receive a discharge of your debts. It sometimes makes sense to file such a case to prevent foreclosure of a residence or to receive court protection from creditors.
Filing Bankruptcy Archives
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.
Can Tax Debts Be Simply Eliminated Through Filing For Bankruptcy?
There are many ads on the TV and radio that claim tax debts can simply be eliminated through filing for bankruptcy. Unfortunately, this is not always true.
Income tax debts are able to be discharged in Chapter 7 bankruptcy if all of the following is true:
- All tax returns for the tax debt you’re seeking to discharged must have been filed at least two years before filing for bankruptcy.
- The tax debt must have been due at least three years prior to filing your bankruptcy petition.
- You must have filed a return for the tax at least two years prior to filing your bankruptcy petition.
- The income tax debt has to have been assessed by the IRS a minimum of 240 days prior to filing your bankruptcy petition.
- If a fraudulent tax return was filed or you attempted to evade paying the taxes by, for example, using a false Social Security number, bankruptcy won’t be able to eliminate this debt.
Certain events like a prior bankruptcy or an offer-in-compromise with the IRS can toll (stop) the running of these time periods. There are entire books written on how to interpret the rules for discharging a debt in bankruptcy. Be sure to obtain competent advice.
Unfortunately, even if you qualify to have your tax debt eliminated, your bankruptcy will not rid you of prior tax liens. If the IRS placed a lien on your property before bankruptcy was filed, the lien remains. This requires the debtor to satisfy the balance before they are able to sell the property. If the tax lien does not attach to any property, the IRS may abate (remove) the lien.
For more information regarding your specific situation, contact Minneapolis Bankruptcy Attorney Gregory J. Wald at 952-921-5802 for a consultation.
Failing To Complete A Credit Counseling Course Can Ruin Your Bankruptcy Case
Did you know that failing to complete credit counseling course can ruin your case? In both Chapter 7 and Chapter 13 bankruptcy, credit counseling is required. One course must be completed within 180 days before your case is filed and another must be completed before the case can be discharged.
As a rule of thumb, it’s best to have the second course completed prior to the meeting of creditors. This is approximately one month after filing. If this course is not completed, it is possible to have your discharge refused.
You can find a list U.S. Trustee approved credit counseling agencies here: http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
There are some exemptions from this requirement limited to people who are mentally ill, disabled, or on military duty in an active combat zone.
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
Gwald314@msn.com
Once Bankruptcy Is Filed, The Trustee Will Look Into The Past 90 Days Of Spending To See If You Attempted To Defraud The System
This the season for giving… and racking up debt. If you’re planning on filing bankruptcy after the holidays you’ll want to avoid these common mistakes, it could seriously jeopardize your bankruptcy.
We all get into the holiday spirit of gift giving while failing to think of ourselves. Draining your checking account, without setting any funds aside is a huge mistake. Bankruptcy fees must be paid for in cash, not a credit card, so it’s imperative that money is set aside to give you the fresh start your finances so desperately need.
Do not go on a shopping spree compliments of your credit card before filing for bankruptcy. If it looks like you were “loading up” on credit cards without intending to repay them, you might have to repay at least a portion of the funds that you borrowed.
Never give away your assets as gifts this holiday season, or even if you’re planning on filing for bankruptcy. If you give a gift to a relative that is worth $200 or more, the trustee of your bankruptcy case may demand the return of the gift so that it can be sold and the funds distributed to creditors. In some cases, charitable contributions can also be reversed. Giving away significant assets to avoid losing them in bankruptcy is considered fraudulent. Your debts might not be eliminated in bankruptcy if you attempt this. A skilled Minnesota bankruptcy lawyer can help you through the process in a manner that wisely uses your time and resources.
For answers to questions regarding your specific situation, contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 to set up a consultation. We will be able to answer any of your questions and concerns
Speak With A Bankruptcy Attorney About A Hardship Discharge
Filing for Chapter 13 gives people with a source of income the choice of devising a plan to repay some of their debt when they’re experiencing a financial hardship. This is why Chapter 13 is also known as the “wage earner’s plan.”
In the instance that you’ve already filed for Chapter 13 bankruptcy, yet you are still experiencing a financial hardship, there are options. If you find yourself in this predicament do not simply stop making payments to your trustee. Once you do that you can expect your bankruptcy case to be dismissed without discharge.
Don’t ignore your problem. Speak with your bankruptcy attorney about a Hardship Discharge. This type of discharge will clear debts and give you a fresh start, even though your repayment plan has not been completed.
This option is available to you if:
- The failure to complete your repayment plan was due to circumstances beyond your control.
- Your creditors received at least what they would have gotten out of a Chapter 7 liquidation case.
- Modification of your plan isn’t possible. For example, you sustained an injury or illness that prevents adequate employment that would finance a modified plan.
Hardship Discharges do not apply to any debts that are non-dischargeable, so it’s much more limiting than a Chapter 13 bankruptcy. There are many facets to a Hardship Discharge which is why it is important to speak to your bankruptcy attorney.
Do not feel trapped by your finances. You do have options for dealing with your debt. Contact Minnesota bankruptcy attorney Gregory Wald at 952-921-5802. He will go over your Chapter 13 case and give you all the best options specific to your situation.