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Filing bankruptcy Chapter 7, which is also referred to as liquidation bankruptcy, can wipe out different types of debt. This is considered one of the simplest bankruptcy forms. With a successful bankruptcy filing, a debtor can be spared from the need to repay debts that he or she owes from creditors.
Once your bankruptcy petition has been approved by the bankruptcy court, an automatic stay comes into place. An automatic stay ensures that creditors will not sue you for failure to pay back what you owe. This will also stop wage garnishment and creditor harassment.
Filing for bankruptcy under Chapter 7 helps an individual to eliminate unsecured debt. Unsecured debts are debts without collateral. Such includes credit card bills, medical bills, and personal debts. However, certain types of debt are non-dischargeable, like certain tax debt, criminal fines and penalties, child support, alimony, and student loan debt.
Declaring bankruptcy can affect your credit report. During and even after the bankruptcy process, you will find it more difficult to get credit. Even so, months after filing a bankruptcy petition, you would be able to notice a slow but steady recovery of your credit score.
Qualifications for filing Chapter 7
Some qualifications must be met before you can file bankruptcy. These include the following:

1. You must be able to pass the bankruptcy means test, which looks into your monthly income, living expenses, and assets.

2. There must be no recently filed Chapter 7 or Chapter 13 bankruptcy petition.

3. You will not be allowed to file a petition in bankruptcy if your previous petition has been denied due to non-compliance with a bankruptcy court order or failure to appear in court.

How to file a petition for bankruptcy
In six months, you can go through the usual bankruptcy procedure. Here are some of the steps that you must complete to have a successful bankruptcy proceeding.

• Hire a credible bankruptcy attorney. If you are struggling with debt and financial problems, consulting a trusted local attorney is highly advisable. Competent bankruptcy attorneys will help you understand the bankruptcy rules for each chapter and help you decide which will be the right option for you and advise you on the correct procedure of filing bankruptcy. Doing so prevents dismissal of your bankruptcy case, which can result from simple misstep such as failure to provide all the required paperwork.

• Undergo credit counseling. Before declaring bankruptcy, you should have completed counseling with a certified nonprofit credit counseling provider.

• Prepare all the necessary forms and supporting documents. Your attorney will assist you throughout the entire bankruptcy proceeding. Although it is your responsibility to gather all the necessary documents related to your debts, personal property, monthly income, and expenditure, he or she can check if they are complete.

• Work with your bankruptcy trustee. The court will assign a trustee that will evaluate your bankruptcy case and determine your eligibility. After evaluating the required documents, bankruptcy trustees will confirm if filers are qualified for Chapter 7. He or she will also manage the transactions between you and any creditor concerned.

• Attend the meeting of creditors. A meeting between the debtor and the creditors will be organized by the trustee in bankruptcy cases filed. You will be required to answer questions regarding the bankruptcy forms you submitted and your finances.

• Liquidating nonexempt assets. The assigned trustee in your bankruptcy case will liquidate your assets and distribute the funds to your creditors. Some bankruptcy cases under Chapter 7 are ‘no asset’ cases wherein no non-exempt properties are to be liquidated. 

• Dealing with secured debts. Assets held as collateral can be ordered returned to the creditor to settle a secured debt. You may be able to keep the collateral and avoid repossession if you will repay your debt to the creditor.

• Completing the required financial management course. You are to undergo a financial education course from a certified credit counseling organization before you can obtain a bankruptcy discharge.

• Obtaining bankruptcy discharge. You may be able to benefit from discharged debts in a span of three to six months after filing bankruptcy. This means that all qualifying debts are forgiven or wiped out.

Is Chapter 7 bankruptcy the best option for you?
Chapter 7 bankruptcy can be beneficial for you if you don’t own a lot of properties. This could also be the best option for you if your debts are greater than your annual salary. If you have unsecured debts like medical debt and credit card debt, Chapter 7 will be able to wipe out these types of debt. 
Remember that certain debt problems cannot be eliminated even if you file bankruptcy. A bankruptcy filing, however, can still help if you can eliminate other forms of debt and free up a sufficient budget for you to pay non-dischargeable debts.
Bankruptcy lawyers that have extensive experience in handling bankruptcy cases will give you advice on how you can obtain debt relief and rebuild your financial future.
Filing for bankruptcy allows you to have a fresh start with your finances. Consult a bankruptcy lawyer before you consider filing bankruptcy. Contact us at the Northwest Debt Relief Law Firm for legal help and assistance.
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The post How to Get Your Personal Items from a Repossessed Car in California? appeared first on The Bankruptcy Group, P.C..

When tax season rolls around, people and families look forward to receiving and spending their federal tax refund. It is not uncommon for people to rely on their tax refund to pay-off debts or other household expenses. Sometimes, the refund is just some old fashion spending money. However, people in California who filed for bankruptcy […]
The post Will I Get My Tax Refund if I Filed for Bankruptcy in California? appeared first on The Bankruptcy Group, P.C..

The Chapter 13 bankruptcy trustee appointed to your case oversees the administration of the plan. In this article, we’ll list down the tasks of a trustee and how payment is carried out.
Chapter 13 in Brief
Among the different types of bankruptcy, Chapter 13 is also known as reorganization bankruptcy, or the wage earner’s plan. Under this bankruptcy chapter, you can keep your property and prevent foreclosure.
Individuals with regular income develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. When you file for bankruptcy, bankruptcy court places an automatic stay, preventing further collection attempts. After the payment plan, dischargeable debts will be discharged.
To help in your decision to declare bankruptcy, it’s best to consult with bankruptcy lawyers.
Duties of a Chapter 13 trustee
Review the paperwork and repayment plan
One of the trustee’s tasks is to ensure that the repayment plan is fair to your creditors. 
The trustee will require you to submit certain documents like bank statements, paycheck stubs, and tax returns to confirm your financial disclosures. They will review these documents along with your bankruptcy petition.
Conduct the Meeting of Creditors
The Chapter 13 trustee administers a meeting of creditors around a month after the bankruptcy filing. 
The trustee will be asking questions regarding the plan and the paperwork, your assets, income, and other relevant information. The creditors may also ask questions.
Attend the Confirmation Hearing
If a lender or trustee takes issue with your plan, you’ll have a period to correct it or draft an opposition supporting the plan.
The trustee attends the confirmation hearing to tell the judge if they believe that the plan is possible. It’s the judge who rejects or approves the plan. 
Administer the Bankruptcy Repayment Plan
Within 30 days from your bankruptcy filing, you must start paying the bankruptcy trustee according to the proposed plan. It remains a proposal until court approval. In the meantime, the trustee holds the funds for the debtor. When it’s approved, the trustee distributes it to your creditors.
During the time of your repayment plan, the trustee will keep making the payments and distributing them to pay off the amount owed. They must take account of all the payments made.
Object to Improper Creditor Claims
Creditors must provide proof of claim if they want to receive Chapter 13 funds. The proof must state the amount owed and documentation of the agreement.
How to Pay the Chapter 13 Trustee
As mentioned, even before approval, you must make payments to your trustee after filing for bankruptcy.
Once you know the trustee’s name, check their website for payment instructions. If the creditor’s meeting is scheduled for less than a month after filing, the trustee will probably explain how payments work then. 
Continuing Payments
Once the plan is approved, you’ll be making payments as stated in the plan. You are to continue to mail the payments. Alternatively, a wage deduction order may be made to deduct from your paycheck to pay off your plan. Discuss with a bankruptcy lawyer to know exactly what will happen.
How the Chapter 13 Trustee Pays Your Creditors
Initial payments are usually just the attorney fees and secured claims, like car loans and mortgage payments, until the court signs the confirmation.
After the approval, payments made will include unsecured creditors – medical bills, credit card balances, and personal loans.
Ensure that Creditors Receive Trustee Bankruptcy Payments
Most trustees have a website where you can keep track of the accounting of payments you make to the trustee and its distribution to lenders.
Bankruptcy can impact your credit score. Our bankruptcy attorneys work with you using our proven credit repair system. Get the fresh start you and your family deserve and seek help from lawyers knowledgeable about bankruptcy law. Contact Vancouver WA Chapter 13 bankruptcy attorney Tom McAvity today by calling Northwest Debt Relief Law Firm to file bankruptcy. 
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