B is for Bifurcate, which is a complicated word for a simple process. When you bifurcate a claim, you split it into a secured portion and an unsecured portion. Unsecured creditors in Chapter 13 are not paid interest. By bifurcating a claim, you can substantially reduce the amount you have to pay for certain items. Here is an Example of Claim Bifurcation Let’s look at an example. You are filing a chapter 13 case. You purchased a vehicle and financed it more than 910 days
The ABC’s of Bankruptcy – A is for Address
A is for Address – The Importance of Correct Addresses One of the most important things you should do as a debtor is provide your Tuscaloosa and Birmingham Bankruptcy lawyer a correspondence address for each of your creditors. The address is usually found on your statement. It is different from the payment address (the address to which you send your monthly payment). Understanding the difference in the two addresses is critical to your receipt of a bankruptcy discharge. Notices sent to a payment address will
How to Stop a Foreclosure with a Chapter 13 Bankruptcy Case
How to Stop a Foreclosure with a Chapter 13 Bankruptcy Case Are you behind on your mortgage? Is your lien holder threatening to foreclose on your home? If you are facing Foreclosure, an Experienced Birmingham or Tuscaloosa Bankruptcy Lawyer Can Help! Many people get behind on their mortgage because of lost earnings, illness, or other circumstances that are sometimes beyond their control. When their financial situation improves, they find themselves fighting to save their home while the mortgage company demands thousands of dollars, in a
Where Will My Bankruptcy Case Be Filed?
The place where you live usually determines where your bankruptcy case will be filed. Your bankruptcy case will be filed in the federal district in which you have resided the longer of the last 180 days prior to the filing of your bankruptcy case. It would also be proper to file a case in the place where your principal assets are located. The place where your principal place of business is located is also a proper venue for the filing of your bankruptcy case. Understanding
Bankruptcy and the Debtor’s Responsibilities
If you are serious about getting out of debt you have to step up to the plate and take charge. Getting out of debt takes work. Your bankruptcy lawyer cannot do all the work for you. You must be invested in your case if you want to get a fresh start. Providing Documents The first thing you need to do as a Debtor is to provide all the documents your lawyer requests. Trust me: your bankruptcy lawyer is not going to ask you for documents
How Much Will My Chapter 13 Payment Be?
The amount that you must pay in a Chapter 13 bankruptcy case depends on several factors. Those factors include the results from the means test (more about this later), how much disposable income you have, and how much equity you have in your assets. The Means Test One of the changes made to the bankruptcy code in 2005 was the inclusion of a “Means Test.” The means test is theoretically designed to determine qualification for filing a Chapter 7 bankruptcy case. Additionally, it is also
What is the Difference in a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy?
A common question asked by clients is what is the differences between a Chapter 7 Bankruptcy case and Chapter 13 Bankruptcy case. The simple answer is that a Chapter 7 bankruptcy case is a type of liquidation while a Chapter 13 bankruptcy case is a type of reorganization. There are other differences also. What is a Chapter 7 bankruptcy case? Chapter 7 bankruptcy cases are the shortest cases lasting approximately 4 months. In a Chapter 7 bankruptcy case you must pay your fees and expenses
What Should I Wear to Bankruptcy Court?
Debtors in bankruptcy do not have a dress code, unlike bankruptcy lawyers who have a strict dress code. While there is nothing to tell you what to wear, common sense should tell you that you should wear clothing appropriate for attending a meeting or a hearing in a United States Federal Court. Wear Clean Clothes that Will Help You Make a Good First Impression Everyone’s financial situation is different and everyone has a different wardrobe. When you go to a Federal Courthouse you want to
How do I prepare for my meeting of creditors and what questions will I be asked?
The best way to prepare for your meeting of creditors is to simply review your bankruptcy petition and schedules. After your bankruptcy case is filed, your bankruptcy lawyer should provide you with a copy of all documents filed in your bankruptcy case. Review the bankruptcy paperwork and make sure that you listed all of your creditors and all of your assets. If you missed a creditor or an asset, make sure to tell your bankruptcy lawyer before your first meeting of creditors. You may also
Will I have to Go to Court if I file Bankruptcy?
Chapter 7 Bankruptcy Cases and Going to Court When you file a bankruptcy case the first “hearing” that you will attend is called the first meeting of creditors or the “341 Meeting”. In Chapter 7 bankruptcy cases in the Northern District of Alabama, the Chapter 7 meeting of creditors is conducted by a lawyer who is appointed from a panel to handle the administration of your case. The lawyer is called the Trustee. Your creditors have the right to be present at the meeting; however,