The post Bankruptcy vs. payment plans for overwhelming medical bills first appeared on Golden Law, PC.
]]>When debt becomes unmanageable, and people can no longer afford to make mortgage, rent or credit card payments, many are unsure of the best route to get their financial house in order. Should they file for bankruptcy or work with a debt settlement company?
Increased government regulation and enforcement have addressed many predatory practices by debt settlement companies. However, here are three of the biggest problems:
Settlement companies often try to confuse people by spreading false information about bankruptcy and how people will lose their possessions. The truth is those who qualify for bankruptcy keep nearly all their belongings, even under Chapter 7.
Debt settlement companies prioritize their own best interests. Experienced bankruptcy attorneys, on the other hand, are morally and legally required to put their clients’ interests first. Your lawyer is dedicated to finding the best and most affordable way for putting your finances back on track.
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]]>The post Can Chapter 11 bankruptcy save your Indiana business? first appeared on Golden Law, PC.
]]>Any number of issues can spark a financial crisis in your business. The good news is that most money problems are temporary. However, some situations are definitely more serious than others. Not making a projected sales quota one month is concerning but not as worrisome as falling behind in your mortgage for several months in a row. If you’re facing a serious financial crisis, it’s a good idea to explore debt relief benefits, such as Chapter 11 bankruptcy.
Filing for bankruptcy as a means of debt relief can be a valuable financial tool to help overcome an existing financial problem and to lay the groundwork for a stronger financial future by wiping the slate clean and starting afresh. There are numerous types of bankruptcy, and each type carries its own eligibility requirements. The following list includes basic facts about Chapter 11, often used by business owners to avoid having to shut down during a financial crisis:
Being able to remain in control of operations for your business under a Chapter 11 bankruptcy plan means that you can continue to generate cash flow, which would provide additional funds to help you pay off your debts.
As an Indiana business owner, you understand that no two businesses, and, therefore, no two financial situations are exactly the same. The fact that there are numerous types of bankruptcy means that you can choose the most viable option to fit your specific needs and long-term business goals.
Chapter 11 bankruptcy is more complex than Chapter 7 or Chapter 13. Most business owners considering filing for Chapter 11 do so under the consultation of experienced financial advisers and others who are well-versed on U.S. bankruptcy codes and laws, in order to determine a best course of action in a specific set of circumstances.
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]]>The post Debt issues may have you thinking about bankruptcy first appeared on Golden Law, PC.
]]>There are certain issues that often cause serious financial crises. Overcoming obstacles caused by one or more of these issues may not be so easy; in fact, it may be impossible, thus leading you to search for debt relief options such as bankruptcy. Many people use Chapter 7 or Chapter 13 bankruptcy to resolve financial problems and help restore stability.
Maybe budgeting isn’t one of your strongest skills. If so, you’re definitely not alone in your struggle. Mismanagement of a budget is one of the most common causes of debt throughout the country. In addition to making poor financial decisions, the following list shows other issues that often lead to full-blown financial crises:
Perhaps you get a new job and base expenditures on what you expect to earn in a given amount of time. If you wind up not earning as much income or needing it for something else, you could wind up with a massive credit card balance that you do not have the means to pay.
Getting a divorce can cause serious financial challenges, especially if you’ve been out of the workforce for a long time. If you or someone in your household has a chronic medical condition or suffered a medical emergency, the bills might start rolling in faster than you can pay them. All of these issues rank high on most lists regarding common causes of financial crisis in Indiana and throughout the country.
You may have heard some negative things about bankruptcy, which causes you to hesitate when it comes it considering it as a debt relief option. Then again, perhaps you know someone who was able to pay off their mortgage, save their home and build their credit back up after filing for bankruptcy.
If you’re considering filing for bankruptcy, it’s best to research state laws ahead of time. Since there are numerous types of bankruptcy, it’s critical that you understand the basics of each so that you can determine a best course of action to fit your needs and help you achieve your ultimate financial goals.
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]]>The post Understand bankruptcy myths to be better informed first appeared on Golden Law, PC.
]]>Did you cringe when you read that last line? Many people associate negative connotations with Chapter 7 or Chapter 13 bankruptcy. However, it’s not uncommon for such people to have a misguided understanding of bankruptcy because there are many myths in circulation. It’s always best to speak to someone well-versed on such issues to obtain accurate information so that you can make informed decisions if a financial crisis hits.
Have you hesitated to seek more information on Chapter 7 or Chapter 13 bankruptcy because people have told you that filing for bankruptcy is the same as admitting financial failure? You’ll be glad to know this is not factual and actually contradictory to the fact that filing for bankruptcy often helps people restore financial stability, which is the opposite of financial failure.
Another bankruptcy myth worth busting states that mishandling of finances is a primary cause of needing debt relief. In fact, if you’re like many other people in Indiana and throughout the United States, issues beyond your control may have sparked your financial distress, such as unexpected job loss or medical emergencies.
If your finances have gotten out of hand and you’re exploring debt relief options, it’s best to avoid getting information from unreliable sources. You’ll be able to determine a best course of action more easily by seeking support and recommendations from someone who has firsthand experience in filing for bankruptcy or has a professional background in bankruptcy laws.
Not all debts are dischargeable, such as child support, owed taxes or court-ordered payments for damages filed against you in a personal injury claim. Just as it’s not true that you can automatically erase 100% of your debt by filing for bankruptcy, it’s also not true that you’ll automatically lose all of your assets if you do file. It’s best to seek understanding as to which bankruptcy options may best apply to your particular circumstances before making any decisions.
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]]>The post Bankruptcy: A means to resolve credit card debt first appeared on Golden Law, PC.
]]>Perhaps, you’ve always had a problem with overspending and tend to swipe your credit card when you don’t have cash on hand but want to make a purchase. Then again, you might be the type of person to scrimp and save every penny but still hit a financial roadblock because of unforeseen problems that have taken you by surprise. Either way, it’s good to know that Chapter 7 or Chapter 13 bankruptcy might be a viable solution to your finance problems.
Analyzing your finances on a regular basis is a good habit. It’s also helpful to understand what exact issues may have caused you to run up debt on your credit card. The better understanding you have, the less likely you’ll encounter similar problems in the future. The following list includes typical issues that often cause serious credit card debt:
There are any number of other issues that might cause you to run up a high balance on a credit card. The good news is that there may be options available to help you resolve the debt and to lay the groundwork for a stronger financial future.
Chapter 13 and Chapter 7 bankruptcies are valuable financial tools that often help people obtain immediate debt relief. You might qualify for one but not the other, so it’s always best to research both options ahead of time to see if one is a good fit for your immediate and long-term financial needs and goals.
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]]>The post 3 ways to deal with medical debt first appeared on Golden Law, PC.
]]>If reported to a credit bureau, medical debt can negatively affect your credit score. This reduces your borrowing capability and may impact seemingly unrelated areas of your life, such as your ability to get a job. However, health care facilities generally do not report medical debt directly to credit bureaus, although a collection agency to which the provider forwards it may do so. Even if it does go to a credit bureau, new rules as of 2017 grant you credit protections such as a grace period of 180 days before listing medical debt on your credit report.
Bankruptcy is one way to discharge medical debt. However, before it gets to that point, there are other ways that you may be able to manage it.
1. Negotiate an alternate arrangement
Contact the entity administering your debt, whether it be a collections agency or the health care facility. Explain your situation and see if you can arrange to pay what you owe in installments or settle for a lower amount. If you have considered filing for bankruptcy a possible outcome, let your creditors know. They may be more willing to negotiate with you in the interest of recouping more of their losses.
2. Prioritize other debts
Due to the protections that the new rules afford you, medical debt can have a less damaging effect on your credit than other types. If you have other debts, prioritize paying them off first.
3. Do not use credit cards
A credit card may seem like a way to make the problem of medical debt go away. However, credit card companies impose high interest rates and late fees, and medical creditors typically do not. Therefore, using that line of credit to pay off your medical debt could end up making your problem even worse.
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]]>The post Chapter 7 vs. Chapter 13 bankruptcy first appeared on Golden Law, PC.
]]>Explore the differences between these processes as you consider your debt relief options.
Eligibility requirements
Individuals who want to file for Chapter 7 bankruptcy must pass the means test established by federal law. This test looks at your household size and your income to determine whether you fall under the financial threshold. Those who do not pass the means tests because they earn too much money must file for Chapter 13. However, you cannot pursue a Chapter 13 filing if you have more than
Discharge or reorganization of debt
With a Chapter 7 bankruptcy, the bankruptcy court will discharge eligible debts. These include medical bills, some tax debts, credit card debts and other unsecured debts. However, if you do not fall under the income limit for a Chapter 7 filing, you must reorganize your debt with a Chapter 13 filing. With this process, the trustee assigned to your case will review your assets and debts to determine how much you can afford to repay. He or she will make a repayment plan you must follow for three to five years, after which you will receive a discharge for the remaining amount.
Time commitment
If you meet the requirements for Chapter 7 bankruptcy, you can complete the process and receive a discharge within about three to five months. With Chapter 13 bankruptcy, your filing is not complete until you meet the terms of the repayment plan, within five years or less depending on your financial circumstances.
Asset treatment
Both types of bankruptcy allow the individual to keep exempt assets, including a car, vehicle and personal items up to a certain value. Chapter 7 requires the person to sell nonexempt assets to repay a portion of debt. Chapter 13 filers can keep nonexempt assets but must pay debtors the equivalent of its value.
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]]>The post How to rebuild credit after bankruptcy first appeared on Golden Law, PC.
]]>Rebuilding your credit after bankruptcy will take time, but it is not an impossible or even difficult task. U.S. News and World Report explains that bankruptcy will have an immediate negative effect on your credit score, but that does not last forever. If you file Chapter 7, the bankruptcy stays on your credit for 10 years, but related accounts may come off earlier.
Options to rebuild
You may think nobody will want to give you credit after bankruptcy, but that is not the case. When you file bankruptcy, you cannot do so again for eight years, so creditors look at this favorably. They know that is one less risk when lending to you. You may get a lot of offers in the mail once you file.
Some of these will be secured credit cards, which require a deposit. They work just like an unsecured card to build your credit. You may also get offers for unsecured cards, but these often have additional fees and high interest rates.
You may have other options as well, such as a credit builder loan. This type of loan is for borrowers with poor or no credit. They are usually for amounts under $1,000. Another option is becoming an authorized user on someone else’s credit card. You can get a credit boost without the liability of having the card yourself.
Whatever option you choose, it is important that you approach it carefully. Be responsible and avoid making the mistakes that helped lead to your bankruptcy.
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]]>The post Bankruptcy, the 341 meeting and your creditors first appeared on Golden Law, PC.
]]>The next step in your journey is to attend the 341 meeting, also known as the meeting of creditors.
Meeting background
The 341 meeting gets its name from Section 341, Title 11, of the United States Bankruptcy Code, which contains the requirements for the first meeting of creditors. If you are filing either Chapter 7 or Chapter 13, it is here, in a location outside of court, that you will meet the trustee appointed by the U.S. Trustee’s Office to administer your bankruptcy case.
Questions and answers
The trustee will ask questions that you must answer truthfully under penalty of perjury. The information you provide about matters such as your liabilities, your current financial condition, property ownership and other subjects related to your bankruptcy help the trustee to better understand your circumstances. The goal is to provide efficient administrative assistance.
Encountering creditors
Notification of the time and place of the 341 meeting will go out to your creditors. If they attend, they may question you about matters pertaining to your bankruptcy. However, creditors rarely appear; they do not jeopardize their standing in your case if they choose to stay away.
About attendance
A word of caution about the 341 meeting: Be sure that you attend. Otherwise, the trustee could ask the court to dismiss your bankruptcy case. In fact, the court could order you to cooperate or face charges of contempt.
Enjoying support
You do not have to attend the 341 meeting alone. Your attorney will accompany you. All you need to bring is your Social Security card or a document showing your Social Security number along with government-issued photo identification, such as your driver’s license. Your attorney will provide the trustee with the necessary documents for your case, such as tax returns, bank statements and property deeds. At the end of the day, the 341 meeting usually only takes a few minutes. Once it is over, you will have cleared an important mile marker on the way to your new financial future.
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