Post Filing Bankruptcy Course

Post Filing Bankruptcy Course

Bankruptcy is a fairly common occurrence today, a problem afflicting people from all corners of the world. Destructive as bankruptcy might prove to be, your ability to overcome its consequences will depend upon the steps you take to lessen the impact.

There are always approaches you can take to simplify the process of not only filing for bankruptcy but managing it afterward.

+ Post Filing Bankruptcy course

The processes that must be followed to file for bankruptcy will vary from location to location. The key to success lies with locating the best bankruptcy lawyer within your means, whose legal assistance is bound to prove useful in your endeavors.

The best bankruptcy lawyers boast considerable experience in the field, more often than not capable of defending their competency with a record of successful cases in the area of bankruptcy.

Proving just as important as the filing process is the debtor education program; a prerequisite for filing bankruptcy, every individual that encounters bankruptcy must enroll in a post filing bankruptcy course. Not only must one enroll in these courses, they must pass. For a bankruptcy case that has been filed to be complete, a post-bankruptcy certificate is an essential requirement.

Along with credit counseling, only those post filing bankruptcy courses provided by debtor educators approved by the necessary authorities can avail the certification one requires to complete the bankruptcy filing process.

Bankruptcy courses such as this avail a wide variety of information, this including budget development and money management as well as the effective use of credit. Post-bankruptcy courses can be undertaken in a variety of ways: in person, over the phone and even online, with each session lasting two hours or even more.

With the typical course costing no more than $100 per session, those individuals that cannot afford this fee can ask the debt educator in question to waive it.

Those who complete this bankruptcy course will receive a certificate (separate from the certification received after one’s per-bankruptcy course); one must ensure to receive their certificate from an educator approved within the judicial district where one filed for bankruptcy.

With the prevalence of bankruptcy cases, the pervasion of post-filing bankruptcy programs is such that finding one shouldn’t present any major challenge, with the internet proving to be the most effective tool for locating and enrolling in the required bankruptcy course.

Bankruptcy is hardly the end of the world, sometimes proving to be that event required to turn one’s life around; through a bankruptcy course, the right educator can enable you to find your footing in the wake of the phenomenon that is bankruptcy.

Bankruptcy and Your Vehicle

Bankruptcy and Your Vehicle

The bill collectors are calling you and everyone you know, your wages are about to be garnished and you can barely pay the necessities. You know you need to file bankruptcy. So what is stopping you, the fear of losing your car, truck, or motorcycle?

In most cases when you file bankruptcy you can keep your vehicle. Of course, it is a little more complicated than just file bankruptcy don’t worry about your car. This article will explore several scenarios I have dealt with in the past dealing with bankruptcies and client’s vehicles. Motorcycles come with a caveat, here it is… Motorcycles are slightly different from other vehicles in that they can been classified as non necessity luxury items so contact your attorney to see what your specific options are regarding motorcycles.

Scenarios in a Chapter 7 Fresh Start Bankruptcy.

Scenario 1. You owe nothing on the car and it is not worth that much. You do not make enough money to cover even your basic needs, you have a car and you do not want to lose it. Chances are if you have a car in this situation you own it outright. Whether you can keep it or not will depend on the value of the car. In Washington, for example, the automobile exemption for an individual is $3450.00. Washington also allows a wildcard exemption of $3000.00. If your car is worth $4500.00 in its current condition, an individual could use the full motor vehicle exemption and then use $1050 of the wildcard. That will fully protect your car and still save $1950.00 of your wildcard. Your car is safe.

Scenario 2. You owe nothing on the car but it is worth more than the exemption value. This is the most complicated scenario in a chapter 7 bankruptcy and may be better dealt with in a chapter 13. Nevertheless, there are options in a chapter 7. Let’s say the car is worth $10,000.00. As discussed above, you can use the current vehicle exemption of $3450.00. You can then add to that the wild card exemption of $3000.00. That protects $6450.00 of value in the vehicle. meaning that you have $3550.00 unprotected. Now we have a couple of options.

You could:
1) Let the trustee take and sell the vehicle and use the proceeds to pay off some of your creditors. If you do this, the trustee will cut you a check for $6450.00 and use the $3450 that is unprotected to pay some of your creditors. You could then use this money to help get a new car or to buy a used car outright.
2) Try to work out a deal with the trustee to repay the unexempt equity. Trustees are usually willing to work out a reasonable payment plan to allow you to keep something like a vehicle. Common terms might be to pay back the equity in six equal installments, or to make a down payment with a monthly payment that ends in a larger payment when you get your tax refund. You need to be careful with this useful arraignment, if you default on your payments your discharge could be denied or revoked.
3) Try to get a new loan on the car after the bankruptcy is finished which would allow you to pay the equity to the trustee. You would then have a car payment to pay the newly incurred loan.

Scenario 3. You owe less on the car than what the car is worth. If you are looking to file a chapter 7 to obtain a fresh start and avoid making a chapter 13 trustee payment, you should be able to protect that car. Say the car is valued at $15000.00 and you still owe $12000.00. In this case you have $3000.00 in equity. Because the automobile exemption is worth more than the equity you have in the vehicle, your car will be protected. You will need to speak with your attorney about what to do during and after the case, but you will need to maintain your loan payment if you wish to keep the vehicle.

Scenario 4. You owe more on the car than it is worth. In this scenario you might owe, for example, $15000.00 on a car that is only worth $7000.00. You have several options under this scenario.

You could:
1) decide to let go of the car. Why pay more than double the value of anything? You could surrender the vehicle and then look to purchase a vehicle with better terms after the discharge;
2) You could continue to pay on the vehicle at the terms provided in the loan agreement;
3) We could seek a redemption loan whereby you get a new loan that is only up to the value of the car in its current condition. In this case you need to qualify for the new loan and there may be additional attorney’s fees but it could potentially save you a lot of money and keep you in a car that you love.

Scenario 5. Bonus Scenario! You have unexempt equity in your vehicle but you also have tax liens which attach to personal property. This one is a little tricky, but if you have no other equity in any other property and the amount of the tax lien is greater than the unexempt equity in your vehicle, the trustee is not likely to bother with you or your vehicle. The down side to this is that if they were to take and sell the car for the unexempt equity, they would then use that money to pay off or to pay down your tax lien. If the trustee leaves you and your vehicle alone, you are still going to have to find a way to deal with those taxes once your bankruptcy is done.

Scenarios in a Chapter 13 repayment plan bankruptcy:

Scenario 1. You owe nothing on your car and it is worth less than the exemptible amounts. Under this scenario, your vehicle would have no impact on your chapter 13 plan payment.

Scenario 2. You owe nothing on your car but it is worth more than the exemptible amounts. Under this scenario, we have to offer the unexempt value to the creditors in the form of your trustee payment. While this goes beyond the scope of this article, we can pay the unexempt value by way of the trustee payment over a period of time lasting as long as 60 months. This is a valuable tool if you have a car that is worth a lot of money and you cannot bear to part with it.

Scenario 3. You owe money on the car and you want to keep it. This scenario gets complicated depending on whether the loan on your car was taken out at the time that you bought the car. It also matters as to how long ago you bought the car. If you bought the car more than 910 days ago, we can cram down what you pay on the car based on its current value. So say that you owe $15000.00 on the car but it is only worth $7000.00, we can propose a plan that only pays that creditor back $7000.00 as a secured claim. We can also lower the interest payment on the car depending on the rate that the loan is for and depending on the jurisdiction. If you bought the car less than 910 days ago, we may still be able to lower the interest rate that you pay on the car, but the full dollar amount of the outstanding loan would have to be paid back as a secured creditor.

Scenario 4. You owe money on the car and you just do not want it any more. In this scenario a chapter 13 can also be a good option depending on what the rest of your financial situation looks like. We can propose a plan that surrenders the collateral. The lien holder will come and get the car. They then have to sell it and credit your account for the amount of the sale. In the chapter 13 they are then able to file an unsecured claim for the remaining balance. The benefit to you though is that you will end up paying less than you owed (possibly zero) and paying no further interest on the loan.

Conclusion: As you can see, there is no simple answer to what happens to a car in a bankruptcy. The good news though is that there are many options that allow you to keep your vehicle and still other options that will allow you to escape from a bad deal. If you find yourself in financial difficulty and the thought of losing your only car is stopping you from filing, call your local bankruptcy attorney to discuss which option might be best for you

What Is the Automatic Stay in Bankruptcy?

What Is the Automatic Stay in Bankruptcy

For many individuals filing bankruptcy, the automatic stay is one of its biggest appeals. Of course, it’s important to clearly understand what the automatic stay is, how it works, and depending on your specific circumstances, how it may be able to help you. Learn all about the automatic stay in this guide.

The automatic stay is a bankruptcy mechanism which kicks in as soon as you file bankruptcy. Therefore, you don’t have to wait for your case to be completed, the impact of the stay begins immediately. This is why it’s such a great benefit of deciding to file bankruptcy and then taking action.

With the automatic bankruptcy stay, lawsuits against you and other actions being taken by certain creditors are ceased or halted. This provides you with immediate relief in several key areas.

One of the huge upsides of this, for instance, is in temporarily stopping the foreclosure process. Therefore, when you file bankruptcy, the automatic stay kicks in, and your house cannot be foreclosed upon. The foreclosure process may be renewed later, and all of this will depend on your financial situation, and whether or not you are trying to save the home through bankruptcy in addition to getting that temporary pause.

Another one of the most frequently cited benefits of the automatic bankruptcy stay is that it immediately stops wage garnishments. As soon as you file bankruptcy, garnishments can no longer be taken from your income.

Now, you immediately go back to receiving your full paycheck, and this provides crucial relief in terms of being able to meet other debts and financial obligations. Additionally, bankruptcy may be able to help you recoup wage garnishments already taken for a designated period of time before you actually filed.

The automatic stay has numerous other impacts depending on the situation you’re in. If you are being threatened with eviction, or threatened with having your utilities turned off, the automatic stay also applies. Needless to say though, it’s not an instant fix for everything, and does not get applied to every single type of debt or obligation.

There are many considerations when you are thinking about filing bankruptcy. Certainly, the automatic stay is one of them, and it makes a strong case for why you may want to file. Be sure to consult with an experienced bankruptcy attorney who can help you determine the right path for you to take, as no two cases are the same.

Are You Losing Out on Unclaimed Funds?

Are You Losing Out on Unclaimed Funds

Believe it or not, uncashed checks resulting from bankruptcy cases often go unclaimed, but you can now find out if the Federal Court System is holding onto funds with your name on them. There’s a new search tool available that will let you quickly and easily see if there are some funds out there belonging to you that were never claimed.

Accessing Unclaimed Funds

A new online search tool developed by the Federal Court System makes it simple to search for any unclaimed funds simply by entering your last name into the database. The ‘Bankruptcy Unclaimed Funds Locator’ can be accessed through 39 of the country’s 94 court websites. Why would so much unclaimed money exist?

At the end of bankruptcy cases, monies owed are sent (usually via check) to those people that are part of a court case. Sometimes, addresses are wrong, people have moved and other details don’t add up. Many times, these individuals don’t even realize they are owed money and this means that the funds in question become unclaimed and left idle. Unless a person claims those funds (rightfully), there is little to no chance of those funds being returned to the person that was originally owed a specific amount.

What Happens to the Funds?

Bankruptcy courts in the U.S. will hold onto funds for many years. If the funds are not claimed, they are eventually turned over to the U.S. Treasury. It is estimated that around $280 million funds are currently unclaimed in the U.S. Surprisingly, these millions are all sitting idle as a result of bankruptcy cases. How long can one debt linger? It depends on each individual court, but some claimants have managed to retrieve funds going back as far as the 1970s.

Getting Your Money

Step 1 of this process is searching the web to see if you actually are one of those who is owed money. If you do discover that some unclaimed funds are in your name, it might be a challenge to try and claim those funds. Due to complex court systems and laws, getting the money that is owed to you is often easier said than done. The best way to retrieve any funds that are owed to you is to hire a bankruptcy attorney. A knowledgeable and experienced attorney will know the ins and outs of bankruptcy laws and can help you to claim funds that are rightfully yours.

Interest on Debt Is Cancel-Able

Interest on Debt Is Cancel-Able

Interest Is Cancel-able.

We all appreciate the fact that we may purchase a car and a home without cash, and pay for this car, home, furniture and boat over time.

Banks love helping us to make major purchases by loaning us the money to do so. Banks are in business to make money by charging us interest on the money we borrow. That interest may be 2% to 25% depending on your credit score.

Fact: the average person spends 34.5% of their income on interest!

The purpose of this article is to show you options you do have to cancel / reduce interest you are paying on all loans. There is an alternative to living in debt.

Option 1.

Debt reduction. This is basically accumulation of your credit card and car loans into one package.

Result is you now have one payment to one loan provider, giving you a manageable affordable monthly payment. The downside is you are starting all over in the process of paying off your debts. The biggest downside is that most people will now begin to use the paid off credit cards and increase their debt. The habit of overspending has not been broken.

Option 2.

Refinancing your mortgage. The benefit is that you may get a lower interest rate and also a lower monthly payment.

The good side is that your mortgage is now affordable. The downside is that you are starting your mortgage payoff time all over again, whether that be 15 years or 30 years.

Note that refinancing your mortgage does touch your other debts such as car loans, student loans or credit cards. You still have these same debts and monthly payments.

Option 3.

Mortgage Bi-weekly payments. This will cancel some interest by paying of your mortgage in less time by adding one extra payment per year. Result is a 30 year mortgage would be reduced to approximately 24 years.

Option 4.

Extra payment made to mortgage and / or credit cards and / or car payments.

It is true you may put additional money to these debts at anytime. It is a good place to put your tax return income or other bonus income you may have available. This will reduce the overall interest you are paying on these loans.

Option 5.

Worth Account. Wealth strategy ensured with award-winning technology. Think of managing your financial matters as with a GPS system that maps the shortest, most-effective route to your goal. Should you miss a turn, make a detour or take an alternate path, the Worth Account from Worth unlimited recalculates and guides you back on track.

Imagine a GPS system that tracks where you are in relation to your finances plans. This system lets you better understand your income and your expense flow, then plan and “game out” financial scenarios such as the purchase of a new car, other credit decisions and the investment opportunities so you can understand the effect they will have on your finances and future. – Personal Real Estate Investor – Dec 2014

`This program guides you in making all financial decisions. The result is that you may pay off all of your debts, including your mortgage in ½ the regular time or less, using the cutting edge, 21st century financial solutions! Using this program, most clients are able to pay off their 30 year mortgage in as little as 9 to 15 years – plus all other debt.

No refinancing, No loan modification and No lifestyle change.

The worth account system is an excellent program for seeing into your financial future based on what you are doing today. It takes the guesswork out of financial planning.

Benefits of this system are:

1. Save thousands of dollars on interest paid

2. Be debt free in 1/2 to 1/3 the time

3. Visually see the results and impact of every purchase and financial transaction

4. Know the true cost of each purchase before you buy.