Filing for Chapter 13 Bankruptcy

People are often confused whether to choose between filing for Chapter 13 or Chapter 7 bankruptcy. Although both options help in ending debt issues, Chapter 13 is a believed to be the more reasonable of the two: Chapter 13 gives the option of reorganizing repayment plans while keeping some properties, while Chapter 7 allows debtors to pay for the debts through liquidation of properties. Sorting out which one will work best for you before deciding which type of bankruptcy to file is the key in ending debt and starting anew.

The first step in filing for Chapter 13 is to know if you are eligible for it. As stated on the website of Birmingham-based Greenway Law, LLC, it is best to have your documents ready to prove that you have enough income to confirm a repayment plan. Next is to check and confirm if your debts are too high, or you can work out an achievable plan or payment. It should be clear to you and on your document how many properties you have and their estimated value because this can directly affect your repayment plan.

Consulting with a lawyer helps in filing out bankruptcy forms to make sure everything is filled out correctly. They can also help in advising you regarding the filing of your forms. After filing, you will be requested to appear in two hearings together with the trustee at the courthouse for review and future plans. Since these meetings are what help determine your intention of repaying your debts, creditors are allowed to attend for them to ask questions and even negotiate. A confirmation hearing will be called for you to present your repayment plan, where creditors can subject and the judge to decide whether to approve or not.

The repayment plan begins 30 after the judge has approved of it. If problems occur, you should report to the court immediately. Missed payments would dismiss the Chapter 13 bankruptcy case. After completing the requirements for the repayment plan, the bankruptcy is discharged, freeing you from any legal obligation for past unpaid debts that are listed on your repayment plan.

Although bankruptcy cases tend to be complicated, asking advice and guidance from lawyers would make it easier and more manageable.

Getting Compensation for Insurance Bad Faith

Allegations of breach of contract claims and tort claims. Insurance policies are essentially a contract between the insurance company and the insured. The distinction is important when it comes to the amount and types of compensation.

Insurance companies are bound by the “implied covenant of good faith and fair dealing” that apply to any contract; failing to act in good faith or to deal fairly with their insured constitutes a bad faith claim, which is a tort claim. On addition, the claimant can also sue the insurance company for a standard contract breach under state business laws. The difference between the claims is that exemplary or punitive damages are not allowed under contract law, but may be permitted under tort law, depending on the circumstances. In effect, the insured may sue for more than the face value of the contract’s terms under a tort claim.

Insurance laws in the US are state-specific, so claims for insurance bad faith will be subject to laws that apply in the state where the claim is made. Under Texas law, there are specific limitations and coverages depending on the type of insurance, the nature of the insurance bad faith, and the number of occurrences. According to the website of Dallas-based law firm Smith Kendall, insurance companies employ a number of strategies that may be considered acts of bad faith. However, insurance law can be quite complex, so it is advisable for any potential claimant for an alleged insurance bad faith to consult with a bad faith insurance lawyer with extensive knowledge of tort and contract law in the state and experience in handling claims.

How You May Be Able to Protect Your Tax Refund during Bankruptcy

When a person is facing debt substantial enough that they are considering filing for bankruptcy as a way to get a fresh financial start, every asset and amount of money that he or she has is important and can make a huge difference in his or her life. Thus, the tax refund money that a person may receive after filing their taxes can be extremely important or even be the difference between being able to afford basic living necessities, such as food and housing. However, when a person files for bankruptcy, particularly Chapter 7 bankruptcy, any assets and sums of money they have are considered part of the bankruptcy estate, meaning that they can be used to pay off some of their bills and loans. As such, any person in this situation may be very anxious about their ability to keep the money they receive as their tax refund.

Although tax refund money is typically considered part of a debtor’s estate that is eligible to be liquidated or used to pay off debts, this does not mean that a person in this situation is without options for keeping their tax refund money. In order to do this though, a person must be careful and should consider the following possible options:

  • Spend the tax refund money prior to filing for bankruptcy. This is a touchy issue, as doing this can be seen as fraud or the objects purchased with the money considered part of the bankruptcy estate. As such, if you choose to delay your bankruptcy filing, you should discuss the particulars with a bankruptcy lawyer and make sure to spend any tax refund money on essentials, such as food and bills.
  • Claim certain bankruptcy exemptions. When filling for Chapter 7 bankruptcy, a person is allowed to exempt certain assets and funds from being used to pay off debts. These exemptions are unique to each state’s regulations, so it can differ from state to state; however, most of the time a debtor has the option of using a wildcard exemption. This exemption allows a person to exempt any property or assets up to a certain amount.

Keeping your tax refund money is difficult, but not impossible. However, with legal support it may be easier for you to find a way to keep this much-needed money.

How to File for Chapter 7 Bankruptcy

click hereDebt is an issue that millions of Americans have to deal with, and for some, overwhelming debts may be too much to handle. In these situations, Chapter 7 bankruptcy may be a viable option for returning to financial normalcy. The following are steps you should take if you are considering pursuing this route:

  1. To begin with, it is necessary to see if you are qualified for a Chapter 7 bankruptcy. You can do this by taking a “Means Test”, which determines if your family’s income is within the maximum limit.
  2. Get mandatory credit counseling, and complete the necessary forms, documents, and petitions. This will give information about your expenses, debts, property, and income. You must include all your debts and the names of your creditors, properties you choose to exempt, and what to do with your secured debts. If you get confused and overwhelmed, ask your bankruptcy attorneys to help you with all the necessary documents.
  3. File your petition in the bankruptcy court. They will then appoint a trustee who will review your documents to make sure they are correct, and see which properties are to be sold. After you have filed for bankruptcy, your creditors will then be prevented from harassing you. There will soon be a creditors meeting, but before you go to the meeting, you must provide your trustee a copy of your most recent tax returns as well as your paycheck stubs.
  4. Attend the meeting with your creditors; this is the time where you can discuss your property and financial affairs. After this, you must accomplish the post-filing of Personal Financial Management Instruction Course, which should be completed within 45 days of the creditors meeting. If you forget or neglect this post-filing, your case might get dismissed.
  5. After a minimum of 61 days after the meeting of creditors, you shall be informed of the final agreement that your debts have been discharged.

Financial Considerations for Late-Life Divorces

When a marriage has lasted for many years, divorce can often be more difficult than it would be for a couple whose relationship has been shorter-lived. In these situations, a divorce is often a life-changing event, one which will dramatically impact nearly every aspect of the lives of both spouses. This is particularly true in regards to financial matters.

Married couples, particularly those who have been together for a long period of time, often share most or even all of their finances, and most of the property held by a married couple is held jointly, meaning that neither partner is fully in ownership of most of their belongings. Furthermore, debts, mortgages, and other financial issues are also commonly held by both partners. In these circumstances, a divorce settlement that is satisfactory for both spouses can be an incredibly complex thing to achieve.

In addition to these factors, couples whose marriages have endured for many years and who are later in life may not be in a secure financial position to support themselves independently. This is particularly true if one spouse has chosen to take time away from their career to raise children or support their partner’s career goals. In these circumstances, it is critical that some form of financial arrangement between the two parties be made in order to ensure that neither spouse suffers unnecessarily as a result of the divorce.

In light of these various financial issues arising from late-life divorces, it is important to take the time to consider all of the factors related to your finances when considering divorce in order to be fully prepared if these issues do eventually arise. The following is a brief list of some of the various issues that older couples who are pursuing a divorce should take into account when considering a divorce:

  • Ÿ  Division of property/assets/debts
  • Ÿ  Financial support arrangements
  • Ÿ  Costs of pursuing a court-settled divorce
  • Ÿ  Pension/retirement plan details
  • Ÿ  Tax exemptions
  • Ÿ  Social Security retirement benefit plans

These and other issues relating to late-in-life divorces should be discussed with an attorney or a mediator before any final decisions are made by a couple regarding how their divorce should be arranged. In many cases, an attorney can help both spouses to reach a more favorable outcome than they might have otherwise realized was available to them.