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Chapter 7 vs Chapter 13 bankruptcy: Pro's and Cons
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Filing for bankruptcy can provide you with relief from overwhelming debt. That being said, there are certain types of debts, such as a vehicle or home loan, you may want to reaffirm. Reaffirming will allow you to retain your property so long as you continue making payments on the debt. However, signing such an agreement may not be in your best interest. Below, a Florence, KY bankruptcy attorney from Monohan & Blankenship Attorneys At Law discusses the basics of reaffirmation during bankruptcy.
What Is Reaffirmation?
Reaffirming a debt excludes that debt from your bankruptcy. As such, your personal liability for the debt will remain intact after filing. For example, if you owe $10,000 on a vehicle prior to Chapter 7 bankruptcy, you will still owe $10,000 to the creditor under a reaffirmation agreement. If the vehicle is repossessed due to
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In some cases, you may even be able to renegotiate the loan to reduce your monthly payments, interest rate, and total debt amount.
Disadvantages
Reaffirming a debt during bankruptcy leaves you personally liable for that debt. As such, if your property becomes damaged or destroyed following reaffirmation, you are still required to make payments. Furthermore, if you default on the agreement and your property is repossessed/auctioned off, the creditor will be able to sue you for the outstanding balance. Since you will be ineligible to file Chapter 7 for another eight years, you’ll be stuck paying off the balance for the foreseeable future.
By contrast, if you choose to discharge that debt, your creditor will be unable to come after you for the remaining balance, regardless of the amount. Your personal liability for the outstanding debt will have been wiped clean by your Chapter 7 discharge.
Should You
The Bankruptcy Code can be found under Title 11 of the United States Code (U.S.C.); this code is then divided into chapters 1, 3, and 5 which provide provisions concerning bankruptcy case and debtors. These chapters are then applied to six specific types of bankruptcy relief classified as Chapters 7, 9, 11, 12, 13, and 15. For businesses companies they mainly file for Chapters 7, 11, 12, and 13. Even though bankruptcy is a federal law, state laws can apply its own ba...
On the other hand, many courts have abandoned the imposition of good faith obligations on the lender beyond what is set forth in certain loan agreements. In 1987, the Bankruptcy Court for the District of Massachusetts held that the holder of a demand note does not need a good faith reason or any reason at all to demand payment.
A loan reactivation letter is a document that is sent from the mortgage lendor that remedies the mortgage loan by reactivating it.
Buyer shall be responsible for all sales and transfer taxes associated with the contemplated transaction; provided, however, Seller agrees to execute or provide whatever documents are necessary for Buyer to have transferred to it and receive credit for any balance remaining on the vehicle tags of Seller.
A consolidated financial statement can be defined as the financial statements of a parent and its subsidiaries combined to form a single economic entity (AASB 10, 2011). The entity, which acquires the other entity, is known as the parent and the entity, which has been acquired, is known as the subsidiary. Consolidation financial reports arise when one entity purchases another entity, to then form a group.
Today’s college students are bombarded with ads, commercials and mailings telling us that we need to spend money to be happy. At the same time, many of us come to college very ill-equipped to handle our finances. Financial literacy, defined as "the ability to use knowledge and skills to manage one's financial resources effectively for lifetime financial security," is important in our money matters as well as academic performance. Based on your understanding of financial literacy and experience (or lack thereof) of personal finance, 1) pick two personal finance topics (including but not limited to: credit cards, student loans, budgeting, saving, banking, and investment, etc.)
Chapter 7 bankruptcy can wipe out most of ones debts but certainly not all of them. Certain kinds of debt are not covered by the terms of Chapter 7. Some examples of debts that must be paid after filing for bankruptcy would include child support, alimony, income taxes and penalties, student loans, and court ordered damages due to unfair and unrightous acts. Bankruptcy courts handle your financial problems until the case ends. A court assumes control of all ones debts that are owed and all property that is not exempted. A person, trustee, is appointed to be in charge of your debt. The trustee collects property that can be taken and sells it to repay some creditors. That property can be surrendered to the trustee, one may pay the market value of it or one also may choose to trade exempt property with nonexempt property. A small number of people actually lose property when filing bankruptcy. If a person changes their mind about filing for bankruptcy they may ask the court to dismiss the case. At the end of the process the court would discharge most of the debts and one is unable to file for Chapter 7 bankruptcy again for at least another six years.
Property’s condition should be maintained. One must maintain the condition of the home as in the same quality as it was kept at the time you took out the reverse mortgage loan.
High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the
Cosigner on a Student Loan Understudy Loans are the best sort of advances to get nowadays in light of the fact that the financing costs are managed and are as of now not permitted to go over a specific rate. Now and then keeping in mind the end goal to get an understudy credit one must discover a cosigner on an understudy advance. On the off chance that an understudy does not have any credit nor has terrible credit, most advances including understudy advances can be hard to acquire. The bank or moneylender that is issuing the credit needs to feel that the individual is a potential hazard. A decent hazard is somebody they feel will pay back their advance installments on time and as planned.
A mortgage is a form of debt, secured by the warranty of a specific real estate property. The borrower is required to pay back the debt in predetermined payments. The most common reason for acquiring a mortgage is to purchase real estate when it cannot be paid for up front. The homebuyer, in a residential mortgage, pledges their home to the bank. Over a period of years, the borrower pays back the loan with interest. Once the mortgage is paid in entirety, the owner retains the property free of any charges. However, in case of foreclosure, the bank has an entitlement on the house, as a form of insurance should the buyer default on repaying the mortgage. The bank can then sell the house, and use the capital to pay back the remaining mortgage.
A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court. An insolvent debtor may file a debtor’s petition for voluntary bankruptcy. The insolvent debtor must provide to the court a summary of the debts and assets. An agreement between a debtor and creditor that the amount stated as being owed to the creditor is accurate is an account statement. However, an account that is open and unsettled is an account that is current.
When you file bankruptcy, you immediately stop paying debts that are seeking discharge. When the discharge is received (typically within 4 months), you are free of the debts listed in the bankruptcy discharge. You are no longer liable to pay them. In comparison, debts that result from a criminal case cannot be discharged: restitution payments, probation or supervision fees, treatment costs, community service fees, drug and electronic monitoring equipment/services, etc. Freeing yourself from your other debts can allow you to successfully cover the costs of the court-mandated financial obligations that may otherwise pose a significant problem (like incarceration for
Do current bankruptcy filings not demonstrate the potential downfall many businesses experience from gambling on their projected profitability and other unfortunate circumstances that may arise? By no means am I in a position to bring utter disdain and judgement against all forms of debt and neither are more than eighty percent of Americans that find themselves in this issue. But I believe having a biblical understanding of debt is necessary for both the Christian individual and businessman alike. It is not wrong to
Global debt crisis is essentially widespread globally. There are different issues that can cause debt crises. Currently, different countries around the world are facing debt crises, and definitely that is because of an error in the banking system. We’ll see below what are the main causes briefly and what are really the objectives that lead to a collapse in the banking system or so financial crisis.