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Appleton WI Bankruptcy Law Blog

Claims of fraud in bankruptcy cases

When you choose to file for bankruptcy, you have to list all of the debts that you have in your name. This means that you can't pick and choose which ones are going to be part of the case. Because of this, you have to think about how this will impact your life by looking into what each creditor can do that will affect you. For example, there is a chance that a doctor's office might decline to see you again if you can't pay the bills and they are discharged in a bankruptcy.

One consideration when you file for bankruptcy is that you don't want to be accused of fraud. It is assumed that if you make luxury purchases of more than $725 within 90 days of filing or take out a cash advance of more than $1,000 within 75 days of filing that you did so with the intent to defraud the creditor. If the court finds this is true, it deems the debt nondischargeable. In order to fight this, you have to show that you had no intention to file your case at the time the transaction occurred.

Repayment plans must be taken seriously in bankruptcy

A person who is overwhelmed by debt is likely going to try to find some relief. For some, the only reasonable option is to file for bankruptcy. Unfortunately, there are negative connotations associated with filing for bankruptcy because some people believe this gives you a free way out of all your debt. However, many people facing financial challenges still end up repaying a significant portion of their debts through a Chapter 13 bankruptcy and repayment plan instead.

If you're considering a Chapter 13 bankruptcy, you might wonder exactly what a repayment plan is going to entail. There are several factors that have to be considered. Your income and necessary bills are at the top of the list and help determine your ability to repay some of your debt over time. Once you have this information, a payment schedule can be made toward your debts. The payments that you are required to make will go to the bankruptcy trustee for as long as you remain in bankruptcy, which is generally three to five years for a Chapter 13. You must make all the payments on time so that your case can move forward.

How do you know when to file for bankruptcy?

There are many reasons why people might choose to file for bankruptcy. Knowing when to consider this option is important because you don't want to file if you don't need to, but you shouldn't wait too long. There are some specific cases in which filing is the best option that you have.

Some of the markers that point to needing to file for bankruptcy are fairly clear. When you are making your decision, ask yourself these questions:

  • Do you have a budget in place? You need to know where your money is going and ensure you pay the most urgent bills. Set your budget and rember to follow it.
  • Can you pay your bills at all? You might be able to get a second job or find another way to pay off creditors. This could save you from the expense and effort of bankruptcy.
  • Have you tried to negotiate your bills? Creditors will sometimes negotiate with you just for the assurance that you are going to pay. You may have to be honest and let them know that you are considering bankruptcy and tell them about your hardships before they offer you any options.
  • Are you expecting any financial changes? Many people know when they are expecting to get a bonus or other type of financial boost. It is important for you to review your full financial situation. Look at what's changed in past few months and see if there is anything that might prevent you from having to file bankruptcy.

Know the options you have for getting out of debt

When you are swimming in debt, there is a chance that you will need to find relief because you can't make the minimum payments on multiple accounts. There are a few options that might be viable in these cases.

One of the first things that you need to do is contact the creditor to let them know about the issue. Ask them if they have any programs that might help you reduce the minimum payment but remember that this might work against you because of the interest.

Your situation determines how a bankruptcy will affect you

As the summer months near, some families will be considering taking vacations. Others are more worried about how they will make ends meet. There is a chance that the people in both of these groups will consider bankruptcy before the end of the year. While many people think that bankruptcy is an easy way out of their debts, this is far from the truth.

Whether you just made poor money management decisions or you had to rely on credit to make ends meet because of a life emergency, bankruptcy might be a viable option for reclaiming your finances. You should remember that this is a financially responsible way of handling the matter when you are too far deep in debt to recover and get all the debts paid.

Considerations for young adults thinking about bankruptcy

Some individuals may associate bankruptcy with older adults, but there are instances in which younger people might need to file. People in their 20s may not realize exactly how this decision can impact them. It is imperative that everyone who is young and considering bankruptcy take the time to evaluate the potential effects.

The years of early adulthood are a time when people should be building up their finances. Making good decisions and handling your money wisely can set you on the right path. Unfortunately, some people might not utilize credit in the appropriate manner and the debts may pile up. This can lead to your having to file for bankruptcy.

Determine if Chapter 7 is the right bankruptcy for you

A Chapter 7 bankruptcy is a serious matter that can't be taken lightly. When you are considering this, be sure that you consider what the process will be like for you, as well as how it might impact you. This type of bankruptcy is also known as the liquidation bankruptcy because your assets will be taken by the trustee and liquidated if they aren't exempt from the proceedings.

One of the most important things to some individuals who are considering this type of bankruptcy is finding out which of their assets are exempt and which are nonexempt. We can review your case and let you know what category your assets will fall into. Once you know this, you might be able to decide if this is the best option for your needs.

Choosing legal representation for your bankruptcy case

Filing for bankruptcy is a big life decision. When you are making it, you need to make sure that you have accurate information. This can be obtained by seeking the assistance of an experienced bankruptcy attorney. There are many things you need to think about when you are choosing one.

First, you have to be comfortable discussing every detail of your finances with the attorney. Only when they have all the information can they give you the appropriate options that you have for handling the problem. Any misstatement or omission on your part can make a significant difference in the choices you have.

Know what to expect when you file for Chapter 13 bankruptcy

People who have assets that they want to keep or who have the means to repay a portion of their debts might file a Chapter 13 bankruptcy if they need to reclaim their finances. This form is usually known as the wage earner's plan since you will be making regular payments to the bankruptcy trustee. Those payments will be used to pay off creditors in a way that is in accordance with the applicable laws.

It is imperative that you are completely honest about your finances when you are filing a Chapter 13. The court has to know that you will be able to afford the payments to the trustee and your regular living expenses. You might not have much left after all of this is paid, but that financial struggle will only persist until your case is discharged.

Bankruptcy is a legal way to regain control of your finances

Some people think that filing bankruptcy is a negative event in life. This mode of thinking comes from the lax laws surrounding bankruptc filings before they were overhauled. Now, bankruptcy is only a viable option for people who meet specific requirements. With the new guidelines, this is a viable legal option that people can use to get back on a responsible track with their finances. We are here to help you learn about how bankruptcy can help you to move forward and discover the financial freedom you deserve.

Filing bankruptcy isn't giving up on your debts. Instead, it lets your creditors know that you care about your responsibilities enough that you aren't going to string them along when you know you can't pay them. Depending on the chapter you file, you will either make payments to the trustee or your non-exempt assets will be liquidated to pay off your creditors. Whatever balances remain after your payments or after the liquidation will be written off.