Life after Filing Chapter 7 Bankruptcy

The decision to contact a Chapter 7 bankruptcy attorney can be a difficult one. Though you need debt relief and a financial fresh start, navigating the waters of Chapter 7 bankruptcy can be frightening. Many people do not fully understand what the process will entail, and many don’t know what their lives will look like after they file for Chapter 7 bankruptcy with the help of a San Antonio bankruptcy attorney.

Get Relief From Those Harassing Phone Calls

The instant your San Antonio bankruptcy attorney files your paperwork for Chapter 7 bankruptcy, the court puts an automatic “order for relief” into effect. Sometimes called an “automatic stay,” the “order for relief” makes it illegal for any creditors to call you for any reason. While your San Antonio bankruptcy attorney is working hard to get everything in order for your bankruptcy, you and your family will be able to live in peace, free from those disturbing phone calls.

Financial Freedom

When it comes to finances, many people feel pushed to the brink prior to filing Chapter 7 bankruptcy with a San Antonio bankruptcy attorney. They have no idea how they will go about paying their debts to various creditors; they live in fear that they will lose their homes, cars and other property. Filing Chapter 7 bankruptcy with a San Antonio bankruptcy attorney eradicates that fear, by giving you debt relief. Everything that has frightened and confused you about settling your debts will now be in the hands of the court and its trustees. To free yourself from years of debt, all you need to do is work with your San Antonio bankruptcy attorney and follow their plan, which will leave you with lower monthly payments.

But will I lose my property?

In the old days, people who could not pay their debts were thrown in debtors’ prison, a bleak place where you would stay until you (or your family) had settled your debts. Thankfully, we are not so draconian these days. While you may have to give up some of your property to cover your debts, it will probably be luxury goods – fur coats, expensive musical instruments, coin collections – rather than necessities. You won’t be prevented from living a comfortable life. You’ll most likely get to keep your car, your household appliances and home furnishings, as well as clothing, jewelry and other personal effects. Work with your San Antonio bankruptcy attorney to determine which of your belongings can be exempted.

 

Sources:
https://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-overview-29571.html
https://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-option-choice-29676.html

By | 2017-11-07T10:27:15+00:00 June 25th, 2013|Chapter 7 Bankruptcy|Comments Off on Life after Filing Chapter 7 Bankruptcy

Bankruptcy and Your Retirement

If you are like most people, you have been wisely saving whatever you can toward your eventual retirement, despite your rising debts. Now that you find yourself on the brink of filing for bankruptcy with your San Antonio bankruptcy attorney, you may wonder whether you will be able to keep that money, which was intended to provide for you and your family after you are no longer able to work.

The good news is that you don’t need to worry. As your San Antonio bankruptcy attorney knows, much of what you have set aside for your retirement is exempt from bankruptcy proceedings. This means that your retirement funds cannot be garnished by the court or its bankruptcy trustees.

Exemptions Protect Filers

It is an unfortunate misconception that bankruptcy results in a court-ordered truck loading up everything you own, to be sold off to settle your debts. In fact, most of the possessions required for a normal, comfortable life are exempt from the bankruptcy proceedings. Your Chapter 7 bankruptcy attorney in San Antonio can explain more, but generally your car, household goods and personal effects are exempt from bankruptcy proceedings. Furthermore, your retirement savings are exempt, as long as they have been saved in a 401K, IRA or similar account. A Chapter 13 bankruptcy attorney in San Antonio can discuss with you which of your belongings and savings will be exempted.

Things to Consider about your Retirement Savings and Bankruptcy

Even though your retirement savings accounts are exempt from garnishment during bankruptcy, there are some major things to consider before you file for bankruptcy with your San Antonio bankruptcy attorney. First, and especially if you are self-employed, be sure that your retirement savings account has been set up to meet the qualifications for exemption. Your Chapter 7 bankruptcy attorney in San Antonio can explain those qualifications to you before you file. Many self-employed people believe that their retirement savings accounts are exempt, only to later find that the account has not been properly set up. Additionally, you must be careful not to preferentially dump money into your retirement account in the six months prior to filing for bankruptcy. This is called a “fraudulent conveyance” and could possibly result in your retirement savings account’s inclusion in the bankruptcy.

Sources:
https://topofutahlaw.com/can-bankruptcy-affect-your-retirement-plan/
https://www.lawyervictoria.com/bankruptcy-attorney-blog/are-your-retirement-funds-in-danger-if-you-file-bankruptcy/
https://www.totalbankruptcy.com/overview/basics/retirement-accounts.aspx
https://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-option-choice-29676.html

By | 2017-11-07T10:27:15+00:00 June 13th, 2013|Bankruptcy|Comments Off on Bankruptcy and Your Retirement