The post Overcoming Concerns and Finding Financial Relief through Bankruptcy with Louisiana’s Premier Bankruptcy Law Firm appeared first on Simon Fitzgerald LLC.
]]>Sarah is a hardworking single mother struggling to make ends meet. She fears the stigma of bankruptcy and worries about what others might think. However, by avoiding bankruptcy, she risks escalating debts, poor credit scores, and potential wage garnishment.
Bankruptcy gives Sarah a fresh start and an opportunity to regain control of her financial life. By filing for bankruptcy, Sarah can eliminate or restructure her debts, prevent further financial decline, and rebuild her credit over time. Our experienced attorneys will guide Sarah through the process, ensuring she understands her rights and helping her overcome the stigma associated with bankruptcy.
John and Lisa are a married couple struggling with overwhelming debts. However, they need to learn about bankruptcy and are unsure if it’s the right solution. Their hesitancy puts them at risk of escalating debts, increased stress levels, and potential loss of assets.
At Simon Fitzgerald LLC, we educate our clients about bankruptcy and its benefits. Our attorneys will provide John and Lisa with comprehensive information tailored to their unique circumstances. By filing for bankruptcy, John and Lisa can alleviate their financial burden, protect their assets, and regain financial stability.
Mark is a young professional facing mounting debts. He is concerned about the impact bankruptcy might have on his credit score and his ability to secure loans in the future. However, by avoiding bankruptcy, Mark risks escalating debts, poor credit scores, and potential wage garnishment.
Contrary to common misconceptions, bankruptcy is a step towards rebuilding your credit. By eliminating or restructuring debts, bankruptcy allows individuals like Mark to start afresh and rebuild their creditworthiness over time. Our experienced attorneys will guide Mark through the process, ensuring he understands the long-term benefits of filing for bankruptcy.
Rachel is a business owner facing financial difficulties. She fears losing her business or personal assets if she files for bankruptcy. However, by neglecting to consider bankruptcy, Rachel risks the potential loss of assets, escalating debts, and increased stress levels.
Bankruptcy laws are designed to protect individuals and their assets. Our expertise allows Rachel to navigate bankruptcy proceedings while safeguarding her business and personal assets. By filing for bankruptcy, Rachel can find relief from debts, protect her assets, and focus on rebuilding her financial future.
Tom and Sarah are a married couple overwhelmed by the emotional stress caused by their financial struggles. They believe bankruptcy will only add to their emotional burden. However, by not considering bankruptcy solutions, Tom and Sarah face potential loss of assets, escalating debts, and increased stress levels.
At Simon Fitzgerald LLC, we prioritize your well-being throughout the bankruptcy process. Our compassionate attorneys will guide Tom and Sarah, providing support and understanding during this challenging time. By filing for bankruptcy, Tom and Sarah can alleviate their financial stress and focus on rebuilding their lives without the constant weight of debt and financial worries.
Alex is a young professional burdened by significant debts. They are concerned about the cost of filing for bankruptcy and whether it is affordable for someone in their financial situation. However, by not considering bankruptcy, Alex faces escalating debts, potential wage garnishment, and the inability to save for the future.
At Simon Fitzgerald LLC, we understand individuals like Alex’s financial concerns. We offer competitive and transparent pricing for our bankruptcy services. Our initial consultation is free, allowing Alex to explore bankruptcy solutions without financial commitment. By filing for bankruptcy, Alex can alleviate the burden of debts, protect their income, and have the opportunity to save for a more secure financial future.
Emily is a recent college graduate facing overwhelming student loan debts. They have heard conflicting information about bankruptcy and are still determining if it applies to their situation. However, by not considering bankruptcy, Emily risks escalating debts, poor credit scores, and potential wage garnishment.
Contrary to popular misconceptions, certain types of student loans can be discharged through bankruptcy under specific circumstances. At Simon Fitzgerald LLC, our experienced attorneys can assess Emily’s situation and provide them with accurate information tailored to their student loan debts. By filing for bankruptcy, Emily can find relief from their student loan burden and focus on building a solid financial foundation.
Michael is a self-employed individual facing financial challenges in their business. Despite the mounting debts, they maintain an optimistic outlook and believe they can overcome the situation without bankruptcy. However, by neglecting to consider bankruptcy, Michael risks escalating debts, potential loss of assets, and increased stress levels.
Bankruptcy is not a sign of failure but a strategic decision to regain financial control. By consulting with our experienced attorneys, Michael can gain a realistic understanding of their financial situation and explore the benefits of filing for bankruptcy. Through bankruptcy, Michael can eliminate or restructure their debts, protect their assets, and create a solid foundation for future business success.
Filing for bankruptcy can address the financial issues individuals like Sarah, John and Lisa, Mark, Rachel, Tom and Sarah, Alex, Emily, and Michael may face. Here’s how bankruptcy can alleviate these concerns:
At Simon Fitzgerald LLC, we are committed to helping individuals overcome their financial challenges through personalized bankruptcy solutions. Don’t let concerns and misconceptions hold you back. Book your free initial consultation now and take the first step toward a brighter financial future.
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]]>The post Will increased credit card debt lead to more bankruptcies? appeared first on Simon Fitzgerald LLC.
]]>Frequently, consumers don’t realize that putting multiple purchases on their credit cards can lead them to bankruptcy. Making a small purchase here and there, plus buying more expensive items for birthdays or holidays can take its toll, especially if you only pay the minimum amount due per month. Before you know it, you have balances you can’t pay, especially if you have multiple credit cards whose issuers keep raising interest rates.
You may have a utility bill due, and you don’t have enough money in your checking account. Although it may not happen the following month, you may have to pay by credit card a few months later. Then there are unexpected expenses like emergency medical bills, so the debt keeps mounting.
Although credit card debt increased by 11% in January 2023, filing for bankruptcy may not be the solution for everyone. For example, when encountering unexpected medical bills, consider working out a payment plan with your provider instead of automatically putting the balance on a credit card. Many providers will allow you to pay over time without interest. If you have high credit card balances, consider bankruptcy alternatives like debt consolidation or debt settlement before heading to bankruptcy.
Bankruptcy is not an automatic solution, as filing will significantly impact your credit score for several years. Review your alternatives to determine whether Chapter 7, Chapter 13 or debt consolidation will be your best course of action.
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]]>The post What cannot be discharged in bankruptcy? appeared first on Simon Fitzgerald LLC.
]]>Americans owe more than $1.76 trillion in student loan debt, which is generally not dismissed by bankruptcy. For bankruptcy to get rid of this debt, you must prove that you cannot pay it now and that your situation is unlikely to change.
If the judge ordered you to pay alimony or child support while you were getting divorced, you would still need to make those payments. Furthermore, if you decide to file for divorce and bankruptcy simultaneously, the courts will put your bankruptcy on hold until your divorce is final.
If you lied to a creditor and they issued you new credit shortly before your divorce, you will have to pay that entire amount. It is up to the creditor to prove that you lied or misled them in some way before you must pay them in full. Furthermore, if you charge more than $800 within 90 days of filing for bankruptcy that is not for necessities, such as food and shelter, you must pay that bill in full.
Taxes due more than three years ago that you never paid may be dismissible in bankruptcy court. Those you need to pay within the last three years will still be your responsibility to pay. If you owe taxes because you committed fraud, the judge will not discharge that amount.
While most unsecured debt is dischargeable, not all of it is. Ensure you understand what debts might remain if you seek debt relief through bankruptcy.
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]]>The post Do you pay for pre-bankruptcy credit counseling in Louisiana? appeared first on Simon Fitzgerald LLC.
]]>Credit counseling providers charge anywhere from $10 to $50 for pre-bankruptcy credit counseling. Considering your financial situation, you may not have the funds to pay the fee. U.S. bankruptcy law states a counseling provider can charge for the course only if you can pay. You will likely receive a fee waiver if your income is at least 150 percent below the federal poverty guideline.
Your credit counseling agency will require information such as proof of income and a budget worksheet. You’ll also have to complete a fee waiver application. The agency will use this information to deny or approve your fee waiver request. If the agency approves your application, you’ll receive free pre-bankruptcy credit counseling.
Your income plays a role in determining your eligibility for the fee waiver. You might need at least two paycheck stubs and your previous year’s W2s. You’ll need legitimate proof of your weekly or monthly income if you’re on a fixed income.
Declaring bankruptcy is a financial decision that will affect your credit rating. However, some people decide that bankruptcy is their best option. A fee waiver for pre-bankruptcy credit counseling is helpful because that’s one less expense. If the counseling agency doesn’t approve the fee waiver, you’ll still likely pay a fee within your budget.
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]]>The post How keep and pay works in a personal bankruptcy appeared first on Simon Fitzgerald LLC.
]]>Banks do not operate in the real estate or automobile sectors, and they will usually prefer to continue to receive payments under a keep-and-pay arrangement than repossess or foreclose on an asset. This is especially true when the asset involved is a motor vehicle with negative equity. This means that the amount recovered from auctioning off the vehicle will not be enough to pay off the loan. Homes rarely have negative equity, but they can take months to sell.
The amount of equity in a keep-and-pay asset must be no more than the relevant bankruptcy exemption. The federal government and Louisiana both have bankruptcy exemptions, but the Pelican State’s are more generous. In Louisiana, you will be able to protect $35,000 in home equity and $7,500 in motor vehicle equity in personal bankruptcy. The federal government provides $27,900 in home equity protection and $4,450 in motor vehicle equity protection.
Bankruptcy exemptions like keep and pay shows that the federal Bankruptcy Code was drafted to help people escape from crushing debt and give them the opportunity to start again. If you are struggling with an unmanageable financial situation, keep and pay could allow you to keep your home or car if you file a personal bankruptcy petition.
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]]>The post Exiting Chapter 13 bankruptcy appeared first on Simon Fitzgerald LLC.
]]>Chapter 13 bankruptcy involves restructuring debts and agreeing to a 3- to 5-year payment plan. So, some debts would face discharge while others may end up negotiated to a lower amount. The remaining debt becomes part of a payment plan, and the debtor must meet the monthly obligations or face bankruptcy dismissal.
Chapter 13 allows those who qualify to avoid going through Chapter 7 bankruptcy, which involves asset liquidations to pay creditors. If the debtor has sufficient income and assets, Chapter 13 becomes the preferred, if not the only available option. Chapter 7 requires passing a means test, which many wage earners might not pass.
A debtor might come into a substantial amount of income that they did not expect. The individual may launch a side business that becomes successful beyond expectations, or the person could inherit substantial assets. In these situations, the debtor might wish to pay off their debts and leave Chapter 13 bankruptcy early.
Exiting bankruptcy requires a ruling from the court, and the court might not approve the discharge. Sometimes, statutory law prohibits the court from doing so, as would happen when the debtor previously filed for bankruptcy and successfully petitioned for a discharge.
Leaving Chapter 13 might require paying all debts in full. So, the debtor should think about their financial situation carefully before requesting a hearing with the judge.
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]]>The post Automatic stays in personal bankruptcy cases appeared first on Simon Fitzgerald LLC.
]]>Automatic stays protect creditors as well as people who file for bankruptcy. This is because they place all interested parties in the same situation and prevent any single creditor from seizing assets before a judge has reviewed the facts and determined the appropriate course of action. An automatic stay does not apply to child and spousal support obligations and cannot prevent the IRS from seizing tax refunds, but it does prevent banks, credit card companies, utility providers, and landlords from taking action to collect debts, shutting off water, gas or electricity supplies or evicting tenants. Automatic stays remain in effect until the bankruptcy proceedings end. This is usually three or four months in Chapter 7 cases, but it can be as long as five years in a Chapter 13 bankruptcy.
Creditors that violate automatic stays face harsh penalties. In addition to being ordered to pay the consumers’ legal fees and compensate them for any financial losses they suffer, creditors that violate automatic stays may be ordered to pay punitive damages. Creditors may petition the court for relief from an automatic stay, but these petitions are rarely granted. When they are granted, it is usually because the debt involved is secured by an asset that will likely depreciate significantly during the bankruptcy proceedings.
Automatic stays protect individuals who file bankruptcies from foreclosures, evictions and wage garnishments and put an end to harassing calls from debt collectors. These court orders establish a level playing field for creditors, and they remain in effect until Chapter 7 or Chapter 13 cases are resolved. Creditors can ask the court to exclude them from automatic stays, but these efforts are rarely successful.
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]]>The post Getting ready for your Chapter 7 bankruptcy appeared first on Simon Fitzgerald LLC.
]]>You should stop using credit cards or other lines of credit the moment that you plan on filing for bankruptcy. If you accrue additional debt just before you file, creditors may claim that you’re not doing so in good faith. This may result in your Chapter 7 bankruptcy case being dismissed or losing access to the automatic stay. An automatic stay prevents creditors from seizing assets, filing lawsuits, or taking other steps to take action on an outstanding debt balance.
During the filing process, you will be required to declare any assets that you might have. Items such as cash in a bank account and an expensive watch of equity in your home would qualify as property held within your bankruptcy estate, although both the state and federal government provide for some assets to be exempt. Lying or making other efforts to obscure the extent of what you own could complicate your ability to obtain a discharge in your case.
Filing for Chapter 7 bankruptcy may allow you to eliminate some or all of your debts in a matter of weeks. After debts have been discharged, you are no longer obligated to make payments or respond to creditor letters or phone calls about those balances. If creditors do contact you about a debt that was discharged in bankruptcy, you may have grounds to take legal action against them.
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]]>The post Should you file for Chapter 7 or 13 bankruptcy? appeared first on Simon Fitzgerald LLC.
]]>Chapter 7 bankruptcy is a good option if you have limited finances and no way to pay back debt to your creditors. In order to qualify, you must pass a means test, which measures your income. If you have little to no income and little to no assets, you can file for Chapter 7 and don’t have to pay back most of your unsecured creditors. However, a trustee is assigned to your case so that any non-exempt assets that carry a value can be sold and the proceeds used to pay down your debt.
Chapter 13 bankruptcy is available for consumers who have too much money to qualify for the means test and Chapter 7. It’s designed for individuals who have a steady source of income and are able to repay at least some of their debt but need more time to do so. With this option, you’re able to repay your creditors over a period of three to five years. You can keep your assets and continue making payments toward debts such as your mortgage and car loan.
If you qualify for Chapter 7 bankruptcy, it can help you retain your exempt assets.
However, if your income bracket is higher and you’ve fallen behind on certain payments and want to keep your property, it makes sense to file for Chapter 13 bankruptcy. You can repay your debts over a longer time and work on repairing your credit at the same time.
Whichever type of bankruptcy you choose, it can help you eliminate some of your debt and obtain some relief.
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]]>The post 8 things to know about bankruptcy appeared first on Simon Fitzgerald LLC.
]]>Bankruptcy is a complicated issue. Here are some things that you should know about this form of debt relief.
The types of debt not eliminated in bankruptcy include child support, judgments for injuries caused by drunk driving, some tax debt and, in most cases, student loans.
Your creditors cannot take collection action against you while your bankruptcy case is active. This means they can’t call you, sue or try to garnish your wages.
Some types of bankruptcy, such as Chapter 13, don’t require you to liquidate assets. Some of your assets also remain exempt from a Chapter 7 liquidation.
Avoid paying off some debts right before filing for bankruptcy. The bankruptcy court considers your assets part of your estate and can require those creditors to repay these funds for redistribution among all your creditors.
If you have a steady income and assets, a Chapter 13 plan lets you repay your creditors over three or five years without giving up your assets. This is an ideal plan for many people.
While filing for bankruptcy can cause your credit score to plummet 100 points or more, this number can rebound. You may even qualify for a mortgage within a few years after your discharge.
Part of the bankruptcy process is a meeting with creditors. Your creditors can come to court and ask you questions about your financial situation.
You must pay court costs and legal fees associated with your case. This is one reason to consider bankruptcy before your finances are out of control.
Bankruptcy might be right for you, but it’s important to review and understand the facts about this legal process and how it may or may not resolve your financial concerns. Take your time, and do it right.
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