Bankruptcy Chapter 13 Codebtor Stay

Once a debtor in Maryland files a chapter 13 cases this triggers what is known as the automatic stay. The automatic stay prohibits.

In addition to protecting the debtor, a chapter 13 has another powerful tool that goes into effect once the case if filed. This is known as the codebtor Stay. This stay prohibits any attempt to collect all or part of a consume debt of the debtor from any codebtor.

It is important that to note that this protection includes codebtors who are liable on the debt as well as Codebtors who contributed an asset to secure the debt such as a car or home.

In the real world this is how this works. Let’s debtor needs a loan but because of poor credit collateral is required to obtain the loan. A common example familiar to most folks is a car title loan. Our debtor goes to a family member who agrees to put up their car as collateral for the loan with the debtor is set to make the payments.

Assuming Debtor is eligible for chapter 13 which means that her or she has less than $336,900.00 in unsecured debt such as credit cards and less than $,010,650.00 dollars of non-contingent, liquidate, secured debt such as mortgages. Then a chapter 13 filing would provide protection to the debtor and Codebtor against collection efforts on the title loan. The title loan company would be prohibited from taking any actions that were aimed at collecting on the loan against both the debtor and the codebtor.

As you can imagine, this is a significant relief for the family member in our scenario because without the codebtor stay they would be faced with collection calls, law suits, garnishments and potential repossession.

The availability of codebtor stay in chapter 13 is a helpful tool that allows the debtor to reorganize without pressure, directly or indirectly, from the creditors. It goes without saying as well that it is helpful to the debtor that family member or friends who are willing to co-sign debts or put up collateral are not hounded by creditors while the chapter 13 case is pending.

As always please consult a knowledgeable bankruptcy lawyer in your area to discuss the specifics of your case.

The Difference Between Chapter 7 And Chapter 13 Bankruptcy

The decision whether to file for Chapter 7 or Chapter 13 bankruptcy can be difficult. Bankruptcy attorney Benjamin J. Ginter runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he talks about which chapter you need to file to wipe out your debts and make a new start in your life.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy begins with the filing of a bankruptcy petition. The petition will contain a list of your assets, debts, income and expenses. A bankruptcy trustee is then designated to the case, who is usually an attorney or an accountant appointed by the Bankruptcy Court.

The trustee will oversee your matter. He or she is looking for assets that can be sold with the proceeds going to pay back your creditors. Under the Bankruptcy Law, certain property is exempt, which means the trustee cannot take it from you. Often when you file for Chapter 7 bankruptcy, you are able to keep your certain property because of the exemptions.

Chapter 13 Bankruptcy

When you file for Chapter 13, you are, in effect, proposing a payment plan. You will make monthly payments to the bankruptcy trustee over a certain period of time, usually 2 to 5 years. This type of bankruptcy is known as a reorganization bankruptcy, and it is suitable for those who have non-exempt property they want to keep.

The reason some people may choose to file a Chapter 13 instead of a Chapter 7 is that they have a home with equity that exceeds the exemption amount. If they file for a Chapter 7 under that circumstance, they would lose their home. Therefore, they file for a Chapter 13 so that they can keep their home. You may also have to file for Chapter 13 if your income exceeds the allowable amount and/or you are behind in paying your secured debt (such as a mortgage). Chapter 13 is much more complicated, which is why you need an experienced attorney guiding you each step of the way.

The Difference Between Two Chapters

In short, Chapter 13 is basically a repayment plan, while Chapter 7 is known as straight bankruptcy. It is up to you and your bankruptcy attorney to decide which chapter is more appropriate to your specific needs. Be aware that filing for the wrong chapter, however, can make you lose your house.

If you filed for Chapter 7 in the past eight years, you cannot file again, so you have to file for Chapter 13. In that case, if you have a lot of equity in your home and it is not exempt, you would propose plans to the trustee saying that you would like to keep your home. In return for keeping your home, you would make payments every month.

Federal and State Exemptions

You may choose to use either the federal or state exemptions when you file for bankruptcy. For example, in New Jersey, a single person who files for bankruptcy could be exempted from up to $20,000 of equity in his home if he has it, plus miscellaneous costs including broker’s fees. Often that number could swell up to $30,000.

However, if you have property that clearly exceeds the exemption value � let’s say you have $80,000 of equity in your home and are unable to exempt that � you could consider filing for Chapter 13. That’s because if you file for Chapter 7, the trustee could theoretically sell off your house and use that money to pay off your creditors.

Bank Accounts After Bankruptcy: Helps to Build up Your Savings

Bankruptcy puts an individual in a very awkward situation. As if you declared bankrupt you have to lose almost everything that has your name including your bank account. But as soon your bankruptcy period discharged you will be able to grow and regain your credibility. However, for that first of all you have to open an account to show your worthiness. Bank accounts after bankruptcy give you an opportunity to open new bank account without any hurdle.

Banks have specially designed these sorts of accounts to provide a second chance to people tagged with bankruptcy in their credit history. These bank accounts works almost same like normal bank account and helps account holders to bring bank their financial position in the market.

These bank accounts after bankruptcy are filled with numerous advantages and services that prove to be quite beneficial our bank account holder:

* Provides almost all basic banking services

* Helps to rebuild your banking history

* Enables you to make direct debit to your utility bills with which you can take advantage of discounts and save money

* Helps you in maintaining your budget with direct debit facility

* Low and affordable account opening and monthly fee

* Free and regular updates from bank

* Cash cards that make shopping easier and allow you to withdraw small cash

* Phone and online banking facility

* No unauthorized fee charged on overdraft and late payment

Financial institutes appoint personal money manager with bank accounts after bankruptcy. He/she helps the account holder the make the required steps to regain its fiscal status and fulfil its monetary commitments.

With these accounts you can also eligible for the loan amount. But for that you have to prove yourself trustworthy account holder. You can do so by build up your savings and by avoiding much spending. For that you can also avoid overdrawing and bouncing cheques. Your manger looks at your all transactions and helps you to get further loan amount.

Save Your Business And Your Livelihood Through Tucson Premier Bankruptcy Attorneys

Life is unpredictable. Bad luck, ups and downs of business and personal crises affect a lot of decisions in the smooth and peaceful progress of life. There is no one who wishes to be beholden to the constant stress of credits and debts. But sometimes, it is wise to move away from the “ugly situations” in order to avoid further adverse conditions. Entering into bankruptcy in order to save your business and assets is a far better option when you are facing extreme losses, rather than becoming penniless and potentially homeless. Filing bankruptcy is one of the most difficult legal processes – a client might only waste time and money without any result if they chose to take it upon themselves to file without assistance. So, to take on this heavy responsibility and burdensome research away from a person, there are legal firms who offer their valuable services to protect properties, assets, and people life’s accomplishments from being taken away from them and eliminating harassment by creditors.

Tucson foreclosure attorney organizations are experts in this kind of legal endeavor. They are reliable, experienced, and the most importantly, charge reasonably for the significant effort involved. They are unlike other lawyers who are ready to extract maximum fees from a client, even in adverse conditions. These reliable lawyers are akin to a “knight in shining armor”, who defends you from the non-stop harassment and embarrassment of creditors foreclosing or levying liens. They handle many different cases, but every individual client receives the best solution to protect their valuables, properties, and/or business so that one can start a new, dignified, life. All cases are not the same, so it’s always a prudent decision to hire only the professional and versatile attorneys of these law firms of Tucson. The business owners and residents of the Tucson area who are facing foreclosure, harassment, and who are on the verge of losing all the belongings can consult the experts, and enjoy their attorney’s protective services at the most reasonable fees during your difficult time.

Tucson consumer bankruptcy lawyer is all well-experienced in these kinds of cases, and they know how to ensure the whole bankruptcy procedure goes smoothly and happens in a timely manner. Time management is a very essential part of attending to client’s dire needs, so their main goal is to satisfy their customers with on-time completion of the legal procedures, and hence, customers can enjoy a tension-free life. Tucson personal bankruptcy information given by these attorneys is authentic and truthful, eliminating the chance of misinformation. They can guide you in the recovery from possible personal loses and commercial loses. The professionals provide free consultation to help the clients understand their rights, and determine the best options for their situation, so that the clients can cope with the upcoming difficult situations more easily. They represent clients throughout Tucson and Southern Arizona area, including Pima, Pinal, Santa Cruz, Cochise, Graham, and Greenlee counties. The residents of these areas, who are in financial trouble and are in need of assistance, can enjoy the trustworthy and expedient services of experienced attorneys at the most reasonable fees.

Rebuilding Your Life After Bankruptcy

Once you’ve finally finished filing all the paperwork to get your debts discharged, after focusing on it for so long, it can be startling to realize you don’t really know what to do next. Rebuilding your life after bankruptcy can seem intimidating, but once you know where to start you’ll find your direction quickly enough.

About a month after everything has been finalized you want to get a copy of your credit report and make sure that everything that is supposed to be marked “included in bankruptcy” is. If not, call the companies and keep calling until they have it changed. You’ve come this far, go the last mile and get that debt taken care of.

After this has been done your credit of course won’t be great, but you do have a clean slate. The problem is that financial companies won’t know if they can trust you or not because they don’t know if you’re going to get into more debt, or if you’re really stable now. Your goal is to build up a new history after bankruptcy that will show them that you can handle making payments, which will build up your credit score as well. In as little as two years you can have decent, and possibly even good, credit. You do this by building a history of on time payments on the two types of payments that make up your financial history, revolving payments (credit cards) and installment payments (loans).

Of course, most companies won’t go ahead and give you these opportunities the way they did before you had financial problems, but you do have options. Shortly after you’ve finished discharging your debt go to your bank and get a secured credit card. Basically, you deposit a few hundred dollars into a savings account, which is used as collateral on the card and sets your new card limit. Use this card each month, but use it lightly (staying under thirty percent of the limit) and pay it off in full in each month.

About six months to a year later use your vehicle, a CD at your bank, or something else of value as collateral for a small loan.

The most important part of all these plans is to make sure that you don’t get in over your head and make all of your payments on time each month. Keeping a good budget plan is key to rebuilding your life after bankruptcy.