[et_pb_section bb_built=”1″ admin_label=”Hero Section” fullwidth=”on” _builder_version=”3.15″ background_image=”http:\/\/velocitysocialmedia.com\/mendezlaw\/wp-content\/uploads\/2020\/01\/law-firm-01.jpg” animation_style=”fade” animation_starting_opacity=”87%” next_background_color=”rgba(99,165,204,0.47)”][et_pb_fullwidth_header admin_label=”Hero Area” title=”Bankruptcy FAQ” subhead=”\u00a1Hablamos Espa\u00f1ol! ” text_orientation=”center” header_fullscreen=”on” background_overlay_color=”rgba(49,62,71,0.49)” _builder_version=”3.15″ title_font=”Georgia||||||||” title_font_size=”80px” title_font_size_tablet=”40px” title_font_size_last_edited=”on|tablet” title_text_color=”#ffffff” title_line_height=”1.6em” subhead_font=”|700|||||||” subhead_text_color=”#ffffff” subhead_letter_spacing=”4px” subhead_line_height=”3em” background_position=”top_left” background_repeat=”repeat” border_color_all=”rgba(31,40,48,0.94)” border_width_left=”10vw” custom_button_one=”on” button_one_text_size=”13px” button_one_text_color=”rgba(0,0,0,0.8)” button_one_bg_color=”#ffba60″ button_one_border_width=”12px” button_one_border_color=”#ffba60″ button_one_border_radius=”0px” button_one_letter_spacing=”4px” button_one_font=”|700||on|||||” button_one_icon=”%%3%%” button_one_border_radius_hover=”0px” button_one_letter_spacing_hover=”4px” background_layout=”light” background_color=”rgba(255, 255, 255, 0)” content_font_size=”20px” content_letter_spacing=”1px” subhead_font_size=”22px” \/][\/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Quote Section” _builder_version=”3.15″ border_color_all=”rgba(255,186,96,0.6)” border_width_right=”8vw” custom_padding=”110px|0px|110px|0px” next_background_color=”#f7f7f7″ background_color=”rgba(99,165,204,0.47)” prev_background_color=”#ffffff”][et_pb_row _builder_version=”3.15″][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.15″ text_font=”Raleway||||||||” text_line_height=”1.8em” border_color_all=”rgba(99,165,204,0.47)” border_width_left=”10px” max_width=”900px” module_alignment=”center” custom_margin=”|||” custom_padding=”|||30px” animation_style=”flip” animation_intensity_flip=”5%” animation_starting_opacity=”100%” text_text_color=”#000000″ text_font_size=”18px”]<\/p>\n
Below we provide general information about federal bankruptcy law and the bankruptcy process. This is not a step-by-step guide for filing bankruptcy. We recommend you consult with an attorney if you are not sure how to proceed.<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Welcome Section” background_color=”#f7f7f7″ _builder_version=”3.15″ border_color_all=”#ffba60″ border_width_right=”8vw” custom_margin=”|||” custom_padding=”110px||110px|” next_background_color=”rgba(99,165,204,0.47)” prev_background_color=”rgba(99,165,204,0.47)”][et_pb_row admin_label=”Welcome Area” _builder_version=”3.0.82″][et_pb_column type=”4_4″][et_pb_text admin_label=”General Bankruptcy Questions” _builder_version=”3.15″ header_2_font=”Prata||||||||” header_2_font_size=”48px” header_2_line_height=”1.6em” custom_margin=”||10px|” custom_padding=”|||” animation_style=”fade” animation_direction=”right”]<\/p>\n
[\/et_pb_text][et_pb_divider color=”#0c71c3″ divider_position=”center” divider_weight=”3px” _builder_version=”3.15″ max_width=”70px” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”10%” animation_starting_opacity=”100%” \/][et_pb_text _builder_version=”3.15″ text_font_size=”16px” text_line_height=”2em” animation_direction=”left”]<\/p>\n
What are the options I have to relieve me from my debt?<\/strong> What is Bankruptcy?<\/strong> What are my alternatives regarding fixing my debt?<\/strong> What do I need to file for bankruptcy ?<\/strong> How can a bankruptcy attorney help me?<\/strong> What type of bankruptcy should I file?<\/strong> How often can I file for Bankruptcy?<\/strong> How long do the records stay on file?<\/strong> How can I stop creditors from calling me?<\/strong> Are my payments to the trustee refundable?<\/strong> What Bankruptcy options do I have?<\/strong> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Welcome Section” background_color=”rgba(99,165,204,0.47)” _builder_version=”3.15″ border_color_all=”rgba(255,186,96,0.6)” border_width_right=”8vw” custom_margin=”|||” custom_padding=”110px||110px|” next_background_color=”#f7f7f7″ prev_background_color=”#f7f7f7″][et_pb_row admin_label=”Welcome Area” _builder_version=”3.0.82″][et_pb_column type=”4_4″][et_pb_text admin_label=”Chapter 7 Questions” _builder_version=”3.15″ header_2_font=”Prata||||||||” header_2_font_size=”48px” header_2_line_height=”1.6em” custom_margin=”||10px|” custom_padding=”|||” animation_style=”fade” animation_direction=”right”]<\/p>\n [\/et_pb_text][et_pb_divider color=”#0c71c3″ divider_position=”center” divider_weight=”3px” _builder_version=”3.15″ max_width=”70px” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”10%” animation_starting_opacity=”100%” \/][et_pb_text _builder_version=”3.15″ text_font_size=”16px” text_line_height=”2em” animation_direction=”left”]<\/p>\n What is Chapter 7?<\/strong> What are the advantages of filing Chapter 7?<\/strong><\/p>\n Who is eligible for Chapter 7?<\/strong> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Welcome Section” background_color=”#f7f7f7″ _builder_version=”3.15″ border_color_all=”#ffba60″ border_width_right=”8vw” custom_margin=”|||” custom_padding=”110px||110px|” next_background_color=”rgba(99,165,204,0.47)” prev_background_color=”rgba(99,165,204,0.47)”][et_pb_row admin_label=”Welcome Area” _builder_version=”3.0.82″][et_pb_column type=”4_4″][et_pb_text admin_label=”Chapter 13 Questions” _builder_version=”3.15″ header_2_font=”Prata||||||||” header_2_font_size=”48px” header_2_line_height=”1.6em” custom_margin=”||10px|” custom_padding=”|||” animation_style=”fade” animation_direction=”right”]<\/p>\n [\/et_pb_text][et_pb_divider color=”#0c71c3″ divider_position=”center” divider_weight=”3px” _builder_version=”3.15″ max_width=”70px” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”10%” animation_starting_opacity=”100%” \/][et_pb_text _builder_version=”3.15″ text_font_size=”16px” text_line_height=”2em” animation_direction=”left”]<\/p>\n What is Chapter 13?<\/strong> What are my responsibilities as a Chapter 13 Debtor?<\/strong> Attend the 341 Meeting of Creditors on time.<\/strong> What happens at the 341 Meeting of Creditor?<\/strong> What does the Mortgage Mediation Modification (MMM) program refer to?<\/strong> How do you calculate the MMM payment to the bank?<\/strong> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Welcome Section” background_color=”rgba(99,165,204,0.47)” _builder_version=”3.15″ border_color_all=”rgba(255,186,96,0.6)” border_width_right=”8vw” custom_margin=”|||” custom_padding=”110px||110px|” next_background_color=”#f7f7f7″ prev_background_color=”#f7f7f7″][et_pb_row admin_label=”Welcome Area” _builder_version=”3.0.82″][et_pb_column type=”4_4″][et_pb_text admin_label=”Chapter 7 vs Chapter 13″ _builder_version=”3.15″ header_2_font=”Prata||||||||” header_2_font_size=”48px” header_2_line_height=”1.6em” custom_margin=”||10px|” custom_padding=”|||” animation_style=”fade” animation_direction=”right”]<\/p>\n [\/et_pb_text][et_pb_divider color=”#0c71c3″ divider_position=”center” divider_weight=”3px” _builder_version=”3.15″ max_width=”70px” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”10%” animation_starting_opacity=”100%” \/][et_pb_text _builder_version=”3.15″ text_font_size=”16px” text_line_height=”2em” animation_direction=”left”]<\/p>\n If a bankruptcy applicant is ineligible for filing under Chapter 7 based on the \u201cmeans test,\u201d he or she must file under Chapter 13 instead. There are a number of major differences. The below overview follows:<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section bb_built=”1″ admin_label=”Welcome Section” background_color=”#f7f7f7″ _builder_version=”3.15″ border_color_all=”#ffba60″ border_width_right=”8vw” custom_margin=”|||” custom_padding=”110px||110px|” prev_background_color=”rgba(99,165,204,0.47)” next_background_color=”rgba(0,0,0,0.76)”][et_pb_row admin_label=”Welcome Area” _builder_version=”3.0.82″][et_pb_column type=”4_4″][et_pb_text admin_label=”Bankruptcy Discharge Questions” _builder_version=”3.15″ header_2_font=”Prata||||||||” header_2_font_size=”48px” header_2_line_height=”1.6em” custom_margin=”||10px|” custom_padding=”|||” animation_style=”fade” animation_direction=”right”]<\/p>\n [\/et_pb_text][et_pb_divider color=”#0c71c3″ divider_position=”center” divider_weight=”3px” _builder_version=”3.15″ max_width=”70px” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”10%” animation_starting_opacity=”100%” \/][et_pb_text _builder_version=”3.15″ text_font_size=”16px” text_line_height=”2em” animation_direction=”left”]<\/p>\n What is a discharge in bankruptcy?<\/strong> When does the discharge occur?<\/strong> How does the debtor get a discharge?<\/strong> Are all of the debtor\u2019s debts discharged or only some?<\/strong> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section bb_built=”1″ specialty=”off” _builder_version=”3.15″ background_color=”rgba(0,0,0,0.76)” prev_background_color=”#f7f7f7″][et_pb_row][et_pb_column type=”3_5″][et_pb_text admin_label=”Title” background_layout=”dark” _builder_version=”3.0.105″ text_font=”||||||||” header_font=”||||||||” header_2_font=”Prata||||||||” header_2_font_size=”48px” header_2_font_size_tablet=”40px” header_2_font_size_last_edited=”on|tablet” header_2_line_height=”1.6em” module_alignment=”center” custom_margin=”|||” custom_padding=”|||” animation_style=”fade” locked=”off”]<\/p>\n 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\nThe formal option accepted from the federal government is filing Bankruptcy. Keep in mind that bankruptcy is a right you have.<\/p>\n
\nBankruptcy is a federal legal process for debtors seeking to eliminate or repay their debts. It is a federal process provided for people who have difficulties paying money they owe. In simple words it is a way to swipe off the debt.
\nIt allows individuals or businesses (the debtors) who owe others (the creditors) more money than they\u2019re able to pay to either work out a plan to repay the money over time or completely eliminate most of the debt.<\/p>\n
\nIndividuals must study the bankruptcy option. The choice of a particular chapter will depend upon the financial circumstances of the debtor, the amount and nature of the debts to be dealt with in the bankruptcy, the exemptions available, and the types of assets owned by the debtor.<\/p>\n
\nYou will require a list of past and present debts, a statement of financial affairs and to pay the filing fee.<\/p>\n
\nA bankruptcy attorney will be able to ensure for which bankruptcy chapter you qualify. The bankruptcy attorney will guide you through the process step-by-step until you reach the so desired \u201cfresh start\u201d moment.<\/p>\n
\nTo decide under which chapter to file, we recommend you follow the guidance of an experienced bankruptcy attorney. It is not a decision you can make unless you qualify. Studying the case will determine for which bankruptcy chapter you qualify.<\/p>\n
\nThere are time limitations when a person can file. A seasoned bankruptcy attorney can explain your options. They will explain the differences between the two chapters you can file in order to eliminate debt.<\/p>\n
\nA chapter 7 bankruptcy will remain on an individual\u2019s credit for ten (10) years from the date of filing. A chapter 13 bankruptcy only remains on an individual\u2019s credit for seven (7) years.<\/p>\n
\nGive them your case number and by law they must immediately cease communicating with you.<\/p>\n
\nIf you attend your 341 Meeting of Creditors the first time it is scheduled, and you dismiss your case before your first confirmation meeting, then the trustee will return what you paid minus the administrative fees.<\/p>\n
\nThere are two (2) bankruptcy options for individuals and businesses:
\nChapter 7
\nChapter 13<\/p>\nChapter 7 Questions<\/h2>\n
\nChapter 7 bankruptcy is a liquidation proceeding in which the debtor\u2019s non-exempt assets include an organized discharge of all unsecured debts, such as credit cards, repossessions, signature loans and personal loans. One is able to retain most assets including the home.<\/p>\n\n
\nEligibility to file Chapter 7 is determined by the means test instituted with the 2005 amendments to the bankruptcy code. In many consumer cases, the majority of the assets are exempt, and therefore there are no assets to liquidate and there is no dividend to creditors. Chapter 7 is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations and partnerships> However, a debtor must qualify by meeting an income limitation.<\/p>\nChapter 13 Questions<\/h2>\n
\nChapter 13 is a court mandated Mortgage Modification Mediation program that gives debtors who qualify a streamlined and successful mediation process which could result in a mortgage modification. A chapter 13 bankruptcy allows one to make up the overdue payments over time and to reinstate the original agreement. Where a debtor has valuable nonexempt property and wants to keep it, a chapter 13 may be a better option.
\nChapter 13 Entitled Adjustment of Debts of an Individual with Regular Income is designed for an individual debtor who has a regular source of income. Chapter 13 enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a \u201cplan\u201d to repay creditors over time \u2013 usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 relief under the means test. At a confirmation hearing, the court either approves or disapproves the debtor\u2019s repayment plan, depending on whether it meets the Bankruptcy Code\u2019s requirements for confirmation.<\/p>\n
\nBe honest with the attorney and his staff about all debts, assets, transfers and other information before filing and during the process.
\nProvide all documents in a timely fashion when requested by the attorney or his staff.<\/p>\n
\nAttend any hearing where your attendance is required<\/p>\n
\nThe trustee or representative from the trustee\u2019s office will ask you a series of questions regarding your assets, debts and intention with your case. BE HONEST.<\/p>\n
\nIt is a Court mandated program that gives debtors who qualify a streamlined and successful mediation process which could result in a mortgage modification.<\/p>\n
\nYou take your full gross monthly household income and multiply it by .31 to obtain your 31% income payment. Math is math and this number cannot be manipulated. it is based on your provable income.<\/p>\nChapter 7 vs Chapter 13<\/h2>\n
\n
Bankruptcy Discharge Questions<\/h2>\n
\nA bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.<\/p>\n
\nThe timing of the discharge varies, depending on the chapter under which the case is filed.
\nIn a chapter 7 or liquidation for example, the court usually grants the discharge promptly on expiration of the time fixed for filing a complaint objecting to discharge and the time fixed for filing a motion to dismiss the case for substantial abuse, 60 days following the first date set for the 341 meeting. Typically, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court.
\nIn an individual chapter 13 or adjustment of debts of an individual with regular income, the court generally grants the discharge as soon as practicable after the debtor completes all payments under the plan. Since the chapter 13 plan may provide for payments to be made over three to five years, the discharge typically occurs about four years after the date of filing.
\nThe court may deny an individual debtor\u2019s discharge in a chapter 7 or 13 case if the debtor fails to complete \u201can instructional course concerning financial management.\u201d The Bankruptcy Code provides limited exceptions to the \u201cfinancial management\u201d requirement if the U.S. trustee or bankruptcy administrator determines there are inadequate educational programs available, or if the debtor is disabled or incapacitated or on active military duty in a combat zone.<\/p>\n
\nUnless there is litigation involving objections to the discharge, the debtor will usually automatically receive a discharge. The Federal Rules of Bankruptcy Procedure provide for the clerk of the bankruptcy court to mail a copy of the order of discharge to all creditors, the U.S. trustee, the trustee in the case, and the trustee\u2019s attorney, if any. The debtor and the debtor\u2019s attorney also receive copies of the discharge order.<\/p>\n
\nNot all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523(a) of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy. Congress has determined that these types of debts are not dischargeable for public policy reasons, based either on the nature of the debt or the fact that the debts were incurred due to improper behavior of the debtor, such as the debtor\u2019s drunken driving.
\nThere are 19 categories of debt excepted from discharge under chapters 7. A more limited list of exceptions applies to cases under chapter 13. Generally speaking, the exceptions to discharge apply automatically if the language prescribed by section 523(a) applies.<\/p>\nLet’s Work Together<\/h2>\n