Thomas F. Miles, Attorney and Counselor at Law
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February 2017 Archives

Conditions that can render a person ineligible for Chapter 7

Chapter 7 like other forms of bankruptcy has its own unique requirements, and these requirements must be fulfilled if a person is to be illegible for filing bankruptcy under Chapter 7. These are the circumstances in which the person will be considered ineligible for Chapter 7:

Some factors that can make a person ineligible for Chapter 13

Chapter 13 bankruptcy has a set of requirements that must be met for a person to be eligible to file for bankruptcy under it, if these requirements are not met then the person will be considered ineligible and will not be allowed to do so. These are the factors that can make a person ineligible:

Filing for Chapter 7 bankruptcy

The word bankruptcy alone has a way of making people feel apprehensive and uneasy. Nobody ever thinks that they will one day find themselves in the position of filing for bankruptcy. Unfortunately, for many Americans, hard financial times leave them with no other choice than to file for what is known as Chapter 7 bankruptcy.

Common myths about filing for bankruptcy

No matter how hard you work to save and prepare for the future, life is sometimes out of your hands. You may lose your job, have an unexpected illness or injury or deal with medical bills that you cannot keep up with. Those who struggle with overwhelming debt can also suffer from physical and emotional distress that affects relationships and overall health. While many feel there is a negative connotation associated with bankruptcy, it can be an ideal way to make a fresh start when you cannot seem to get ahead.

Advantages and disadvantages of declaring Chapter 13 bankruptcy

Chapter 13 bankruptcy is commonly recognized as the reorganization bankruptcy. This form of bankruptcy essentially eliminates the need to sell all of the person's assets for repayment and instead replaces this with a repayment scheme which makes use of the income of the person to gradually pay off outstanding payments. Chapter 13, as with all plans, has its own advantages and disadvantages.

Is Chapter 7 bankruptcy the right option for me?

Chapter 7 bankruptcy is the most common form of bankruptcy in the United States. It is also referred to as liquidation bankruptcy. It allows debtors to lose all their debt and start over from scratch. Most of their assets are liquidated to pay off the creditors, and their credit score decreases. The creditors are paid off, and the filer can have a clean slate. In 2005, there were major changes made to the bankruptcy law to stop people from abusing it. After these changes, eligibility criteria to file for Chapter 7 bankruptcy became stricter.

Is establishing a trust better than going through probate?

If you are thinking about matters like wills and trusts and the distribution of assets after you die, perhaps it is time to ask the advice of an attorney experienced with estate matters. Probate is usually a straightforward process in which a judge reviews the validity of your will and your wishes as to the distribution of property and assets, but it does have some drawbacks. If you are leaning toward setting up a trust, your main reason may be to avoid probate altogether, but trusts have other advantages.

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