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Chapter 13 is price controlled by the bankruptcy judges. In August 2023, they set the fee at $6339.
We get about half up front, and the rest out of the Chapter 13 payment you make to the court.
So up front, $700, $1000, and $1100. Then $3529 from your payments–that works out to $65 a month over a five year Chapter 13.
Here’s the Chapter 13 fee Agreement
Your Bankruptcy Papers
“Here are the papers we sign and file, to get your bankruptcy officially started. This is a half-hour video.”
When you’re in chapter 13, you don’t want a tax refund. Why? If you get a refund more than $250.00, you have to send it in to the bankruptcy trustee. So you don’t want to over-withhold.
You also don’t want to under-withhold. Why? Because on April 15, you’ll owe a tax payment. And you probably won’t have money available to pay it.
So you want as far as possible to break even when the taxes are filed.
In Chapter 13, as far as possible, you want to break even when you file your taxes.
That can be tough to do.
In January 2020, the IRS released a new calculator, that they claim will help you be accurate. Here it is. Hope it helps.
What About ….?
What about my bank account?
Filing bankruptcy does not force you to close your bank account. (Many credit unions will fire you as a customer.) If your credit is already so bad you can’t open an account, try TD Bank, a new bank in Northern Virginia. Another option is Wood Forest Bank, in some of the larger Walmarts, including the one on Liberia Avenue in Manassas..
What about immigration status?
Filing for Bankruptcy will not hurt your immigration status. You can still get a green card– you can still become a citizen, exactly the same as before.
What about my tax refunds?
Filing for Chapter 7 Bankruptcy will not stop your tax refunds.
Will my employer know?
Filing Chapter 7 Bankruptcy will not involve your employer.
Will I be garnished?
Filing for Chapter 7 Bankruptcy does not mean you will be garnished– it makes it illegal for your credit cards and medical bills to garnish you.
The post Miscellaneous Virginia Bankruptcy Questions appeared first on Robert Weed Bankruptcy Attorney.
Many clients have contacted us regarding defaulted SBA EIDL loans and the period of time in which the SBA or the Government may sue them to collect on the defaulted loan (the statute of limitations). The law and rules, as noted below are complex and vary based on the facts of the case.
- The Federal Government has 6 years to commence a lawsuit (statute of limitations) against the entity or person that obtained the EIDL loan from the SBA and defaulted.
- The Federal Government also has 6 years to sue the guarantor of a defaulted SBA EIDL loan.
- The 6 years runs from the date the borrower defaulted on the debt or the last time the borrower made a payment or otherwise acknowledged the debt in writing.
- However, the Federal Government also takes the position that the statute of limitations for fraud on an SBA EIDL loan is 10 years.
- Tax Refund Offsets - The IRS generally has 10 years to collect outstanding taxes, penalties, and interest by offsetting tax refunds. This 10-years starts from the date the tax return was filed or the date the tax was assessed.
- Federal Payments Offset - Federal agencies generally have 10 years to refer eligible debts to the Treasury Offset Program for administrative offset of federal payments like Social Security retirement and disability benefits.
- Salary Offset - Salary offset refers to withholding money from a federal employee's disposable pay to collect a debt owed to the federal government. There is generally no statute of limitations on federal salary offsets.
- Administrative Wage Garnishment - This is garnishment of pay as a means of collecting defaulted federal debt, even for a non-government employee. There is generally no statute of limitations as long as the underlying federal debt is still valid and legally enforceable.However, only 15% of a person’s pay may be offset thru wage garnishment.
- This post does not discuss the statute of limitations for criminal penalties or actions by the Federal Government, which is beyond the scope of this post.
Individuals or businesses with questions about SBA EIDL loans should contact Jim Shenwick, Esq [email protected] 917 363 3391Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
Is it Better to File Bankruptcy Chapter 7 or Chapter 13?
It is essential to keep in mind that different types of bankruptcy are suited for different filers, depending on their resources, obligations, and short- and long-term goals. Seeking legal advice early on is advisable as you look closely into your financial problems and work toward making a decision that will rebuild your financial future.
A successful bankruptcy filing under Chapter 7 can wipe out different types of debt. That means that a debtor will no longer need to repay debts they owe from creditors. Alternatively, a Chapter 13 bankruptcy declaration can help you pay back what you owe to lenders while keeping your assets. If you plan to file for bankruptcy, seek legal aid right away.
Short Summary:
- The choice between Chapter 7 and Chapter 13 bankruptcy depends on individual circumstances, resources, and financial goals.
- Chapter 7, known as liquidation bankruptcy, provides immediate debt elimination, freeing you from the obligation to repay certain debts.
- Chapter 13 is beneficial for catching up on late payments and restructuring debts, although it may be costlier and involve monthly payments.
- Eligibility for Chapter 7 or Chapter 13 is determined by factors such as income, properties, and debt amounts. Understanding specific requirements, waiting periods between filings, and utilizing online tools like the Quick Median Income Test are crucial steps before choosing a bankruptcy type.
- Chapter 7 is generally recommended unless specific circumstances favor Chapter 13, such as challenging non-dischargeable debts, significant asset equity, or the inability to file Chapter 7 again within eight years.
- Chapter 13 may be suitable for retaining assets, catching up on overdue secured debt payments, or addressing specific financial challenges that Chapter 7 cannot adequately resolve.
Is There Any Difference Between Bankruptcy Chapter 7 vs 13?
Bankruptcy allows for either complete debt elimination or an extended repayment period. Individuals facing insolvency choose bankruptcy since they cannot settle their bills from debts exceeding their income. Chapters 7 and 13 bankruptcies help provide financial freedom and immediate relief.
In achieving this, Chapter 7 (also known as liquidation bankruptcy) helps those who cannot afford to repay their debts (like credit card debts, medical debts, and personal debts) by eliminating some of them. Chapter 13 aids higher-income individuals with valuable assets in reorganizing their debts.
Choosing Between Bankruptcy Chapter 7 vs 13 in Oregon
Choosing between these two types of bankruptcy is not up to you. Whether you want to file for Chapter 7 or Chapter 13 will always be based on your qualifications. Those correspond to your income, properties, and the amount of debt you have.
When Choosing Chapter 13 in OR
Chapter 13 is about repaying what you owe to creditors over three to five years. It lets you keep everything you own. You can also use it to catch up on late payments, like saving your home from foreclosure or keeping your car. If you have a debt you cannot eliminate, Chapter 13 allows you to force a payment plan on the creditor.
But it can be expensive, and some may find it challenging to make monthly payments. Businesses cannot also use Chapter 13. Business owners should explore small business bankruptcies instead.
When Choosing Chapter 7 in OR
Choosing Chapter 7 bankruptcy in Oregon is popular for its speed and affordability. It is a quick process, usually completed in three to four months. You also do not have to pay anything to creditors. This option is good if you own essential items for daily life but not much more. But if you have extra assets, the Chapter 7 trustee may sell non-essential items to pay creditors.
Unlike Chapter 13, there is no payment plan to catch up on overdue mortgage or car payments. So you risk losing your home or car if you are behind on payments when you file.
What Do I Need to Qualify for Chapter 7 or Chapter 13 Bankruptcy in Oregon?
You must meet specific requirements to qualify for Chapter 7 or Chapter 13 bankruptcy in Oregon. If you have filed before, check if enough time has passed before filing again. There is a waiting period between filings.
Qualifications for Chapter 7 in Oregon
To qualify for Chapter 7 bankruptcy, your family’s income must be lower than the median for a similar-sized family in your state. Just add up your family’s gross income from the last six months, double it, and compare the result with income charts on the U.S. Trustee’s website.
You can use the Quick Median Income Test online for an easy check. If you still earn too much, you might qualify after the second part of the “means test.” If your remaining money after deducting expenses isn’t enough for a Chapter 13 plan, you’ll likely qualify for Chapter 7.
Qualifications for Chapter in Oregon
Qualifying for Chapter 13 involves considering priority nondischargeable debt, nonexempt property value, or disposable income. The most challenging part is often the monthly payment.
Understanding these requirements is crucial before choosing between these two types of bankruptcy.
How do I Apply for Chapter 7 Bankruptcy in Oregon?
When filing for Chapter 7 bankruptcy in Oregon, first, take the means test. Then, gather these documents:
- a list of who you owe money to and how much,
- a list of your belongings and their values,
- your most recent tax return, and
- your pay stubs or income proof.
How do I apply for Chapter 13 Bankruptcy in Oregon?
For Chapter 13 bankruptcy in Oregon, start by submitting a request to the bankruptcy court. Provide details about your creditors, income, expenses, and belongings. Also, propose a plan for repaying debts. After filing, there’s a meeting where creditors can raise concerns. If there are no issues or if they’re resolved, the court approves the plan, and you begin making payments accordingly.
Should I Pick Chapter 7 or Chapter 13 Bankruptcy? What’s Best for Me?
In deciding between Chapter 7 and Chapter 13 Bankruptcy, Chapter 7 is usually recommended, unless you have specific reasons for Chapter 13.
One situation where Chapter 13 might be beneficial is if you have taxes or other debts that can’t be discharged and are challenging to handle on your own. Also, Chapter 13 might be better if you have a sole proprietorship business needing bankruptcy court protection, or if you can’t file Chapter 7 again within eight years. Opting for Chapter 13 lets you retain certain assets and catch up on overdue secured debt payments.
For most other cases, Chapter 7 is likely better because it finishes faster, allowing you to rebuild your credit sooner. Also, considering that this is the most affordable option, most especially, for those with limited income and few assets owned.
The Need for Legal Services of a Reliable Local Attorney
If you are currently encountering grave financial difficulties, it is best to seek legal advice early on. Consider all of your options, including negotiating directly with the debt collector or creditor or filing for bankruptcy.
If you are planning to file bankruptcy, or are wondering if it is the best course of action to take, you need a lawyer who can help you solve your financial problems.
For individuals who are struggling financially because of unemployment, growing medical expenses, credit card debt, marital issues, or other reasons, filing for bankruptcy may be their only choice.
Here, a competent Portland bankruptcy law firm can help. Consult with a dedicated Oregon bankruptcy lawyer at Northwest Debt Relief Law Firm today.
Many clients, attorneys, and accountants have asked where they can find our blog posts on SBA EIDL loans. To make their search easier, they are listed below. If you would like to speak with Jim Shenwick, Esq regarding your SBA EIDL loan, please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15min
SBA EIDL Penalties if an SBA EIDL Loan is Not Repaidhttps://shenwick.blogspot.com/2023/12/sba-eidl-penalties-if-sba-eidl-loa...
Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filingshttps://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html
SBA EIDL HARDSHIP PROGRAMhttps://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html
Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Codehttps://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html
Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html
EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html
EIDL Loan Default Questions & Answers https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html
EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISEhttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html
EIDL Defaulted Loanshttps://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html
New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html
EIDL LOANS and SBA OFFER IN COMPROMISE PROGRAMhttps://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.html
PPP & EIDL Fraudhttps://shenwick.blogspot.com/2022/08/ppp-eidl-fraud.html
Better to connect-What small business owners need to know about repaying loans tied to pandemic relief from the SBA EIDL Loanshttps://shenwick.blogspot.com/2022/11/better-to-connect-what-small-business.html
IRS waiving $1B in penalties for people, firms owing back taxes — here’s who qualifiesNY Post has article discussing the IRS waiving $1 billion in penalties for certain tax years. The article can be found at https://nypost.com/2023/12/19/business/irs-waiving-1b-in-penalties-for-people-firms-owing-back-taxes-for-2020-or-2021/?utm_source=gmail&utm_campaign=android_nyp
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
The New York Post published an article stating that consumer spending through "buy now, pay later" services has increased as consumers struggle with growing debt obligations. This trend could lead to a rise in bankruptcy filings after the holidays. The article is available below. https://nypost.com/2023/12/18/business/holiday-debt-hangover-poised-to-be-particularly-nasty-this-year-analyst-says/?utm_source=gmail&utm_campaign=android_nyp
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
Many readers of our blog posts and emails are aware that at Shenwick & Associates, we represent numerous borrowers who have defaulted on or not repaid their SBA EIDL loans. Many borrowers had hoped or prayed that SBA EIDL loans would be forgiven, similar to PPP grants. However, as one Boston lawyer stated, "Hope is not a legal strategy." Borrowers frequently inquire about the actions the government may take if they fail to repay their SBA EIDL loans. If payments are not received by the SBA, the agency will issue a Final Notice of Delinquency and Collection Actions. This notice states that unless you remit the full balance owed or contact the SBA Customer Service Center to discuss repayment options within 15 days from the date of the notice, the SBA may take further actions.Those actions include:1. Acceleration of the entire loan amount being due immediately,2. Interest accruing at the higher default rate,3. A lawsuit against you for the full amount owed,4. Foreclosure against the collateral of the Borrower, as provided in the Loan Agreement and Security Agreement,5. Garnishment of up to 15% of wages,6. Reporting that may disqualify you from obtaining a loan/guaranty from federal agencies,7. Reporting of your name and other information to credit bureaus, which may adversely affect your credit rating,8. Transfer of your account to the U.S. The Department of the Treasury ("Treasury Direct") who will pursue further collection actions, including offsetting any government payments owed to you, 9.Treasury Direct imposes a 30% penalty on the balance of monies owed to the SBA.10. Referral to private collection agencies and the U.S. Department of Justice for litigation, 11. The accruing of “Cancellation of Debt Income” under section 108 of Internal Revenue Code to the Borrower or the Guarantor (on loans greater than $200,000.00), which income is reported to the IRS by the SBA pursuant to a Form 1099-CBorrowers who have defaulted or are contemplating defaulting on an SBA EIDL loan should contact Jim Shenwick, Esq., as soon as possible.
Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!--------Other SBA EIDL posts by James Shenwick, Esq.Misuse or Misapply SBA EIDL Loan Proceeds and Chapter 7 Bankruptcy Filings
https://shenwick.blogspot.com/2023/08/misuse-or-misapply-sba-eidl-loan.html
SBA EIDL HARDSHIP PROGRAM
https://shenwick.blogspot.com/2023/07/sba-eidl-hardship-program.html
Defaulted SBA EIDL Loans, Limited Liability Company (LLC) and Cancellation of Debt Income (COD) under Section 108 of the Internal Revenue Code
https://shenwick.blogspot.com/2023/07/defaulted-sba-eidl-loans-limited.html
Offers In Compromise ("OIC") for Defaulted SBA EIDL loans and Section 108 of the Internal Revenue Code ("IRC"), Relief of Indebted Income, a Trap for the Unwary!
https://shenwick.blogspot.com/2023/05/offers-in-compromise-oic-for-defaulted.html
EIDL LOAN WORKOUTS AND BANKRUPTCY https://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html
EIDL Loan Default Questions & Answers
https://shenwick.blogspot.com/2022/10/eidl-loan-default-questions-answers.html
EIDL LOAN DEFAULT DOCUMENT REVIEW, WORKOUT, BANKRUPTCY FILING & OFFER IN COMPROMISE
https://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.html
EIDL Defaulted Loans
https://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.html
New Relief Program for SBA EIDL Borrowers Who are Having Difficulty Repaying EIDL Loans " Hardship Accommodation Plan"
https://shenwick.blogspot.com/2023/05/new-relief-program-for-sba-eidl.html
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.