Ok, you are getting a fresh start on your financial situation and have filed for bankruptcy. One of the major players that you are going to be interacting with through the process is a bankruptcy trustee. A bankruptcy trustee is usually a lawyer assigned to oversee your bankruptcy case. Their role in the case differs as to whether your bankruptcy case is Chapter 7 or Chapter 13.

<b>In Chapter 7 Bankruptcy</b>

In a Chapter 7 liquidation case, a trustee is selected at random from a panel of lawyers. Their main goal is to sell property and distribute the proceeds to creditors. In this process, a trustee sits down with the debtor during a “341 meeting” and asks them questions about their assets and financial affairs. From there, trustees review bankruptcy documents and ask questions to find out if any nonexempt property, assets, or items can be seized by the trustee and sold to satisfy debts.

<b>In Chapter 13 Bankruptcy</b>

In a Chapter 13 reorganization, a trustee’s role differs somewhat from a Chapter 7 bankruptcy. A debtor still meets with a trustee in a 341 meeting and is asked about assets and financial affairs. However, the trustee cannot take any of their property or assets. Instead, they assess the bankruptcy plan to see if it fits technical requirements and if it seems like it has a reasonable chance of success in repayment. Additionally, many trustees in Chapter 13 offer financial counseling and management.

<b>A Reminder</b>

It is important to remember a couple things about a bankruptcy trustee in order for a case to run smoothly and carefully. First of all, he or she isn’t your enemy who is seeking to suck you dry of all of your money. Their main goal is not to pick through your possessions to sell them off. In fact, most are quite reasonable people who are simply trying to do their job. In relating to a trustee, a debtor first of all needs to be honest. That includes an accurate listing of your assets because inaccurate disclosure can lead to criminal prosecution and a loss of debt discharge.

Trustees are not the only aspect of a bankruptcy case that is important to be informed about. If you are seriously considering bankruptcy and you live in New Orleans, you need to consult with an attorney who understands Louisiana bankruptcy laws. Not all bankruptcy attorneys are the same. While the process appears complicated, a New Orleans bankruptcy lawyer will be able to help you understand your options and avoid making bad decisions.

If you are considering filing for bankruptcy in New Orleans, call a New Orleans bankruptcy attorney. Every day, the attorneys at Kirkpatrick and Associates help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit kirkpatrickandassociates.com.

No one plans on dramatic financial changes, especially during bankruptcy, but they happen. When changes do arise to an individual in Chapter 13 bankruptcy, they might be misled into believing there is no other option than sticking to their schedule of set monthly payments. But they might be surprised to find that Chapter 13 bankruptcy has a great deal of flexibility. Before we discuss options, it is important to note that payments are not something you want to ignore. You must make all of your Chapter 13 payments in full and on time because if you do happen to miss a payment, the trustee assigned to your case may drop or dismiss your case. Were that to happen, the court cannot protect your property from creditors. However, if you decide that you no longer want to make payments on your Chapter 13 bankruptcy, you do have several options.

For starters, you may be able to convert the Chapter 13 bankruptcy into Chapter 7. A debtor is eligible to make a conversion to Chapter 7 at any time by simply filling out a ‘Request for Conversion’ form at the Clerk’s office. After that takes place, the debtor no longer has to make Chapter 13 payments. An example where this might be a good option is if a person filed for Chapter 13 for a very specific reason, such as trying to catch up on car loans or home mortgage to prevent a loss from foreclosure. However, if the debtor still cannot keep up with payments in Chapter 13, it wouldn’t make sense to make payments any longer, and Chapter 7 would be a favorable alternative.

The second option, if you no longer want to make payments on your Chapter 13 bankruptcy, is through a voluntary dismissal. This is an option that is free to debtors at any time. If a person filed for Chapter 13 in an attempt to catch up with car or mortgage payments and is successful, they may no longer want to be in Chapter 13. In this option, debtors are no longer required to make monthly payments, however, if this is carried out before, they will not receive a discharge.

Another option is to amend the Chapter 13 plan. Options in amending the plan can be as simple as adjusting the payment schedule, reduce the monthly payments, or even extending the length of a plan. There are some limitations on these changes. For example, you cannot extend the length of the plan for more than five years from the time of your first payment. However, if you have a reduction in pay due to a decrease in income, the amount of your monthly payment can usually be changed. The process involves a motion to amend the plan to the Chapter 13 trustee and all involved creditors.

If you are considering filing for bankruptcy in New Orleans, call a New Orleans bankruptcy attorney. Every day, the attorneys at Kirkpatrick and Associates help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit kirkpatrickandassociates.com.

Bankruptcy is not something to jump into haphazardly. Chances are, if you are considering bankruptcy, you have considered every option possible to dig yourself out of debt. If you are thinking about filing for bankruptcy, you aren’t alone. Last year 1,074,225 individuals and families filed for bankruptcy in the United States.

A common misconception about bankruptcy is that it is a humiliating and miserable experience. However, many who experienced it tell a different story. Here are some benefits of filing for bankruptcy under Bankruptcy Code.

1) Bankruptcy restructures debt so it is manageable

The vast majority of people who file for bankruptcy genuinely desire to pay back their debts, they are just financially unable to. Filing for bankruptcy gives debtors a monthly payment plan that is manageable according to their income. By filing for bankruptcy, it is a message to creditors to expect to receive less money in the repayment deal.

2) A third party steps in to administer the debts, taking the burden off of the debtor

Imagine life without screening your calls and mounds of menacing mail. If you have been hounded by debt collectors or collection agencies then a bankruptcy case means relief. Under law, creditors are barred from phone calls or harassment in order to collect debt. For Chapter 13 filings, debtors pay a set monthly amount to an administrator for either three or five years, based upon income and net worth. The administrator distributes payments to the various creditors, leaving you completely out of the process.

3)   Lose obligation to pay debts

A bankruptcy case means a discharge of all debts, which also halts lawsuits, prevents garnishments, averts repossessions of vehicles, and stops foreclosures and IRS seizures. In a sense, whatever you were obligated to pay before filing for bankruptcy is wiped out if you follow the agreement.

4) Teaches you to budget

As a part of going through bankruptcy, a debtor must put together a list of all of their monthly expenses broken down in categories. In a sense, by law you are required to create a budget. Financial experts often cite creating a budget as the most important part of financial responsibility. By creating and sticking to this budget as you move forward, it can be greatly beneficial to your financial future.

5) A fresh start

Much of the toll of financial problems and accumulating debt is on the emotional well-being of the parties involved. By filing for bankruptcy, the slate is wiped clean. It is an opportunity to start again without all of the baggage of debt carried along. That forgiveness can bring great relief and excitement for a new direction.

If you are thinking about filing for bankruptcy in Louisiana, contact the firm that focuses exclusively on bankruptcy law, Kirkpatrick Bankrutcy Law. Every day, the attorneys at Kirkpatrick and Associates help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit kirkpatrickandassociates.com.

Being in debt can be a stressful, confusing, and often scary situation. It can feel like you are in a deep hole and all you want to do is climb out but creditors are continually throwing dirt down to bury you. Sometimes, the best option to get out from that hole and escape the wrath of creditors is by filing for bankruptcy.

Bankruptcy can be a confusing process if you are going at it alone and many people are unaware that there are different options available when filing. There are two classifications of bankruptcy that individuals can file for: chapter 7 and chapter 13.

Chapter 7 bankruptcy is referred to as a liquidation plan. In chapter 7 bankruptcy, debtors ask for the bankruptcy court to discharge most of the debts they owe in exchange for any property that is nonexempt from collection. There is no plan of repayment of debts as in chapter 13, however the debtors property that is collected by a trustee is sold with the proceeds used to pay creditors in accordance to Bankruptcy Code. Chapter 7 lasts about 3 1/2 months and you make no payments to the court during that time.

A common question people have who are considering a chapter 7 filing is in regards to the loss of property. Generally, if a debtors property is subject to liens and mortgages that pledge the property to other creditors, those pieces of property are going to be given up. The Bankruptcy Code, however, does allow the creditor to keep certain exempt property. It is important to realize that filing a petition under chapter 7 could result in the loss of property.

Chapter 13 is called the wage earner’s plan and allows people with a regular income to develop a plan for repayment of debt. Under Chapter 13, debtors propose a repayment plan to pay all or a portion of their debt over the period of three to five years, depending upon monthly income. So, under chapter 13 the time period is longer and debtors pay monthly payments to creditors similar to a debt consolidation plan, and the debtor does not give up any property.

While the differences are minimal, there are additional differences in the cost of filing. Chapter 7 charges $245 to file a case with a $39 administrative fee and a $15 trustee surcharge. Chapter 7 charges $235 to file a case with a $39 administrative fee.

Finally, there are differences in eligibility for chapter 7 and chapter 13. Many of these differences are based on net worth and an individual’s ability to pay back debts. The best way to find out more of these details is by contacting a competent bankruptcy lawyer.

If you are thinking about filing for bankruptcy in Louisiana, contact the Louisiana bankruptcy lawyers that focus exclusively on bankruptcy law, Kirkpatrick Bankrutcy Law. Every day, the attorneys at Kirkpatrick and Associates help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit www.kirkpatrickandassociates.com.