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These days, nobody likes to follow the rules, especially when it comes to filing bankruptcy. Being in a Chapter 13 bankruptcy plan will have the debtor tied down to a bunch of rules for 3 to 5 years. It's like having a dentist appointment for a root canal and it seems it just won't end. Do you know how you have that feeling that you would rather be anyplace in the world but here and yet you have to be there? Even though you don't want to be there you have to go through it and behave, following all the dentist's rules.

When filing Chapter 13 bankruptcy, every different district has their own set of rules that the filer must follow. One rule that most filers have trouble with is borrowing money without permission. In a Chapter 13, the person filing cannot take on any more debt without consulting with the bankruptcy court. Most courts even require the debtor to send their tax returns to the trustee for review. If there are any changes, or even a refund, the trustee might want to adjust the budget or even take part or all of the tax refund. You are at the mercy of the bankruptcy trustee and what rules they require the debtor to file to complete the plan.

If you don't want to have problems and receive the maximum benefits of your Chapter 13, you'll want to do things the way the trustee wants them done. Just like the old expression when in Rome do as the Romans do. Not following along with the simple rules given to you can cause trouble that might require the added involvement of your bankruptcy attorney. If you mess up, the bankruptcy attorney will charge you. That's just what they do. This will just give them more billable hours. I think it's a lot easier to just follow the rules.

If you continue to try and buck the system, with your rebellious attitude, the bankruptcy judge might just throw out your Chapter 13 case. This is probably the worst thing that could happen to you. You will have a bankruptcy filing on your credit report, the creditors will be all fired up and coming after you, and you may be in worse shape than when you began.

If you're having trouble going with the flow of the court, you might consider converting your case to a Chapter 7 bankruptcy. This of course can't happen unless you qualify under the means test. If your financial circumstances have changed and you no longer can afford to stay in the Chapter 13 bankruptcy plan this is something that should be considered.

Trying to convert to a Chapter 7 if you'd knowingly disobeyed court orders in your Chapter 13 bankruptcy plan, you can run the risk of being denied a discharge entirely. Honesty is the best policy when it comes to filing bankruptcy. The reality is, the rules were put there for a reason and it's best to just suck it up and deal with them. If there's something that's just impossible for you to follow consult your bankruptcy attorney and face it head on and try to change it at the court. And if the judge doesn't want to change it, learn to live with it.

The author started FilingBankruptcyNow.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

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From time to time a great subject comes up while you are sitting at hearing waiting for your case to be called. Today was one of those days. Almost every jurisdiction uses a model chapter 13 plan. There are a few holdouts like the Santa Rosa Division of the United States Bankruptcy for the Northern District of California. Usually one of the normal plan provisions is that the debtor elects to have the property of the bankruptcy estate revest in the person who files bankruptcy, the debtor, at the time the chapter 13 plan is confirmed. Right, why not? The Chapter 13 Trustee does not want the liability of the property continuing to be in bankruptcy estate. The debtor should have the right to sell or refinance real and personal property after the chapter 13 plan is confirmed. It is their property.

What Happens When a Debtor Incurs a Post-Petition Debt Though

Well, the property that revested back to the debtor is now available to a creditor, say the Internal Revenue Service, to try and collect on taxes incurred after the petition for bankruptcy protection was filed. Why, because there is now no automatic stay as to the property that revests in the debtor. A recent case in the Ninth Circuit did not help this issue any. It helped to clarify that the Internal Revenue Service could seek payment of unpaid taxes incurred post-petition. What happens to the confirmed chapter 13 plan then? The post-petition collection by the IRS may negatively affect the confirmed chapter 13 plan and possibly make the confirmed plan no longer possible. This also means a mortgage holder on a home does not have to seek relief from the automatic stay to foreclose on a home once the chapter 13 plan is confirmed too. If a debtor misses payments after the chapter 13 plan is confirmed the mortgage company technically does not have to obtain the bankruptcy court's permission to foreclose on the house and enforce their lien.

So What Can Be Done to Protect Those Who File Chapter 13 Bankruptcy?

There are debtors' attorneys trying to insert language into chapter 13 plans to enjoin all creditors from being able to collect on post-petition debts without the bankruptcy court's permission. The issues are whether injunctive relief can be provided for in a chapter 13 plan? If so, how does the balance of benefit and hardships play out to the debtor and creditor involved? Is the injunctive relief reasonable based upon the timing involved to seek bankruptcy court permission? How many days of notice must be given for a hearing? Or must the creditor only provide the debtor with notice and the right to request a hearing? Does the bankruptcy code even provide for this type of relief? These questions will be answered in the next couple of months. It is doubtful that every judge will allow a provision such as this. A good place to start is Section 1322(b)(11) and FRBP 7001(7).

For more information about the bankruptcy process contact our Redwood City bankruptcy attorney or San Jose bankruptcy lawyer to schedule a free consultation. You may reach us toll free at 1-877-963-9543.

West Coast Bankruptcy Attorneys is a Bay Area and California consumer bankruptcy firm filing Chapter 7 and Chapter 13 for individuals in need. Visit West Coast Bankruptcy Attorneys online to find an Fremont bankruptcy attorneys or a Union City Bankruptcy Lawyer committed to providing the best experience for a reasonable fee.

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A Chapter 7 bankruptcy filing allows you to wipe out all of the debt that is currently robbing you of peaceful sleep. You go from stressed out and unable to pay to a sense of relief and a much more manageable financial situation. If this sounds like what you need to do at this point in your life, you have to consider what will happen after you go through with the filing.

Immediate Relief

The first thing most people notice when they decide to go through with a bankruptcy filing is a complete sense of relief. Once you have started the process of filing and all paperwork has been turned in, you can start telling bill collectors that you are filing for Chapter 7 bankruptcy and no longer want them to call your home.

You are also able to stop paying on all of the bills that will be included in the bankruptcy filing in order to keep your level of debt the same until the bankruptcy is finalized in court.

This does take a huge weight off of your shoulders right away, but there are some other things coming up that you need to keep in mind.

Your Day in Court

You will need to go to court with your bankruptcy attorney to get your Chapter 7 filing finalized and approved by a judge. You cannot hide behind your attorney at this type of court hearing. You will be asked some questions and will be required to answer them.

The good news is the questions tend to be straightforward and non-judgmental so you should be able to answer them without feeling as if you are being interrogated, blamed or demeaned.

Some people just don't like this process because they feel uncomfortable or embarrassed. It is just a part of the process that you will have to get through if you want to go through with Chapter 7 bankruptcy filing.

Marked Credit Reports

You will probably have a lot of trouble getting any type of loan or credit card for at least a couple years after going through with a Chapter 7 bankruptcy filing. This is because the fact that you have wiped out your debt through bankruptcy will be marked on your credit report for everyone who checks your credit to readily see.

Bankruptcy is a clear statement that you got in over your head with debt and were unable to repay lenders who previously extended you money. This doesn't give a new lender the warm and fuzzy feeling they need to offer you more money on loan.

With time you will overcome the marked credit report and will have a chance at re-establishing your credit. Lenders will gradually consider you worth the risk if you can show that you have learned from the bankruptcy filing and are now controlling your finances in a much more responsible manner.

Moving on From Bankruptcy

If you know what you are getting into and make sure that a Chapter 7 bankruptcy filing is the only logical solution for your current problems, you will gradually get through the process and move on to brighter days.

There used to be a negative stigma surrounding bankruptcy, but with the economic chaos that has hit the world in recent years it is now a common part of life that most people do not blink an eye at.

That is, most people who are not lenders won't blink an eye at!

The author started FilingBankruptcyNow.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

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So you passed the Means Test and are eligible to file under Chapter 7. That means you're in the clear, right? Not necessarily.

In most cases, it is true that passing the means test will also mean that Chapter 7 is an option for you. However, that is really only the first step to pass. Your Trustee may still object to your Chapter 7 bankruptcy, even if there is no "presumption of abuse" under the Means Test.

The next thing the your Trustee will look at is your monthly expenses compared to your monthly income. If you have too much "excess income" the Trustee will insist on you converting to a Chapter 13 repayment plan. So, if you complete your schedules and you end up with a couple hundred dollars of income above your monthly expenses, that is a problem. For that reason, it is very important to calculate your monthly expenses accurately. Make sure that you include all of your expenses. For instances, you are allowed entertainment expenses, day care, new baby expenses, pet expenses, personal grooming, education expenses for you and your minor children, etc. Unfortunately, one thing that you are not allowed is a contribution to a 401(k) or other retirement plan or even to repay a loan from a 401(k). So, if a large amount is being dedicated to either of those in a month, it may cause a problem.

Another thing a Trustee may object to is loan payments on unnecessary items. So, you may have an asset with a loan against it so that the asset has little or no equity. You may think that is great because you can exempt the asset and keep it. However, if the Trustee determines that you don't need that asset, you may still end up not only losing the asset but also being forced into a Chapter 13.

One example of this is owning an extra parcel of real estate. Oddly enough, if you have a cottage on it, you will likely be able to keep the asset. However, if it is a vacant parcel that you do not have a current use for, the Trustee may very well decide that you do not need that lot. Another example that I have personally seen is a $20,000 tractor. Because the debtor was not a farmer, the Trustee determined that the tractor was really just a toy. So, even though it was exempt, the Trustee objected to the debtor keeping the tractor. This same rationale could apply to any number of assets, including things like expensive cars, boats, trailers, etc.

If the Trustee decides that one of your assets is a toy, the Trustee can force you to surrender the asset. As if that's not bad enough, you will then also likely be forced into converting your bankruptcy to a Chapter 13. The reason for that is that the loan payment and any amounts paid for insurance, taxes, operation, etc. are not now needed in your monthly budget. So, the money that was budgeted for those is now freed up and available to pay to your unsecured creditors.

The moral is, just because you qualify for Chapter 7 under the Means Test, don't automatically assume you are in the clear.

Take a good look at your entire petition and really analyze your assets and your expenses.

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The protections offered under Chapter 7 bankruptcy are nothing new. Chapter 7 bankruptcy has been in existence for a long, long time. However, in recent years, more and more people are becoming aware of its existence and, more importantly, its protections. Why has there been such an increased awareness on the subject? Sadly, more and more people are wishing to learn about Chapter 7 because they may be in dire need of its protections. The current economic climate is dire and this has led to an incredible spike in bankruptcy filings covering many different chapter categories.

For those not familiar with what Chapter 7 bankruptcy is, this would be a form of bankruptcy filing where the courts would determine which assets you possess should be liquidated and what creditors should be paid off first and how much in the aftermath of the liquidation. Needless to say, this does not sound like the road many would prefer to travel since it can be highly stressful and entails handing over financial decisions to the courts. Yet, millions of people are seeking this exact form of protection. Yes, there are literally millions of people seeking bankruptcy protection as the numbers f personal bankruptcy filings have skyrocketed in recent years.

The reason they are doing so is not because the rules of filing for bankruptcy have been made lax. Rather, the current economic climate is so dire that more and more individuals are finding themselves unable to meet their financial obligations. Why is this so? Several of the current economic factors contributing to such an outcome include:

• A collapse of the housing market has led many to lose much of their net worth. When a home is worth less than what it was paid for, serious financial repercussions can result.

• Those that currently have a mortgage and are experiencing a severe decline in value of their home are in an even worse position than someone that has already paid off their home. They are overpaying for property that no longer has equity and has gone "under water." The number of people with such a problem is well into the millions.

• High unemployment has certainly contributed to the increase in Chapter 7 bankruptcy filings. Without a steady income, it can certainly be extremely difficult to stay on top of one's debt obligations.

• Small businesses are becoming money losers. To run a small business that is losing money is worse than being unemployed because of the financial drain it causes. The overhead of a small business could drain personal finances significantly.

• The stock market and the dollar have declined greatly. Such events have occurred as the specter of inflation looms. None of these factors will prove helpful to anyone hoping to reverse a freefall of a bad financial situation.

The widespread calamity of current economic conditions has hit everyone and it has hit everyone hard. For some, the severity of the economy has hit them so hard they need to seek Chapter 7 protection as evidenced by the huge number of bankruptcy filings listed.

Will such a situation abate in the future? Only time will tell...

The author started FilingBankruptcyNow.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in personal bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

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Chapter 13 bankruptcy is basically a repayment plan that allows people to repay part of their debts using their regular income. The period for repayment ranges between three and five years, and this is determined by the court depending on the applicant's eligibility and current situation.

There are some benefits that are associated with this program and one of them is that people have the opportunity to rescue their homes from the nerve wracking foreclosure. The chapter has the power to restrain a foreclosure process.This involves the resolution of past mortgage payments that are due. It also allows individuals to repay their secured debts that might have been incurred within the period of bankruptcy.

These provisions help in lowering the monthly payments for these debts quite significantly. It is also important to note that it also protects the co-signer of these debts. The program has been designed in order to function as a consolidation loan such that the debtor is required to make payments to the trustee who is overseeing the entire process. The trustee is then required to distribute these payments to the creditors after the payment.

The process works in such a way that the debtor has no contact with the creditors and this helps in reducing financial burdens in future. It is possible for one to file for this offer without legal representation but this is only if the debtor is a legal expert in his or her own right. This is however not advised since there are some areas that are extremely complex and that would require a legal expert in this field. It is quite easy to make some misrepresentations as an individual and end up having grave legal and financial repercussions that could end up costing a lot of money.

The debtor is not required to give up assets while under this provision but there are some situations that would require one to liquidate some assets for the payment of part of the debt. It is however important to note that in most cases the debt is paid off over time through the monthly plan. The provision also allows for some exceptions to the filing in some cases.

It is important to know that there are specific debts with which can not be included in this program. These include government fines, tax debts, student loans and child support. There are others that are not covered due to their intensity, therefore, one should have this information. Filling for this kind of bankruptcy however ensures that the debtor is not harassed by creditors.

It is important to notify creditors of the filing as this is what causes the automatic stay to have its effect. This means that creditors have no right to seize any of the debtor's assets or cause any kind of discomfort. This could be in form of harassing phone calls, lawsuits, wage garnishing and many others.

The chapter 13 bankruptcy ensures that the debtor does not lose any of their qualified retirement savings, although these exemptions may differ depending on the state. It is important to consult a lawyer to know how you will be affected right from the start.

Before you file for bankruptcy, make sure you check Sam's excellent website on Filing For Chapter 13 Bankruptcy, and if you should you file for bankruptcy.

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Because of the real estate bubble that happened back in 2008 there has become a large interest in Chapter 13 bankruptcy. The power of a Chapter 13 really shines in stopping a foreclosure, while allowing the debtor to get caught up with back payments and negotiate a payment plan with the bankruptcy court. One of the fears of many going into a Chapter 13 bankruptcy filing is whether or not they will be able to continue making the payments for the 3 to 5 year time frame. There is no reason to worry because all the debtor will need to do is to contact their bankruptcy attorney and asked to modify the court ordered Chapter 13 plan. That's another feature of Chapter 13 bankruptcy that most people don't understand. There is an allowable amount of flexibility when filing bankruptcy under Chapter 13. The court understands that everything in a person's life is not set in stone. In today's current economy this is even more so. Many Americans today are struggling just to keep a job, any job and the court understands that.

If for some reason, the individual filing bankruptcy under Chapter 13 cannot continue making the payments the debtor can call their bankruptcy attorney and ask to convert it to a Chapter 7 bankruptcy. Section 1307(a) of the Bankruptcy Code states, that if you haven't previously converted your case from another chapter, the debtor can convert their bankruptcy to a Chapter 7 for any reason providing they qualify under the means test.

Nowadays, there are many reasons why people want to convert their Chapter 13 to a Chapter 7 bankruptcy. The most common would probably be, the debtor is having a tough time keeping up with the Chapter 13 payment plan. If the debtor can't continue making the payments, the bankruptcy trustee will file a motion with the court to dismiss the case. Obviously, this won't help the debtor's financial situation and the Chapter 7 bankruptcy might be an optional solution.

Many people use Chapter 13 bankruptcy for the reason of protecting their home and/or their car from foreclosure and repossession. If the debtor for some reason decides that they no longer want to keep their home or vehicle they no longer will need to be in a Chapter 13. They can convert to a Chapter 7 bankruptcy and wipe out all their unsecured debt. The Chapter 7 will also eliminate any deficiency owed on the property and also wipe out any future liability.

Using your bankruptcy attorney to convert the Chapter 13 to Chapter 7 is relatively easy. The bankruptcy attorney files a motion to convert with the Bankruptcy Court. The court will then enter a Conversion Order in the next couple days. Most likely, the debtor will be required to file a new means test showing they qualify for Chapter 7 bankruptcy. If all is good, the Chapter 13 trustee will return any funds they were being held to pay creditors.

The debtor can do this entire process on their own, but it's not advised. I suppose you could do surgery on yourself but the results might not be as good as having a surgeon do it instead. The cost of hiring a bankruptcy attorney is minimal when you compare the amount of debt you're discharging and the headaches you're avoiding.

The author formed http://filingbankruptcynow.com/ that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals with debt problems and helping stop foreclosure by putting them in touch with a local bankruptcy attorney. Check our website for more answers to bankruptcy questions for a debt free future.

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Let's face it - the economy is unstable. If you're one of the lucky few people that are 100% certain that your job is secure, then you are in the minority. Most people don't know if they will still have a job a month from now. Therefore, it's not surprising that even if you file a Chapter 13 bankruptcy case, that doesn't mean your income will be the same throughout the term of your plan. The basic concept behind the Chapter 13 "Wage Earner" bankruptcy plan is that, taking into account the income that you earn, minus all the allowable deductions, you have some money left over at the end of the month to pay your creditors.

To be considered a good faith filing you need to make sure that all your disposable income is being paid into the Chapter 13 plan. That may be easy to do in the beginning of your Chapter 13 bankruptcy term, but what happens when you receive a pay cut, or worse, lose your job? Your expenses don't decrease just because your income does. Most expenses, like utilities, food and car insurance remain constant. If there is a loss of income, you may not have sufficient funds each month for your Chapter 13 plan payment. Therefore, what are some of the options that are available for you?

Converting Your Chapter 13 Bankruptcy into a Chapter 7 Bankruptcy Case

One of the first things to be determined is whether you would otherwise qualify for a Chapter 7 based on your current circumstances. If you do qualify for a Chapter 7, then you can file a motion with the court to convert your case to a Chapter 7, and have your case be treated like it was a Chapter 7. This means that you would receive a discharge of all your allowable unsecured debt within three to four months after the conversion to a Chapter 7, and then your case will be closed.

This option is good if you have no arrears for secured debt that you were paying through the Chapter 13 plan. If there were arrears (for example, if you owed money to your first mortgage lender), then those arrears would need to be paid off. If you cannot afford to pay back the remainder of the arrears, your collateral may be repossessed or foreclosed.

Essentially, all benefits that you enjoy in a Chapter 13 would no longer be applicable if your case is converted to Chapter 7, such as the lien stripping of a junior mortgage. Even if the judge granted the motion to strip your junior mortgage, the lien is not taken off your property unless there is a successful completion of your Chapter 13 plan. Converting your Chapter 13 case into a Chapter 7 case means that your Chapter 13 plan was not successfully completed, and therefore, no lien stripping.

Modifying Your Chapter 13 Plan

If you cannot qualify for a Chapter 7 or it is not in your best financial interest to convert to Chapter 7, the next option is to try to modify your Chapter 13 plan payments to a lower amount. The judge may allow you to modify your Chapter 13 plan if you can show that there are changed circumstances which make it hard for you to continue making your plan payments. The amount lowered depends on your specific case. In some cases the Chapter 13 plan payments are already the lowest possible, and therefore a lower payment will not be feasible in the case. If that were to occur, then the other possible option is to have your Chapter 13 case be dismissed.

Dismissal of Your Chapter 13 Case

Your Chapter 13 bankruptcy case may be dismissed either voluntarily or involuntarily (by the request of the trustee or creditors) due to non-payment. If your case is dismissed, then your debts are not discharged, and you are back in the same position as before you filed your bankruptcy case. Any amounts that were paid to creditors through the Chapter 13 plan will be credited towards your accounts with these creditors, but you will still owe the remaining balance. If you were behind on your mortgage or car payments at the time the Chapter 13 case was filed, then your house may be foreclosed on and your car can be repossessed after dismissal and loss the protection from the bankruptcy court.

West Coast Bankruptcy Attorneys is a Bay Area law firm filing Chapter 7 and Chapter 13 cases for individuals in need. Visit West Coast Bankruptcy Attorneys online to find Chapter 13 bankruptcy lawyers in Fremont or Redwood City bankruptcy lawyers committed to providing the best bankruptcy experience for a reasonable fee.

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For personal bankruptcy you have two choices, you can file chapter 13 bankruptcy or you have the option of filing a chapter 7 bankruptcy, the catch is if you qualify.

In 2005 there were changes made to the bankruptcy laws, the major changes came in the area of qualifications. Where in the past most people could qualify for chapter 7 bankruptcy, under the new bankruptcy law they could no longer qualify and only had one choice, that was chapter 13 bankruptcy. Lets take a look at both chapters and explore the differences.

Chapter 7 Bankruptcy

This is called a "Total Discharge" bankruptcy, this means (if you qualify) you can get all unsecured debt discharged and start fresh. This will be on your credit report for 10 years and will impact your ability to get credit for a period of time thereafter.

Qualifications - Lets first talk about assets. In general you have to relinquish most savings, extra property, cars (over a certain value), jewelry and things of this nature. The court will dissolve and distribute the proceeds accordingly, the court has guidelines it follows for this process. The major factor for qualifying for this route is household income. Each state has a median income chart which it uses to determine your qualification status. It's pretty clear cut and if you are under the income limit for your state you have the option to file this way.

Chapter 13 Bankruptcy

There are two reasons you will file this type of insolvency, one is if you cannot qualify for the other version and the other is if you have assets you want to keep, most commonly it is your house.

Chapter 13 is a repayment plan which usually goes for 5 years, it can be approved for 3 years but the court has to approve this. The monthly payment is set by the court in accordance with your financial situation, this means they set you up with a payment you can afford. After you have completed the 5 year repayment plan all outstanding debt is discharged, you are debt free.

As you can see the major difference in the two types of bankruptcy is the discharge time, one is discharged within months and the other requires a repayment plan.

There may be assets you want to save, and even though you qualify for chapter 7 you may want to choose to file chapter 13 instead, this is a choice that you and your bankruptcy attorney should go over.

Although discharging all your debts via bankruptcy may sound like a great idea on the surface, it is not as simple as that, and frankly, which chapter you file is the court's decision, not yours anyway. If you really want to be successful at filing Chapter 13 Bankruptcy with a minimum of hassles, there are things you need to do first to help guarantee your success. For more insights and additional information, as well as getting a free bankruptcy evaluation from an experienced attorney local to you, please visit our web site at http://www.bankruptcy-data.com/review-of-chapter-13-bankruptcy.php

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