Most people know that a Chapter 13 bankruptcy is designed to help you reorganize and pay back your debt. With this process, you won’t have to liquidate your assets, and you may not have to lose your home to foreclosure. The plan can take several years to complete, but by the end, you should be in a financially stable situation. One part of Chapter 13 bankruptcy you may not have known about is called the Chapter 13 hardship discharge. Have you ever wondered what you happen if you had to miss payments due to getting injured or falling ill? That’s something the Chapter 13 hardship discharge can help with. After you’ve decided on a Chapter 13 plan, you have to pay a monthly fee toward your debt. Consider a situation where you fall seriously ill and are hospitalized for months on end. It’s clearly difficult for you to make any payments, let alone work. In this situation, you could apply for a hardship discharge. This discharge is only available to people who have fallen behind on the plan due to situations out of their own control. If you’ve paid enough at this point that the creditors would have been paid… Continue reading
If you lived in a rent-controlled flat but needed to file for bankruptcy, would you worry about losing your home? According to the bankruptcy court’s decision in New York, you shouldn’t have to worry about losing your home when it’s rent-controlled. In fact, landlords aren’t even allowed to evict you as long as you’re abiding by your contract. Thanks to the work of the New York State Court of Appeals and the U.S. Court of Appeals for the Second Circuit, which is based in Manhattan, those who are current on their rent but going through bankruptcy will no longer be able to be evicted from their homes. This goes against the argument that the leases should be able to be sold, helping raise the rent for new tenants and increasing the landlords’ income. Previously, one tenant had been told that her rent-controlled property could be bought out by the landlord when she entered into bankruptcy. Now, the decision protects her right to rent-stabilization measures, because it’s been classified as a kind of public assistance. That means that bankruptcy trustees can’t sell the rent-controlled flats to pay back debts. In the case that went to court, the female tenant fought the… Continue reading
You may be in a bit of financial trouble, and you need to know that you have options. One of the things you may have come across is bankruptcy. A big question you may be asking yourself is if you should file for bankruptcy. There are many myths about it that make it seem like a negative choice, but truthfully, it can have many benefits to you financially. There are two types of bankruptcy that an individual will typically use. These include Chapter 13 and Chapter 7 bankruptcy. Chapter 7 is where you liquidate your non-exempt assets to pay off your debts. Most people think of this kind of bankruptcy when they consider going into bankruptcy. Chapter 13 bankruptcy is another options, which allows you to adjust and reorganize your debts, placing them onto a payment plan. This can help you avoid having to sell or worry about foreclosure on your home. The advantages to bankruptcy range, but the immediate benefit is known as the automatic stay. This notice tells creditors to stop trying to collect money from you. That means you won’t get any more phone calls, threats of lawsuits or wage garnishments. This can help you refocus on… Continue reading
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