With Help Of Bankruptcy Attorney Salt Lake City Overcome Financial Setbacks
Financial problems can hit anyone. Sometimes they are due to a large investment that did not go as planned. At other times, one of more individuals in the family loses a job. By turning to a bankruptcy attorney Salt Lake City residents can find the legal help to overcome this hurdle.
Laws regarding the filing of bankruptcies were changed in 2005. Individual debtors are required to take part in credit counseling. The sessions must occur within the six months prior to filing. Additionally, once the paperwork is filed, the person must also complete a course in financial management.
Another big change is that filers must now meet a means test in order to file under Chapter 7. This test looks at income for the six months prior to filing. Income must be less than the median of state residents in order to qualify to use Chapter 7. In addition, under Chapter 13, the filer must pay at least $100 monthly for 5 years, ($6,000) in the repayment schedule. If disposable income shows $167 per month in disposable income ($10,000 in 5 years) the filer must file under Chapter 13. The payments under Chapter 13 for those between these figures should add to 25% of the total unsecured debt.
The court will require a lot of documentation that can be provided to the lawyer. Some of the important paperwork to find includes tax forms, properties owned, debts and a listing of living expenses. In addition, be sure you have ready access to any real estate deeds or car titles.
One of the schedules to complete includes the property owned that is considered exempt. Each state sets its own set of exempt properties by state statute. Filers should avoid any temptation toward dishonesty in completing the forms and filings. Lying on these forms is considered perjury and can cause the case to be dismissed with no relief of debt.
When citizens file under Chapter 13, they must include a proposed plan for repayment of their debt. Certain claims, including back child support, taxes and some student loans must be paid in full, while the payments on unsecured debt may be as low as 10 cents per dollar. The payments must total at least what the creditors would have received from the sale of nonexempt property had the individual filed for relief under chapter 7.
As soon as the petition is filed in the court, an automatic stay protects all property the individual owns. Creditors can no longer attempt to collect debt. Foreclosures are also automatically stopped. When filing under Chapter 13, the individual must start making payments in accordance with the schedule. These payments are deducted directly from the filer's wages. The filer must make the arrangements with the court.
When financial difficulty strikes, the law provides a way to overcome the problems. Neither Chapter 7 nor Chapter 13 provides an easy way out. However, they can help the individual to see a light at the end of the tunnel. The changes in the code have made filing more difficult than it was earlier. With the help of a bankruptcy attorney Salt Lake City residents can successfully navigate these waters.
Laws regarding the filing of bankruptcies were changed in 2005. Individual debtors are required to take part in credit counseling. The sessions must occur within the six months prior to filing. Additionally, once the paperwork is filed, the person must also complete a course in financial management.
Another big change is that filers must now meet a means test in order to file under Chapter 7. This test looks at income for the six months prior to filing. Income must be less than the median of state residents in order to qualify to use Chapter 7. In addition, under Chapter 13, the filer must pay at least $100 monthly for 5 years, ($6,000) in the repayment schedule. If disposable income shows $167 per month in disposable income ($10,000 in 5 years) the filer must file under Chapter 13. The payments under Chapter 13 for those between these figures should add to 25% of the total unsecured debt.
The court will require a lot of documentation that can be provided to the lawyer. Some of the important paperwork to find includes tax forms, properties owned, debts and a listing of living expenses. In addition, be sure you have ready access to any real estate deeds or car titles.
One of the schedules to complete includes the property owned that is considered exempt. Each state sets its own set of exempt properties by state statute. Filers should avoid any temptation toward dishonesty in completing the forms and filings. Lying on these forms is considered perjury and can cause the case to be dismissed with no relief of debt.
When citizens file under Chapter 13, they must include a proposed plan for repayment of their debt. Certain claims, including back child support, taxes and some student loans must be paid in full, while the payments on unsecured debt may be as low as 10 cents per dollar. The payments must total at least what the creditors would have received from the sale of nonexempt property had the individual filed for relief under chapter 7.
As soon as the petition is filed in the court, an automatic stay protects all property the individual owns. Creditors can no longer attempt to collect debt. Foreclosures are also automatically stopped. When filing under Chapter 13, the individual must start making payments in accordance with the schedule. These payments are deducted directly from the filer's wages. The filer must make the arrangements with the court.
When financial difficulty strikes, the law provides a way to overcome the problems. Neither Chapter 7 nor Chapter 13 provides an easy way out. However, they can help the individual to see a light at the end of the tunnel. The changes in the code have made filing more difficult than it was earlier. With the help of a bankruptcy attorney Salt Lake City residents can successfully navigate these waters.
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If you are looking for a knowledgeable bankruptcy attorney Salt Lake City residents should visit the web pages here at www.jdmilliner.com today. You can see details online at http://www.jdmilliner.com now.