Chapter 7
Q. What is a Chapter 7 bankruptcy?
A. A Chapter 7 bankruptcy is also called a liquidation bankruptcy. If there is any non-exempt value in your property, it will be used to repay your creditors. A Chapter 7 bankruptcy is what many people think about when they think of a bankruptcy.
Q. Can I keep my property?
A. There are exemptions under state and federal law to help protect your property. If the equity is not fully protected, there are options, including surrender, redemption, and paying back the equity. We will go over the options and what works best in your consultation and signing appointment.
Q. How long does it take?
Once filed, the 341 meeting will be roughly a month later. You can typically expect a discharge roughly three months after filing. The time it takes to file is largely dependent on how fast you can pay in full and when you provide all of the documents and information needed to prepare your petition. We can usually prepare your petition within a business day of you paying in full and providing all of your documents and information.
Q. Am I eligible for a Chapter 7 bankruptcy.
A. If you are under the median income for a household of your size in your state, you can generally file a Chapter 7. Your income also needs to be below a certain threshold to qualify. This threshold changes based on your situation. If you received a discharge from a Chapter 7 that was filed in the previous eight years, you are not eligible. If you are not eligible for a Chapter 7, a Chapter 13 is still a great option.
Chapter 13
Q. What is a Chapter 13 bankruptcy?
A. A Chapter 13 bankruptcy involves a monthly payment to repay debts.
Q. What are the benefits of a Chapter 13 bankruptcy?
A. There are many benefits of a Chapter 13 bankruptcy. It prevents creditors from suing you, unlike other avenues of dealing with your debt. It allows you to save a home from foreclosure or a vehicle from repossession. It allows you a longer time to repay debts like tax debts and child support. It allows you to keep all of your property if you choose to. It's cheaper that paying debts outside of a bankruptcy. Even in a 100% repayment, you do not pay the high interest rates that you pay outside of bankruptcy or high fees that are charged through other methods.
Q. How is the monthly plan payment calculated?
A. There are several aspects to determining a Chapter 13 Plan payment. Firstly, we look at your disposable income (your net income minuses expenses). Sometimes this is as far as we need to go. Required repayments also need to be considered These are things like the mortgage payments and arrears, car payments, tax debts, and child support. If your disposable income is not enough to pay these off, you will need to cut expenses to be able to pay them. Other factors include non-exempt equity, gifts, and preference payments to family members. Calculating a plan payment amount requires a lot of documentation, information, and legal work. We are unable to calculate this amount until you have paid in full and provided all of the documentation and information.
Q. How long will I be in a Chapter 13 bankruptcy?
A. If you are below the median income, the plan needs to run for at least three years to a maximum of five years. If you are above the median income, the plan will run for five years.
Q. What can't I do in a Chapter 13 bankruptcy?
A. You can do just about anything you would do outside of bankruptcy. Some things, like financing a car, requires court approval. We have vast experience getting court approval.
Credit Repair
Q. How can I improve my credit after filing bankruptcy?
A. By taking both required courses through Evergreen, they will provide you with the 7 Steps to a 720 Credit Score program.
Student Loans
Q. What can I do about my student loans?
A. Student loans can be discharged through an adversary proceeding, which is a lawsuit within a bankruptcy. There is additional analysis we will do to see if you are a good candidate for this, and it can be done after you file as well. To be discharged, you have to have a present inability to repay; a future inability to repay; and show good faith efforts to repay. There are factors to show each of these, and they are easier to meet than you might expect.
New Vehicles
Q. Can I get a new car after filing bankruptcy?
A. Yes, many of our clients get new cars soon after filing by going through the First Step program at Ken Ganley.
Reduce Auto Loans
Q. Is there anything I can do about my high auto payment/loan?
A. Yes. In a Chapter 7 we can potentially negotiate with the creditor to reduce the balance or get you financed for a loan through 722 Redemption to repay the original loan at the market value of the vehicle. In a Chapter 13 we can potentially cram the loans down to market value of the vehicle or reduce the interest rate.
Purchase a home
Q. Can I purchase a home after filing bankruptcy?
A. Yes. After twelve on time payments in a Chapter 13 you may be eligible to finance a home. Depending on the mortgage type, you may be eligible for a mortgage two years after filing a Chapter 7.
Payments
Q. Do you accept payment plans?
A. Yes, we just require the full balance to be repaid in a year.
341 Meeting
Q. What is the 341 meeting?
A. The 341 meeting is also called the meeting of creditors. Creditors rarely show up though. In the 341, the trustee will ask you questions about your situation and what you listed on your bankruptcy petition.
Q. Who is the trustee?
A. The trustee is who oversees the case. They are a contractor through the federal government. They ask you verification questions in the 341. In a Chapter 13 they administer the case and send the payments to the creditors that need to be paid.
Process
Q. What does the process look like?
A. Once you have paid in full or set up a payment plan, we sign you up for our client portal. In the portal we will task you on the documents we need from you; send you the intake forms to fill out (where you answer basic questions); send you the fee agreement to sign electronically; and there is a spot for messages if you have any questions. Once you have paid in full and provided all of the needed documents and information, we can generally prepare your petition within a business day and upload it to the portal. You will then schedule a signing appointment either in office or over Zoom. If you sign over Zoom, you will print the petition out and sign it in the appointment. You will then get the signature pages back to us. After this we file the case.
Roughly a month after filing you will have the 341 meeting. The trustee will likely need to see additional documents. Each trustee is different, but they usually need at least your bank statements showing the date you filed. The trustee may ask for more documents in the 341 meeting.
You will need to complete the second course after filing.
In a Chapter 7, you can usually expect a discharge roughly three months after filing.
In a Chapter 13, there will be a confirmation hearing, which you typically do not need to attend. If the trustee has any issues with the plan, we will work to fix them to get your plan confirmed as soon as possible. The monthly payments start immediately, with the first one due thirty days after filing.
Q. What documents do you need from me?
A. We typically need the following: color copy of your ID; color copy of your social security card; titles or memorandum titles of all vehicles; copy of the deed for all real property; insurance for all vehicles on real property; the credit counseling certificate; complete all five intake forms that we send you; sign the fee agreement; the last two years of tax returns; and all pay information for the six complete months before filing through the date of filing.
Q. What is a Chapter 7 bankruptcy?
A. A Chapter 7 bankruptcy is also called a liquidation bankruptcy. If there is any non-exempt value in your property, it will be used to repay your creditors. A Chapter 7 bankruptcy is what many people think about when they think of a bankruptcy.
Q. Can I keep my property?
A. There are exemptions under state and federal law to help protect your property. If the equity is not fully protected, there are options, including surrender, redemption, and paying back the equity. We will go over the options and what works best in your consultation and signing appointment.
Q. How long does it take?
Once filed, the 341 meeting will be roughly a month later. You can typically expect a discharge roughly three months after filing. The time it takes to file is largely dependent on how fast you can pay in full and when you provide all of the documents and information needed to prepare your petition. We can usually prepare your petition within a business day of you paying in full and providing all of your documents and information.
Q. Am I eligible for a Chapter 7 bankruptcy.
A. If you are under the median income for a household of your size in your state, you can generally file a Chapter 7. Your income also needs to be below a certain threshold to qualify. This threshold changes based on your situation. If you received a discharge from a Chapter 7 that was filed in the previous eight years, you are not eligible. If you are not eligible for a Chapter 7, a Chapter 13 is still a great option.
Chapter 13
Q. What is a Chapter 13 bankruptcy?
A. A Chapter 13 bankruptcy involves a monthly payment to repay debts.
Q. What are the benefits of a Chapter 13 bankruptcy?
A. There are many benefits of a Chapter 13 bankruptcy. It prevents creditors from suing you, unlike other avenues of dealing with your debt. It allows you to save a home from foreclosure or a vehicle from repossession. It allows you a longer time to repay debts like tax debts and child support. It allows you to keep all of your property if you choose to. It's cheaper that paying debts outside of a bankruptcy. Even in a 100% repayment, you do not pay the high interest rates that you pay outside of bankruptcy or high fees that are charged through other methods.
Q. How is the monthly plan payment calculated?
A. There are several aspects to determining a Chapter 13 Plan payment. Firstly, we look at your disposable income (your net income minuses expenses). Sometimes this is as far as we need to go. Required repayments also need to be considered These are things like the mortgage payments and arrears, car payments, tax debts, and child support. If your disposable income is not enough to pay these off, you will need to cut expenses to be able to pay them. Other factors include non-exempt equity, gifts, and preference payments to family members. Calculating a plan payment amount requires a lot of documentation, information, and legal work. We are unable to calculate this amount until you have paid in full and provided all of the documentation and information.
Q. How long will I be in a Chapter 13 bankruptcy?
A. If you are below the median income, the plan needs to run for at least three years to a maximum of five years. If you are above the median income, the plan will run for five years.
Q. What can't I do in a Chapter 13 bankruptcy?
A. You can do just about anything you would do outside of bankruptcy. Some things, like financing a car, requires court approval. We have vast experience getting court approval.
Credit Repair
Q. How can I improve my credit after filing bankruptcy?
A. By taking both required courses through Evergreen, they will provide you with the 7 Steps to a 720 Credit Score program.
Student Loans
Q. What can I do about my student loans?
A. Student loans can be discharged through an adversary proceeding, which is a lawsuit within a bankruptcy. There is additional analysis we will do to see if you are a good candidate for this, and it can be done after you file as well. To be discharged, you have to have a present inability to repay; a future inability to repay; and show good faith efforts to repay. There are factors to show each of these, and they are easier to meet than you might expect.
New Vehicles
Q. Can I get a new car after filing bankruptcy?
A. Yes, many of our clients get new cars soon after filing by going through the First Step program at Ken Ganley.
Reduce Auto Loans
Q. Is there anything I can do about my high auto payment/loan?
A. Yes. In a Chapter 7 we can potentially negotiate with the creditor to reduce the balance or get you financed for a loan through 722 Redemption to repay the original loan at the market value of the vehicle. In a Chapter 13 we can potentially cram the loans down to market value of the vehicle or reduce the interest rate.
Purchase a home
Q. Can I purchase a home after filing bankruptcy?
A. Yes. After twelve on time payments in a Chapter 13 you may be eligible to finance a home. Depending on the mortgage type, you may be eligible for a mortgage two years after filing a Chapter 7.
Payments
Q. Do you accept payment plans?
A. Yes, we just require the full balance to be repaid in a year.
341 Meeting
Q. What is the 341 meeting?
A. The 341 meeting is also called the meeting of creditors. Creditors rarely show up though. In the 341, the trustee will ask you questions about your situation and what you listed on your bankruptcy petition.
Q. Who is the trustee?
A. The trustee is who oversees the case. They are a contractor through the federal government. They ask you verification questions in the 341. In a Chapter 13 they administer the case and send the payments to the creditors that need to be paid.
Process
Q. What does the process look like?
A. Once you have paid in full or set up a payment plan, we sign you up for our client portal. In the portal we will task you on the documents we need from you; send you the intake forms to fill out (where you answer basic questions); send you the fee agreement to sign electronically; and there is a spot for messages if you have any questions. Once you have paid in full and provided all of the needed documents and information, we can generally prepare your petition within a business day and upload it to the portal. You will then schedule a signing appointment either in office or over Zoom. If you sign over Zoom, you will print the petition out and sign it in the appointment. You will then get the signature pages back to us. After this we file the case.
Roughly a month after filing you will have the 341 meeting. The trustee will likely need to see additional documents. Each trustee is different, but they usually need at least your bank statements showing the date you filed. The trustee may ask for more documents in the 341 meeting.
You will need to complete the second course after filing.
In a Chapter 7, you can usually expect a discharge roughly three months after filing.
In a Chapter 13, there will be a confirmation hearing, which you typically do not need to attend. If the trustee has any issues with the plan, we will work to fix them to get your plan confirmed as soon as possible. The monthly payments start immediately, with the first one due thirty days after filing.
Q. What documents do you need from me?
A. We typically need the following: color copy of your ID; color copy of your social security card; titles or memorandum titles of all vehicles; copy of the deed for all real property; insurance for all vehicles on real property; the credit counseling certificate; complete all five intake forms that we send you; sign the fee agreement; the last two years of tax returns; and all pay information for the six complete months before filing through the date of filing.