How Does Bankruptcy Filing Work?

Check out the Infotapes from Attorney Peter Francis Geraci. Watch below or @ https://www.infotapes.com/Bankruptcy/Infotapes

Organize Your Debt

1. How MUCH debt do you have? Is it around $10,000 or more in debt you can eliminate, like medical bills, lawsuits, credit cards, personal loans, repossessions? Make a list of all your debt and what it is for. You can find a form at Infotapes.com. Remember, some debts don’t appear on credit reports, so gather your bills, and even old debts can chase you for 5 or 10 years or more

2. What KIND of debt do you have? So if you have $10,000 or more in debt, is it the kind you can get rid of, or the kind you want to pay, like vehicles or credit unions, or is it just government student loans?

So, you can make a short list, using our form, you can get a free credit report to see what your creditors are reporting to credit bureaus.

Consult with a Law Firm

3. Get a free phone mini-consultation. You will need competent advice on whether Chapter 7 or 13 is right for the type and amount of debt, and also for your income level. Don’t make the mistake of thinking you can pick your Chapter, because you don’t know as much as Geraci Law’s highly experience attorneys.

4. Start uploading your documents. If we decide that we can help you, we’ll give you access to the Geraci Law ClientCorner, run an Experian soft-pull, get a Kelly Blue Book value on your vehicles, estimate your house value if you have one, and more. You can then upload necessary documents to our Geraci Law ClientCorner client portal, such as pay stubs, bank statements, contracts, bills and tax returns.

Meet with a Bankruptcy Lawyer for Free

5. Get a virtual or in-office interview and get your options, costs, and retain us, little or no money down. Figure a payment plan, and you’ve got yourself a lawyer! We’ll refer you to take a 20 minute online finance course, which costs $25. Take the course before you file. You can take my credit counseling course online for free to see what it’s like.

Review and Sign your Bankruptcy Paperwork

6. We’ll then prepare a bankruptcy petition of about 50 pages for you to review, and assemble the necessary documents you have uploaded, and after you sign it, we’ll file it with the Court.

File your Bankruptcy in Court

7. After we file in court, we’ll post all your documents on your secure Geraci Law ClientCorner portal, where you will get all your messages, instructions, documents, and even videos about your meeting of creditors and taking your second Debtor Education Course. The bankruptcy court requires you to take the second course to get a discharge. I teach it, and the Administrative office of the U.S. Trustee in bankruptcy certifies it. The court is one of the only courses actually taught by an experienced bankruptcy attorney.

Attend your Meeting of the Creditors

8. We will go with you, either by Zoom or in-person, to a brief interview with a Court appointed bankruptcy Trustee to go over your petition and approve it. If you filed Chapter 13, your plan will be confirmed and you will make the necessary monthly payment. If you filed Chapter 7, we will handle any paperwork with vehicles or mortgages you want to keep, and you will get a discharge around 4 months from date of filing.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Free Counseling Videos

Thinking about what to do about your debts? Afraid of the unknown?

Watch short videos with Bankruptcy Attorney Peter Francis Geraci about bankruptcy, credit, and debt.

Thinking about what to do about your debts? Afraid of the unknown?

Attorney Peter Francis Geraci produced credit counseling videos about bankruptcy, credit and debt, you can watch all for FREE at https://www.infotapes.com/Bankruptcy/BankruptcyInformationVideos

You will learn about:

  1. Medical Bills
  2. Personal Loans
  3. Payday Loans
  4. Suspended Driver’s License
  5. Can I keep a credit card?
  6. How does Chapter 7 bankruptcy work?
  7. How does Chapter 13 bankruptcy work?
  8. What does loan modification mean in bankruptcy?
  9. How do I keep my house and vehicles?
  10. What does bankruptcy do for my credit score?

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Heating Gas Prices Triple!

Inflation hurting everyone!

Read, “Heating Gas Prices Triple” a press release from Geraci Law. You can read this and more at https://www.infotapes.com/Press.

In Northern Illinois, not to mention Indiana and, of course, Wisconsin, Ohio, Michigan, etc., it’s cold outside right now! So, turn up your heat, but be prepared for a big natural gas bill (thankfully we have gas heat, not electric which is even more costly).

According to NICOR, the natural gas supplier, the price of a therm of natural gas in January 2021 was 29 cents vs. January 2022 is 61 cents per therm. DOUBLE

1)     Peoples Gas prices for October 2020 were 24 cents per therm and in October 2021, they are 72 cents per therm — a 198% increase. TRIPLE

2)     Nicor Gas prices for October 2020 were 28 cents per therm and in October 2021, they are 61 cents per therm — a 125% increase. MORE THAN DOUBLE

3)     North Shore Gas prices for October 2020 were 35 cents per therm and October 2021, they are 67 cents per therm — a 91% increase. JUST ABOUT DOUBLE

Geraci Law is increasing the budget expense for new Chapter 7 and 13 filings accordingly, so clients can meet their living expenses, and pay less to creditors under the “means test” that Democratic leaders (you know who) pushed through in 2005 to make debtors pay more to creditors. But with inflation, bankruptcy filings are designed to insure that debtors can pay their regular living expenses, before they pay creditors, or even discharge their debt so they can pay their gas bills. Thank your politicians for making it tough on everyone!

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Does Your Resolution Involve Debt?

No one wants to file for bankruptcy but life happens and that’s what the Fresh Start Button is for.

An article in The Washington Post titled, “Americans’ top five financial resolutions and how to make them stick” illustrates people’s WANT to budget and save. The author provides some good tips on how to make a budget and stick to it (the subheading – no you don’t need a budgeting app to control your spending is pretty good too).

This article does not account for large amounts of debt. Something in life happens where you are laid off, injured or just simply without the money to save. You use credit to survive and all of a sudden – you are stuck. Saving money becomes far more difficult when you are making minimum payments only to use your credit because your cash is gone.

THAT is where Geraci Law can help. No one wants to file for bankruptcy but life happens and that’s what the Fresh Start Button is for. So many clients are happy and relieved and are ABLE to:

  • Start a savings account. Think about it – if you are spending $600 per month on minimum payments, you eliminate the debt and you have THAT $600 extra per month. Put 1/2 away in a savings account and in a year – you are at $3,600 in emergency funds (put ALL into a savings account and you are at $7,200).
  • Invest – see the article. The author references a free course from the North American Securities Administrators Association (NASAA).

You cannot start saving until you deal with the debt problem. Geraci Law attorneys are ready to talk to you and review all of your options. Read the article at https://www.washingtonpost.com/business/2022/01/04/new-years-advice-to-keep-financial-resolutions/

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

How to Retire with a $250,000 Pension!

So, if you’re smart, you’ll think about filing Chapter 7 now.

And retiring “rich” with a $250,000 pension that will give you an extra $2000 a month when you are old, until you are 92.

Are you over 50, and don’t have a pension? According to a report by the Retirement Equity Lab, over 1/3 of older Americans are just like you… doomed to retire on Social Security.

It’s even worse if you have debts you are paying, even though you could get rid of them now, and start funding an IRA for yourself.

Minimum payments on credit card debt of $500 a month will keep you in debt for the next 23 years. Read your credit card statement, it tell you. How old will you be then?

If you qualify to file Chapter 7 bankruptcy for only 4 payments of $500 or so, you will have no credit card debt on discharge 4 months from now.

You can then put 500/month into an IRA, or $6000 a year for yourself that you would have just paid out for interest.

Adding another $500 to it to reach the max contribution of $6500, and doing that for the next 23 years instead of paying $500 a month on debt, gives you $149,500 at age 72.

And that’s if you weren’t smart enough to buy a “blue chip dividend paying stock” every month, which would have given you another $100,000 in market gains and dividends without taxes.

So, if you’re smart, you’ll think about filing Chapter 7 now. And retiring “rich” with a $250,000 pension that will give you an extra $2000 a month when you are old, until you are 92.

Call Geraci Law to get out of debt fast, and “get rich slow”.

Hit the “Fresh Start Button” now! 1-800-CALL-PFG or log on to http://www.infotapes.com.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com

How to Dispute False Item on Your Credit Report

It’s not mine, get it off my credit report! How long does bankruptcy stay on?

Article written by Attorney Peter Francis Geraci – read more like this @ https://www.infotapes.com/Articles

You can get a free credit report from one of the 3 major credit bureaus. Go to www.freeannualcreditreport.com If you see a debt listed that is not yours, you can contest it by filling out the form on each credit bureau’s dispute site.

Equifax https://www.equifax.com/personal/credit-report-services/credit-dispute/

Experian https://www.experian.com/disputes/main.html

Trans Union https://service.transunion.com/dss/login.page?dest=dispute

You can’t dispute things that are accurate. For instance, if you paid an account after it was late, the late account can show paid, but paid late. If you filed a bankruptcy, that fact that you filed stays on 10 years after your Chapter 7 filing date, and 7 years after your Chapter 13 filing date. If a debt that you received a bankruptcy discharge is listed, that is OK, as long as it shows that you owe nothing because of your bankruptcy discharge. Creditors know what a bankruptcy discharge means: you can’t file a Chapter 7 for another 8 years and have little or no debt except what you agreed to “reaffirm”, or survive discharge. So your credit score often goes up a lot after you get a bankruptcy discharge. Credit scores are bad because you have too much debt to pay, not because you got a discharge and now have no debt, and a fresh start, in most cases!

You can only contest things that are inaccurate. Here’s what Equifax says you can dispute:

• Personal information: Your name, addresses, Social Security number or date of birth.

• Account information you believe is inaccurate or incomplete: For example, if late payments are being reported on one of your accounts but you have always paid your balance on time and in full. 

• Mixed credit files: If someone else’s information is being reported on your credit file. This may happen if a father and son (Sr. and Jr.) have the same name, for instance.

• Duplicate reporting of an item: One example might be a debt listed twice.

• Information that may indicate fraud or identity theftThese would be credit accounts, including collection accounts, on your credit report that you don’t recognize.

Whether you’re contacting a lender or the credit bureaus, provide all the evidence and documents you can to support your dispute, such as an account statement verifying an account balance. Give details about why you believe the information in the credit report is inaccurate or incomplete.

What should I expect after filing a dispute?

If you file a dispute with the three nationwide credit bureaus, you can generally expect to receive the results of your dispute within 30 days. If the information is found to be inaccurate, your credit reports will be updated, generally within about 30 days.

If the result of the investigation finds that the information is accurate, it will remain on your credit reports. If you still believe the information is inaccurate or incomplete, and you have additional information that can help support your dispute, you can file your dispute again with the credit bureau. You also have the option to provide a brief statement on your credit reports summarizing your dispute, which can help explain your situation. Or you could contact the creditor to attempt to resolve the issue.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com

Student Loan Updates

Student Loan collections to resume in 2022 – read Geraci Law press release and PFG Article!

Geraci Law released the following press release regarding student loans. Read this release and more @ https://www.infotapes.com/Press

As of December 31, 2019, 10,347,000* borrowers were in default or 91+ days delinquent out of 44,865,000 borrowers with outstanding debt, according to Sen. Elizabeth Warren’s April 2, 2021 press release. During COVID, federal student loan interest, and collections, were paused. Will there be a “Jubilee” of forgiveness. Not likely. But there may be relief in bankruptcy for loans over 10 years old if a bill introduced in the Senate on August 21, 2021 passes both houses of Congress. https://abi-org.s3.amazonaws.com/Newsroom/FreshStartAct.pdf

The problem with this bill is that it requires schools with a high default rate to pay to the Treasury up to 50% of the amount forgiven.

In August, the President extended to Jan. 22, 2022, the moratorium that 9 of every 10 student loan borrowers have taken advantage of. Will the forgiveness bill pass before then? Probably not, if ever. Will the moratorium get extended again. Good chance, since the Democrats want to get elected in November 2022. Will student loans disappear? Not likely. Why not? Because America’s higher education gets fat by raising tuition and have students borrow our tax money to pay for a 4 year vacation from work. So the colleges and universities are opposed to any form of student loan forgiveness that would cost them a nickel, or reduce enrollment in super-expensive post-high school education.

What to do in the meantime? Get ready to pay your student loan, since it can’t be forgiven in bankruptcy. No fresh start for you, B.A. in Philosophy!

But wait there’s more!

Attorney Peter Francis Geraci wrote an article titled, “Student Loan Forgiveness for the Permanently Disabled.” You can read this article and more @ https://www.infotapes.com/Articles.

If you are receiving Social Security Disability, the Social Security Administration has determined that you are permanently and totally disabled and cannot engage in meaningful employment. In fact, if you do engage in meaningful employment paying over $500 a month, you are then deemed to be able to work. While you are disabled, you should apply for an “administrative discharge” of any student loan obligation. A family member can help you with this. You do not need an attorney.

You should not think of filing a bankruptcy to discharge student loans, therefore, if you are receiving Social Security Disability. Just inform the student loan servicer that you are totally, permanently disabled, and ask them to forgive the loan.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com

Need help turning on the AC? Utility debt and bankruptcy!

It’s hot in Chicagoland and if you are worried about your electric bill and running the AC – check out Chapter 24 of Attorney Peter Francis Geraci’s “Complete Book on Bankruptcy.” Utility bills can be discharged in a bankruptcy. Excerpt is below, check out the entire book @ https://www.bankruptcybookbypeterfrancisgeraci.com/

CHAPTER #24 Gas, Cable, Electric, & Phone Bills

Gas, electric and telephone (utility bills) can be dealt with in a bankruptcy. If they are current, they should not be listed on a bankruptcy petition. If they are more than 3 months past due, they should be listed, because you can be protected from utility shutoffs, and continue getting utility service without paying the past due bills, in many cases. Most states have laws which say that public utilities cannot refuse to give you service after a bankruptcy, even if you had a bill with them that you are discharging.

For instance, if your electric bill is behind $600, and your regular monthly bill is $75.00, but your electric is shut off because you were so far behind, a bankruptcy will be of great help to you. I will list the electric company as a creditor, and provide you with documents that you must carry in person to the electric company. They will zero out your bill. You then can get service turned on, providing you make satisfactory deposit arrangements. Usually, the deposit would be 2 times an average bill, or 2 x $75.00. This may be payable in installments over several months.

So, you can see that, if you are severely behind in your utilities, and have enough other bills to warrant filing a bankruptcy, you can get your past due utility service up to date very quickly with very little money.

Cell phone carriers may shut off your service if you owe them money and file. The same with cable companies. Most will turn it back on when you provide them with the bankruptcy papers and catch up. Usually our clients only list those providers that are already shut off, so this is not a problem.

The only problem with clients whose utility bills are past due, is that it is a signal that the have problems that bankruptcy cannot solve. Not paying utility bills is like not paying your rent. Unless that is caused by a temporary disaster, you may need more income to live normally. If you don’t have enough income to pay necessities, you may find yourself back in the same situation again very soon after a bankruptcy. (see the Chapter on What Bankruptcy Won’t Solve)

Problem: Mrs. Wilson has 3 finance company loans, 4 credit cards, and a big hospital bill that was not covered by insurance. Her house payment is 2 months late, because she paid the other creditors instead of paying the house payment. Her gas bill is $600 behind, and her lights are off.

The Peter Francis Geraci Chapter 7 or 13 Solution: If she files a bankruptcy petition, her utilities can be “zeroed out”, and her outstanding balance reduced to nothing. She starts fresh with the utility companies, and will only have to put up a deposit in order to get service again. Of course, she will have to remain current in the future.

A Chapter 13 will pick up the past due mortgage payments and prevent collection by the other loans. Of course, there is no sense filing a Chapter 13 if she cannot meet her mortgage, utilities and Chapter 13 payment regularly in the future.

It may be better to file a Chapter 7 in such a case, and perhaps sell the house or live out the equity without making any more mortgage payments.

Bankruptcy Filing Will Not Save a Going Business

Geraci Law lawyers have been practicing bankruptcy for a combined total of 500 years, some as many as 25 or more than 40 years. Our advice is: “if you are running a business that is failing, do not file bankruptcy. Close the business, file your tax returns, and come and see us in two years”.

Read new article from Attorney Peter Francis Geraci titled, “Bankruptcy Filing will not Save a Going Business.” Read more articles at https://www.infotapes.com/articles/news/75/bankruptcy-filing-will-not-save-a-going-business/

Full article is below.

Small business bankruptcy or self-employed bankruptcy is usually a bad idea

By Peter Francis Geraci

Why Self- employed and small businesses DO NOT QUALIFY for bankruptcy relief.

Bankruptcy, whether it’s Chapter 7, 11 (whether a regular chapter 11 or the new subchapter 5), 13, does not solve the common problem of lack of money. Most self-employed people were small businesses have your regular income, and often can’t even meet payroll or regular living expenses. Businesses are doomed to fail. Bankruptcy will not solve that problem.

Geraci Law lawyers have been practicing bankruptcy for a combined total of 500 years, some as many as 25 or more than 40 years. Our advice is: “if you are running a business that is failing, do not file bankruptcy. Close the business, file your tax returns, and come and see us in two years”.

There are many good reasons:

 if you have a corporation, or an LLC, and you’re not operating as a self-employed person, Corporation filing Chapter 7 results in the corporation getting by a bankruptcy trustee

corporations can’t file under Chapter 13. Corporations that file under Chapter 11 usually get converted to chapter 7 on that liquidated, the fees are very high, and it’s only for corporations that have positive cash flow, or can get new financing to continue operating. Its like trying to save the Titanic.

if you are a small business that is not incorporated or an LLC, it is usually a bad idea to file either chapter 7 or 13 total businesses been closed for at least two years

A small business that files Chapter 7 gets the business liquidated by a bankruptcy trustee. You can do that yourself, way cheaper. It is a much better idea to simply close it if you don’t want to operate it, pay all the taxes doing file all the necessary returns, wait two years and see if anybody is bothering you.

In order to reorganize your debt with Chapter 13, you have to have enough regular income in order to pay your regular business expenses, and then pay taxes on the profit, and then take home after taxes enough money to pay your regular living expenses, with at least $300 left over to devote to paying creditors. Very few self-employed businesses produce enough income to cover regular business expenses, let alone living expenses 

Chapter 7 or Chapter 13 filing for individuals who are regularly employed is often a wonderful solution to the problem of too much data and not enough money. When a business is involved, the paperwork doubles or triples. You must answer questions under oath, about business financial affairs, and you’re not going to discharge payroll taxes if you haven’t paid them, or other employee obligations. In addition, a copy of your bankruptcy will go to the IRS, and you will be required to file your state local and federal tax returns before getting any bankruptcy relief.

We have seen many bad things happen to individuals who go to lawyers who are only too eager to take a couple files and can file a Chapter 7 or 11 for a business that is either still operating, or hasn’t been closed for more than two years. We’ve seen it turn into a real mess, and in some cases into federal indictments. We could go into a lot of examples, but if you are planning to file a business bankruptcy, we suggest that you don’t. Either tough it out, and hope that things get better, or close it and pay your taxes and file your returns. If you can’t pay the taxes, file returns anywhere, because you may be able to discharge income taxes if you file truthful returns come and see us in two or three years! Be very careful to pay your employee taxes and withholding because if you were supposed to turn over withheld funds to the government and you don’t, there is no statute of limitations about discharge.

There are a lot of small businesses that fail. Chances are good that 70% of small businesses will fail within three years. If that happens to your business, you should not file a bankruptcy immediately, if at all. You should

  1. wait until the businesses closes
  2. file all tax returns even if you can’t pay the taxes due
  3. keep your books and records because that is another requirement,
  4. return all property that is security for a loan, to those lender
  5. don’t do anything weird like transfer or hide assets, bankruptcy judges hate that

and then and only then come and see us about cleaning up the mess and getting a fresh start after the businesses closed. Be very careful if you don’t heed this advice and some attorney wants to file a bankruptcy when a business is still open, and you haven’t filed all tax returns. You could be paying a lot of money for nothing and even get into big trouble.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Can I Get Rid of a Vehicle By Filing Bankruptcy?

Sometimes you just don’t want a vehicle. It may be worth far less than you owe, or it may be a junk that costs too much to repair. So the question is, how do you get rid of it and get something else?

Article written by Attorney Peter Francis Geraci. Read more of his posts at https://www.infotapes.com/Articles!

Can I get rid of a vehicle by filing bankruptcy?

Sometimes you just don’t want a vehicle. It may be worth far less than you owe, or it may be a junk that costs too much to repair. So the question is, how do you get rid of it and get something else? You’re probably not going to just get rid of the vehicle and walk or take the bus. So there are a variety of situations, and you need good legal advice before you make a false move.

Title loans Do you have an old vehicle with a title loan? If you do, the title loan company has a lien on the title. They will want you to pay them before they release the title. If the vehicle doesn’t run, or has been in an accident, you can’t junk it unless you get the title. Title loan companies seldom will take a vehicle back, rarely even repossess vehicles, because they don’t loan you enough money to make it worthwhile. If you file a bankruptcy, we can provide that you surrender the vehicle, then file a procedure called a motion to exempt and redeem. The court values the vehicle, and all you have to do is pay the value of the vehicle to the title company in which they are required to give you the title. This works very well when you have a junker is only worth $100 salvage value.

Under water Second situation that is very common is that you have a vehicle where you have a loan on it, in the loan payoff is much more than the vehicle is worth, and you don’t want it. Let’s say you bought a used car, and it’s now worth $8000. But you have 40 payments of $350 left to pay, or $14,000, the payoff and that depending upon how long you’ve financed it for, might be as much is $11,000 or $12,000. So if you wanted to give the vehicle back to the finance company, they would sell it at auction, probably $4000, and soak you with the auction costs, if you credit for the $4000 sales price, and you’d end up owing 8000 on the repossessed vehicle. Chapter 7 filing can eliminate that $8000 deficiency.

So Chapter 7 works very well when you owe a lot more than the vehicle is worth. If you want the over financed vehicle in a chapter 7, sometimes, we can make a deal, and a reaffirmation. So you can either surrender a vehicle that’s over financed and eliminate the deficiency, or possibly we can negotiate a better deal in bankruptcy, but you have to be willing, under Chapter 7 to surrender it if they don’t give you a better deal. There is another option called 722 redemption, similar to the junker, but if the value of the vehicle is $8000, you have to come up with the full value of the vehicle, or finance it, and if you do not come up with the $8000 722 redemption, you probably be financing it at 30% interest which is a terrible deal and you’d be right back where you started.

Chapter 13 The third situation involves keeping the vehicle, and filing chapter 13 to pay what the vehicle is worth, if the vehicle is over two and half years old, and even if it’s not 2 ½ years old to pay it at the prime rate +2%. Now if that sounds complicated, it is. One problem that we are running into is people are financing vehicles for 72 or 84 months, and then coming in to file a chapter 13, which can only last 60 months. They may even have a 0% interest rate. So if you have a long way to pay on a vehicle, and you’ve already got 0% interest, chapter 13 doesn’t help you. Depending upon your income, it may be wise you can qualify for chapter 7, to get rid of this monster and get a reasonably priced vehicle with a low payment.

There’s a lot more to vehicles in bankruptcy. Geraci law lawyers have filed over 100,000 bankruptcy cases, many of which involve cars, both chapter 7 and chapter 13. If your only debt is a car, you should not be doing a bankruptcy. But if your problem is greater than just the car payment, let’s look at what filing a Chapter 7 or Chapter 13 can do about your whole picture, and where the vehicle fits in.

That’s why you need an experienced Geraci law bankruptcy lawyer to figure all this stuff out.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

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