Best Finance Personal

When insurmountable debt trouble leads people to file for bankruptcy, they often find themselves stressing over the Chapter 7 means test. Specifically, the Chapter 7 means test will start with the seemingly daunting Official Form 22A – Determination of Presumption.

While this eight-page document is meant to ensure that only the most “qualified” of filers use bankruptcy as a way to eliminate their debt, the Chapter 7 means test is clearly not meant to frighten or intimidate filers.

When determining whether an individual qualifies for bankruptcy protection, the bankruptcy courts will first determine whether the person filing meets the median income level determined by the Census Bureau for their specific state. As far as the Chapter 7 means test is concerned, if income is anywhere below the median, then the determination of presumption will be made.

As for median income levels, they are readily available on most websites that discuss bankruptcy and its process. The median levels for single people range anywhere from a low of $32,348 in Mississippi to a high of $57,505 in Connecticut.

Continue reading ‘Exploring the Chapter 7 Means Test’ »

Do you have a lot of debt that it is stressing you out and adversely affecting your life? It is very common for people to get into debt these days due to the ease of getting loans and credit cards and not having the right knowledge to manage them correctly and efficiently. If you are already in excessive debt at this point, teaching you about financial responsibility may help ward off further debt, but it will not get you out of this current, awful situation.

More than likely, you do not know where you stand financially at this moment, not really, and you need to do some serious work. You need to figure out how much debt you have and how fast it is growing. Meanwhile, you must stop using all credit cards and don’t take out any more loans. You need to get a handle on your debt.

There are several options you can take towards getting out of debt. You could try to pay it all off yourself, although this might take a long time and will not decrease your stress anytime soon. This is probably not even an option, since if it was, you would have done so already. You can try to settle your debt, but this is only possible with credit card type debt and is very difficult. You can also try to consolidate your debt into one loan, but again, this is very difficult and may not be effective.

Continue reading ‘Things to Consider When Filing Personal Bankruptcy’ »

When the debt starts piling up, this can be very stressful time for just about anyone. As a result, many people find themselves having no other choice but to declare personal bankruptcy. Of course there are many advantages to having your debt wiped clean and allowing you to start with a fresh slate, is also important to keep in mind that there are many different consequences associated with declaring bankruptcy. These choices can affect you for the next several years to come.

For starters, your credit rating score will definitely suffer as a result of filing chapter 7. While some people may not care about this drop in credit rating, many others may have a serious issue with it. You just have to remember to think ahead and to figure out exactly what is more important to you on the road to come.

Eventually, if you are like many people you will want to purchase a car or maybe even a washing machine or potentially a home. With poor credit, all of these purchases can be downright impossible for some people; and when you choose to file Chapter 7 bankruptcy you are making the task even more difficult.

Continue reading ‘Declaring Personal Bankruptcy – Understanding Its Consequences and Impact on Your Life’ »

When somebody says they’re going to file for bankruptcy it sounds easy right? Well, in order to file for bankruptcy there are some steps that need to be followed. There are 3 changes that now affect people before filing and they are the ticket in, the means test, and the ticket out.

Ticket In – If you want to file then you need to go to a credit counseling session. You need to attend this credit counseling sessions six months before you apply to file for bankruptcy. Also, your session cannot be done by just anyone. They need to be approved by the United States Trustees office.

Means Test – This is a test that is required under the new law. Your income is tested using a two part means test. This is a formula to determine if you’re going to be able to afford 25% of your unsecured debt. Unsecured debt is things like credit card debt. From there they will determine how your income looks compared to the states average. Depending on what your income looks like compared to the state average will determine if your able to file for Chapter 7 bankruptcy.

Continue reading ‘These 3 Steps That Are Required Before You Can File For Bankruptcy’ »

One of the most frequent questions that any Washington bankruptcy attorney is asked during an initial consultation is whether or not someone contemplating filing for bankruptcy can keep their car. For the most part, the answer is yes.

In the vast majority of situations, clients who want to keep their car and who have the ability to stay current on their monthly payments are able to retain their automobile after filing for bankruptcy in Pierce County, Washington. Depending on whether you are filing a Chapter 7 or a Chapter 13 bankruptcy, and depending on whether you utilize the federal exemptions or the state exemptions, their is typically a way to safeguard any equity in your vehicle from being seized by the trustee.

Continue reading ‘Keeping Your Cars in Bankruptcy’ »

Chapter 13 bankruptcy is a repayment plan, sometimes called a “wage earners’” plan. It allows people that have a regular income to repay all or part of their debts. With a chapter 13, a repayment plan is proposed that will make payments to the creditors over a three to five year period. The court will approve the plan, or revise it based on the debtor’s situation and eligibility. A chapter 13 also has its own advantages compared to a chapter 7.

The Advantages

There are several advantages that a chapter 13 offers over a chapter 7. One of the most significant advantages is that a chapter 13 allows people the opportunity to save their homes from foreclosure. A chapter 13 can stop the foreclosure process and may resolve past due mortgage payments. A chapter 13 also allows the individual the ability to pay other secured debts they may have incurred over the span of the bankruptcy (3-5 years). This may also lower the monthly payments of those debts. This chapter may also protect co-signers of those debts. The final advantage of a chapter 13 is that it acts as a consolidation loan. This means that the debtor will make payments to a trustee overseeing the bankruptcy and distribute those payments to the individual creditors. As a result the debtor will have no contact with the creditors which may prevent many financial headaches in the long run.

Continue reading ‘Chapter 13 Bankruptcy Explained’ »

Incoming search terms:

• making over 5000 00 with chapter 13 bankruptcy

Chapter 13 bankruptcy is a repayment plan, sometimes called a “wage earners’” plan. It allows people that have a regular income to repay all or part of their debts. With a chapter 13, a repayment plan is proposed that will make payments to the creditors over a three to five year period. The court will approve the plan, or revise it based on the debtor’s situation and eligibility. A chapter 13 also has its own advantages compared to a chapter 7.

The Advantages

There are several advantages that a chapter 13 offers over a chapter 7. One of the most significant advantages is that a chapter 13 allows people the opportunity to save their homes from foreclosure. A chapter 13 can stop the foreclosure process and may resolve past due mortgage payments. A chapter 13 also allows the individual the ability to pay other secured debts they may have incurred over the span of the bankruptcy (3-5 years). This may also lower the monthly payments of those debts. This chapter may also protect co-signers of those debts. Continue reading ‘Chapter 13 Bankruptcy Explained’ »

Whenever we look at debt elimination options, we often consider the best ways to keep our existing assets while simultaneously getting rid of the unsecured debt, typically credit cards with high balances and high interest costs. This all-too-common scenario leaves debtors with two options: Chapter 13 bankruptcy is the most obvious and, perhaps less obvious is settlement debt relief. At first, they seem like very similar options. Let’s take a closer look:

Chapter 13 Debt Relief

Folks looking to use Chapter 13 for debt elimination purposes quite rapidly realize that this bankruptcy option gives them the opportunity to hold on to their most-prized assets like the home and personal vehicles while simultaneously washing their hands of credit card debt (and all other unsecured credit debt).

Debt Settlement

Similar to Chapter 13 bankruptcy, settlement debt relief allows the debtor to tidy up their credit card debt, leaving all assets (and not just those used for security on loans) untouched by a third-party trustee. Notice that “tidy up” is not the same as “wipe it clean” as it would be in Chapter 13. Instead of getting a free pass, debtors who use the debt settlement option essentially have their debt reduced to a more-manageable level, providing the much needed relief they need.

Continue reading ‘Chapter 13 Bankruptcy and Settlement Debt Relief – Exploring the Differences’ »

Incoming search terms:

• bankruptcy settlement

Often, people with debt problems fail to consider the non-financial implications of bankruptcy (either Chapter 7 or Chapter 13). Of course, the financial consequences of bankruptcy are usually greater than borrowers are led to believe, but it is usually the non-financial aftermath that causes the greatest strain.

When faced with debt problems that warrant bankruptcy considerations, debtors have two options. Chapter 7 or Chapter 13. We will take a very, very general view of both options here, then dig into the non-financial drawbacks.

Chapter 7 Bankruptcy

Chapter 7 essentially wipes out all debt. This involves liquidating existing assets and paying off the corresponding debt. Of the two bankruptcy options, Chapter 7 more accurately provides borrowers with a “fresh start” since the borrower will be left with nothing except a bad credit report. Chapter 7 bankruptcy is usually the option of choice for borrowers with no assets (nothing to “lose”).

Continue reading ‘Bankruptcy Hurts Couples’ »

Well, the country’s economic news seems to be good. President Obama has announced that the economy is stabilizing; unemployment claims are slowing; the “cash for clunkers” car program has helped the automotive industry more than expected. And Goldman Sachs has turned itself around so much that it will be able to pay back the government the ten billion dollars of bailout money it received last fall. Whew! Now those investment bankers can receive massive bonuses again without penalty. Weren’t you worried about them?

Probably not. No matter how the headlines read, many of us “little guys” are still struggling with the day-to-day. No one seems ready to loan us even a small fraction of the mind-boggling amounts tossed around by Congress. When you’re waiting for the results of all this government help to trickle down to you, it can seem like a pretty slow trickle.

Continue reading ‘Economic Recovery on a Personal Level – Time For Chapter 13?’ »