What is bankruptcy and will it wipe out all of my debts?

Bankruptcy is the legal process in which a judge and court trustee examine a person or business’ assets and liabilities who are insolvent and decide whether to discharge their debts, which makes them no longer legally required to pay them. There are certain debts that might not be discharged in bankruptcy, such as tax liens, student loans, back child support, and debts obtained through fraud.

What are the main differences between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy discharges debts while Chapter 13 reorganizes them, meaning that with Chapter 13, people make ongoing payments for several years according to a plan. Chapter 7 bankruptcy filers do not make ongoing debt payments. Businesses cannot file under Chapter 13. Chapter 7 bankruptcy is for people with limited incomes and people who do not pass the means test cannot file this type of bankruptcy.

Which bankruptcy option will allow me to keep my property?

Chapter 13 does not liquidate assets like Chapter 7 does so you can keep all your property with a Chapter 13 filing. If you file for Chapter 7, some of your property may be exempt and will not be taken. Exempt property may include a portion of equity in your home, pensions, motor vehicles (up to a certain value), tools for your profession, reasonably necessary clothing, furnishings and household goods, household appliances and jewelry.

Can I choose which type of bankruptcy to file? How do I choose the right one?

You may be eligible for more than one type of bankruptcy. In this case, you can select the form that is best suited to your situation. Which type of bankruptcy you should file will depend on a variety of factors, including what type of debt you have, what type of relief you need, if you are interested in keeping certain property and what exemptions you qualify for. An experienced bankruptcy lawyer like Sam Calvert can discuss your options and make a recommendation based on your particular situation.

What happens if I do not disclose all of my assets when I file for bankruptcy?

It is important that you disclose all of your assets to your bankruptcy lawyer and in your bankruptcy petition. Failing to disclose assets can result in serious consequences, including a dismissal of your case, a refusal to discharge debt, liquidation of the asset and charges of bankruptcy fraud.

When Bankruptcy Is the Best Option

By External Author | Jul 28, 2021

Original Article Source Credits: NerdWallet , https://www.nerdwallet.com/

Article Written By: Liz Weston

Original Article Posted on: Oct 21, 2020

Link to Original Article: https://www.nerdwallet.com/article/finance/bankruptcy-best-option

The Eighth Circuit Court of Appeals issued an opinion on February 5, 2021 that should be of concern to anyone who has put into place a transfer on death deed

By Sam Calvert, Attorney At Law | Feb 09, 2021

The Eighth Circuit Court of Appeals Issued an Opinion - Blog by Sam Calvert, Attorney at Law

The name of the case is "Strope-Robinson v. State Farm Fire & Cas. Co." and is case number 20-1147.

Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until February 28, 2021

By Sam Calvert, Attorney At Law | Jan 21, 2021

Fannie Mae and Freddie Mac Will Extend the Moratoriums on Single-family Foreclosures Real Estate Owned Evictions - Blog by Sam Calvert, Attorney at Law

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until February 28, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on January 31, 2021.

Many of my clients are married and have credit cards that at least look like they are joint cards

By Sam Calvert, Attorney At Law | Jan 06, 2021

Many of My Clients Are Married and Have Credit Cards That at Least Look Like They Are Joint Cards - Blog by Sam Calvert, Attorney at Law

Many of my clients are married and have credit cards that at least look like they are joint cards. It can be confusing to figure out which of the two of them is obligated on a credit card.

What is the means test?

By Sam Calvert, Attorney At Law | Dec 28, 2020

What Is the Means Test - Blog by Sam Calvert, Attorney at Law

There are two types of bankruptcy usually used by individuals -- Chapter 7 and Chapter 13. Either can help you deal with your finances. Chapter 13 is a payment plan type bankruptcy, that lets you pay your bills, or a portion of your bills, over three to five years. Chapter 7, on the other hand, wipes out your dischargeable debt without a payment plan, and usually takes about four months.