Oct 19

Chapter 7 Bankruptcy was enacted to allow persons who are hopelessly burdened by debt to have an opportunity for a new beginning by wiping out unsecured debts (debts that aren’t tied to any specific item of property, most commonly credit cards). Chapter 7 is designed for persons who cannot afford to pay a significant portion of their debt back to lenders. Chapter 7 is available to individuals, couples and businesses. The process is often referred to as “liquidation.” In theory, you are surrendering your assets to the court in exchange for a discharge (elimination) from all of your debts. However, individuals and couples are allowed to keep certain “exempt” property that varies by category and value.

In order to qualify for a Chapter 7 Bankruptcy, certain documentation and information must be provided to the attorneys at Second Start (and most other professional bankruptcy attorneys) before the filing of your case commences.

What You Need

• Copies of your state and federal tax returns for the past four years.

• Copies of the last six months of pay stubs / proof of all income for both filing and non-filing spouse.

• Account statements for the past six months preceding the date of the bankruptcy petition for all depository and investment accounts.

• If you own real estate, a copy of the recorded mortgage(s), recorded deed, and mortgage statement(s) showing the balance of mortgage(s).

• Copy of real estate tax statements showing tax assessed fair market value (FMV) or state equalized value (SEV).

• Copies of all vehicle titles.

• If anybody has filed a lawsuit against you, copies of all court documents related tot that lawsuit.

• If you are currently going through a divorce, or are recently divorced, a copy of all court documents related to the divorce proceeding.

• Copy of life insurance policies with cash surrender value.

• Copies of most recent statements from any retirement plans, IRA, pension plan, ERISA, 401(k), 403(b), annuity, etc.

• Copy of any papers concerning the sale of land or other major items during the last six years.

Oct 12

Eight Easy Steps Through Chapter 7 Bankruptcy

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy was enacted to allow persons who are hopelessly burdened by debt to have an opportunity for a new beginning by wiping out unsecured debts (debts that aren’t tied to any specific item of property, most commonly credit cards). Chapter 7 is designed for persons who cannot afford to pay a significant portion of their debt back to lenders. Chapter 7 is available to individuals, couples and businesses. The process is often referred to as “liquidation.” In theory, you are surrendering your assets to the court in exchange for a discharge (elimination) from all of your debts. However, individuals and couples are allowed to keep certain “exempt” property that varies by category and value.

Step 1: Before You Can File

At the initial consultation your Second Start attorney will give you a list of documents that you need in order to prepare your Bankruptcy Petition and schedules. Second Start will also provide you with an intake form to complete. Once the listed documents have been assembled and the intake form is completed, a second appointment with Second Start will be scheduled where the documentation and intake form is reviewed.

Step 2: Credit Counseling Commences

After the second appointment and the documents are ready, you will attend Credit Counseling and obtain a Credit Counseling certificate. While Credit Counseling is sought, Second Start will prepare your court papers. We will then have a final in-office appointment, where a Second Start attorney will completely review your bankruptcy petition and schedules with you, and you will sign your petition and schedules.

Step 3: Bankruptcy Papers are Filed

Second Start files your case with the court. Your papers are filed electronically with the Bankruptcy Court, and immediately you will receive lawful protection from harassing creditors. Immediately after filing, Second Start will provide you with your bankruptcy case number. If you continue to receive phone calls from bill collectors, you can give the creditor your case number and the Second Start telephone number. Debt collectors, after your Bankruptcy is filed, should then deal with your attorney directly. If you have creditors who are garnishing, foreclosing or repossessing property, Second Start will notify that creditor immediately a bankruptcy is filed and the debtor is protected from this kind of harassment.

Step 4: Financial Management Course
After your case is filed, you will need to attend “The Financial Management Course” approved by the United States Trustee’s office — www.usdoj.gov/ust ). After completion, you will bring this certificate to your Second Start attorney for the Meeting of Creditors.

Step 5: Attend Meeting of Creditors
Approximately 30 days after your case is filed, Second Start will attend a hearing with you that is called a 341 Meeting of Creditors. At this meeting, a U.S. Trustee, who is appointed to your case, will interview you for approximately 5-10 minutes and ask you some basic questions about your case. This meeting is mandatory, and you must appear with proper identification (current picture identification and Social Security Card). You must also bring a copy of your most recent statements for all financial accounts and the pay stub(s) that you receive after your case is filed. The meeting is called the Meeting of Creditors because this is also an opportunity for the creditors to come and ask you questions. However, in most cases creditors do not appear.

Step 6: 60 Days Later
In each case, the Trustee and Creditors are given time to object to various aspects of the filer’s petition and schedules. Although objections are rare, in some cases, they do occur. All objections are due within 60 days after the Meeting of Creditors. Quality preparation of your petition, schedules, and statements will help prevent most unnecessary objections.

Step 7: Receive Discharge
If no party files an objection in your case, you should receive a discharge shortly after the 60-day waiting period expires.

Step 8: Post-Discharge Asset Administration
In some cases, where non-exempt assets are turned over to the bankruptcy estate, your case may remain open until all of the assets are received and distributed.

Oct 9

Bankruptcy 101: The Very Basics

What is Bankruptcy?

Bankruptcy is a legal proceeding afforded to people (or businesses) who are unable to handle a financial crisis. Bankruptcy is made available by federal law so that you can have a fresh start.

How Does Bankruptcy Work?

After an individual qualifies and files a bankruptcy, legal protections are then instilled by the court that protect the filer as they fix their financial situation, and get their life back on track.

Title 11 of the United States Bankruptcy Code offers various forms or “chapters” of relief. The chapters most commonly used by consumers are Chapter 7 (known as the Bankruptcy Reform Act) and Chapter 13.

Chapter 7 Bankruptcy is for persons wishing to be free from debt who cannot afford to pay back a significant portion of their unsecured debt. Chapter 13 is for those who wish to pay a portion of their unsecured debt back, and can afford to do so.

Filing for bankruptcy can have the following impact:

• Relieve you of unsecured debt that you are unable to pay such as medical bills, credit cards, bank loans, business debts, overdraft charges and utility bills. Not all unsecured debt is dischargeable.

• Stop creditor harassment. After you file a bankruptcy petition, the “automatic stay” protection immediately works to prohibit creditors from calling, billing, threatening, suing or taking any measures to collect from you. After you file a Bankruptcy Petition, even secured creditors must get court permission to repossess your car or foreclose on your home.

• Give you the opportunity to catch up on your car and/or mortgage payments.

You are probably wondering: “How does one qualify? How long does the process take? How will bankruptcy affect my credit? Will I lose everything I own?”

An individual contemplating bankruptcy should seek out as much information as possible as the process is complex and will have a major impact on your life. Bankruptcy for many people is the best answer, and can provide immediate relief both personally and financially. There is a lot to consider before decisions are made about filing for bankruptcy and having legal consultation will help in providing you answers to many of those questions.

Bankruptcy is federal law, but individual states have unique exemptions — so it is best to seek out a competent, professional and experienced local bankruptcy attorney who’s legally bound to provide you with the best counsel possible for your unique case.

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