10 Jan 2010, Comments (0)

Bankruptcy Q & A

Author: Richard Simpson
How much does it cost to file for Chapter 7 Bankruptcy?
The Bankruptcy Court charges the following fees to file for Chapter 7 Bankruptcy:

Filing Fee of $245.00, plus
Administrative Fee of $39.00, plus
Trustee Surcharge of $15.00
TOTAL FILING FEE: $299.00

IMPORTANT NOTE: The above fees are in addition to any attorney’s fees and/or fees for the preparation of the Bankruptcy Documents, appearance at a Section 341 Creditor’s Meeting, or representation in Bankruptcy Court. Any fees for legal services must be agreed to in writing between you and your attorney prior to the commencement of any bankruptcy proceeding.

Can I file Chapter 7 Bankruptcy Even if I Have Filed Before?
Whether or not you may re-file (and the amount of time that must pass before you may re-file bankruptcy) depends on whether or not you received a discharge under your most recent bankruptcy filing.

If you received a discharge under a Chapter 13 bankruptcy case, then you cannot file for relief under Chapter 7 unless:

1. Six years have passed since the discharge in the Chapter 13 case; or
2. You paid at least 70 percent of your allowed unsecured claims in the Chapter 13 case, and your plan was proposed in good faith and represented your best effort to pay.

If you received a discharged under a Chapter 7 bankruptcy case, then you cannot file for relief under Chapter 7 unless eight years have passed since the discharge in the previous Chapter 7 filing.

If you filed a Chapter 7 or Chapter 13 case that was dismissed because you failed to obey court orders or you voluntarily requested a dismissal and did not obtain a discharge, then you cannot file for relief under Chapter 7 unless 180 days have passed since the dismissal of the previous filing.

Can a Court Deny my Discharge in a Chapter 7 Bankruptcy Case?
If you have tried to delay or defraud your creditors by transferring, hiding, or destroying your property within the 1-year period prior to filing a petition under Chapter 7 of the bankruptcy code, the Court may deny your discharge and, and, in its discretion, allow your creditors to recover any property transferred in the one year period.
What happens if I paid off all or some of my debts before I file for Bankruptcy? What is an “Insider”?
Any payments on debts owed to Insiders made at any time within the 1-year period prior to the filing of a Chapter 7 petition are considered to be an unlawful preference. The Bankruptcy Court, in its discretion, may recover all such payments and distribute them to your other creditors.

An “Insider” is any creditor who is also a relative by blood or marriage, or is a close business associate.

If you pay back any of your creditors, even one who is not an insider, at any time within the 90-day period prior to the filing of your bankruptcy case, the payment is an unlawful preference and the court may recover all such payments and distribute them to your other creditors.

Do I need to take a credit counseling course before I can file for Chapter 7 Bankruptcy?
Yes. You must take a court-approved credit counseling course no more than 180 days before your bankruptcy filing. For more information on how to locate an approved credit counseling agency, contact us for a free initial consultation.

Richard Simpson

770-623-6341

http://www.helptoavoidmortgageforeclosure.com

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