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Need a Free Case Review? Click here! If you are struggling with financial issues such as being behind on your house or car payment, garnishments, threat of repossession, etc., we want the opportunity to meet you, to give you the facts about your case, your rights and the law. You deserve an experienced attorney working on your case. It is our mission to help clients through difficult times by providing outstanding legal representation and compassionate service. Idaho Bankruptcy attorney, Kameron M. Youngblood, has successfully represented hundreds of clients in Chapter 7 and Chapter 13 bankruptcies. He, along with his staff, will help guide you through these tough times. He will answer all of your questions thoroughly so that you don’t have any doubt in your mind what you need to do. If he feels that bankruptcy is not the answer at this time, he will let you know what other options are available to you. “We are a debt relief agency”
About Bankruptcy:Bankruptcy is a federal law designed to give people who have fallen into financial difficulty a chance to start over. People who have fallen behind in their debts due to medical emergencies, loss of a job, loss of a loved one, on the job injuries, or simply living above their means may be candidates for the fresh start afforded them by the federal bankruptcy laws. There are 4 types of bankruptcies available however; there are 2 main types of bankruptcies that we do. They are: Chapter 7 and Chapter 13. • Chapter 7 (a liquidation-style case for individuals or businesses), • Chapter 13 (a payment plan or rehabilitation-style case for individuals with a regular source of income), • Chapter 12 (a payment plan or rehabilitation-style case for family farmers and fishermen), and • Chapter 11 (a more complex rehabilitation-style case used primarily by business debtors, but sometimes by individuals with substantial debts and asset). Chapter 7 Bankruptcy
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What are the main purposes of bankruptcy?Bankruptcy laws serve two main purposes. First, bankruptcy law gives creditors some payment on their debts if a debtor (the one who owes the debt) can afford to pay them. Second, bankruptcy law gives debtors a fresh start, by canceling many of their debts, through an order of the court called a discharge.What is the new bankruptcy law about?The new bankruptcy law started on October 17th, 2005. It is designed to force more debtors into a repayment plan under Chapter 13. It also requires two classes (online or telephone) and has many procedural requirements like filing copies of your last 60 days worth of check stubs from work and your most recent tax return with the Court. Most people should still be able to file a Chapter 7 (full discharge).Can I still file for bankruptcy if I have in the past?Yes, depending on how long ago, and what type you filed, will depend on which type of bankruptcy you will have to file now. Chapter 7 bankruptcy’s have to be eight (8) years apart to receive a discharge. If you do a Chapter 7 bankruptcy you can do a Chapter 13 within 4 years of each other to receive a discharge.Example: If you filed a Chapter 7, five years ago, you will have to file a Chapter 13. If you filed a Chapter 13, six years ago, you can file a Chapter 7, if eligible. Does a debtor have to “qualify” for bankruptcy? How will I know if I am eligible?Today’s law allows debtors, for the most part, to choose the type of bankruptcy they want to file, though there are reasons a debtor might choose one chapter over another.For example, a chapter 13 case allows a debtor to catch up on missed payments owed to creditors holding a security interest in collateral, such as a mortgage or auto lender, and therefore might be a better choice for some debtors. As long as the debtor’s plan has been approved by the court and the debtor is maintaining payments to the trustee, the collateral will be protected from repossession. For cases filed on or after October 17, 2005, access to chapter 7 will be more limited. Individual debtors with primarily consumer debts who want to file a case under chapter 7 will have their finances examined to determine if they can afford to pay creditors. If they can, based on a set formula know as the “means test,” they will not be eligible to file a chapter 7. If they want to file a bankruptcy, they will need to file a chapter 13. The “means test” is designed to force people who can afford to pay some of their creditors to do so rather than discharging all their debts in a chapter 7. The means test compares the debtor’s excess monthly income to the amount of unsecured debt to determine how much a debtor could repay to creditors if he were in a chapter 13. Because this calculation is hypothetical and does not necessarily reflect the debtor’s true financial condition, a debtor who appears to be able to repay the minimum portion of his debts but who, in reality, cannot, may be permitted to stay in a chapter 7 case. Unfortunately, the means test is more complicated than we can explain well here. How will bankruptcy affect my credit?If you have high debt your credit has already been affected. For most of our clients, discharging high debt improves their credit. Most of our clients receive many offers of credit as soon as they are discharged. Banks know you cannot file a Chapter 7 for another eight years, and with little or no debt you become a good credit risk. But we encourage you to avoid using credit and live on a cash basis. We encourage clients to borrow only for major purchases like home and car. Living on a CASH BASIS will set you free!Can I keep my home and automobile?In many cases you can retain your home and automobile in a chapter 7 bankruptcy proceeding. You will lose your home or automobile in a chapter 7 if (1) you are behind in making payments on a loan secured by the home or automobile and can not reach a payment agreement with the creditor, or (2) the home or automobile has equity (I.E. a liquidation value in excess of the amount owed to creditors with liens against the property) in excess of what you are allowed to exempt.If either of these two conditions exist, you might consider filing a chapter 13 petition, which allows you to develop a plan for repaying your creditors without necessarily liquidating assets. Can I keep one credit card off my bankruptcy for future use?You are required under the bankruptcy code to disclose all assets and all debt. So you do have to list all your bills. As a practical matter, the credit card companies subscribe to services that notify them of all bankruptcy filings, even if they are not listed on the petition. Once they discover you have filed bankruptcy they will close your account, often after you have made another payment. You are much better off to just use a debit card for future reservations, Internet purchases etc.What happens to my personal property, real property and other assets?Once the bankruptcy is filed, all of your property at the time of the filing and certain other property to be received in the future, becomes the property of the bankruptcy estate. This means that the bankruptcy trustee may take control of this property to satisfy your creditors. You are required to file a schedule with the court describing all of your assets.Certain property is either "excluded" from the bankruptcy estate or "exempt," and you will be able to keep that property. Often, all of your assets can be protected. However, if any question exists regarding protection of assets, you should hire an attorney to ensure that the exemptions are properly chosen and applied to maximize the value of assets retained. Can creditor harassment be stopped?There are several strategies for dealing with creditor harassment. First, be as honest as possible. If you explain why your account is in default, you may be able to persuade the creditor to allow you more time for payment or to make other arrangements for payment. But this is not always the case. Some creditors and collection agents are reasonable; others may rely on threats and intimidation.A second method of stopping creditor harassment is to file for bankruptcy. Though bankruptcy can have long-lasting consequences, it may be the best solution in certain cases. In addition, filing for either Chapter 7 or Chapter 13 bankruptcy will immediately stop creditor harassment. Can home foreclosure be prevented?If a person gets behind on his or her house payments, the creditor may call the loan in default, accelerate the debt, and begin foreclosure proceedings. When a debt is accelerated, the full balance of the note, not just the monthly payments, is due, in full, immediately. This is usually preceded by the creditor's refusal to accept monthly payments.In the event a creditor begins foreclosure, you will receive a notice of the foreclosure proceeding. Unless the creditor is willing to accept payments to reinstate the loan, you will have to either pay the full balance remaining on the loan, or file bankruptcy for protection to stop the foreclosure. One additional option is to contact HUD for mortgage assistance. Sometimes creditors will agree to stop foreclosure while HUD is reviewing your file. The beginning of a bankruptcy case, if before the foreclosure sale date, will stop the foreclosure sale from taking place. Under a Chapter 13 plan, you can make regular monthly payments and be given a reasonable period of time to bring your loan payments up to date to save your property. Can lawsuits and judgments be stopped?The filing of either a Chapter Seven straight bankruptcy or Chapter Thirteen debt adjustment immediately stops any lawsuits from being filed or judgments being taken against you. If a law suit is pending at the time of such filing, it can go no further. If a judgment has been taken, its enforcement can go no further. If a creditor has a judgment and is garnishing your wages, the garnishment can be stopped. Filing for Chapter Seven straight bankruptcy may relieve you of the obligation to pay the judgment. In a Chapter Thirteen debt adjustment, you may be able to satisfy the judgment over a period not to exceed five years. If the judgment has placed a lien on your home, that lien can be removed if it interferes with your homestead. If lawsuits or judgments are a threat or reality, the protection afforded under the bankruptcy laws may be an appropriate solution for you.What debt is discharged, what debt is not?
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Youngblood Law Office
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