Bloomberg is reporting that Business Bankruptcies Soar in August as Rising Interest Rates Bite.The article can be found at https://www.bloomberg.com/news/articles/2023-09-05/businesses-bankruptcies-soar-in-august-as-interest-rates-bite?embedded-checkout=trueJim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

What are the consequences of a secured lender’s failure to comply with R. 3002.1 in a prior case when the debtor files again? Significant, it seems. The issue came before the SD Texas bankruptcy court in Alvarez, No. 22-33889 (Bankr. S.D. Tex. Aug. 9, 2023) when the debtor objected to the mortgage claim of the […] The post The Long Reach of R. 3002.1 appeared first on Bankruptcy Mastery.

Do You Need to Finance a Car in Chapter 13? The last thing you want to do is get further into debt while you are in Chapter 13.  (The goal of Chapter 13 is to get out of debt.)  But sometimes you need to replace a broken down junker. So, you need financing for a […] The post Rats! I need a new car and I’m stuck in Chapter 13 by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

Do You Need to Finance a Car in Chapter 13? The last thing you want to do is get further into debt while you are in Chapter 13.  (The goal of Chapter 13 is to get out of debt.)  But sometimes you need to–most often if you need to replace a junker car. There are […] The post Rats! I need a new car and I’m stuck in Chapter 13 by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

 Credit card and Car loan defaults hit 10-year high as inflation squeezes FamiliesThe New York Post is reporting that credit card and car loan defaults have hit a 10 year high, due to inflation and other economic issues. Will personal bankruptcy filings increase in near term? Very likelyThe article can be found at https://nypost.com/2023/09/04/credit-card-and-car-loan-defaults-hit-10-year-high-as-inflation-squeezes-families/?utm_source=gmail&utm_campaign=android_nypJim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

The signal changes in California foreclosure law in 2021 are bearing unexpected fruit: a bankruptcy filing AFTER the foreclosure auction can save the house for the homeowner. Under CC 2924m, instead of the foreclosure sale being final at the drop of the auction hammer, now the sale is not final, and the trustee’s deed not […] The post Stop Foreclosure With Stunning Timeline Change In CA Foreclosure Law appeared first on Bankruptcy Mastery.

 Chiang Rai Times has an interesting article about Chapter 7 Bankruptcy. The article can be found at https://www.chiangraitimes.com/learning/what-you-should-know-about-chapter-7-bankruptcy/Jim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

 Business Insider has a very informative article about how often a person can file for Bankruptcy.The article can be found at https://www.businessinsider.com/personal-finance/how-often-can-you-file-for-bankruptcyIndividuals with questions about personal bankruptcy should contact Jim Shenwick, EsqJim Shenwick, Esq  917 363 3391  [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt! 

Many people prefer to file for Chapter 13 bankruptcy as it helps them avoid the liquidation of their homes and other assets. Unfortunately, keeping up with Chapter 13 payment plans can be difficult, and converting to Chapter 7 might be a good idea. Depending on your situation, you may convert an existing Chapter 13 bankruptcy case to Chapter 7. Generally, you might be able to do so as long as the court has not discharged any debts. Many people want to convert their bankruptcy cases because they cannot keep up with their payment plans under Chapter 13. These payment plans tend to be rigorous, and keeping up with payments for 3 to 5 years might not be as feasible as you once believed. To convert your case, you and your lawyer must file a Notice of Conversion with the appropriate court and possibly pay a fee. You might be able to protect certain assets after converting to Chapter 7 if they are exempt from liquidation. If you are thinking about changing your bankruptcy case, call our bankruptcy lawyers at (215) 701-6519 and schedule a free review of your situation with the team at Young, Marr, Mallis & Associates. Converting Your Chapter 13 Bankruptcy Case to a Chapter Case After Filing While filing for bankruptcy can be a great solution to financial troubles, it is known for being a bit complicated. Perhaps the most commonly filed chapters for individuals filing for bankruptcy are Chapters 7 and 13. Many initially choose Chapter 13 over Chapter 7 to protect assets like homes and vehicles. However, Chapter 13 bankruptcy cases tend to last for years, and keeping up with payments might become too difficult. In such a situation, a switch might be necessary. Chapter 13 focuses on reorganizing your finances and sticking to a strict payment plan for about 3 to 5 years. Ultimately, your creditors should be paid off, and certain remaining debts might be discharged. Under Chapter 7, the process takes only a few months, and assets might be liquidated to pay your creditors. People often choose Chapter 13 because their assets are not seized and sold off to pay creditors. However, many Chapter 13 petitioners find that keeping up with their payment plans is not feasible. In that case, you should talk to your lawyer about converting to Chapter 7. While converting to Chapter 7 might not be ideal, it can help you get out from under your debts and get a fresh start. Talk to our bankruptcy lawyers sooner rather than later. It is typically easier to convert your case before you fall behind on your Chapter 13 payment plan. Why Convert Your Chapter 13 Bankruptcy Case to Chapter 7? As mentioned before, many people choose to convert because they find keeping up with the payment plan under Chapter 13 is harder than they expected. Alternatively, your financial situation might have changed since you filed. For example, perhaps your Chapter 13 payment plan was feasible because you were steadily employed. If you recently laid off from work, you might be unable to keep up with the payment plan, and converting to Chapter 7 might be wise. Another possibility is that your personal plans have changed. People often file for Chapter 13 bankruptcy to protect assets like their homes and vehicles. However, your plans for the future might have changed. Maybe you plan on moving and no longer need to protect your home. In that case, it might be best to convert to Chapter 7, liquidate your house, pay back creditors, and move on from the ordeal before you relocate. Sometimes, people simply decide that worrying about their payment plan for the next several years, even if they can keep up with it, is not what they want. Maybe you would rather just cut your losses and convert to Chapter 7, even if it means losing important assets. How to Convert Your Chapter 13 Bankruptcy Case to Chapter 7 Converting might be fairly simple, depending on where you are in your Chapter 13 bankruptcy case. Converting your case may be as simple as submitting some paperwork. You and your lawyer must fill out and submit a Notice of Conversion to the courts. If your case can be converted and the court approves, you can change to Chapter 7. Before you fill out any forms, talk to your lawyer about whether you can convert to Chapter 7 from Chapter 13. It might be too late if debts have already been discharged under Chapter 13. Also, the court might not approve if you want to convert to Chapter 7 when you are close to the end of your Chapter 13 case. It is best to switch sooner rather than later. You also might have trouble converting your case if you have fallen behind on your Chapter 13 payment plan. While many people want to convert because they believe keeping up with their plan is too difficult, you should be current on your plan when you convert. Can I Protect My Assets When Converting to Chapter 7 Bankruptcy from Chapter 13? Converting from Chapter 13 to Chapter 7 does not mean your assets will be vulnerable. In many cases, people converting their bankruptcy cases can claim state or federal exemptions that allow them to protect certain assets from being seized and liquidated by bankruptcy trustees. Remember, the federal exemptions are not the same as state exemptions, and, depending on where you live, you might not have a choice as to which one you can claim. Some states do not permit people to claim federal exemptions. These states, sometimes called “opt-out states,” require residents to claim state exemptions. Other states allow bankruptcy petitioners to choose which exemptions they wish to claim. Check with your lawyer first before making any final decisions. Homestead exemptions allow bankruptcy petitions to protect the equity in their home up to a certain limit. If you file for bankruptcy jointly with your spouse, this limit might be higher. Similar exemptions exist for vehicles, retirement accounts, property used for business purposes, and personal items like jewelry or household items. Call Our Bankruptcy Attorneys to Discuss Converting Your Case Call our bankruptcy lawyers at (215) 701-6519 and arrange a free evaluation of your situation with the team at Young, Marr, Mallis & Associates.

Individuals commonly pursue Chapter 7 and Chapter 13 bankruptcy, which are among the various types of bankruptcy available. Despite the type of bankruptcy chosen, it is important to note that not all debt can be eliminated through the bankruptcy process. Bankruptcy does not allow for the discharge of certain types of debts, such as taxes, spousal support, child support, alimony, and government-funded or backed student loans. However, filing for bankruptcy can give you the room to get back to financial security. While not all debts will be erased, several types of debts will be discharged, which could account for a significant amount of the filer’s debt. Call our bankruptcy attorneys at Young, Marr, Mallis & Deane at (609) 755-3115 for a free case review today. Which Debts Cannot Be Discharged By Filing for Bankruptcy? Unfortunately, not all debts can be eliminated through bankruptcy proceedings. The specific debts that fall under this category and the reasons for their exclusion might differ depending on the type of bankruptcy being pursued. Often, these debts are deemed ineligible for discharge due to public policy considerations. However, determining which debts will follow in each case depends on a close evaluation of the facts. Fortunately, our Philadelphia bankruptcy attorneys can help you understand which debts will be discharged through a bankruptcy filing and which will remain. The following are debts that usually follow you after filing for bankruptcy: Tax Debt Certain types of taxes are not able to be eliminated through bankruptcy, but there are some exceptions to this rule. It is possible to discharge tax debt that meets certain qualifications. In Chapter 7 cases, federal or state income taxes might be wiped out if they are associated with a return that was due at least three years before the bankruptcy case. This three-year timeline includes any extensions that might have been granted by the state or federal government for tax payment. Non-income tax debts, such as property taxes and tax liens that are attached to your property cannot be eliminated through a bankruptcy filing. Child and Spousal Support/Alimony In many bankruptcy cases, any money owed for spousal or child support, as well as alimony, cannot be discharged. This means that these legal obligations cannot be eliminated through the bankruptcy process. Therefore, after your bankruptcy case is completed, any remaining balance you owe for these types of obligations will still be required to be paid. Student Loans It is rare for student loans to be discharged, regardless of whether they were obtained from the government, private lenders, or a university. There are only a few exceptions to this rule, such as if the borrower can no longer work due to a disability and can provide evidence of this. Another exception would be if the borrower is facing undue hardship and can prove that they have made every effort to repay the loan. However, qualifying for a discharge based on these exceptions is a challenging process. The borrower must demonstrate that repaying the loan would prevent them from maintaining a basic standard of living. Other debts that are typically not eligible for discharge through bankruptcy include fines or penalties imposed by government agencies, as well as personal injury debts arising from driving under the influence. Debts resulting from fraud, embezzlement, larceny, or breach of fiduciary duty, as well as any debts or creditors that were not included in the bankruptcy petition, are also unlikely to be discharged. Which Debts Can Be Discharged By Filing for Bankruptcy? The primary objective of filing for bankruptcy is to eliminate as much debt as possible and begin anew financially. During this process, various types of debts will be discharged either immediately or at the end of the bankruptcy process. Once the debts are discharged, you will no longer be obliged to pay them. This is a permanent order, and creditors are not allowed to pursue collection. Credit Card Debt In the event that you opt for Chapter 7 bankruptcy, your credit card debt will typically be discharged immediately. On the other hand, Chapter 13 bankruptcy is designed to restructure your debts, which might entail integrating your credit card debt into a repayment plan. Once all the obligations within the plan have been fulfilled, any remaining debt can then be discharged based on your individual financial circumstances. Medical Debt If you are facing overwhelming medical debt, you might be wondering if bankruptcy is an option for you. The good news is that medical debt, which is an unsecured debt, can be discharged under Chapter 7 bankruptcy. This means that the debt is not backed by any collateral, making it easier for you to get rid of it. However, if you choose to file for Chapter 13 bankruptcy, only a portion of your medical debt might be included in your repayment plan, just like with credit card debts. In this case, you will need to complete the repayment portion of your bankruptcy case before any remaining debts, including medical bankruptcy, can be discharged. Keep in mind that bankruptcy should always be considered a last resort, and you should consult with a qualified attorney to determine if it is the right option for you. But if you are struggling with medical debt, know that there are options available to help you regain control of your finances. Personal Loans It is possible to eliminate or discharge unsecured personal loans through the process of filing for bankruptcy. Unsecured loans are loans that are not secured by your personal property. Furthermore, loans received from friends, family, or employers that are considered to be personal loans are also eligible for discharge through bankruptcy. In addition to unsecured personal loans, there are other types of debt that might be discharged through bankruptcy. For instance, condominium fees, cooperative fees, or Homeowner Association fees can be discharged through Chapter 13. Similarly, loans taken out from retirement plans can also be discharged under Chapter 13. Should I File for Bankruptcy If All My Debts Are Not Discharged Declaring bankruptcy can have significant and lasting consequences. Your credit score might plummet by as much as 100, 150, or 200 points, and the bankruptcy will remain on your credit report for ten years in the case of a Chapter 7 filing and seven years for a Chapter 13 filing. Despite this, filing for bankruptcy can still be advantageous in certain circumstances, even though it might not discharge all of your debts. The primary goal of bankruptcy is to provide filers with a fresh start in their financial lives. Depending on which type of bankruptcy you choose, a payment plan might be established to address many of your outstanding debts, or non-exempt assets might be liquidated to pay off what you owe, which can help you regain control of your finances. Our Bankruptcy Attorneys Can Help For a free case review, contact our Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Deane today at (609) 755-3115.