Examining How You Can Get Your Life Back On Track After Bankruptcy

Many worry about what their life will be like after bankruptcy.  It actually won’t be as bad as you think, if you take the right steps after you file.  Some of the things you can do to improve your life after bankruptcy include:

Review Your Budget

Sit down and review what you spend each month.  Create a budget you can work with and stick with it.  Try to eliminate unnecessary expenses so that you can save money for future emergencies.  Some of the expenses you may want to consider excluding include: coffee (Starbucks), eating out, cable TV and your land-line phone service.

Pull Your Credit Report Before You File Bankruptcy And After Bankruptcy

Pull your credit report before bankruptcy and make sure all your bad debts are disclosed in your bankruptcy schedules and discharged.  After discharge, pull your credit report again and make sure the creditors you discharged are no longer reporting that you still owe them money. These errors can really hurt your credit score.  If they continue to incorrectly report to the bureaus after bankruptcy, seek the guidance of an attorney who can get the errors deleted. 

Consider Reaffirming Debts You Need

If you need your car and plan to continue to make your car loan payments after bankruptcy, you may want to consider entering into a reaffirmation agreement with the finance company. A reaffirmation agreement basically restores your obligation to pay the debt and excludes the debt from your bankruptcy discharge.  If you sign one, the lender may then be less likely to report to the credit bureaus that you included the debt in your bankruptcy.  Then make sure you pay the loan on time each month after bankruptcy.  When it comes to signing reaffirmation agreements, always seek the advice of a bankruptcy attorney, as the decision to sign or not sign can give rise to serious consequences.    

Apply For A Secured Credit Card After Bankruptcy

Using these credit cards will help you improve your credit score after bankruptcy.  Often you are required to put money down as collateral. If you don’t pay your credit card bill, the creditor can take the money you deposited and use it to off-set what you owe.  As you use the card and pay it off on time, your credit limit should grow. As your credit report starts to reflect you can manage this credit card, your credit score will improve and other credit card companies will begin to send you card applications.

Avoid Sub-prime lenders

Avoid payday loans and debts with sub-prime lenders, as these tend to hurt your credit score. 

Don’t Be Negative

Look at bankruptcy as an opportunity.  You have just wiped-out your debt and have a clean slate.  View each of the steps laid-out in this article as springboards to getting your life back on track.   

At Sapinski Law Office, S.C. we are very committed to helping our clients get their lives back on track after bankruptcy.  We even offer free credit restoration to those who file bankruptcy through our office.  We want to see you get a real fresh start!  To learn more call us today at #888-782-9423.  

What to Expect When You File for Bankruptcy

Under the U.S. Bankruptcy Code, there are two bankruptcy options for individuals: Chapter 7 and Chapter 13. Both the local rules of each bankruptcy court and the Federal Rules of Bankruptcy Procedure dictate the process under which individual bankruptcy petitions are filed. Here are some basic steps you will need to go through.

Meeting with an Attorney

One of the first decisions you will need to make is what chapter you should file under. While a Chapter 7 allows you to discharge (forgive) your bad debt, a Chapter 13 bankruptcy establishes a repayment plan through which you slowly re-pay your obligations over time. Your income, types of debt, and assets will all determine what chapter is best for you and what chapter you are eligible for. An experienced bankruptcy attorney can help you determine the best course of action for you and your family.

Undergoing Credit Counseling

When you file your bankruptcy, you will need to undergo special courses with an agency approved by the Office of the United States Trustee. The first course (a pre-bankruptcy CREDIT COUNSELING course) must be taken before you file bankruptcy. Your case is subject to immediate dismissal if you fail to file a certificate that certifies completion of the class before your bankruptcy filing. A second course (a FINANCIAL MANAGEMENT course) is required after you file bankruptcy. If you do not take this second course, the Bankruptcy Court won’t give you a bankruptcy discharge.

Filing the Necessary Documents

When you file bankruptcy, you will need to prepare complicated forms and schedules that provide the Court with detailed information regarding:

•  monthly budget
• financial history
• current assets 
• debts

In addition, when you file Chapter 13 bankruptcy, you will need to present a detailed repayment plan that addresses how your different creditors will be paid. Even though there is no official federal form for this plan, many of the various bankruptcy courts have a specific version they always require. Your lawyer will know what forms are required and how to prepare them.

Contact Us For Help

To speak with an experienced Milwaukee bankruptcy attorney, contact Sapinski Law Office S.C. at (888) 782-9423. There are a variety of ways to relieve debt obligations, and we provide counseling on both bankruptcy and non-bankruptcy options. We can help end harassing phone calls from creditors, wage garnishments, the threat of car repossession and home foreclosure.

Vehicle Loans – How Chapter 13 Can Help You?

A vehicle loan can be a major expense.  Sometimes we find that we have borrowed more than we can afford or we find our budget has changed due to a drop in income or increase in monthly expenses.  These circumstances can make our car loan payments unaffordable.  Chapter 13 can provide help if you are having trouble making your car loan payments.

Chapter 13 allows you to force the creditor to accept new repayment terms that are easier for you.  

• First, you can lower the interest rate on the loan.  
• Second, you can often give yourself more time (up to 60 months) to get the loan paid in full.  

If the loan was incurred more than 2.5 years before your Chapter 13 filing, you don’t have to pay the full balance owed on the loan and can force the creditor to only accept an amount equal to what the vehicle is worth.   If you don’t want the car, Chapter 13 may allow you to surrender the car without having to pay the deficiency that will be left after the lender sells the car at an auction. Whether you will be required to pay some, all, or a portion of the deficiency will depend on factors such as your monthly disposable income and whether you have any non-exempt assets.

Chapter 13 also imposes an automatic bankruptcy stay that stops all creditor activity against you and your property. If a creditor has obtained a judgment and is looking to repossess the vehicle, this stay will immediately provide you protection.  If the car has already been repossessed, the stay will prevent the creditor from selling the car at an auction and you may still be able to get the vehicle back.

To learn more about Chapter 13 and how it can help you pay your vehicle loan(s), call Milwaukee Attorney Drew Sapinski today at (888) 782-9423 and schedule a free consultation!

How Bankruptcy Can Benefit You

According to the United States Bankruptcy Code, consumers have the right to file a bankruptcy petition and obtain relief from their financial obligations to get a fresh start, debt-free. Most consumers will file for Chapter 7, which liquidates non-exempt assets then discharges debt, or Chapter 13, which helps the debtor create a manageable repayment plan.  No matter what type of bankruptcy the petitioner chooses, he or she can obtain relief in the following ways:

1. End to Creditor Harassment

One of the most difficult parts of day-to-day life as a debtor is the constant reminder of debt in the form of harassing phone calls or letters from creditors. As soon as a bankruptcy is filed, an automatic stay is imposed that stops all activity against the debtor and his/her property. The stay stops just about everything, including collection notices, phone calls, utility disconnection and active wage garnishments.

2. Protection of Property

The bankruptcy stay will also stop any collection activity taken against a petitioner’s property, such as vehicle repossession and foreclosure. If your car has already been repossessed, you may be able to file Chapter 13 and get the vehicle back.  Chapter 13 will also help you repay your vehicle loan under terms that are easier for you.  For example, under Chapter 13 you can reduce the interest rate on the loan and, in some cases, you can force the creditor to only accept an amount equal to what the car is worth.  Chapter 13 also stops home foreclosure and gives you time to get current on mortgage loans.

3. Elimination of Debt

Bankruptcy can be effective at eliminating debt, especially unsecured debt. Unsecured debt refers to obligations not backed by a specific asset. Some common examples of unsecured debts that are dischargeable in bankruptcy include:

• credit card payments
• medical bills
• rent 
• utility payments

Remember, certain debts, such as recent tax debts and most student loans are not dischargeable in bankruptcy.

Secured debts are debts that are secured by some sort of collateral.  They can be eliminated in bankruptcy. However, if you chose to discharge (eliminate) those debts, you typically will be forced to return the collateral that secures the loan.  For this reason, most Debtors who file Chapter 7 often chose to continue to pay their mortgage loans and car loan payments. 

Contact Our Milwaukee Bankruptcy Firm For Help

At Sapinski Law Office S.C., we understand the stress and uncertainty that accompany mounting debt obligations. It is our mission to help our clients find the best bankruptcy or non-bankruptcy debt relief option to suit their financial needs. If you would like to schedule a free consultation with a Attorney Sapinski, give us a call at (888) 782-9423. Our bankruptcy firm has multiple locations throughout the Milwaukee metro area. 

Will Filing For Chapter 7 Bankruptcy Help You?

If you are facing insurmountable debt & unaffordable creditor payments, then you have options! Chapter 7 bankruptcy allows those who cannot afford to pay their bills to wipe-out debt and get a fresh start on their finances. When you work with an attorney, he or she will determine what type of bankruptcy you should file: Chapter 7 or Chapter 13.  Factors include:

Type Of Debt

Certain debts, such as child support and recent tax debts cannot be wiped-out (discharged) in bankruptcy. Also, most student loans are not dischargeable. Recent credit card use may be considered fraudulent and non-dischargeable in bankruptcy. Chapter 7 will not be for you if your debts will survive the Court’s discharge order.

Assets

When you file bankruptcy, a Trustee is appointed who has the power to liquidate assets and use the proceeds to pay your creditors. This Trustee can only take assets that are not declared exempt. Wisconsin has a wonderful set of exemptions available and very few who file bankruptcy in this state ever stand to lose their property. Unfortunately, there are some exceptions. If the available exemptions are insufficient to protect your assets in Chapter 7 bankruptcy, you may want to explore another debt relief option.

Past Financial Dealings

Your attorney will want to know about assets you have sold or transferred in the past. If you sold a major asset and did not receive fair value in return, the Chapter 7 Bankruptcy Trustee may go after the transferee when you file bankruptcy. Also, payments made to friends or relatives within the year before your bankruptcy may be considered preferential and the bankruptcy trustee may pursue them for the money they got from you. Incurring debt right before you file, especially credit card debt, can be considered fraudulent.

Get A Free Consultation With Our Firm

At Sapinski Law Office, S.C. we will help you review all the pros and cons behind filing Chapter 7 bankruptcy so you can determine whether it is the right option for you. Call now to schedule a free consultation with Milwaukee bankruptcy attorney Drew Sapinski. He has over 15 years experience and can answer all your questions. Call (888) 782-9423 today.

How to Choose the Best Bankruptcy Attorney

Bankruptcy is a great way for many to get protection from creditors and re-gain control of their financial future. Whether you plan to eliminate debt through Chapter 7 or consolidate under Chapter 13, it is recommended that you always retain the help of an experienced bankruptcy attorney. With so many attorneys to choose from, the task of finding the bankruptcy lawyer who is best for you may not seem easy. 

If you follow the steps in this article, however, you will find it is not as hard as you think. Here are some important factors for you to consider:

• Experience. Check-out the attorney's website. Look for an attorney who focuses his or her practice exclusively on bankruptcy, who has practiced bankruptcy law for a while and who has filed a lot of bankruptcy cases. The U.S. Bankruptcy Code is filled with traps and pitfalls and a general practitioner may lack the experience necessary to handle your case.

• Reasonable Fees. The fees can vary widely in bankruptcy cases. Speak with a few experienced lawyers and find one who offers a fee you are comfortable with. If you are looking for a good attorney, don't make price your only determining factor. Low fees may indicate the attorney lacks experience or does poor quality work. Keep in mind that some attorneys are way over-priced. If you retain them, you will pay way more than you need to. Your goal is to find an attorney who offers the best quality service at the fairest price.

• Call at least three attorneys to schedule an initial consultation. If you are not able to talk to someone right away, how long does it take for you to get a return phone call? The attorney-client relationship won't work without open communication and access to your lawyer. When you do speak with someone, make sure they make you feel comfortable and they answer your important questions before you hire the firm. Do they really care about your situation? Do they seem rushed or in a hurry when you speak with them? If the attorney appears uncaring or rushed during your initial meetings or phone calls, don't expect them to change after you have hired and paid them.

• Avoid "bankruptcy mills". Remember, filing many cases is generally a good thing; however, some law firms file too many cases. While the lawyer you see on the computer or TV may be experienced, the attorneys who actually end-up handling your case may be right out of law school. These firms have so many cases, they may be too busy to return phone calls or provide the caring approach you need during this difficult time. Their high case volume also makes them prone to making mistakes. Most lawyers offer a free or low cost initial meeting. Take advantage of this opportunity and ask the lawyer about his or her practice. Ask if they will be the only attorney assigned to your case. Will other lawyers handle it during future meetings or when you go to Court?

• Check out the attorney's reputation. Speak with attorneys and professionals you know and find-out who they typically refer bankruptcy cases to. Check the attorney's rating with the Better Business Bureau. Read the on-line reviews made by other attorneys and by current and former clients. They will provide insight on how the lawyer treats clients and handles their cases. If the attorney has received a public reprimand for being unethical, it should be easy to find and review on line

For more information, give bankruptcy lawyer Andrew Sapinski a call today. He has been practicing bankruptcy exclusively for over 14 years. Sapinski Law Office, S.C. always offers reasonable flat fees and convenient payment plans. 

At the same time, Sapinski Law Office S.C. is a full service law firm in Milwaukee that offers quality legal representation. Attorney Sapinski will help you every step of the way through your bankruptcy and can even help you restore your credit score after bankruptcy for no additional fee. 

Can I get rid of student loans through bankruptcy?

If you're struggling to pay back your student debt, then you may be looking for some debt relief options. Often, people will turn to bankruptcy to discharge their debt; however, before trying to do so, there are a few things that you need to know:

1. Your student loans cannot be discharged in bankruptcy unless they cause undue hardship. 
   While paying back a five figure loan may feel like undue hardship, the courts define undue hardship as living under the minimum standard of living. In addition to having a minimal standard of living, you must also show that you have made a good faith effort to pay back your student loans in the past and that you will maintain a minimum standard of living in the future.
2. You may not need to file bankruptcy to discharge your student loans.
   Non-bankruptcy options are available when it comes to student loans.  You may be able to pursue one of the may administrative remedies.  For example, federal student loans can sometimes be administratively discharged if your school closed-down during your attendance, if you are permanently disabled, if you are employed in specific public service jobs or if you are a relative of a victim of the 9/11 attacks.  You may also find relief under the various repayment plans that exist for federal student loans. What you pay under these plans is typically based upon your income. Examples are the Income Contingent Repayment plan, the Income Based Repayment plan or the Pay-As-You-Earn payment plan.
3. You must take extra steps to discharge your student loans in bankruptcy. 
   In order to discharge your student loans in a bankruptcy, your bankruptcy attorney must first file an adversary proceeding which is a separate lawsuit within your bankruptcy and it is filed against the student loan creditor.  Please keep in mind that this area of law is extremely complex and requires the attention of a seasoned bankruptcy lawyer that has worked with student loan debts in the past.  You can expect your bankruptcy attorney fee will be substantially higher if an adversary proceeding is filed.

Retaining an attorney who is experienced with discharging student loan debt is worth it. Without success, you may be left paying off your debts for years and years to come, all the while interest keeps accruing. Get a fresh start today! Contact Sapinski Law Office, S.C. to find out your bankruptcy and non bankruptcy options.