South Bend Bankruptcy Attorney – Your Tax Refund and Bankruptcy

Posted on January 12, 2012 by jeffhaupt

It’s that time of year again. The time of year when many people are expecting an influx of cash in the form of a tax refund. Normally, for many people receiving a refund this is a welcomed event. If you are filing Bankruptcy and don’t plan appropriately then you could be at risk of losing the tax refund to your creditors, as your tax refund will be considered an asset by the Bankruptcy Trustee.

Why is My Tax Return Part of My Bankruptcy Estate?

Your tax return is income (in most cases). Basically, when you get a tax refund from this represents the fact that you have overpaid (from your income) your tax liability. The Bankruptcy Trustee’s goal is to try to find assets to pay your creditors and nothing is easier to find and obtain than a tax refund.

Can I Keep Any Part of My Tax Refund if I File For Bankruptcy?

Indiana law allows for certain exemptions when filing for Bankruptcy. One of those exemptions relates to portions of your tax return that is tied to the Earned Income Credit. So if a good deal of your income tax refund is related to the Earned Income Credit, you can protect it from becoming part of the Bankruptcy Estate.

When you file Bankruptcy you are also allowed to keep a certain amount of money in a checking and/or savings account. This amount is not that high, but it still can protect a few hundred dollars of a single filer’s tax refund or a few hundred more for a joint income tax refund.

What Happens if I Spend My Tax Refund and Then File Bankruptcy?

It really depends. Did you go on a cruise or buy a new motorcycle with the tax refund? Chances are the Bankruptcy Trustee would have a problem with these luxury purchases. If you used the money for normal day to day living expenses, such as mortgage payments or rent payments, groceries, medical and dental needs, car repairs and maintenance, clothing, etc. What I typically advise my clients to do is to keep track of what you have spent the money on.

It is always best to talk to a Bankruptcy Lawyer about how your tax refund will be viewed by the Bankruptcy Trustee and whether you can exempt any portion of the tax refund.

The Law Office of Jeffery M. Haupt is located in South Bend, Indiana and helps people handle family law issues such as divorce, child support, paternity, and child custody, criminal defense matters, DUIs, theft charges, and license suspensions; and financial matters such as Bankruptcy and Foreclosure. The information in this blog should only be used for educational purposes and not be construed as legal advice. Nothing in this blog creates an attorney-client relationship between me and any readers of this blog. No attorney-client relationship is created until you have a document from me saying so. DO NOT POST ABOUT CASE PARTICULARS IN THE COMMENT SECTION.

We are a debt relief agency, we help people file for Bankruptcy.

South Bend Bankruptcy Lawyer – What to Expect from a Chapter 7 Bankruptcy

Posted on January 10, 2012 by jeffhaupt

If you are experiencing financial difficulties you may be thinking about whether you should file for Bankruptcy or not. There are many myths and rumors about Bankruptcy and honestly the best way to get an understanding of whether Bankruptcy is right for you is to talk with a Bankruptcy Attorney about the specifics of your case. But, in an attempt to provide some basic understanding of what to expect when it comes to filing for a Chapter 7 Bankruptcy, I’ve prepared this quick overview.

Will I Lose Everything if I File a Chapter 7 Bankruptcy?

This is a common question that gets asked a lot. The truth is that you may be forced to give up some assets if you have any. For most people that contemplate filing a Chapter 7 Bankruptcy you will be given the ability to exempt certain property. An exemption is the chance for you to hang on to something. This something could be a car, jewelry, equity in a home, personal items, etc. What the exemptions protect varies from State to State, but for most people faced with the idea of filing a Chapter 7 Bankruptcy, they should be able to keep a good amount of what they own.

What if I Still Owe Money on My Car? Can I Keep it Even if I am Filing Bankruptcy?

Chances are you could still keep a car that you are making payments on if you are willing to sign a reaffirmation agreement with your lender. The reaffirmation agreement allows you to continue making payments on your car and essentially make an agreement that you will pay this debt even though you are filing Bankruptcy. Is this a good idea? It depends…If you owe a lot and the payments are extremely high, then you may want to strongly consider surrendering the car in the Bankruptcy, but in a situation where you may have the car almost paid off, then a reaffirmation agreement might not be such a bad thing. In this situation it is best to consider your individual circumstances when consulting with a Bankruptcy Attorney.

My Credit Score Will be Ruined if I File Bankruptcy!

It is true that a Bankruptcy filing will have a negative impact on your “credit score,” but the reality for most people is that you have likely reached a point where you may have several judgments against you from creditors, possible foreclosure, liens, garnishments, etc. All of these items have a negative impact on your credit score. So if you are in a situation where you have many delinquent debts then your credit score is probably already pretty low. The Bankruptcy process is more geared at giving you a fresh start or relieving you from the burden of crushing debt.

How Long Does it Take to Get Through a Bankruptcy?

It can vary, but for the most part the meeting of creditors will happen sometime within four (4) to eight (8) weeks from the time you first file the Bankruptcy petition. Once the Meeting of Creditors (or Section 341) meeting occurs, then you can expect your discharge a few months after that, assuming there are no problems.

What is the Meeting of Creditors?

It is a chance for your creditors to ask you about your assets, liabilities, property transfers, etc. More often than not, creditors do not show up to the Section 341 meeting. Realistically, the time is used by the Bankruptcy Trustee to ask you questions about your liabilities and assets.

These are just some of the basics of Bankruptcy to give you an idea of some of the things to think about when contemplating what will happen during the Bankruptcy process. If you have more questions (and your are in the Northern District of Indiana) please feel free to give my office a call.

We are a debt relief agency, we help people file for Bankruptcy.

South Bend Bankruptcy Attorney – Should I file for Bankruptcy?

Posted on December 11, 2011 by jeffhaupt

Should I file for Bankruptcy? This question is very common and is asked often during the course of a bankruptcy consultation. The answer, it depends on you. If you don’t hear this from a bankruptcy attorney before you have had the chance to sit down with him or her, I would strongly suggest you consider looking further. The answer to this question depends on a number of factors such as, with sort of debts do you possess, how much income you have available, how much total debt you possess, what sort of items do you want to keep, etc.

For example, you may be feeling the pinch from your student loans, but only have about $5,000 to $10,000 in other types of unsecured debt. For most people student loans simply are not dischargeable in bankruptcy, so in most instances this could be a situation where filing for bankruptcy may not be that helpful. Of course there are exceptions, but again if you are like most people facing this situation, you would be better off seeking a forbearance or deferment from your lender, and trying to get other bills caught up.

What if you have all medical debt? Perhaps you didn’t have health insurance and you needed to go to the hospital for an emergency. More often than not, these types of cases do end up in bankruptcy. Most clients that I see, tend to have situations where there are not a lot of assets to worry about and the bankruptcy exemptions would allow them to keep most if not all of their property.

There are a number of situations where the question of whether or not to file bankruptcy is not so clear cut. These are the situations in which consulting with a lawyer can be of great benefit.

if you are considering bankruptcy, talk to a local south bend bankruptcy lawyer today.

South Bend Bankruptcy Lawyer Understanding Bankruptcy

Posted on December 4, 2011 by jeffhaupt

When contemplating filing for bankruptcy, many times you may have questions about how bankruptcy works; what options are available for you under the bankruptcy code; and whether or not bankruptcy is right for you. While this article attempts to give a simplified explanation of some of the differences between a Chapter 7 and a Chapter 13 Bankruptcy, it is best if you consult a Bankruptcy Attorney near you to get an idea of how the law applies to your case.

bankruptcy

Chapter 7 Bankruptcy

The majority of bankruptcy filings in the United States are under Chapter 7 of the Bankruptcy Code. Chapter 7 is typically a preferred method of filing bankruptcy for most debtors because it serves to liquidate the majority of your debts. This allows you the fresh start as most debts will be eliminated.

A bankruptcy filing under Chapter 7 will also allow you to keep a fair amount of personal property and even exempt a certain amount of real estate from being taken by the Bankruptcy Trustee for purposes of being sold to help pay for debts. These exemptions allow to you get the fresh start without having to lose your car or home.

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy is a way to eliminate your debts through the use of a payment plan. Often time a Chapter 13 Bankruptcy will last anywhere from 3 to 5 years. Typically, a debtor will choose a Chapter 13 plan if they are trying to save their family home or other type of asset. Another reason a debtor could end up in a Chapter 13 is by making too much money. If you do not qualify under the “means test” you may be forced into a Chapter 13 filing.

if you are experiencing debt problems, contact my law office today for a free bankruptcy consultation. We are a debt relief agency, we help people file for bankruptcy under the bankruptcy code.

Is a Chapter 7 Bankruptcy Better than a Chapter 13? – South Bend Bankruptcy Lawyer

Posted on November 25, 2011 by jeffhaupt

Most people tend to understand some of the general differences between a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy. Is one Chapter better than the other? I, like most lawyers, will tell you that it truly depends on your situation. Some of the common differences between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy include:

Liquidation of Debts under Bankruptcy Law

If you file a Chapter 7 Bankruptcy the goal is to liquidate (get rid of) the debts that you have. Under a Chapter 7 Bankruptcy the vast majority of your debts will be discharged, meaning that you do not owe them anymore. A Chapter 13 plan is more of a payment plan where you will pay back a portion of the amounts that you owe. This does not mean that you have to pay back the full amount of the debt owed, but rather some amount for each creditor will get paid back on a monthly basis under a Chapter 13 Bankruptcy Plan.

Length of Time it Takes to Get Your Bankruptcy

With a Chapter 7 filing, it usually ranges in the four (4) to six (6) month time period between the filing date and the time that you receive the letter telling you that your debts are discharged.

Under a Chapter 13 Bankruptcy plan, you can expect a time table of about three (3) to five (5) years before you are granted your Bankruptcy.

Keeping Your Assets Under Bankruptcy Law

One benefit that Chapter 13 can have is based on the amount property you can keep. Under a Chapter 13 you will likely be able to keep most of your property. This can be beneficial in situations where you may have quite a bit of equity in a home or a small business (and you are filing an individual bankruptcy).

Chapter 7 still allows you to keep a certain level of property (known as exemptions). This will vary from state to state and the type of assets that you are keeping. For instance, Indiana law allows you to exempt up to $17,600 of equity you may have in your home if you are a single filer and $35,200 for joint filers. You will also be allowed to keep a certain amount of personal property as well. For most people contemplating or needing to file for Bankruptcy, they will typically get to keep the majority of the items that they own.

Every Bankruptcy case can be different, that is where a Bankruptcy Attorney can help you understand the best situation for you.

if you need help with your bankruptcy in the south bend area (elkhart/mishawaka/goshen/plymouth) contact my law office for a free bankruptcy consultation. we are a debt relief agency, we help people file for bankruptcy under the us bankruptcy laws.

South Bend Bankruptcy Lawyer – Understanding the Meeting of Creditors

Posted on September 12, 2011 by jeffhaupt

What is a Bankruptcy Section 341 Meeting?

The Section 341 meeting is generally referred to as the meeting of creditors. This meeting gives your creditors a chance to ask you questions regarding your bankruptcy filing. The meeting usually involves you, your attorney, and the bankruptcy trustee. Under most circumstances, your creditors will not likely show up. If they do show up they will typically ask a couple of questions. The situation is very professional and much more low key than what you would see in a trial setting on TV.

What Happens During a Section 341 Meeting?

During the Section 341 meeting the trustee will typically ask you identification questions, questions about your petition, questions about your property, debts, and any potential preferential payments or transfers that you may have made. Which usually is where any problems will arise from your case. What are some of the typical problems that come up during the meeting of creditors? Preferential payments, which generally means you paid one creditor and not the others, will raise questions from the trustee. The trustee will see if they should get the money back from that creditor so that he or she can spread it more evenly to other creditors.

The 341 meeting is usually over in a matter of minutes. Once the meeting has ended, your creditors have a couple of months to raise any challenges. If nothing has happened during the 60 day period, you will likely receive your discharge in a couple of months after that point.

Yep, here are those disclaimers:

we are a debt relief agency, we help people file for bankruptcy relief.

The Law Office of Jeffery M. Haupt is located in South Bend, Indiana and helps people handle family law issues such as divorce, parenting time, child support, paternity, and child custody, criminal defense matters, DUIs, theft charges, license suspensions, and for Bankruptcy. The information in this blog should only be used for educational purposes and not be construed as legal advice. Nothing in this blog creates an attorney-client relationship between me and any readers of this blog. No attorney-client relationship is created until you have a document from me saying so. DO NOT POST ABOUT CASE PARTICULARS IN THE COMMENT SECTION.

South Bend Lawyer – Jeffery M Haupt

Providing a client centered approach to individuals with legal needs

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