Ed Boltz, partner at the Law Offices of John T. Orcutt, has been representing clients in North Carolina and in developing policy and legislation on a nation level. Attorney Boltz is a leader in the discussion on how to help borrower being crushed by the $1.5 trillion in student loans in the United States.
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What $0 Money Down Bankruptcy Can Do For You!
You can add debts to your bankruptcy in some cases
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Bankruptcy, whether you choose Chapter 7 or Chapter 13, is a great way to dig yourself out of a financial mess. But it's pretty much a one shot deal. Think of it as a garage sale for your debt – you have that one day to unload your stuff – and you can't go back and retroactively add anything to that garage sale. That's a broad idea of how debt in a bankruptcy works. All the debt you had when the bankruptcy is filed can be part of the bankruptcy and you can't go back and add any, as a rule. However, there are some exceptions.
You can now pay traffic fines and fees in NC with your credit card or debit card
Image source: Chris Yarzab via Flickr Creative Commons
We wrote a few days ago about newly enacted legislation that allows the North Carolina courts to accept credit cards for court fines and fees. However, today we talk about the possible outcome of doing this and why you should think carefully before you do. If your finances are already on the brink and you can't pay your credit card bills, adding more debt to the pile is a risk. Tickets and court costs can be quite costly and can easily put you at or over your credit limit. Here's what you need to know about credit card use before a bankruptcy, no matter what you're using them to do.
Check this out before you file taxes or Chapter 13.
Image Source: Flickr user Chris Potter.
Yesterday, we wrote about Chapter 7 bankruptcy, taxes and your income tax refund. Today, we dig into the tax consequences of filing Chapter 13 bankruptcy in North Carolina. Chapter 13 takes much longer than Chapter 7 to complete—it’s a matter of years versus a matter of months, but is a better fit for some than liquidation bankruptcy. Here’s what you must know about Chapter 13 and income taxes.
Can you file Chapter 7 bankruptcy? Rules to know
Image Source: Flickr User Alan Levine
It’s 2017 and a good time to think about doing some cleaning in your life. Chapter 7 bankruptcy may help you. The new year is the perfect time to reorganize your home, your life, and your finances. If you’re struggling with debt you can’t afford, living paycheck to paycheck, and being hounded by debt collectors, bankruptcy might be the best way out of your financial mess.
BEHIND ON YOUR CAR OR TRUCK PAYMENTS? DON’T GIVE UP. GET HELP!
Want to keep your car or truck, stop the repo man, and pay less...sometimes a lot less?
Right now, there are some 7 million Americans living in fear that their car or truck will be lost to the repo man.
Why? Because they know that only bad things happen when you lose your car or truck.
No car, no way to work.
No work, no income.
Chapter 13 repayment plans can change during your bankruptcy
Image Source: Flickr User Uli Matheus
Chapter 13 lasts much longer than a Chapter 7 which is usually filed, processed and discharged within just a few months. A repayment plan will last, at a minimum, three years, and five years at a maximum. Most repayment plans will run the full five years to make plan payments the most affordable and to allow you to get caught up on past due balances on your secured debt and service a portion of your unsecured debt as well. But you should know that the repayment plan approved won't necessarily stay the same through those three to five years – particularly if your salary changes.
How is disposable income calculated in Chapter 13?
Image source: Flickr user Tax Credits
When you get behind on your bills, it can be hard to catch up. And, unfortunately, some creditors won't work with you to let you get caught up on back balances. If this is the situation you find yourself in, filing Chapter 13 bankruptcy may be a good solution for you. There is no income cap on a Chapter 13 filing, nor is there a means test you have to pass to be able to file. But what is important to getting your Chapter 13 repayment plan approved is your disposable income in comparison to your debts.
What happens when time runs out on debt?
Image Source: Flickr User Kat
Most all debt has a statute of limitations – with the exception of federal student loans. A statute of limitations sets the time limit for how long a creditor can sue you over a debt. In North Carolina, most consumer debt has a statute of limitations of three years from the date of last activity. The last activity would typically be the last time you charged something on the account or the last time you made a payment on the account. Here’s what you need to know about debt that has expired the statute of limitations – known as “time-barred debt” – so you don’t get taken advantage of by unscrupulous debt collectors.
Should you keep or toss your paperwork?
Image Source: Flickr CC User Camilo Rueda Lopez
It seems like life is full of papers we don’t need – junk mail, receipts for things we won’t return, school papers, paycheck stubs. For a society that’s trending toward paperless, we’ve got a long way to go. But what about bankruptcy papers, including your petition, discharge, and schedules? How long should you keep those? Here’s a hint – they are as important as your will!
Introducing 0-0-0-0-0-0-0 Bankruptcy
Or, as we like to call it…
…the Seven 0’s of Delight.
$0 for the initial consultation.
$0 money-down, if you qualify, and lots of people do.
And…after you file:
0 nasty calls from bill collectors.
$0 left owing on lots of bills.
and 0 choice for your creditors, because the law gives your creditors 0 choice.
Done right and it's also:
0 stress, and
0 loss of sleep
Want to feel "won"derful, "won"drous and "one" with the world?
Want to feel like you "won" that "1" in a million lottery?
Be that "one".
File just "1" bankruptcy case, "one"time and likely you have "won"…the battle against those “one”rous and life-sucking debts.
Wouldn't it be "won"derful if you did not have more bills than “one” can possibly pay?
As we move through this surprisingly snowy Holiday Season here in North Carolina, all of us at the Law Offices of John T. Orcutt want to wish everyone one of our clients, friends and colleagues a Merry Christmas, Happy Holidays and a wonderful New Year!
Is there a better way to avoid student loan default?
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Student loan default is growing rapidly, and experts say a crisis is looming if the trend doesn’t reverse. Borrowing is on the rise, as is average debt, along with default rates. But research shows a simple tweak in student loan servicing websites could likely end most defaults and help people get and stay on track with their student loans. Here’s a look at what you need to know to avoid a student loan debt crisis in your life.
How many bankruptcy cases can you file?
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Some things are once-in-a-lifetime experiences for most people. Climbing Mount Everest or getting married are common "one and done" occurrences. Some other things you only want to do once (or never), like heart surgery. But how about bankruptcy? Ideally, Wilmington bankruptcy should be one and done, and you get Chapter 7 debt relief and need never repeat the process. But if you wanted (or needed) to file Chapter 7 bankruptcy again, can you?
Student loan crisis declares Betsy DeVos
Image by Ted Eytan via Flickr Creative Commons
This week, Secretary of Education Betsy DeVos issued a warning about the “looming crisis” that is student loans. She said if the system doesn’t change it “will be in serious jeopardy” which can make it more challenging for students to find ways to fund a college education. DeVos said in a speech in Atlanta that the student loan program is “burying students in debt,” as well as taxpayers, and is “stealing from future generations.”
If your Chapter 13 case gets tossed, what's next?
Image by Steve Johnson via Pexels
Greensboro bankruptcy for consumers includes the choice of Chapter 7 (liquidation) or Chapter 13 (repayment). If you’re behind on your auto loan or mortgage and you want to keep the asset, usually Chapter 13 better meets those goals. With Chapter 13, you commit to a repayment plan that lasts three to five years and intends to catch you up on secured debt arrears. But sometimes, consumers can’t keep up with their payments or don’t follow the court’s instructions, and it dismisses your bankruptcy case. What then?