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Use Bankruptcy to Save Your Home

The subprime mortgage crisis of the 21st Century has resulted in a larger-than-normal number of foreclosures. Across America, people lose their homes because they cannot afford their mortgages. Many of these people simply do not know that filing for Chapter 13 bankruptcy can be a powerful tool to save their homes. Chapter 13 bankruptcy is very different than Chapter 7 bankruptcy. In Chapter 7 bankruptcy, all debts are discharged, but non-exempt property is sold to creditors. On the other hand, when someone files for Chapter 13 bankruptcy, an automatic stay goes into effect. Homeowners at risk for foreclosure have a multitude of different options available to them in order to protect their homes. Automatic Stays Automatic stays temporarily stop foreclosure and all other collections. This is done so that the debtor and the debtor’s attorney have enough time to establish a payment plan for all debts owed. An automatic stay…
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What Is an Automatic Stay?

The owners of a landfill company filed for Chapter 11 for bankruptcy protection. The decision came in spite of the company receiving a multimillion-dollar contract from a client. However, the client was accused of withholding payment owed by the landfill owners. The owners claimed the non-payment caused them to file for bankruptcy. The operation of the landfill will continue running while the Chapter 11 case is undergoing. However, it was quoted that, “With bankruptcy comes an automatic stay against new litigation,” by the owner’s representation. This means that a lawsuit cannot be filed against neither of the businesses until the business dispute is cleared. Automatic Stay Once an individual files for bankruptcy, he or she can reap the benefits of automatic stay. A helpful Washington DC Chapter 7 lawyer can assist you in preparing documents needed to begin filing for bankruptcy. Automatic stay is designed to give the court time…
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What Is the Significance of the Chapter 13 Means Test?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) introduced what is known as the “bankruptcy means test,” a method for determining one’s monthly disposable income and ability to pay back creditors. In a Chapter 7 case, the means test establishes one’s eligibility to file Chapter 7 and receive a Chapter 7 discharge; that is, a person who wants to file Chapter 7 bankruptcy must pass the Chapter 7 means test. In Chapter 13 bankruptcy, on the other hand, the means test has nothing to do with one’s eligibility to file Chapter 13; rather, the means test affects the Chapter 13 repayment plan. When the annualized gross income on the Chapter 13 means test exceeds the median income for the applicable household size, the debtor(s) must file a 60-month repayment plan, unless they can pay off all debts — including all unsecured debts — in less than 60…
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How Will Bankruptcy Affect My Student Loans?

Generally, student loans are considered nondischargeable debts in bankruptcy, but filing bankruptcy may still be the right choice for a student loan borrower struggling with debt. You might be able to obtain a hardship discharge of your student loans in Chapter 7 bankruptcy or Chapter 13 bankruptcy, or you might be able to consolidate your monthly payments on all debts—including student loans—into one affordable plan payment by filing Chapter 13 bankruptcy. If you are experiencing difficulty keeping up with your student loan or other debt payments, a Washington DC bankruptcy attorney can review your financial situation and explain your available bankruptcy options, helping you understand how the different chapters of bankruptcy will or will not affect your student loans. The Hardship Discharge A debtor who can successfully demonstrate to the court that paying his or her students loans poses an undue hardship on the debtor and his or her dependents…
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