The Truth About Bankruptcy

There are (3) three types of debts in bankruptcy:

(1) unsecured,

(2) secured and

(3) priority!

Unsecured creditors have three basic tests to determine who much they get paid;

(1) the median income (b22c form) test,

(2) the disposable income test, and

(3) the liquidation test!

Chapter 13 can:

Stop foreclosures to allow for: (5) five yr repayment plan! Reapply for loan modifications!

Reduce/repay other secured debts: at fair market value! At a prime + (1-30% interest rate)!

Stop interest and penalties for tax debt!

Provide for tax liens

Chapter 13 can do everything a chapter 7 can do and more!

Prevent repossessions, prevent wage garnishment, stop law suits, and

Discharge unsecured debts just like a chapter 7 bankruptcy!

Dangers and risks in bankruptcy?

Not listing all assets!

Not listing all creditors!

Not properly valuing those assets!

Not disclosing voluntary transfers to insiders for less than fair market value!

Fraudulent transfers!

Paying friends and family back debts before filing bankruptcy!

Preference transfers!

Charging more than $1,000 on a creditor within (90) ninety days before filing!

Bankruptcy fraud!

Not filing all previous tax returns before filing!

Not filing all required documents within bankruptcy rule time frames!

Automatic dismissals!

The automatic stay is a federal injunction which stays creditors from continuing actions against debtors without prior court approval!

The automatic stay lasts for (ends) (30) thirty days if debtor has had one case dismissed within the last year!

The automatic stay can be extended with court approval if granted within the first (30) thirty days of filing a second case!

No automatic stay arises on the filing of a third (3rd) case if debtor has had two or more cases dismissed within the last year!

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