Kostopoulos Bankruptcy Law

Category: Chapter 13

What Disqualifies You From Filing Chapter 13 in Michigan?

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If you’re struggling with debt, you might wonder, “What disqualifies me from filing Chapter 13 bankruptcy in Michigan?” Here’s the concise answer.

Disqualifications for Chapter 13 in Michigan include exceeding debt limits, failing to complete credit counseling, insufficient income for a repayment plan, or prior dismissals within 180 days. Fraudulent activity or incomplete documentation can also lead to case denial.

Understanding the factors that may disqualify you from Chapter 13 bankruptcy is essential. With decades of experience assisting Michigan residents, Kostopoulos Bankruptcy Law can guide you through the process and help you avoid common pitfalls.

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FAQs About Chapter 13 Bankruptcy Disqualifications in Michigan

Can I file for Chapter 13 if I have irregular income?
Yes, but you’ll need to provide proof of consistent payments, such as contracts for freelance work or Social Security statements.
What happens if my debts exceed the limits?
You may need to explore Chapter 11 bankruptcy as an alternative.
Can I refile after a dismissal?
Yes, but you must wait at least 180 days if the dismissal was due to willful noncompliance or creditor relief from the stay.
What happens if I forget to include a debt?
Incomplete filings can delay your case or lead to disqualification. Always double-check your documentation.
Can I complete credit counseling after filing?
No, you must complete it within 180 days before filing and provide a certificate.
Can fraudulent activity during bankruptcy result in criminal charges?
Yes, in addition to case denial, fraud can lead to fines or imprisonment.
Are there penalties for filing multiple times in a short period?
Yes, frequent filings may result in dismissal or restrictions on refiling.

Can I Rent an Apartment While in Chapter 13 in California?

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Yes, you can rent an apartment while in Chapter 13 bankruptcy in California, but there are a few key factors to keep in mind. Your bankruptcy filing will appear on your credit report, and some landlords may hesitate to rent to you.

However, if you have a steady income and can demonstrate the ability to meet rent obligations, many landlords will still consider your application. It may help to look for individual property owners rather than large complexes, as they tend to have more flexibility. Be prepared to provide proof of income, a strong rental history, and possibly a larger security deposit to improve your chances.

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Frequently Asked Questions

Can I spend money during Chapter 13?
Yes, you can spend money during Chapter 13, but your disposable income is allocated to your repayment plan. Essential living expenses like rent, food, and utilities are allowed, but large or non-essential purchases may need court approval.
Can you get an apartment with a bankruptcy on your credit report?
Yes, you can rent an apartment with a bankruptcy on your credit report. Some landlords may be cautious, but providing proof of income, a strong rental history, and offering a higher security deposit can improve your chances.
How long do bankruptcies stay on your record?
A Chapter 13 bankruptcy stays on your credit report for seven years from the filing date. During this time, it may impact your credit score and rental applications, but responsible financial behavior can help you rebuild credit.
Can I convert from Chapter 13 bankruptcy to Chapter 7?
Yes, you can convert from Chapter 13 to Chapter 7 bankruptcy if you meet eligibility requirements, such as passing the Chapter 7 means test. Conversion may be beneficial if you're struggling with your Chapter 13 repayment plan. Court approval is required for the conversion.

Also, you can convert from Chapter 7 to Chapter 13 bankruptcy. You must meet the eligibility criteria, such as having a regular income to fund a repayment plan. This may be beneficial if you want to keep certain assets or catch up on missed payments.

What Happens After Chapter 13 Bankruptcy Discharge in California?

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After completing your Chapter 13 bankruptcy plan, the court issues a discharge order. This discharge releases you from personal liability for most debts included in or addressed by your repayment plan. Once discharged, creditors can no longer pursue any legal action or continue collection efforts for these debts, even if they were only partially paid under the plan. However, some exceptions exist for certain types of debts.

Completing a Chapter 13 bankruptcy is a monumental achievement that marks the beginning of a new financial chapter in your life. This comprehensive guide will walk you through everything you need to know about what happens after your Chapter 13 discharge, how to rebuild your financial life, and how to make the most of your fresh start.

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Can Chapter 13 Stop Foreclosure? Exploring Your Bankruptcy Lifeline

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Yes, Chapter 13 Bankruptcy Can Stop Foreclosure in California:

  • Automatic Stay: Filing for Chapter 13 immediately stops foreclosure.
  • Repayment Plan: You can propose a plan to catch up on missed payments over 3-5 years.
  • Keep Your Home: As long as you follow your plan, your lender cannot foreclose.

Important:

  • Regular income required for Chapter 13 eligibility.
  • Consult a bankruptcy attorney for guidance.

Foreclosure can be a devastating reality for homeowners struggling with financial hardships. If you’re facing the looming threat of losing your home, you might wonder, “Can Chapter 13 stop foreclosure?” This blog post explores that question, shedding light on how Chapter 13 bankruptcy can serve as a crucial lifeline. By restructuring your debt and creating a manageable payment plan, Chapter 13 offers a way to save your home from foreclosure.

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Can I Buy a Vehicle After Filing for Chapter 13 Bankruptcy?

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After filing for bankruptcy, it almost feels like all big purchases are off limits. After all, your finances just underwent an intense amount of scrutiny and passed through the ringer, so to speak. While bankruptcy can make it more difficult to purchase items such as a car or a home, it’s certainly not impossible.

Can I Get an Auto Loan with an Open Chapter 13 Case?

Those who are looking to purchase a new car with an active Chapter 13 case are able to get a car loan under certain conditions.

There are two options to purchasing a vehicle after Chapter 13:

  • Wait for your bankruptcy discharge which doesn’t occur until the end of your repayment plan
  • Request permission from your trustee to take out a car loan before your discharge

The first option may take longer, but the second one can be infinitely more difficult. Many lenders are hesitant to give you a car loan if they know you just filed for bankruptcy and there are companies just looking to scam you out of your money.

Tips to Getting a Car Loan While in a Chapter 13

  • Plan and budget. Make sure that a monthly car payment is within your budget and won’t affect your ability to pay your payment plan. Stick to a reasonable vehicle that is affordable.
  • Review the options at your own bank first. If they’re unwilling to lend to you, it’s time to do your research. An attorney can simplify the process for you and may be able to recommend a trusted lender. You should also research your options thoroughly before signing any papers; the last thing you want is more financial trouble.
  • Be aware of guaranteed loans despite credit scores, wire transfer requests, and requests for fees right when you sign up. You can also check with the Better Business Bureau for further verification.
  • Get approval from the court. After you have a car loan lender, it’s time to obtain approval from the bankruptcy court. They will assess your bankruptcy income, the amount of the loan you’re applying for, and whether you have the means to pay that loan back over time. The motion you file with the court will go further into detail regarding your loan and the car you wish to purchase.

Getting a Car Loan After Your Bankruptcy Is Done

In some cases, it may make sense to wait until after your bankruptcy is complete to get a new car. By waiting, you can use this time to rebuild your credit and save up for a down payment, which can likely qualify you for better auto loan terms.

We’re Here to Guide you

Life after bankruptcy can be intimidating, especially when you have plans to commit to a large purchase. Kostopoulos Bankruptcy Law has the resources to make this process as seamless as possible. Not only have we been named as one of the Top 100 Firms by the Debt Education and Certification Foundation, we offer legal counsel in English, Vietnamese, Spanish, and Greek.

Call our Oakland bankruptcy lawyers today to receive award-winning legal counsel while purchasing your post-bankruptcy vehicle!

Liquidation vs. Adjustment: How Chapter 13 & Chapter 7 Bankruptcy Differ

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Filing for bankruptcy is a serious step. Before you make the decision, you should know what option is best for you. By understanding the differences between Chapter 7 and Chapter 13, you can make an informed choice before filing for bankruptcy.

Not only does the chapter you select influence your immediate financial situation, but it can also effect you in the future. For this reason, it is helpful to know how the two main consumer chapters differ.

What are the main differences?

Chapter 7 is frequently referred to as liquidation bankruptcy, as property will be sold to cover debts. To qualify for Chapter 7 bankruptcy, an individual must be below a certain level of income. Choosing Chapter 7 is basically like scrapping everything and starting over. While you may be able to qualify for certain exemptions for your property, a good portion of it will be liquidated in order to pay off any undischarged debt. In order to have your debts paid off, you must essentially give your bankruptcy trustee permission to sell any non-exempt property and distribute the proceeds to creditors.

In contrast, Chapter 13 is much more focused on readjusting or reorganizing debts and payment plans, rather than paying them off with personal property. You will file a repayment plan in order to pay off either all or a portion of your debts over a designated time period.

How much debt you must pay off will depend on a few factors, such as:

  • Your income or salary
  • The amount of secured and unsecured debts involved
  • How much property or assets you own

You won’t have to liquidate any property in this type of bankruptcy plan, which means individuals can often avoid foreclosure and keep their homes when filing Chapter 13.

Take Steps Towards Financial Freedom

If you have questions about which chapter of bankruptcy is right for your financial situation or would like to learn more, be sure to contact Kostopoulos Bankruptcy Law today for counsel. We are Certified Bankruptcy Specialists and have assisted thousands of clients in the past!

Financial freedom is just a phone call away. Get in touch with our legal team today to discuss your case.

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