Increased Debt Limits for Chapter 13

One of the most notable changes is the alteration in the debt limits for filing under Chapter 13. The new legislation has combined and increased the previous separate limits for noncontingent, liquidated unsecured, and secured debts. As of now, the aggregate debt limit for both types of debts stands at $2,750,000. This increase, however, is temporary and is set to revert to the original limits on June 21, 2024.

Technical Corrections to the Bankruptcy Code

In addition to adjusting debt limits, the Act has also introduced several technical corrections to the Bankruptcy Code. These include clarifications regarding the eligibility of certain debtors under the Small Business Reorganization Act (SBRA), particularly those with affiliates that may qualify as “issuers” under the Securities Exchange Act of 1934. Furthermore, it’s been established that dollar amounts in the SBRA will now be adjusted for inflation every three years, in line with other amounts in the Bankruptcy Code.

What Does This Mean for You?

For individuals, the raised debt limit for Chapter 13 bankruptcy provides an opportunity for those with higher debt levels to seek relief under this chapter. It’s particularly significant because Chapter 13 allows for debt restructuring, which can be a more appealing option for those wishing to retain certain assets.

Businesses, especially small businesses that might have previously fallen outside the eligibility criteria due to the “issuer” status of their affiliates, may now find themselves able to file under the SBRA. This change could provide crucial support for small businesses navigating financial difficulties.

Preparing for the Sunset of the Increased Debt Limit

Given that the increased debt limit is temporary, it’s important for debtors to plan accordingly. If you’re considering filing for bankruptcy under Chapter 13 and your debts fall within the new temporary limit, it’s advisable to act before the June 21, 2024, deadline.

Final Thoughts

Bankruptcy can be a complex and nuanced process, and staying informed about the latest laws is crucial. If you’re considering bankruptcy or have questions about how these changes might impact your situation, seeking professional legal advice is a wise step.

At The Moore Law Group, we specialize in navigating the complexities of bankruptcy law. Our experienced team is here to provide you with the guidance and support you need to make informed decisions about your financial future. Contact us today to schedule a consultation and explore your options under the new bankruptcy laws.

The post Bankruptcy Laws: Recent Changes and What They Mean for You first appeared on Moore Law LLC.

The post Bankruptcy Laws: Recent Changes and What They Mean for You appeared first on Moore Law LLC.

Understanding The Types Of Bankruptcy

When faced with financial hurdles, it’s vital to recognize that not all bankruptcy options are identical. Each type of bankruptcy is tailored to specific situations and carries its own set of rules, procedures, and implications. By comprehending the fundamental differences and purposes behind Chapters 7, 11, and 13, you can make a well-informed decision that fits your unique circumstances and long-term financial goals.

Chapter 7: Liquidation Bankruptcy

Chapter 7, also referred to as the “liquidation bankruptcy,” is designed primarily for individuals with limited income who cannot pay their outstanding debts. Under this chapter, most of the debtor’s assets are sold off to repay creditors.

Eligibility for Chapter 7

To qualify, applicants must pass the means test. This assessment compares your income to the median income in your state. If your income is too high, you might not be eligible.

The Process of Chapter 7

Chapter 7 begins with filing a petition with the bankruptcy court serving your area. This petition includes detailed information about your assets, debts, income, a list of all creditors, and the nature of their claims.

Chapter 11: Reorganization Bankruptcy

Chapter 11, known as “reorganization bankruptcy,” is typically used by businesses but can also be utilized by individuals with substantial debts and assets. It allows debtors to restructure their debts and pay them over time.

Eligibility for Chapter 11

Businesses that are unable to service their debt or pay their creditors can file. Individuals, too, can opt for Chapter 11 if their debt exceeds the limits set for Chapter 13 bankruptcy.

The Process of Chapter 11

Once filed, the debtor proposes a plan to keep its business alive and pay creditors over time. Creditors vote on the plan, and if accepted, the plan is confirmed, and debt repayment begins.

Chapter 13: Wage Earner’s Bankruptcy

Chapter 13, also known as “wage earner’s bankruptcy,” is for individuals with regular income who wish to pay their debts but are currently unable to do so.

Eligibility for Chapter 13

Debtors must have unsecured debts below a certain amount and secured debts below a specified limit. They must also have sufficient income to repay the debts over time.

The Process of Chapter 13

A debtor proposes a repayment plan that could last three to five years. During this time, creditors cannot initiate collection efforts. Once the repayment plan is completed, most remaining debts are discharged.

Seek Professional Guidance

Understanding the nuances of Chapter 7, Chapter 11, and Chapter 13 bankruptcies is essential for making informed decisions about managing debts. However, the information provided here is just a starting point.

For personalized legal advice and guidance through the bankruptcy filing process, consider reaching out to The Moore Law Group. Our experienced team of attorneys can provide the support and expertise needed to navigate the complex landscape of bankruptcy law, helping you embark on the path toward financial recovery with confidence.

The post Understanding the Legalities: Types of Bankruptcy first appeared on Moore Law LLC.

The post Understanding the Legalities: Types of Bankruptcy appeared first on Moore Law LLC.

Understanding Your Bankruptcy Options

The first step towards handling your financial situation is understanding the different types of bankruptcy. This will help you make an informed decision on which route to take.

• Chapter 7 Bankruptcy: This type is also known as “liquidation bankruptcy.” It allows the debtor to discharge most or all of their unsecured debt after non-exempt assets are sold off to repay creditors.
• Chapter 13 Bankruptcy:  This is a type of reorganization bankruptcy. Instead of selling off assets, you propose a 3-5 year repayment plan to your creditors. Additionally, this is often chosen by regular-income individuals who want to keep their assets.
• Chapter 11 Bankruptcy: This is commonly utilized by businesses struggling with high debt. It allows the company to restructure its debts and business operations while retaining control of its assets.

Remember, each type of bankruptcy carries its benefits and downsides. This is where Moore Law Group steps in, offering professional advice to help you choose the best course of action.

Navigating the Bankruptcy Process

The bankruptcy process is complex and can feel overwhelming. Here are some steps to prepare:

1. Credit Counseling: Before filing for bankruptcy, you must complete a credit counseling course. This helps you explore other debt management options that might be available.
2. Filing the Petition: This involves preparing a list of all your debts, assets, income, and a statement of your financial affairs.
3. Meeting of Creditors: This is a meeting where the debtor, trustee, and creditors discuss the debtor’s financial situation and bankruptcy plan.
4. Debtor Education Course: This must be completed before debts can be discharged. It is intended to educate you on financial management to avoid future bankruptcy.
5. Debt Discharge: Finally, if all conditions are met, the court discharges the debts, offering the debtor a fresh start.

Throughout each stage, the guidance of experienced bankruptcy attorneys like those at the Moore Law Group can be invaluable.

Should You Consider Bankruptcy?

It’s crucial to understand that bankruptcy should be considered a last resort. It can provide relief from your debts, but it also comes with significant financial and credit implications. The Moore Law Group can provide a thorough financial analysis to determine if bankruptcy is your best option or if alternatives might better serve your situation.

Take Control of Your Financial Future with Moore Law Group!

Filing for bankruptcy is not an economic death sentence but rather an opportunity for a fresh start. While the journey can be daunting, the expertise and compassion of our team at the Moore Law Group can help turn the bankruptcy process from an ordeal into a stepping stone toward financial stability.

We encourage you to contact us to explore your options and discover how we can help. Our team is committed to providing the support and legal guidance you need to overcome financial hardships and reclaim control over your future. Please reach out to the Moore law Group today. We are here to help.

The post Bankruptcy Basics: Understanding Your Options and Navigating the Process first appeared on Moore Law LLC.

The post Bankruptcy Basics: Understanding Your Options and Navigating the Process appeared first on Moore Law LLC.

When you file for either Chapter 13 or chapter 7, according to bankruptcy law, it will remain on your credit report for at least 10 years.

When the bankruptcy is listed on the report, it will seriously damage your credit score and make it hard for you to get loans, until it is removed. This, therefore, means that you have to work very hard to regain your creditworthiness.

There are some steps you can take to rebuild your credit.

Chapter 7 Bankruptcy

Consumer bankruptcy under chapter seven will affect you for a long time, but it also allows you to be discharged from all your debts. A lender will not collect from you when you have filed for this kind of bankruptcy.

When your creditors report a discharged debt as delinquent before filing, it will fall off your credit report after seven years, from the delinquency date. If the debt was however not reported, as being delinquent, before filing, it will still be removed after seven years to the filing date.

Chapter 13 Bankruptcy

A chapter 13 bankruptcy will stay on your report for 7 years and unlike chapter 7, filing for chapter 13 consumer bankruptcy involves creating a 3-5 repayment plan for all your listed debts.

According to bankruptcy law, after completing the repayment plan, the debts included are later on discharged.

In case some of the debts are delinquent, then filing for this bankruptcy falls off your report seven years later after the date of filing.

Any other debts will also fall off the report at the same time the bankruptcy falls off.

Bankruptcy Impact on your Credit Score

Your credit score usually is based on the information listed on your report. Bankruptcy negatively affects the score, until the bankruptcy is removed. Therefore, your chapter 7 filing will affect you for 10 years, while chapter 13 will affect you for 7 years.

If however, you practice good habits with your credit, then you may see your score start to recover faster.

The Moore Law Group, LLC

At the Moore Law Group, LLC, we deal with all sorts of bankruptcies and have understood the bankruptcy law. We have helped numerous clients with their filings. Please reach out to us today for this and more.

The post Here’s Everything You Need To Know About Bankruptcy and Your Credit Report first appeared on Moore Law LLC.

The post Here’s Everything You Need To Know About Bankruptcy and Your Credit Report appeared first on Moore Law LLC.

Additionally, there are multiple laws governing bankruptcy in the United States, and you’re going to need an expert to help you navigate your filing.

1. Efficient planning

The end of the road only evokes one thing: filing for bankruptcy. But unknown to many, there are alternatives to bankruptcy that will still achieve what you are looking for. And who else than a bankruptcy attorney would know that?

Secondly, there are two types of bankruptcy,  outlined in Chapter 7 and Chapter 13 of the Bankruptcy Code. Both meet different objectives and purposes, and attorneys have dealt with various bankruptcy cases knowing the best for certain circumstances.

2. Proper Preparation

A successful bankruptcy case calls for preparation without leaving any stone unturned. We assure you someone somewhere may be out to ensure the courtroom feels very different about your situation. The following are ways an attorney will be helpful:

• Your bankruptcy attorney will utilize the means test calculation to establish if you are suitable for Chapter 7 or can make some payments, which falls on Chapter 13.
• A professional will help you in the valuation of your property. You bought your furniture set years ago; you probably have no idea what it would cost now.
• Since every state has its exemptions on keeping property after bankruptcy, a lawyer will determine and choose the exemptions that favor your circumstance.
• Did you know that all debts are not dischargeable? It is especially true when you have to level up to certain conditions first. The good thing about hiring a bankruptcy attorney is they will tell you about the applicable debts for discharge and those that will sit through your case.

3. Making your work effortless during the proceedings by:

• Handling the paperwork

A bankruptcy case involves filling pages and more pages of your financial information, be it income, expenses, debts, assets, expenses, and even up-to-the-minute transactions. An attorney will advise on property valuation, what must be disclosed, the rational and essential expenditure, and many more.

• Professional guidance

The attorney will help you understand the steps for discharge, the roles that a bankruptcy trustee and judge play, and inform you of the possible actions from creditors. Once you sign the penalty of perjury, your attorney will ensure your testimony is complete and valid, whether at the creditors’ meeting or the courtroom.

• Manage any violations from creditors

If your creditors can’t get over losing money due to your case, they may try to collect their dues, which could violate the automatic stay. The good news is your attorney will request the court to hold them in contempt or ensure compliance.

They will also make negotiations with creditors. For instance, for chapter 7, the attorney may get you a redemption with secured creditors to help you retain your house or car. With chapter 13, the attorney can negotiate the valuation of collateral property, terms of payments, and the interest rates for affordability.

Besides, if the circumstances change, an attorney will assist you in requesting the court for adjustments, temporary or permanent, to the payment plan.

The post Why a Bankruptcy Attorney Is Worth the Cost first appeared on Moore Law LLC.

The post Why a Bankruptcy Attorney Is Worth the Cost appeared first on Moore Law LLC.

There are many types of bankruptcies, and they all fall under federal law.

Consumer Bankruptcy is one of them, and it refers to a situation where an individual is unable to pay back the debts they owe that were incurred for personal needs.

Once the proceedings for bankruptcy are concluded, this individual is no longer liable for these debts. The court enters a discharge order that releases the person from debts.

They, therefore, end up with a clean financial slate, although the bankruptcy remains on their credit reports for at least ten years.

Bankruptcy may look like the best option in most cases, but  it’s essential to understand that it has some lasting consequences and should only be used as a last resort in times of tough financial problems.

There are plenty of other considerations an individual should consider before filing for bankruptcy.

Other types of bankruptcies

Chapter 7 Bankruptcy

This one is also known as “Liquidation Bankruptcy.” It enables an individual to discharge their debts legally.

There are, however, specific rules that must be followed for one to qualify for Chapter 7 bankruptcy, plus, there are specific debts allowed for this.

First of all, your income must be equal to or below the median included in your estate to qualify.

Each estate has different requirements, and if your income is above the requirement, then the court will apply what they call a “means test,” which is based on the last six months of income.

If you have the means to pay the debts, you do not qualify for Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 is also known as “A wage earner’s bankruptcy,” and it is a way that enables a borrower to restructure their debts so they can afford payments.

It is an option for people who have high incomes and would wish to keep their properties.

However, some debts will be eligible, while others will require you to pay them in full using a payment of between 3 and 5 years.

You must however,  meet the following criteria to become eligible for Chapter 13;

• Your total secured debts must be equal to or less than $1,184,200.00.
• You should not have any bankruptcy petition that was dismissed in the last 180 days due to failure to comply or appear in court.
• You should not have received counseling from an approved counselor in the last 180 days after filing a petition.

Chapter 13 is different from chapter 7 because, in Chapter 13, you can attempt to keep or even keep your properties that are still requiring payments.

Finally, ensure to weigh the pros and cons of bankruptcy filing before you go ahead with it, as this will stay in your credit report for the next ten years.

The post What is Consumer Bankruptcy? first appeared on Moore Law LLC.

The post What is Consumer Bankruptcy? appeared first on Moore Law LLC.