Chapter 13 bankruptcy affords you the opportunity to keep your most cherished assets. In a Chapter 13 bankruptcy, your debts are consolidated into a monthly payment that lasts for three to five years. After you have completed the payment plan, you may keep your vehicle, house and other possessions while discharging debts. But what happens if you experience financial hardship during your repayment period? Illness, divorce, job loss and other unexpected expenses could derail your payment plan. In such cases, you may have a few options. Modifying your repayment plan: If the court has not approved your payment plan, then you could request a modification prior to its confirmation. You could draft a new plan to present to the court. However, creditors could object to the new plan. Your proposed modification must also be approved by the judge. It is important to demonstrate to the court why you are seeking…
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Bankruptcy has several benefits if you are struggling with excessive debts and creditor collection actions. Filing for bankruptcy not only gives you the chance to discharge some of these debts, an automatic stay goes into effect after you file. The automatic stay prevents most creditors from making collection attempts. An automatic stay can: Delay an eviction. If you are facing an eviction for nonpayment of rent, then the automatic stay can temporarily delay the process. However, this would depend on the circumstances. The eviction could proceed if your landlord had already obtained a judgment before you filed for bankruptcy. Your landlord could also file a motion to lift the stay. Prevent foreclosure. The automatic stay can temporarily halt a foreclosure proceeding, even if you file for bankruptcy at the last minute. If you file for Chapter 13 bankruptcy, then your late mortgage payments would be combined with other debts in…
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Last week’s blog discussed the potential negative consequences caused by having a low FICO score from any of the three credit agencies (Equifax, Experian and TransUnion). However, it is difficult to improve your credit score if you do not know what is on your reports from these agencies. There are several places where you can check your credit rating and report, including annualcreditreport.com. This is the website where you can pull one free report from the three credit bureaus each year. However, this website involves some preparation, which we have explained in a prior blog. If you get your personal information wrong during this process, then you may have to start over and call the credit bureaus directly. There are other places where you can pull your credit reports. Unfortunately, many of these services are not free. com: You can pull your credit scores from MyFICO.com. This website is operated…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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