About Chapter 7 Bankruptcy . Your clothing, household goods, and personal effects are usually protected by your state or federal exemptions, and you do not typically lose these items when you file a Chapter 7 bankruptcy. The exemptions you use in your bankruptcy frequently protect the amount of equity you have in each asset. Some states allow you to choose whether to use the federal exemptions or your state's exemptions. The following states allow you to use the federal bankruptcy exemptions: Arkansas, Connecticut, Washington, D. C., Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin. The following states do not allow you to use the federal bankruptcy exemptions: Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming. Why Does Filing Chapter 7 Make Sense? Stop Creditors in their Tracks! Chapter 7 bankruptcy can provide immediate relief to a wide variety of financial problems. You Have Lost either a Home or Vehicle to Foreclosure or Repossession. A chapter 7 bankruptcy will typically eliminate the deficiency balance owed to your creditors after they have taken and resold your property. You Wish To Temporarily Stop a Foreclosure or Repossession. Upon filing a Chapter 7 bankruptcy, bankruptcy law immediately prohibits your creditors from continuing any collection activity, including attempting to repossess your car or foreclose on your house. You Owe IRS or State Taxes. Filing bankruptcy bars the IRS and State Tax Agencies from any form of collection activity during your Chapter 7 bankruptcy.
This section contains information on eligibility for the Low-Income Subsidy (also called "Extra Help") available under the Medicare Part D prescription drug program. 3 (b) a foreign judgment under the Maryland Uniform Enforcement of Foreign Judgments Act (Courts Article, §§ 11-801 through 11-807);. Once you file a Chapter 7 bankruptcy, your creditors are immediately prohibited from engaging in any collection activity against you without first obtaining court permission from your Bankruptcy Judge. Should you file a Chapter 7 bankruptcy because you have more debt than what you can repay? You may be an ideal candidate for a Chapter 7 bankruptcy your debt exceeds more than you could ever imagine repaying. The Disadvantage of Filing a Chapter 7 Bankruptcy. The main disadvantage of filing a Chapter 7 bankruptcy is that a record of the bankruptcy filing stays on your credit report for 1. As a tool to help Bankruptcy Trustees and Judges, Congress implemented what is known as the . If you and the other members of your household make less a year than your state’s median income for your household size, you will qualify to file Chapter 7 bankruptcy without having to pass the Means Test. This calculated income is often very different than what your present actual income is at the time you file your Chapter 7. Fixed costs like taxes, mortgage and car payments, health insurance, support payments and child care are subtracted from your gross income. Necessities like rent, utilities and transportation costs are set forth in your county’s IRS’s Collection Standards as fixed amounts and are deducted from your gross income as well. The amount that’s left over after those allowable expenses is your disposable income. If your household is over your state’s median income, that monthly disposable income amount is then multiplied by sixty (6. If the total is more than $1. Bankruptcy Court, you most likely do not qualify for Chapter 7 Bankruptcy and you may be required to file Chapter 1. If your total disposable income for the five year period falls between $6,0. Here, your anticipated disposable income over the next 5 years — that calculated number between $6. If your total disposable income amount is less than 2. Chapter 7. As you can see, The Means Test is a highly scrutinized, complex, number driven examination of your income and expenses. It does take some practice to master. How Often Can I File for Chapter 7? If you can satisfy the income requirements, it is your legal and economic right to file for Chapter 7 bankruptcy once every 8 years. What Types of Debts Will Not be Eliminated if I File a Chapter 7? Not all debts are dischargeable when you file a Chapter 7. Discharge means the debts are forgiven in your bankruptcy and you no longer legally owe them and are not legally obligated to ever repay them. ![]() Some IRS or State Income Tax Debts. As a general rule, any tax debt must be 3 years old and be timely filed to be discharged. Child Support or Alimony Obligations. Filing a Chapter 7 will not eliminate back child support or alimony obligations. It also won’t end future obligations to make these types of payments after filing. Government Fines. Debts such as parking tickets, speeding tickets and court fines are non- dischargeable in a Chapter 7 bankruptcy. Debts ordered to be paid by a Divorce Decree. A Chapter 7 bankruptcy does not eliminate debts that were ordered to be paid by in a Divorce Decree or a Family Court proceeding. If you have a significant amount of any of the above non- dischargeable debts, a Chapter 1. The 3. 41 Meeting of the Creditors Do I have to go to Court? Yes, you are required to attend your 3. Meeting of the Creditors. The proceeding normally takes place about 3. Will my Creditors be at the 3. Meeting to Harass Me? What is Chapter 7 Bankruptcy? Chapter 7 bankruptcies are generally best if you don’t have a significant amount of assets, like substantial equity in your home or. LEXAPEDIA Salus Populi Suprema Lex Esto. Home: Verdicts and Decisions Search Database: Recent Cases.While its name implies otherwise, “The 3. Meeting of the Creditors,” creditors in fact very rarely appear at these meetings. In most cases there is no defense to your filing of bankruptcy and it would be a waste of time for your creditors to attend the meeting. What happens at your 3. The meeting is presided over by a bankruptcy trustee. The trustee’s job is to represent your creditors in the bankruptcy process and to help with the administration of your Chapter 7 case. Chapter 7 3. 41 meetings generally take from 5 to 1. Initially, you are required to take an oath to tell the truth under penalty of perjury. You are then asked to state your name, social security number, and address for the record. The Role of the Chapter 7 Trustee. The primary role of a Chapter 7 Trustee is to handle the administration of your case and represent the interests of your creditors. The Trustee looks for potential unprotected assets that may be liquidated and distributed as repayment to your creditors. Because state exemptions protect the vast majority of most Chapter 7 filers’ assets, the majority of cases have no assets to liquidate and the Trustee’s main job is ensuring the bankruptcy laws are followed by all parties. 21-6-306: Recording fees for land records (including Lis Pendens, plats, surveys, notary bonds, in-State foreign judgments (must be certified), materialman’s liens. If your Trustee does find a non- exempt asset, he may choose to liquidate the nonexempt property in a manner that maximizes repayment distribution to your creditors. The Trustee accomplishes this by selling your unprotected property to the highest bidder. The Trustee may also attempt to recover cash or property under the Trustee's . The Trustee represents the interests of your creditors in a Chapter 7 bankruptcy and can often take an adversarial role in your case. ![]()
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