Goldsmith & Guymon, P.C.Las Vegas Bankruptcy Lawyers | Business Law and Family Law Attorneys2024-02-21T14:21:30Zhttps://www.goldguylaw.com/feed/atom/WordPress/wp-content/uploads/sites/1301465/2020/10/cropped-G-Fav-Icon-min-32x32.jpgOn Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=483272024-01-13T03:23:07Z2024-01-13T03:23:07ZRepayment plans are multi-year obligations
Proposing a repayment plan is one of the most important steps in a Chapter 13 bankruptcy. The filer can then prepare for a meeting with the court-appointed trustee and representatives from the creditors affected by their filing. During that meeting, everyone has an opportunity to ask questions and propose alternative solutions. After agreeing to terms for the repayment plan, the filer begins making monthly payments. They submit the payment to the trustee who distributes the funds in accordance with the plan to the individual creditors.
The amount of the payment each month, the payment each creditor receives and even the duration of the repayment plan are all up for negotiation during a Chapter 13 bankruptcy. At a minimum, the repayment plan needs to last for three years or 36 months. It can last up to five years in some cases involving higher levels of debt.
If the filer experiences any drastic financial changes during the repayment period, they may need to go back to court to request an adjustment of their current repayment arrangements. Failing to make every payment in full might lead to a dismissal of the bankruptcy filing and the filer losing their opportunity for a discharge. People, therefore, need to have realistic expectations about the need to budget carefully and make payments regularly in a Chapter 13 bankruptcy.
Understanding the rules that apply during different types of bankruptcy may help people select the best option given their circumstances.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=483262023-10-11T11:27:00Z2023-10-11T11:27:00ZHow a Chapter 7 filing can help
Some people call Chapter 7 bankruptcy liquidation bankruptcy. That name comes from how the court may require the sale or liquidation of certain resources. In a business-related Chapter 7 filing, it may be necessary to sell off or liquidate some of the company's resources to eliminate its outstanding debts.
The owner will provide an inventory of assets and a comprehensive list of all known outstanding business obligations, including unpaid rent and business credit card balances. The sale of business assets will lead to capital that can then help pay some of the organization's remaining debts. Certain business debts will take priority over others, so it is of the utmost importance that business owners and executives carefully follow the proper process.
After notifying creditors of the filing, attending a creditor meeting and liquidating assets, paying off as much as possible of the organization's remaining debts is the final step. Those who complete that process will be eligible to ask the courts to discharge whatever balance remains on eligible unsecured financial obligations. The attempt to reduce debts by repaying creditors when possible will minimize the likelihood of the owner having liability for those debts in the future. A Chapter 7 filing can therefore provide another layer of protection for those who worry about their business creditors taking legal action against their personal resources or future income.
Particularly if someone made mistakes early in the business formation process that might expose them to financial liability, filing for bankruptcy when closing an organization could be a smart move.
]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=483232023-07-10T17:24:51Z2023-07-10T17:24:51ZWhat is the automatic stay?
An automatic stay is essentially an order to halt all collection activity. Bankruptcy can take months or even years to complete, and it would not be nearly as beneficial if individuals would still have to endure collection activity during that entire time.
The same day that someone submits their bankruptcy paperwork to the courts, the courts send notice to the credit bureaus and a filer’s creditors about the pending bankruptcy case. Most lenders and collection companies subscribe to services that provide them with immediate notice when any Social Security number associated with one of their accounts is part of a bankruptcy filing. Those businesses will usually dismiss lawsuits on their own and also cease collection activity immediately.
Occasionally, some will still attempt to contact the person who filed for bankruptcy. That individual would typically only need to provide the basics of the bankruptcy case to the collection agent to halt future attempts to contact them. However, the automatic stay is neither permanent nor absolute.
If the courts dismiss the bankruptcy, collection activity will resume. Additionally, creditors can file a request with the courts to continue their debt collection efforts or to exclude their debts from the discharge granted at the end of the bankruptcy process. For the most part, an automatic stay means that there will no longer be any aggressive letters or unpleasant phone calls made related to someone's past-due financial obligations.
Many people time their bankruptcy filings a certain way because they need the protection of an automatic stay. Learning more about the basics of the opportunities that a bankruptcy filing offers may help someone to see the benefits of asking the courts to discharge their debts.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=483012023-04-12T10:39:17Z2023-04-12T10:39:17ZHow bankruptcy can help
The most immediate way that bankruptcy helps someone who has fallen behind on their mortgage is through the automatic stay. The courts send out notice of the bankruptcy filing, which will likely terminate collection activity, including pending foreclosure proceedings in civil court.
Another way bankruptcy helps is by freeing up more of someone's income to dedicate toward those monthly mortgage payments. If they don't have to worry about making payments each month on their credit card debt, for example, then they may have an easier time catching up on those missed payments. Additionally, especially if someone files for Chapter 13 bankruptcy, they may be in a favorable position to renegotiate certain aspects of their mortgage with their lender.
Changing the repayment period for the loan or moving the past-due payments to the end of the repayment period are both possible modifications that could help someone who has fallen behind on mortgage payments.
Overcoming debt may require drastic steps
Those who have reached a point where they struggle to make even minimum monthly payments on their accounts or cover their mortgage may need to be honest with themselves about the need to take drastic steps to correct their financial circumstances.
Filing for personal bankruptcy can help individuals who are worried about protecting their most valuable property or the possibility of wage garnishment avoid worsening financial circumstances caused by unmanageable debt. Understanding more about personal bankruptcy can help those who are struggling with the risk of possible foreclosure and overwhelming debt choose the best solution for their unique circumstances with the assistance of a legal professional.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=482932023-01-11T19:26:20Z2023-01-11T19:26:20ZWhy would successful professionals need to file for personal bankruptcy?
High earners tend to carry more debt
Although it may at first seem counterintuitive, there's plenty of data supporting the claim that successful professionals may have far more debt than middle-class or working-class adults. The more someone earns and the more ambitious their aspirations, the more important it will be for them to project a constant image of success. The pressure to keep up with the proverbial Joneses can contribute substantially to people's debt levels in the white-collar world.
Their income is too high for Chapter 7
Perhaps a successful professional suddenly lost their job and fell a few months behind on credit card payments. They may pursue a Chapter 13 bankruptcy because even after multiple weeks of unsuccessful job hunting, their average income over the last six months will still be too high to pass the means test for a faster Chapter 7 bankruptcy.
Bankruptcy exemptions won't be enough
Maybe someone has accumulated all of the resources necessary to start a new business. Those assets would be subject to liquidation in a Chapter 7 bankruptcy, setting them back to square one. Although it is possible to preserve some of your possessions in a Chapter 7 bankruptcy, much of your valuable property can be subject to liquidation or sale by the bankruptcy trustee.
A Chapter 13 bankruptcy has no liquidation requirements. Instead, someone makes multiple years of structured payments to their unsecured creditors. You can preserve your assets while still eventually qualifying for a discharge of your remaining unsecured debts.
Recognizing that many successful professionals have used Chapter 13 bankruptcy to start their financial recovery may inspire you to follow their example.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=482772022-10-10T18:53:18Z2022-10-10T18:53:18ZIssuance of an automatic stay
One of the benefits of filing for bankruptcy is the issuance of the automatic stay. This is an order by the court that prevents creditors from trying to collect money from you. Some wage garnishments are included in the automatic stay, so this might be the only thing that you have to do to get the garnishment lifted.
Automatic stays usually last until the bankruptcy case ends; however, there’s an important exception to this. If you’ve filed bankruptcy multiple times in one year, the stay may not be issued or it could be limited to only a 30-day period. This means that bankruptcy wouldn’t be an effective way to stop the wage garnishment.
Limitations of the automatic stay
There are some wage garnishments that bankruptcy won’t stop. These include ones that are for student loans and child support. Additionally, some tax debt wage garnishments won’t be lifted because of filing bankruptcy.
If you’re filing for a Chapter 7 bankruptcy, the debts that are being garnished from your wages must be classified as dischargeable. The debt will be discharged through the bankruptcy so you won’t have to worry about a garnishment on it again.
If you’re filing a Chapter 13 bankruptcy, the wage garnishment is lifted as long as you make the required payments that are part of the plan to pay debts over a three to five year period. Remember, the court may issue a wage garnishment order for the bankruptcy payments, but it should be manageable.
Anyone who’s facing a bankruptcy should ensure they understand how it will impact them. Working with someone who’s familiar with this process can help you ensure you’re making decisions in your best interests.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=482672022-08-18T20:50:18Z2022-08-18T20:50:18ZYou won't need to liquidate anything
In a Chapter 7 filing, you must provide the courts with documentation regarding your personal assets. The trustee presiding over your case will then determine what property is exempt and what property is not. You will have to sell off or liquidate your non-exempt property before the courts will discharge the rest of your unsecured debts.
A Chapter 13 bankruptcy does not require any liquidation of your property at all. You won't have to scramble to protect certain property, like your home equity or your vehicle. Instead, you will have to commit to a repayment plan which can benefit you and your creditors.
Negotiating a plan can make your debt more manageable
The terms of your repayment plan will include at least three, but possibly up to five, years' worth of structured payments. You will have the necessary leverage to renegotiate certain terms on your loans, and your budget will be easier to manage after the discharge of your remaining unsecured debts.
The trustee presiding over your case will receive those monthly payments and then distribute the funds to your creditors according to the arrangements negotiated at your creditor meeting. You will then be eligible for the discharge of the remaining balance on those accounts after making the necessary payments.
Learning about the rules for a Chapter 13 bankruptcy can help you make the most of the financial and legal protections that exist for those with overwhelming debt.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=481602022-04-12T18:07:51Z2022-04-12T18:07:51ZChapter 7 does require the sale of propertyChapter 7 bankruptcies can protect individuals from creditor lawsuits and constant collection efforts, but at a cost. People also refer to Chapter 7 proceedings as liquidation bankruptcies because this kind of bankruptcy requires that someone sell off some of their personal property before they receive a discharge.
The idea that the court could force you to give up your personal property is a major deterrent for some people considering Chapter 7 bankruptcy. Homeowners, in particular, may worry about losing what they have invested in their residence. Is your home at risk in a Nevada Chapter 7 bankruptcy filing?
You have the right to protect home equity
Nevada state law and federal rules create options for Chapter 7 bankruptcy. There are certain assets that you can protect from liquidation while still qualifying for the discharge of your unsecured debt. Nevada has a generous homestead exemption. You can protect up to $605,000 in home equity as of 2022, double that amount if you file jointly for bankruptcy with your spouse.
If you have more equity in your home than this, the trustee overseeing your bankruptcy may require that you refinance and use the excess equity to repay some of your creditors. If you have any more equity than the current exemption limit or if you have other property that you cannot risk losing to liquidation, then a Chapter 13 bankruptcy may be a good option for you.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=481542022-01-10T22:34:57Z2022-01-10T22:34:57ZA new bankruptcy will drag down your credit score
There is no question that your bankruptcy will drastically reduce your credit score, often by 200 points or more. However, a successful bankruptcy discharge will remove late payment records and collection accounts from your record. In other words, it replaces multiple negative marks with one notable blemish.
As time passes and you establish a history of responsible credit use, your score will go back up. You can apply the information provided in your mandatory credit/debt education to make better decisions after your bankruptcy.
New lines of credit will be an option after your discharge
The more time that passes after your discharge, the easier it will be for you to qualify for better financing options. Even while your credit score remains quite low, you may qualify for new credit. Credit cards are often available within months of a discharge, although the terms are often less than ideal.
Many people who file for bankruptcy will qualify for larger financing and better terms roughly two years after their discharges. Within five years, better terms on larger loans, like mortgages, will become available. Seven or 10 years after your discharge, the record of your bankruptcy will come off of your credit report and will no longer limit your future credit opportunities.
Learning the basics of bankruptcy can help you feel more confident about taking control of your financial circumstances.]]>On Behalf of Goldsmith & Guymon P.C.https://www.goldguylaw.com/?p=481402021-10-08T18:54:07Z2021-10-08T18:54:07ZConsider bankruptcy to help you stabilize your finances quickly
Often, bankruptcy is seen as a negative blight on your record, but the reality is that it has a place and could help you overcome financial difficulties in your life. Instead of struggling to pay down medical debt or credit cards that are out of control, there are options like Chapter 7 bankruptcy, which let you get a fresh start.
Women can face unique financial challenges, which is why considering bankruptcy may be a good choice. Finding a new job at the same pay scale could be tough due to gaps in pay in the industry, for example, or injuries related to pregnancy might impact your ability to work.
Taking control of your budget is the first step to financial freedom
Taking back control of your finances is a priority. Bankruptcy may not be the right choice for you after you look at your budget and figure out if there are places you can cut back or ways to improve your income. However, if you find that you will still be struggling despite your best efforts, then bankruptcy may be right for you.
Bankruptcy will affect your credit and have an impact on your life in the short term, but for most people, the benefits do outweigh the negatives in terms of saving money and getting back into a place of financial control. It is worth looking into bankruptcy, as well as the different kinds of bankruptcies, to determine if it could be right for your situation.]]>