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No. There are many reasons why a person might unintentionally accumulate more debt than he or she can pay such as extraordinary medical expenses, loss of employment, even predatory high-interest loans. A fundamental goal of the federal bankruptcy laws is to give debtors a financial fresh start from burdensome debts.
Our bankruptcy team understands the many causes of unmanageable debt. We do not judge our clients. The only questions we ask about your debts are those that are important in order for us to help you solve your debt problems. On the other hand, if you want to talk about why your debts are so high, we are more than willing to listen because we know that is an important part of how we can work together to solve your issues.
The Means Test is a calculation used to determine whether you qualify for Chapter 7 bankruptcy. It compares your income to the median income in your state to see if you have enough disposable income to pay back your debts.
That is not an easy question to answer. For Chapter 7, debtors must pass the “Means” Test. That is an analysis of their income to determine how much they make relative to average costs for similarly situated families as established by government studies. If debtors earns more than the median income and/or has disposable by a certain percent, they will not be able to file under Chapter 7.
For Chapter 13, debtors must have the capability to complete a payment program. If debtors don’t have enough disposable income, the Trustee will not approve a payment plan.
The automatic stay is a court order that goes into effect as soon as you file for bankruptcy. It stops most collection actions by creditors, including lawsuits, wage garnishments, and phone calls.
The most important points to most debtors are the filing of the bankruptcy petition and the discharge. The filing of the Bankruptcy petition immediately establishes an automatic stay preventing creditors from attempting to collect debts. This is when the calls stop, which is what probably pushed the debtor to file bankruptcy. The stay is instituted upon filing in both Chapters 7 and 13.
The most important point is the entry of discharge. The discharge is what relieves debtors of the debt and concludes the consumers’ bankruptcy. Chapter 7 discharge occurs after the creditors meeting. In Chapter 13, the discharge comes after the payment plan is completed. If a debtor fails to complete the payment plan, the bankruptcy is dismissed and no discharge is entered. That means the creditors can start collection actions again.
Generally, we can work it out so you can keep your car. It is not a guarantee but it is possible. You can keep your car under Chapter 7 if your payments are current, it doesn’t have too much equity, and your budget shows you have enough to pay for it after paying your other expenses. Under Chapter 13, you may be able to include back payments into your payment plan and catch up your arrears to keep your car.
Yes. A bankruptcy discharge releases a debtor from liability from specific debts, like credit cards, medical bills, utilities, service/repair bills, etc. and prohibits creditors from ever taking any action against the debtor to collect those debts.
Debts that are "secured" like a home mortgage or car loan, are not discharged if you keep the collateral (e.g. a house, a car). However, if you are willing to surrender the collateral, these debts can be discharged under a Chapter 7 bankruptcy. If you’ve fallen behind on your payments, Chapter 13 may be used to assist you in curing the existing arrears, while enjoying the protection of the Court’s Automatic Stay throughout the process in doing so.
Generally no. You must include all debts in your bankruptcy case. Paying one unsecured creditor over or more than another is not allowed. It is called a preference and the court will not allow it.
Their debts should also be included in your case filing. Family and Friends are considered "insiders." Paying family and friends over or more than other creditors is not allowed. It is called a preference. The look back period for payments made to insiders is longer than other general unsecured. The Trustee may recoup payments made to insiders.
You will need to attend a Meeting of Creditors which is held by a bankruptcy trustee. The trustee may ask you questions about your income, property and debts. Because of the extensive preparation we do with you, you will be prepared to answer those questions. Your creditors may attend and ask you questions but rarely do. We will be familiar with your case will be there with you to guide you.
No, but if you are living together we will need to review your spouse’s income. We will then be able to advise what is best for you.
For a Chapter 7 bankruptcy it will take approximately 4 - 6 months. A Chapter 13 bankruptcy lasts from 36 to 60 months to complete.
At Medvesky Law Office, LLC, we will provide our clients with an extensive questionnaire that helps the client focus on their finances and gather all the information needed to complete the bankruptcy documents for filing their case. We also provide a list of required documents used to support the information provided by the client in the questionnaire. Clients must complete credit counseling before the court will accept a bankruptcy petition. Our office can provide you with a list of approved credit counseling agencies or you can find them on the Court's website. Also, a person must have filed all his or her tax returns for at least the last our years.. Again, we work closely with our clients to make sure we have everything the court requires.
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Whether the value of your assets is modest or great, your will sets out your plan for their distribution. Otherwise your estate will be divided according to the law, which may not be the way you would have chosen.
In your will you appoint an executor, the person who is responsible for following the laws that govern what debts and taxes must be paid. He or she is also responsible to carry out your asset distribution plan. If you have no will the law determines who can apply to the court to be appointed as your estate's administrator. More than one person may ask to be appointed. There may be disagreements, even litigation over who should be in charge. In the end a person could be appointed that you would not have chosen.
If you have minor children you can designate in your will who should take custody of your children as their guardian. You can also chose who should manage any money your minor children might inherit. Without a will, your wishes may not be known or followed and the guardian appointed may be someone you would not have chosen.
The more your immediate family changes through marriage, children, divorce, stepchildren, etc., the more important a will can become. But, your will may not determine how all of your assets will be divided at your death.
A power of attorney is a legal document you can create to grant another person the power to handle your legal, financial and medical decisions. A power of attorney is important in case you become physically or mentally incapacitated and cannot handle your affairs. If you become seriously, mentally incapacitated and you have not created a power of attorney, someone will have to petition the court to be appointed as your guardian. This is time-consuming and expensive. And the person who is appointed my not be a person you would have chosen.
Sometimes the person who has been appointed as the agent under a power of attorney abuses his or her power and takes advantage of the person who granted them the powers. A general power of attorney must be carefully considered because it gives another person a great deal of authority over all your property and transactions. So you need to appoint a person as your agent who is trustworthy, has common sense, and the time to act on your behalf.
A Durable Healthcare Power of Attorney and Living Will (Advance Healthcare Directive), which we refer to as a "Living Will, is a legal document we create for you which specifies who will make health care decisions for you if you are not capable of communicating with your doctors. It also contains your instructions about the types of treatment you may or may not want when you are at the end of your life. If you wish, it can also include your instructions for treatment if you should be diagnosed with advanced dementia, such as Alzheimer's disease, and have a medical emergency.
The information you obtain at this site is not, nor is it intended to be, legal advice.
You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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