Considering Chapter 7 Bankruptcy [mortgagefraud101.blogspot.com]
Redwood Lanes, a Central Avenue bowling alley that made history in 1962 hosting the first live Professional Bowlers Association telecast on ABC, has filed for Chapter 7 bankruptcy on Monday. Times Union sports reporter and bowling expert Pete Dougherty ... Redwood Lanes files for Chapter 7 bankruptcy
It is now more important than ever to consult with Franklin bankruptcy lawyers when considering whether or not to file for bankruptcy. An individual needs to know whether they should be filing for chapter 7 or chapter 13 bankruptcy, and to be aware of the new bankruptcy laws.
Chapter 7 bankruptcy involves liquidation to help repay debts while chapter 13 bankruptcy is essentially a three to five year debt repayment plan. Newer bankruptcy laws have actually made it harder to file for chapter 7 bankruptcy, and more difficult to file for bankruptcy in general.
Individuals with higher incomes might not qualify for chapter 7 under the new laws, and all debtors must receive credit counseling before filing. They must also receive counseling on budget and debt management before having their debts completely wiped away.
When considering filing for chapter 7, the new laws state that an individual must measure their current monthly income against the median income for an approximate household of the same size in the same state.
If the current monthly income is less than or equal to the median income, then the individual may file for chapter 7.
If it is greater, then the individual must take the means test.The means test determines how much disposable income an individual has after subtracting certain allowed expenses and required debt payments. This determines how much an individual reorganizes their debts for chapter 13 bankruptcy.
Remember that credit counseling is required before filing for either chapter 7 or chapter 13 bankruptcy and must be counseling performed by an approved US agency. This counseling helps individuals decide whether they actually need to file for bankruptcy or if an informal repayment plan might be better suited for their situation.
Even if an informal repayment plan isn't feasible or an individual finds his debts unfair and unwarranted, they must participate.
However, they do not have to go along with any repayment plan the agency suggests. An individual must submit that plan and a certificate showing that they completed counseling to court before filing for bankruptcy. Related Considering Chapter 7 Bankruptcy Issues
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