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December 10, 2010

Thu, 06 Aug 2020 20:44:55 GMT

A new case has been posted to the South Carolina Bankruptcy Court’s Judicial Opinions webpage. For the “10 Most Recently Posted” opinions, please click here.

Considering Personal Bankruptcy? 5 Reasons to Involve Your Spouse

Tue, 26 May 2020 18:15:57 GMT

Are you and your spouse or partner in dire financial straits that leave you considering bankruptcy? This is undoubtedly a stressful time, and taking charge of your debt with a tool like bankruptcy can make a huge difference. But unlike a person who is not in a long-term relationship, you have more to think about than just your own interests. You may also need to consider your partner in this decision. 

While this is a difficult subject, it's also an important one that can have many positive results. If you're still dreading having this conversation as a couple, here are a few of the best reasons to do so.

1. You Share Your Feelings

Money is a taboo subject of discussion for many Americans, even within the family. Even when they need to discuss their feelings about their financial situation, many couple are hesitant. But declaring bankruptcy, as well as pursuing other options like debt settlement, can involve deeply emotional issues as well as financial ones.

For instance, your spouse may be innately uncomfortable with the idea of not paying back their debts. They may not be up for the long haul of working out a debt repayment plan or counseling. Whatever the feelings of both parties, you'd do well to know and understand these before taking any action.

2. You Get On the Same Page

The decision to declare bankruptcy is difficult for most, and some couples may not have arrive at it at the same time. What if your spouse feels that the situation is not bad enough to warrant bankruptcy - but you do? Or perhaps you want to pursue debt counseling but your partner is set on bankruptcy?

Without a cohesive game plan, you may struggle finding a solution and implementing it. Inertia might even make the situation worse. The best way to prevent confusion from slowing your progress is to be certain everyone is on board with the plan.

3. Both Persons May Be Affected

While you can declare bankruptcy without your spouse, that bankruptcy will still affect them. For example, if you are both debtors on an obligation - such as a mortgage, credit card, or vehicle loan - creditors might come after the co-signer if one person is discharged of the debt. And both spouses' income may be included in any debt repayment plans. Transparency, then, is key for both partners no matter who files.

4. You Might Be Able to Avoid It

If you speak honestly and calmly as a couple, you may be able to find ways to avoid bankruptcy. Sometimes, one spouse is not even fully aware of the seriousness of the other's situation. Others may have success with alternate solutions by agreeing to work as a team - perhaps by retooling the shared family budget or taking on additional debt repayment. 

Bankruptcy is not always an inevitable end result, but it can become so if nothing is done. By working together, you may be able to right your finances rather than suffer alone until things get too bad to fix any other way. 

5. You Can Decide How to Declare

Finally, if you do decide that bankruptcy is right for you or your family, you'll need to decide how best to proceed. You would need to choose between Chapter 7 and Chapter 13, for instance. You may need to declare bankruptcy jointly so as to protect your partner from debts. Or you might want to time one or both filings in order to capture as much qualifying debt as possible. 

As a couple, you can successfully face the bankruptcy of one or both partners. One of the first steps is to talk about the subject as a family. Want help with this step or determining your debt relief options? Start by consulting with the McMaster Law Firm, LLC today.

Suffering From Lifestyle Creep? How Filing for Bankruptcy Can Help

Tue, 24 Mar 2020 18:23:25 GMT

Lifestyle creep occurs when you improve your standard of living as you receive more discretionary income. While there's nothing inherently wrong with using a raise or windfall to improve your standard of living, problems can arise when people use these funds to justify taking on more debt.

If you have fallen victim to lifestyle creep, filing for bankruptcy can help you get your expenses under control. Keep reading for more information about how bankruptcy can alleviate the financial distress associated with lifestyle creep.

Bankruptcy Can Eliminate or Restructure Debt That You Can't Afford

If you've taken on more debt as your income has increased, bankruptcy can eliminate the debt or lower it so that you can afford to make your payments. The two most common types of consumer bankruptcy are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy requires you to forfeit non-exempt assets and use the proceeds to pay down your debt. Any eligible non-secured debt is then forgiven (like credit card debt and medical debt). To qualify for Chapter 7 bankruptcy, your household income may not exceed a specific amount. Income restrictions for Chapter 7 vary based on your location and the size of your household.

Think of Chapter 13 bankruptcy as a type of debt consolidation. You get to keep your assets, but you must repay a portion of your debts over three to five years. Once your Chapter 13 plan is completed, any remaining qualifying debts are eliminated.

You Can Use Bankruptcy to Legally Get Rid of Items You Can't Afford

If you've gone on numerous spending sprees after each raise, you might find yourself with multiple items that you can't afford, like a car, house, and recreational vehicles. Bankruptcy makes it possible for you to get rid of items that you can't afford to make payments on (without the lender trying to sue you or garnish your wages).

In Chapter 7 bankruptcy, you can reaffirm a loan outside of the bankruptcy. This means that you work out an agreement with the lender to continue to pay the loan. However, if you've purchased a car that's too expensive, you don't have to keep it. You can surrender the car to the lender. Even if the lender doesn't recoup your balance when they sell your vehicle, they can't come after you for the deficit.

Secured loans and their collateral work a little different in a Chapter 13 bankruptcy. You still have the option to let a home or vehicle go. However, if there's a balance on your loan after the lender sells the collateral, this balance is included in your Chapter 13 debt as non-secured priority debt. Though it may impact your plan payment, any remaining balance is forgiven when you complete your plan.

A Chapter 13 Bankruptcy Can Lower Your Interest Rates

Many people justify taking on debt with less than favorable interest rates with the argument that they can afford it due to their higher income. If your lines of credit and credit cards are riddled with high interest rates, this makes it difficult for you to make a dent in your debt load.

Even if you make the minimum payment on your credit card, a high interest rate means that most of the payment is going to interest instead of paying down the balance. Chapter 13 bankruptcy is one option to lower the interest rate for your debt.

You'll still pay interest to your lenders, but the rate will likely be much lower than your current interest rates. As of March 2020, the interest rate for Chapter 13 plans in South Carolina is 5.25 percent .

Ready to fight back against lifestyle creep? Contact McMaster Law Firm, LLC, to make an appointment.

How Bankruptcy Affects Past, Current, and Future Taxes

Thu, 23 Jan 2020 18:26:38 GMT

If you are considering bankruptcy, you likely have many questions. And with income tax filing season gearing up, many taxpayers wonder how bankruptcy would affect their past, current, and future taxes. To help you make the best financial decisions during this challenging time, here are a few answers.

Past Taxes

To begin with, the bankruptcy court will generally mandate that bankruptcy applicants have filed several years' worth of recent tax returns. Why? Any refunds due to you could be part of the pool of assets that a trustee has available to pay your debts or to figure out a payment plan.

You have good reason to file prior years' income taxes before filing bankruptcy, as well. Any debts that have not been formally created cannot be included in bankruptcy discharge. Since a tax debt is only realized when the IRS sends a notice of that debt, you must have this step completed if you want to try to get it discharged. Potential tax debt won't be considered after filing.

Many old tax debts can be discharged along with other unsecured debts, but there are exceptions. To qualify, the tax return must generally be more than two years old while the debt itself must generally be more than 240 days old.

There must also not be any kind of fraudulent or evasive behavior involved. If there was a tax lien put on any property, though, that debt becomes a secured debt and may survive bankruptcy.

Current Taxes

As mentioned, the court will require you to file current tax forms as well as older ones. If you file in 2020, a tax refund you receive now would be for income earned in 2019. This would likely be determined to be usable by the trustee because it was for income earned (regardless of the refund date) before your filing date.

If you file in the middle of a year, things can get more complex. The court may separate and re-figure your income, expenses, credits, and refund for the portion of the year before your filing date. So if you file for bankruptcy on July 1, approximately 50% of each of these tax items may be considered part of your available bankruptcy assets. The rest would likely remain your own.

Future Taxes

What happens to future tax refunds? Generally, refunds for income earned after your filing date for Chapter 7 are likely to be yours to keep rather than granted to the bankruptcy trustee. Similarly, a future tax obligation would be your own separate responsibility as well.

However, filing Chapter 13 means setting up a payment plan that is approved by the court. This plan is based on your regular income, which tax refunds usually aren't considered part of. But the court may also generally expect that you would use refunds to pay into the payment plan.

If you want to use a refund for something other than repayment, you may need to petition the court to have it excluded for a specific reason.

Of course, if you fail to include any old tax debts or file a prior year return after your bankruptcy application, that debt will continue to be due. The IRS and most state tax authorities are authorized to apply future refunds to past-due debts like income taxes, child support, or education debt.

Do you have specific questions about your tax situation and a possible bankruptcy? Start by consulting with an experienced bankruptcy attorney. The McMaster Law Firm, L.L.C. , has aided individuals in many circumstances to successfully file bankruptcy for more than 20 years. Call today to make an appointment and get your questions answered.

Your Guide to Using Bankruptcy for Student Loan Relief

Mon, 25 Nov 2019 18:34:50 GMT

With student loan balances on the rise, it's increasingly common for students to seek relief for their student loans. One option that you might explore to alleviate the financial strain of your student loans is filing for bankruptcy.

Both Chapter 7 and Chapter 13 bankruptcies can help you improve your financial situation so that your student loans are easier to repay. Keep reading for everything you need to know to understand the impact of filing for bankruptcy on your student loans.

Chapter 7 Bankruptcy and Its Impact on Student Loans

Chapter 7 bankruptcy involves liquidating your non-exempt assets and using the proceeds to repay a portion of your debts. The bankruptcy trustee then dismisses your remaining qualifying debts. Unfortunately, for most people, student loans aren't dischargeable under a Chapter 7 bankruptcy. 

You have to meet a set of very specific criteria to have your student loans discharged by Chapter 7 bankruptcy, and few individuals meet all these criteria. The first thing that you must prove is that repaying your loans would prevent you from maintaining a minimum standard of living. Few individuals would have their standard of living lowered to this minimum level by making their student loan payments.

The second criteria states that there must be evidence that the hardship preventing you from repaying your student loan will continue the duration of your repayment period. Again, this is nearly impossible to prove, as it's difficult to argue that most financial hardships (like job loss, income reduction, or health problems) will last the entire repayment period of your loan.

Last, the third criteria dictates that you must have made a good faith effort to pay back your student loans. If you meet all three of these criteria, you must file for an adversary proceeding separate from your bankruptcy case. Should the court agree that you meet all these criteria, it can discharge some or all of your student loan debt.

Even though Chapter 7 bankruptcy won't eliminate your student loans, it will put you in a better position to make your payments. Chapter 7 bankruptcy can eliminate credit card debt and medical debt, it can also help you legally get rid of a house or car you can't afford. With fewer debt payments, most individuals are in a much better position to make their student loan payments. 

Chapter 13 Bankruptcy and Your Student Loans

Chapter 13 bankruptcy is actually a form of debt consolidation. The court requires you to pay back a specific amount of your debts. To do so, you'll make regular monthly payments for three to five years. Since you're repaying a portion of your debt, you get to keep your assets (though they may influence the amount of your plan payment). After your repayment period is over, any remaining debts are discharged.

While student loan debt isn't discharged at the end of a Chapter 13 bankruptcy, your monthly student loan payment is included in your monthly Chapter 13 payment. For many debtors, this allows them to pay a reduced payment or even no payment during their Chapter 13 plan.

Note that the interest on your student loans continues to accrue during your Chapter 13 plan. This means that your balance might increase if the payments you're making towards the loan as part of your Chapter 13 plan don't at least cover the interest on your loans. 

Once your Chapter 13 plan is over, you'll resume making your normal student loan payments. Ideally, your Chapter 13 plan has eliminated enough of your debt that your student loan payments are less of a financial burden. 

Ready to see if bankruptcy can reduce the financial strain of your student loans? Contact  The McMaster Law Firm, LLC, today to schedule a consultation.

Can You Avoid Bankruptcy?

Wed, 25 Sep 2019 18:38:30 GMT

Few people want to file for bankruptcy. Bankruptcy is an admission that you are not able to pay off your debts, and while it allows you to have a fresh start, it is certainly a decision you do not want to make lightly. Especially since bankruptcy will not erase every kind of debt you owe, including those owed to student loan companies and the IRS.

For many people, bankruptcy is a last resort; a sign that there are no other options. If you want to avoid bankruptcy, check out these options first.

Take Care of the Basics First

When you take care of your basic necessities, which include your food, rent, and utilities, you at least ensure that you don't go into foreclosure on your home or find yourself evicted as you make other decisions.

Of course, this tactic means you may need to say goodbye to your favorite streaming service, cable company, restaurant, and name brand foods for the time being. You should also unsubscribe from tempting emails that could prompt you to spend more money than you should while you are on this budget.

But the money you save by cutting off all subscriptions can help you determine if this short-term solution can help you pay off debts and keep creditors at bay.

Sell As Much As Possible

When you are at the end of your rope, one of the best things you can do is consider selling everything you do not need in the hopes you can use the funds to avoid bankruptcy. Clothing, DVDs, video games, electronics, and even some furniture can be sold online or via mobile apps.

While selling items in your home is not a desirable option, it does prevent damage to your credit score if you are able to avoid bankruptcy.

Talk to Creditors

Communication can often go a long way when you want to avoid bankruptcy. Some creditors may be willing to give you a break or put you on a payment plan if you are at risk for bankruptcy and need some assistance. So it's important to try reaching out to your creditors to see if you can work with them.

Seek Credit Counseling

Credit counseling may be helpful if you need to put a financial plan in place and improve your credit. Credit counseling may also help you communicate with creditors and perhaps even consolidate your debt if it is a viable option for your situation.

Pick up Another Job

Next, you might consider picking up another job that will provide you with an extra source of income. You can designate the income from your second job to only paying off debts with some strategic planning. Keep track of how much you make from this job and ensure you funnel all this money toward your debt.

If you already work full-time, you might consider projects you can work on from home or on the web with skills you already have, like refurbishing old furniture you find or editing resumes on the Internet.

Speak with an Attorney

Next, you should speak with a bankruptcy attorney to discuss your options. Often, bankruptcy is the best option for your family. You may not be able to pick up additional work shifts or sell your car for extra money. Each situation is different, so it pays to speak with a professional who has experience with bankruptcy.

We at The McMaster Law Firm, LLC , understand your situation. Our team of professionals will help you determine if bankruptcy is the best option or if you may be able to avoid it with a few extra precautions. Not sure if it's time? Call us today to get the help you need and consult with an attorney.

What to Do at the End of Your Chapter 13 Bankruptcy

Sun, 28 Jul 2019 18:43:08 GMT

Chapter 13 bankruptcy offers debtors struggling to make ends meet an opportunity to restructure their debts so that their monthly payments are more affordable. Despite the name, Chapter 13 is a form of debt consolidation that lasts anywhere from three to five years.

It's important to understand what your next move should be and what you can expect if you're approaching the end of your Chapter 13 bankruptcy. Keep reading for a few things you need to do near the completion of your Chapter 13 payment plan.

Be Prepared for One More Round of Paperwork

A Chapter 13 payment plan doesn't automatically cease once you make your final payment. You must complete the compulsory paperwork and your attorney has to file for an official dismissal of your bankruptcy case. Your attorney can tell you the specific pieces the bankruptcy trustee in your county requires, but most bankruptcy courts require you to submit a few basic items.

You'll need to affirm that you're up to date on any child support payments. The court also requires you to complete a financial management course before you can receive your official bankruptcy discharge. Once you successfully complete the course, you'll receive a certificate to present to the bankruptcy trustee.

The court will enter the official discharge and mail the formal documents once the trustee is certain you've completed all the paperwork to end your bankruptcy.

Be Prepared to Resume Payments for Debts Not Discharged

Your Chapter 13 plan discharges many of your debts, but other types of debt are nondischargeable. Most types of unsecured debt, like your credit cards and credit lines, are discharged at the completion of your bankruptcy. This means that the remaining balance on these unsecured debts is forgiven, even if you didn't pay off the debts during your plan.

Nondischargeable debts include your home mortgage, secured loans (like auto loans, boat loans, and home equity loans), student loans, some forms of tax debt, and certain debts related to court cases. If your nondischargeable debt wasn't paid off during the duration of your Chapter 13 plan, you'll need to begin making these debt payments on your own.

Your bankruptcy discharge documents will inform you what debts are discharged and which ones you still legally owe. The balances of your nondischargeable debts are also on your discharge documents.

Rebuild Your Credit

One of the primary concerns of debtors who file for Chapter 13 bankruptcy is the damage it does to their credit history. Though your Chapter 13 bankruptcy stays on your credit history for seven years, this doesn't mean that you need to wait to start rebuilding your credit.

Check that any debts discharged by your bankruptcy properly reflect on your credit report that they were dismissed at the end of your payment plan. They should not appear as delinquent; if they do, contact the credit reporting bureau in writing that there's an inaccuracy on your credit report.

If you have debts that weren't discharged during your bankruptcy, like student loans or a mortgage payment, use them to start establishing a positive credit history. Make sure that you make all your payments on time, as part of your credit history consists of your history of on-time payments.

A credit card is another useful tool for re-establishing your credit. Make sure that you make your payments on time, and avoid charging more than you can reasonably pay off within a few months. Retail and gas credit cards tend to have the least stringent credit requirements. Another option is to apply for a card with a co-signer.

You may receive advertisements from credit repair companies. If so, ignore these letters. There's nothing that these credit repair companies can do that you can't do on your own.

Do you have questions about the bankruptcy process? Contact us at the McMaster Law Firm, LLC to schedule a consultation and get more information.

5 Things To Know About The Chapter 7 Discharge

Thu, 30 May 2019 18:48:35 GMT

A key benefit offered through Chapter 7 bankruptcy is bankruptcy discharge, and this discharge is one of the top reasons people choose Chapter 7 over Chapter 13. If you are not familiar with bankruptcy law and facts, here are five things you should understand about the discharge offered through Chapter 7 bankruptcy.

1. What a Discharge Is

A discharge is a legal tool offered through a Chapter 7 case that offers the following:

It releases a person's responsibility to pay a specified debt.
It prevents a creditor from collecting the released debt.

In other words, the discharge eliminates the debts a person has and stops creditors from trying to collect these debts. If the court discharges any of your debts, you no longer owe them. You are no longer responsible to pay even part of the debts. The debts are gone completely from your life.

2. Debts Included in Most Discharges

When you pursue bankruptcy, your lawyer will take a close look at every debt you owe to determine how to classify the debts. The first type of debt you might have is unsecured debt that qualifies for a discharge, and this includes medical bills, personal loans, and credit cards.

Unless your creditors challenge a discharge of these debts, you should have no problem getting them approved for a discharge when you file. You may also receive a discharge for debts such as a deficit owed to a car lender after the lender repossessed your vehicle, and there are additional debts that may also qualify for a discharge.

3. Debts Not Included in Most Discharges

Another classification of debts is secured debts, and debts that fall into this category do not typically qualify for a discharge. Examples of secured debts include house loans and car loans. If you plan on keeping your house or car when filing for Chapter 7, you must continue making the payments on the loans, and you should not expect the court to discharge the loan balances.

Secondly, the court will not discharge debts for alimony, child support, or other types of court-ordered payments. You must pay these debts in full, even if you file for Chapter 7.

4. Debts that Can Go Either Way

In addition to dischargeable debts and non-dischargeable debts, there is a category of debts that can go either way. If you owe money on student loans or to the IRS for back taxes, you generally cannot qualify for a discharge for these. There are times, however, when they do qualify for a discharge.

To find out if your student loan debts or IRS tax debts qualify, you would need to talk to an attorney. The attorney will check to see if you meet the necessary conditions to have qualifying student loan debts or IRS tax debts, and there are specific conditions for both types of debts. If you do, the court may agree to discharge the debts, leaving you no longer liable for them.

5. The Time Frame for a Discharge

The amount of time it takes to receive a discharge in a Chapter 7 case varies, but the average time is around three to four months . This time frame is from the date in which you file; however, you should realize that it may take longer for the discharge to occur, especially if you have any complicated situations in your case.

Struggling to pay your bills and still have enough money left over for everyday expenses is never a good place to be. You can get help though and a great way to begin is by contacting McMaster Law Firm, LLC to schedule a consultation visit with an experienced bankruptcy attorney.

4 Things to Know About the Meeting of Creditors

Sun, 07 Apr 2019 18:51:56 GMT

Many reasons exist for why you may have lost control over your finances. You may have accumulated more debt than you can afford to pay or you may have become ill or unable to work due to medical issues, injuries, or layoffs. No matter what the reason, filing bankruptcy may be an option to consider.

Recent studies have shown an estimated 490,365 Chapter 7 bankruptcies were filed in 2016 alone. Chapter 7 allows you to start fresh, discharging all of your debts that you are legitimately unable to pay. A meeting of creditors, known as the 341 hearing, is one of the most crucial steps in filing this type of bankruptcy.

This guide will help you understand a few imperative facts regarding the meeting of creditors.

1. Timing Matters

During the initial bankruptcy consultation, your attorney will explain the steps that take place during the filing process. As long as you follow these steps properly, the courts will schedule the meeting of creditors between 21 and 40 days after filing bankruptcy.

If the creditors feel the debts should not be discharged for one reason or another, continuing the process will not be an option.

If the meeting goes as planned and the creditors agree you are unable to pay the debts, the bankruptcy process can continue. The best outcome is where creditors agree to the discharge, allowing you to finalize your bankruptcy to start improving your financial health efficiently.

2. Attendance Is Crucial

Another important fact you need to know is your attendance at the 341 meeting is crucial. In reality, your attendance is mandatory, since failing to attend the meeting of creditors will result in the termination of your case.

Feeling nervous before the meeting is normal, reducing your desire or determination to attend. However, you may feel relieved to learn that the meeting only lasts for a short period of time. In addition, many creditors choose NOT to attend, reducing the amount of stress you may experience during the meeting.

3. Preparation Is Essential

Not only do you need to make sure your schedule is free to attend the meeting of creditors, but you need to prepare in other ways.

Before the meeting, your bankruptcy trustee will require numerous documents to support your reasons for filing bankruptcy. The documents include the following:

Recent tax returns
Income verification (pay stubs)
Bank and retirement account statements
Automobile loan statements
Vehicle registrations
Automobile titles
Proof of insurance
Mortgage statements or proof of rent payments
Valuations of property
Marital agreements/settlements

In addition to the above documents, you will need to confirm your identity at the start of the meeting. Make sure to bring your driver's license or another form of government ID and your social security card. You should also bring a copy of your bankruptcy petition and supporting documents to the hearing.

4. Honesty Is Important

During the meeting, the bankruptcy trustee will ask you numerous questions regarding your income, assets, and reasons for needing bankruptcy. You may feel anxiety and fear when answering these questions since you want the creditors to agree to discharge your debts. However, as long as you were honest when filing the bankruptcy paperwork, the 341 meeting of creditors should go as planned.

Remember that is you withhold information pertaining to your income or assets or you lied on your bankruptcy petition, you commit bankruptcy fraud. This fraud not only prevents you from filing bankruptcy but can also lead to criminal charges.

Many steps exist with filing bankruptcy of any kind, but professionals are here to help. If you are considering filing chapter 7, understanding the meeting of creditors is important. For more information on the 341 hearing or any issues related to bankruptcy, contact McMaster Law Firm, LLC, today.

What Not to Do When Filing for Bankruptcy

Wed, 28 Nov 2018 18:55:57 GMT

Having financial constraints and being unable to pay your bills and keep up with your expenses can feel like an impossible situation. If you are in such a position, bankruptcy is an option that you may consider.

If you are thinking about filing for bankruptcy, you should avoid certain actions. Get to know some of these avoidable mistakes. Then, you can be sure that you are doing what is best for your financial future.

Don't Make Large Payments to Creditors First

You may be tempted to try to pay down some of your debts before you file for bankruptcy. However, making a large payment to one of a few of your creditors right before you try to file for bankruptcy is a major mistake. If you do so, the bankruptcy courts would assume that you have enough money to pay your bills and could deny your bankruptcy claim on that basis, depending on the size of the payment.

Additionally, if you make a large payment within 90 days of filing for bankruptcy, the courts can actually sue to get that money back and to include the debt in the bankruptcy proceeding. This includes any large payments you make to family members to pay off a debt you owe them.

Don't Gain Any More Debts

Once you have it in your mind that you might file for bankruptcy, you should avoid gaining or accruing any additional debts. Do not open a new loan account or credit card account. You should also avoid adding to the balances that you already have.

Adding to your debt load could call your bankruptcy into question. For example, if you are adding debts, it might seem like you are trying to get goods or services for free. This could be considered bankruptcy fraud. As such, take all of your credit cards out of your wallet when you are planning to file for bankruptcy and cut them up. You should not use them under any circumstances.

Don't Panic About Your Major Assets

One of the things that people most fear when they file for bankruptcy is that they will have all of their assets seized in the process. The reality, though, is that many assets may be exempt from being sold to pay creditors in a bankruptcy proceeding.

For example, your home is generally considered an allowable exemption in bankruptcy. If you have a second home, though, that may be sold off. Any home that is not your primary residence is fair game.

A car is also often an allowable exemption in bankruptcy. The court recognizes that most people need a car to get to and from work. Although, sometimes, cars may still be sold by the bankruptcy trustee, especially if they are second or third cars. There are also caps on the worth of a vehicle that you can keep, and these caps vary by state.

Don't Make a Quick Decision

When you are dealing with financial problems, it can feel like the whole world revolves around how much money you do or do not have. However, if you step back and take a breath, sometimes things can calm down a bit. You need to stop and think carefully before you make a decision, whether you end up filing for bankruptcy or not.

Bankruptcy has long-lasting effects on your life and your credit. It is not a process that should be taken lightly. Take your time making the decision about bankruptcy.

Have an initial consultation with a bankruptcy attorney and discuss your financial situation. Then, take the time to ponder your options. You may, for example, have the option of filing either chapter 7 or chapter 13 and need to determine which is the right option for you.

Now that you know the things you should not do before filing for bankruptcy, you can better prepare for the bankruptcy filing process. The next step will be to contact a bankruptcy attorney to set up your consultation appointment. Contact us at The McMaster Law Firm, LLC today.

Top Things to Consider Before You File for Bankruptcy

Sun, 07 Oct 2018 18:59:06 GMT

You need to consider a lot of different factors before you file for bankruptcy. Read this blog to learn the top things you should consider.

Filing for bankruptcy is a huge decision and event, and it is not something you should rush into. In fact, you should thoroughly consider a lot of different things before you file. Here are four main things for you to evaluate about bankruptcy.

Is There Another Way Out?

One of the requirements you must follow before filing for bankruptcy is taking a credit counseling course, and you can do this online or in a classroom. While this course will teach you a lot of things, one main topic it teaches is alternatives to bankruptcy.

The reason for this is to educate people about bankruptcy, its effects and its consequences, and to show people that alternatives are available. If you can find an alternative option that will help you get out of debt, it is worth looking into. Bankruptcy definitely has pros, but it also has cons, so you should make sure you really need it before you go through with filing.

What Types of Relief Would It Offer You?

A second thing to factor in is the types of relief bankruptcy would offer to you and your financial situation, and you will need to speak with a lawyer to find this out. One type of relief you will receive after filing is relief from creditor harassment.

As soon as a person files, the court notifies all the person's creditors. When the creditors find out a person filed, they are legally prohibited from contacting the person. This relief is called an automatic stay, and it is something everyone receives after filing for bankruptcy.

Secondly, you might receive relief from your credit card debts and other types of unsecured debts. If you file under the Chapter 7 branch, you will likely receive a discharge for all these debts, leaving you owing nothing on them. If you file for Chapter 13, you may have to repay them, but you probably would not have to repay 100% of the balances owed.

You can also receive relief in other ways. For example, if you are facing a foreclosure of your home, you could file for Chapter 13 and put the foreclosure to a halt. Chapter 13 offers the type of relief that gives you time to repay past-due debts and balances without dealing with creditors contacting you.

What Consequences Will You Face?

In addition, you will need to consider the consequences of bankruptcy before you file, simply so that you are completely aware of what these are. Bankruptcy has several main consequences, including a decrease in your credit score. Not only will your score decrease, but you will also face the negative bankruptcy post on your report for up to 10 years.

Secondly, you take the risk of losing assets when you file for Chapter 7 bankruptcy. Additional consequences also exist, and you should find these out before you file.

Which Branch Would Be the Best for You?

After evaluating the first three things, you will then need to consider which branch you should use for your personal situation. A lawyer will examine your full situation, including your income and every debt you owe. Through this examination, the lawyer will determine which branch to recommend for you.

This recommendation will be based on which branches you qualify for and which branch would give you more relief from the debts that you currently owe.

These four issues are all things you must consider before you file for bankruptcy. Additionally, you should not make any decisions without talking to a bankruptcy lawyer about your unique situation. Contact us today at The McMaster Law Firm, LLC for help.

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How to Time Your Chapter 7 Bankruptcy Filing

Mon, 06 Aug 2018 19:14:07 GMT

Seeking relief from your debts through Chapter 7 bankruptcy is a good route to take when you have too many debts to pay and not enough income, but you should make sure you do not file too quickly or wait too long to file. In other words, you need to time your case, and here are several timing issues you should consider as you plan to move forward with this.

Potential Foreclosure or Repossession

One issue that affects when you should file is a potential foreclosure or repossession. If you currently expect your mortgage lender to pursue foreclosure of your house or your car lender repossession of your car, you might want to file quickly. Filing for bankruptcy now will stop both of these things from occurring, and it will give you more time to determine what to do.

If you file for Chapter 7, your lenders must legally stop pursuing collections on these accounts. If they were going to pursue foreclosure or repossession, they must wait. They must give you time to settle your bankruptcy case before they take any action against you.

Loan Modification

On the other hand, if you are currently trying to modify your home loan and want to file for bankruptcy, you should work on the loan modification first. As soon as the lender approves it, you could go through with bankruptcy, but you would not want to file for bankruptcy first.

If you file for bankruptcy before the modification goes through, your lender may deny offering it to you, and you could risk losing your home.

More Debts in the Near Future

Another situation where you should wait to file is when you expect to have more debts in the future. For example, if you were terribly sick and ended up in the hospital, you will receive medical bills. If you file for bankruptcy before you receive these bills, you may lose the chance of including them in your bankruptcy estate.

If this happens, you would still have to pay these bills out of your pocket, even if you filed for bankruptcy. Therefore, make sure you are not expecting any more debts in the near future when you file.

Spike in Income or Windfall of Cash

When you visit a lawyer to file for bankruptcy, the lawyer will thoroughly examine your income for the past six months. If it is too high, you will not qualify for Chapter 7. Therefore, if you received a windfall of cash or had a spike in your income in the last six months, your lawyer might recommend waiting to file until six full months passes from the date of the windfall.

Disposal of Assets

Bankruptcy courts often will look back two years into a person's history when the person files for bankruptcy, and there are certain things the court looks for. One of these is disposal of assets.

Some people will try to avoid losing their assets in bankruptcy by giving them away before filing. Be aware that this is something the courts label as fraud. You cannot give things away before you file simply to prevent losing the items. If the court catches you doing this, they will throw out your case.

If you gave anything away, you should wait to file for bankruptcy for at least two years to avoid getting your case thrown out of court due to fraud.

If you would like to find out when you should file for bankruptcy, contact McMaster Law Firm, LLC. You can meet with an experienced lawyer who will review your case and give you advice about filing for Chapter 7 bankruptcy.

Bankruptcy and Paying for Your Child's College Education

Thu, 07 Jun 2018 19:16:45 GMT

With the cost of a four-year college degree now approaching six figures , many parents push their teens to earn scholarships and financial aid packages that can reduce the price of higher education. But because the Free Application for Federal Student Aid requests extensive financial information from parents, you may worry about what will happen when your teen's college years coincide with your own slide into debt.

What happens when you declare bankruptcy just before you need to qualify for parent-based student loans? Will your child's ability to qualify for need-based financial aid be hurt (or helped) by a family bankruptcy? These questions and others can provide you with important points to consider when you're trying to figure out how to juggle your child's college education with a pending bankruptcy.

Can Your Child Still Qualify for Financial Aid?

Filing for Chapter 7 or Chapter 13 bankruptcy shouldn't disqualify your teen from any financial aid. Need-based aid can generally be awarded whether a student's parents are preparing to file, are currently undergoing the bankruptcy process, or have recently exited the process. In fact, in many cases, the financial circumstances that led you to bankruptcy may actually help your child qualify for need-based aid.

Meanwhile, merit-based scholarships generally don't take a student's financial status into account at all. Nor will your bankruptcy impact your child's ability to take out federal student loans. And while private student lenders have their own qualifying criteria, because student (and parent) loans aren't dischargeable in bankruptcy, it's possible to qualify for these loans even if you've just filed for Chapter 7 or Chapter 13 protection.

Can You Afford to Pay for Your Child's College Education?

This question may have layers that go far beyond the surface. In other words, the ability to write a check for the first semester of tuition doesn't necessarily translate into long-term affordability.

If your child is college-aged, this likely places you in your late thirties, forties, or fifties — the prime decades to begin building up your own retirement accounts. To the extent that financing your children's education will take money away from your own future, it's usually best to abstain paying for their tuition. After all, your children can take out low-interest student loans for their own education, while no similar loans exist for retirement.

This same strategy is also true if your bankruptcy stemmed from a lifestyle that outpaced your income. In this case, you will want to focus on the factors that led to your bankruptcy and how you can right your own financial ship, instead of routing tens of thousands of dollars toward college tuition.

On the other hand, if you're already well-funded for retirement (since assets in a 401(k) or IRA are shielded from creditors in bankruptcy), it may make more sense to temporarily redirect these funds toward your child's education. After your child has graduated, you'll be able to redouble your efforts toward saving for your own future.

What Are Your Child's Other Educational Options?

Even if you've determined you can't afford to put much (or anything) toward your child's college education, this doesn't mean your child is on their own. There are many alternatives to the traditional four-year degree, whether this means attending a few years at a local community college before transferring to a university, attending part-time while working, or even looking into internship or co-op options that will literally pay your child to attend school.

College financing decisions can be tough even under perfect circumstances. Handling this stage of life along with a bankruptcy can be even more challenging, and there's no one-size-fits-all answer for everyone. But regardless of where you are in the bankruptcy process, an experienced attorney can help.

With the assistance and advice of someone who has overseen thousands of bankruptcy cases, you'll be well-positioned to make the best decision for you and your family.

The Bankruptcy Filing Process: A Step-By-Step Guide

Wed, 11 Apr 2018 19:20:48 GMT

If you're drowning in debt with no foreseeable change in your financial circumstance, bankruptcy may be the right choice for you. If you aren't sure about the filing process or have questions regarding bankruptcy, read on for a step-by-step guide to the process.

Step 1: Find an Attorney

Look for an attorney that specializes in bankruptcy. The attorney should be familiar with bankruptcy laws and any and all updated laws and changes regarding bankruptcy.

You should also look for an attorney that will be available to answer all of your questions about your debts and the process; you should also make sure that you feel comfortable with the attorney. If you aren't comfortable with your attorney, feel rushed through your appointments, or don't feel as though your specific needs are being met, find a different attorney.

Be sure your attorney gives you all fees and charges in writing so you don't have any surprise fees later. You're already in debt, so adding to that debt is not going to help you. Ask about all fees including the meeting of the creditors and any court fees, which may be extra.

Step 2: Do Your Homework

At your first appointment, your bankruptcy attorney is going to ask that you make a list of all of your creditors and debts that you have outstanding. Your attorney may have already made a packet that will ask for all of your personal information in addition to information about your debts.

You'll need to have the name and address of all creditors and how much you owe each of them. This may require you to run a credit report, which can be done online through a company such as Credit Karma or through the credit bureaus Equifax, TransUnion, or Experian. The credit report may list debts that you've forgotten about.

After you've filled out the packet (if you had one) and provided all of the information to your attorney, you'll have to sign off on the paperwork. By signing the bankruptcy paperwork, you're signing off that you have included all of your creditors and that, to your knowledge, all of the information is true.

Step 3: Filing Your Bankruptcy

The paperwork you signed off on is then sent to the bankruptcy court. After your bankruptcy is filed with the court, you'll be assigned a bankruptcy case number. The filed paperwork is sent to your creditors to let them know about your bankruptcy and that they are included.

At this time, any correspondence from your creditors such as bills, letters, and phone calls should cease. If you continue to get calls, bills, and any other correspondence from the creditors, you can give them your bankruptcy case number.

If calls persist from these creditors that were included in your bankruptcy, you should call your attorney to have a cease and desist letter sent out to the creditor.

Step 4: Meeting of Creditors

A meeting of creditors is a hearing in which you appear with your attorney present in front of a court-appointed trustee. The trustee will call on you and ask questions regarding your assets, job, and debts that were included in your bankruptcy.

The trustee will then give you your repayment schedule (if any at all), as well as any assets that will need to be given back to the creditor to help with repayment (such as a camper, vehicle, or electronics).

After this meeting, the trustee will then either dismiss or discharge your bankruptcy. If your bankruptcy is dismissed, something may have been missing or incomplete in your bankruptcy. If it is discharged, the bankruptcy is completed.

You may have to wait a few months to receive a discharge, usually about three months for a Chapter 7; for a Chapter 13, the discharge usually occurs after the repayment plan is completed.

If you are unable to make ends meet, you may want to consider filing for bankruptcy. Make an appointment today at The McMaster Law Firm, LLC , to discuss bankruptcy and your financial options.

Is Chapter 13 Bankruptcy Right for You?

Wed, 07 Feb 2018 19:24:08 GMT

It's a common misconception that people who file bankruptcy are financially irresponsible. Extended job loss, serious illness, and other unexpected events cause responsible Americans to utilize bankruptcy to get a fresh start.

You might already be aware that there are two types of bankruptcy: Chapter 7 and Chapter 13. While most people inquire about Chapter 7, there's a chance that Chapter 13 is better for your situation. This guide will help you determine if Chapter 13 is the right choice for you.

What’s the Difference Between Chapter 7 and Chapter 13?

Here's a quick primer on these two bankruptcy types:

Chapter 7

In Chapter 7 bankruptcy, your assets are sold, or liquidated, to pay your debts. The court appoints a trustee to handle these payments and oversees your case. Certain assets are protected from liquidation, and these typically include your primary residence and automobile.

Chapter 13

In Chapter 13, you set up a debt repayment plan — approved by the court system — that allows you to pay off your creditors over three or five years.

Ask yourself the following questions to help determine if Chapter 13 might be right for you.

Is Your Income Above The State Average?

In order to qualify for Chapter 7 bankruptcy, your income must be below the median income level for your state. The median level depends on the number of people in your household and other factors. If you're above that level, then you'll have to file for Chapter 13.

Are You Behind on your Mortgage or Car Payment?

When you file for bankruptcy, an automatic stay is issued to your creditors. In addition to keeping your creditors at bay, it can stop the foreclosure process in its tracks.

If you have overdue mortgage payments, then they can be incorporated into your Chapter 13 repayment plan. This allows you to spread out the amount over the repayment period, so you can continue to make your regular mortgage payments.

Additionally, if you're behind on your car payments and your vehicle is in danger of repossession, filing for Chapter 13 can stop that process as well. Just like overdue mortgage payments, overdue car payments can be rolled into your Chapter 13 repayment plan.

Do You Own a Lot of Property?

In Chapter 7 bankruptcy, certain assets are protected from liquidation; these are called exemptions, as previously mentioned, this usually includes your primary residence and vehicle.

However, in Chapter 7, your non-exempt assets can be liquidated in order to pay back your creditors. If you have a second home, a boat, or even a second car, then it may be sold to satisfy your debt.

Additionally, if you have considerable equity in your primary home, it may not be protected. If you have more equity in your home than your state's property exemption amount, then your home could still be sold to pay your creditors.

In chapter 13, however, your property isn't liquidated. Instead, the value of your assets is used to determine what you can afford to repay.

On top of any secured debts — like child support or a mortgage — your repayment plan will include a portion of your unsecured debt, in an amount equal to the value of your non-exempt assets.

For example, if you have $10,000 in non-exempt assets, you'll be required to pay that amount to your unsecured creditors and it will be added to your repayment plan.

Have You Contacted a Lawyer?

As helpful as the questions listed above can be, each case is individualized and requires personalized attention. If you're considering filing for bankruptcy, but you're not sure which type is right for you, then consult a qualified attorney as soon as you can.

Bankruptcy can help you regain financial control. Contact our experienced attorneys, here at McMaster Law Firm, LLC to set up a consultation or to learn more about the ways we can help you.

Debt Consolidation versus Bankruptcy: Which Option to Choose

Thu, 14 Dec 2017 19:35:37 GMT

When bills start piling up and creditors keep calling, you might finally decide to do something about your debt. Fortunately, you have options, including the common options of bankruptcy and debt consolidation. While debt consolidation has some benefits, choosing bankruptcy is usually the best route to take. Here are several things to know about these options.

The Pros and Cons of Debt Consolidation

Through debt consolidation, you can work with a company who will help you create a plan to repay your debts. This plan typically involves you paying one monthly payment to the debt consolidation firm each month, and they take this money and distribute it to your creditors.

The benefit of this is that it will not hurt your credit in the same way bankruptcy would. It might also cost less than bankruptcy, but this depends on your debts and the company you choose. Another benefit is that you will get to keep your credit cards.

While these are great benefits, there are a lot of limitations when it comes to debt consolidation plans. Here are some of the top drawbacks.

The Plan Will Not Include All Your Debts

Debt consolidation works only for credit card debts. Excluded debts include medical bills and cash advances. Additionally, you cannot include any secured loans, such as your mortgage or your car loans.

Your Creditors Have No Legal Obligations to Agree to the Plan

Secondly, although the debt consolidation company will notify your creditors of your payment plan, they do not have to agree to the plan.

You Will Still Get Collection Calls

Because creditors do not have to agree to the plan, they may continue calling you for money or sending demand letters.

Many Companies Have Hidden Fees

Many debt consolidation companies do not offer clear explanations of their fees. In other words, you might think the plan only costs a certain amount, but they might charge you a lot more than this.

Debt consolidation might work well for some people, but it does not work well for most people, especially for those who have past-due balances on secured loans.

The Pros and Cons of Bankruptcy

Bankruptcy offers legal help to people who desperately need help with their debts, and you can choose from two main options: Chapter 7 and Chapter 13. Bankruptcy also has pros and cons, and the main negative effect of bankruptcy is the effects it has on credit. Filing for Chapter 7 will remain on your credit for 10 years, while filing for Chapter 13 will remain for 7 years.

Bankruptcy offers a lot of benefits, though. Here are the top ones:

It Allows You to Eliminate Debts If You Qualify for Chapter 7

Chapter 7 forgives most unsecured debts, including credit card bills and medical bills.

It Allows You to Consolidate All the Debts You Have

Through Chapter 13 bankruptcy, you can get on a repayment plan that includes every debt you owe. Nothing is excluded from a Chapter 13 plan.

It Stops All Creditor Contact

In both branches of bankruptcy, the court issues an automatic stay which stops creditors from contacting you. It also requires your creditors to go along with your bankruptcy plan.

It Stops Foreclosures and Repossessions

Debt consolidation will not offer any relief if you are about to lose your house or car, but Chapter 13 bankruptcy will.

These are some of the top benefits offered through bankruptcy. Before you decide whether to choose bankruptcy or debt consolidation, make sure you talk to a lawyer.

Talking to an expert about your financial situation is the best way to determine what route to take. If you would like to learn more about these options, contact McMaster Law Firm, LLC today. We would love to sit down and talk to you about your situation and the options you have for debt relief.

Can You Keep Your House and Car If You File Bankruptcy?

Wed, 11 Oct 2017 19:38:24 GMT

One big question people often ask when they’re considering bankruptcy is if they can keep their house and car after they file. In truth, it depends on how you file. Before you can find out for sure, you will need to meet with a bankruptcy lawyer to discuss your personal situation.

This guide discusses several questions the attorney will discuss with you, and the factors that influence whether or not you’ll be able to keep your home and car.

Are You Behind on Your Payments?

When you sit down and discuss your situation with a bankruptcy attorney, you might initially ask if you can keep your house and car. To answer this question, your lawyer will ask you if you are behind on your payments.

If you are not behind on these payments, you have a better chance of keeping your assets after you declare bankruptcy if you do not have past-due balances on the accounts. However, whenever you declare bankruptcy you can still lose assets, it just depends on the amount of equity in them.

If you have past-due balances on your car or house, or if you have a repossession or foreclosure in the process, the best way to protect these assets is by filing for Chapter 13 bankruptcy. With Chapter 13 , the court issues an automatic stay, which is an order that stops lenders from pursuing foreclosures and repossessions.

Do You Have a Lot of Equity in These Assets?

Another factor is the amount of equity you have in your home and car. Equity refers to the difference between an asset's value and the amount you still owe on it.

When a person is caught up on their car payments but has thousands of dollars of equity in the car, he or she could lose the car in bankruptcy if the person uses Chapter 7. In Chapter 7, the court seizes things they can sell to make a profit. They do this to pay for debts that bankruptcy forgives.

In Chapter 13, you are allowed to keep all your property primarily because Chapter 13 requires repayment of debt. Therefore, in Chapter 13, the equity you have in your car and house do not matter as much. Chapter 13 places you on a plan to repay your debt, and it offers you time to do this. Typically, you will get five years to repay debts, even if you have past-due balances on the debts.

What Other Debts Do You Have?

Talking about your other debts is also important when meeting with a bankruptcy lawyer. Every situation is different and unique in its own way, and there isn’t a one-size-fits-all answer when someone is considering bankruptcy.

It is also important to note that there are different types of debt. For example, some debts are never dischargeable, these include debts such as alimony and child support, student loans, court fines and taxes.

Another type of debt is unsecured debts such as medical bills, personal loans and credit card bills. Bankruptcy treats unsecured debts differently and Chapter 7 allows forgiveness of these types of debts.

You will need to have a lawyer look at your entire situation to find the option best for you, and if saving your house from foreclosure is the most important aspect of your case, your lawyer will suggest using Chapter 13 bankruptcy so you can keep your home.

After discussing these questions with a bankruptcy lawyer, he or she will tell you if you can keep the assets you own and which branch of bankruptcy you should use. Contact the experts McMaster Law Firm, LLC today to learn more about your options and how each branch of bankruptcy will affect you.

Give Yourself Some Credit: Improve Your Credit After Chapter 7 Bankruptcy

Sun, 13 Aug 2017 19:42:03 GMT

Whether you have lost employment, become ill or accumulated a large amount of debt that you cannot pay off, filing Chapter 7 bankruptcy may be an option for you. Not only does Chapter 7 help wipe out existing debt that you are no longer able to pay, but it also teaches you how to budget, reducing the risk of losing control of your finances again in the future.

Since millions of people file for bankruptcy each year in the United States, you should never feel alone or ashamed. However, a bankruptcy filing will negatively affect your credit for up to 10 years. Thankfully, you can begin restoring your credit and financial health immediately after filing. With this guide and the help of your legal professionals , you will learn how to rebuild your credit after filing Chapter 7.

Set a Budget

When filing Chapter 7, you liquidate your debts, meaning you wipe out all unsecured debt and medical bills. You will no longer be required to pay this debt, which may include credit cards and medical bills, but you will lose access to any credit that was available to you.

This can be a good thing, since you will need to design and follow a budget that allows you to pay your basic expenses each month.

Your attorney will advise you to work with a financial advisor that can design a budget suited to your real needs. In this budget, you will need to set aside funds for paying basic expenses, such as your rent or mortgage, utilities, auto loans and insurance premiums.

Learning the differences between wants and needs is an imperative part of sticking to your budget. Living expenses, such as your rent or mortgage and utilities, groceries and gas for your vehicle are all "needs." However, concert tickets, luxury handbags and expensive vacations should be considered "wants."

Be sure to follow your budget strictly, ensuring you are able to pay essentials without risking future financial issues that may damage your credit further.

Get a Secured Credit Card

Thinking about a credit card after losing control of your finances and filing bankruptcy can be frightening, but applying for a secured credit card is a great step in restoring your credit.

Contact the bank where you have your checking and savings account to ask if they have a secured credit card available. Approval odds are higher when applying for a secured credit card at a bank that you already use, since you will have a relationship with this financial institution.

Once approved for a secured credit card, you will need to place a cash deposit down on the account. This deposit will serve as your credit limit. For example, a $300 deposit will be required to have a secured credit card with $300 in available credit.

Each month, make a small purchase using your secured credit and pay off the balance as soon as possible. Make sure to only make a small purchase that will accommodate interest fees without exceeding the credit limit.

Unfortunately, there are some negatives to having this type of credit card. Depending on your bank, you may need to pay an annual fee. You will also need to take this fee into consideration to ensure you do not overspend and go over your credit limit.

In addition to annual fees, most secured credit cards have high interest rates. These higher rates will not only cause monthly payments to be higher than usual, but they will also make paying off your total balance a little more difficult.

Again, to avoid overspending on your secured credit card, make one small purchase and pay it off each month to begin rebuilding your credit.

Filing chapter 7 bankruptcy is not the end of the world. To learn more about the benefits of bankruptcy and advice on how to restore your credit, contact McMaster Law Firm, LLC today.

Rebuilding Credit After Bankruptcy

Fri, 19 May 2017 19:46:07 GMT

McMaster Law Firm, LLC can help avoid foreclosure by assisting in bankruptcy filing.

Bankruptcy can be a demoralizing life event. Not only do you feel the stress leading up to the filing, but after, you feel a dark cloud following you around. On top of that, you often miss life’s pleasures because you’re sticking to a tight budget. However, there is light at the end of the tunnel.

The McMaster Law Firm, LLC knows how hard it is to rebuild your credit after bankruptcy. Even after the filing process, we will help you recover.

Credit Building Tips

Create a budget and stick to it
Have a plan for recovery
Review your credit report regularly
Secure a loan or credit card that makes sense and is manageable
Keep credit card balances as low as possible
Stick to your bill pay schedule
Actually commit to saving money
Don’t trust credit repair services

Though you’ve filed for bankruptcy and started to recover, you still may need a lawyer. For example, some courts will require you to petition the court for the ability to find a loan or open a line of credit. Also, we can help you dispute and errors on your credit report, if they require legal action.

You’ve stressed enough over your finances, debt and bankruptcy . McMaster Law Firm, LLC wants to take the stress away from the legal processes. Call us to schedule a free consultation! 864-232-1550

Can Bankruptcy Stop A Foreclosure?

Mon, 20 Mar 2017 19:49:14 GMT

As the bills pile up and you find yourself further in debt, you may find yourself facing foreclosure. Foreclosure begins after a homeowner falls behind on mortgage payments and, like other debts, filing for bankruptcy can delay the foreclosure.

Chapter 7 Bankruptcy and Foreclosure

As with every Chapter 7 bankruptcy , your creditors will receive an automatic stay for your payments. This means that creditors must cease collection activities but this does not include a mortgage lender. Chapter 7 bankruptcy cannot stop a foreclose but it can allow you to get caught up on your mortgage payments.

Chapter 13 Bankruptcy and Foreclosure

If you file for Chapter 13 bankruptcy , you may be able to avoid foreclosure altogether. You are able to sit down with your mortgage lender and figure out a payment plan. This could mean lower payments, less frequent payments, or another solution. That said, you must stick to the new payment plan.

While both forms of bankruptcy may allow you to catch up on your mortgage, Chapter 13 is the more viable way to avoid foreclosure. Do not file for any bankruptcy until you speak with a lawyer. Call The McMaster Law Firm at 864-232-1550 for reliable bankruptcy advice in Greenville.

How Filing for Bankruptcy Can Help With Medical Bills (1)

Thu, 26 Jan 2017 19:52:30 GMT

You’ve had an accident or major illness. After doctor’s appointments, laboratory tests, diagnostic imaging and lots of prescription medications you are finally recovering. Unfortunately, your wallet isn’t. Medical bills can be incredibly expensive, with or without insurance, leading many people to get into debt. Whether you paid these invoices with a credit card or simply still have outstanding balances owed, bankruptcy may help with your medical bills . There are two different options: Chapter 7 or Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 is only an option if your income is low enough that you would not be able to pay off your debt on an adjusted payment plan. If you qualify for Chapter 7 bankruptcy, any major assets you own will be used to pay off your outstanding debts and you will not be required to make further payments.

Chapter 13 Bankruptcy

On the other hand, Chapter 13 does not have the same income requirement, but will require you to make payments toward your bills. All of your credit card debt, medical bills and other unsecured debt (loans without collateral) will be lumped together and you will make payments toward the total sum.

With both forms of bankruptcy, you can clear or reduce your medical bills. Call McMaster Law Firm for more information about how filing for bankruptcy can help with medical bills.

Why File For Chapter 7 Bankruptcy

Tue, 01 Nov 2016 19:57:10 GMT

If you are a debtor and considering filing for bankruptcy, one option might be better than the other. Chapter 7 bankruptcy has advantages over Chapter 13 bankruptcy, but you would have to be eligible for it. Chapter 7 is quicker and allows you to keep most, if not all, of your property. See the list of benefits below:

A Fresh Start

You can emerge without debt, except for mortgage loans, car payments, student loans, taxes and unpaid child support and alimony. Debts are discharged within three to six months, and the bankruptcy court will close the case. There is no repayment plan in Chapter 7, while there is one in Chapter 13. There is also no limitation on the amount of debt you can have.

Keeping Future Income

Any income or property acquired after filing for Chapter 7 is yours to keep. However, certain property acquired within 180 days of filing does become part of the bankruptcy estate. That includes inherited property, life insurance policy proceeds, death benefits or property from a divorce settlement agreement.

If you are at the point where it’s in your best interest to file for bankruptcy, weigh your options between filing for Chapter 7 or Chapter 13. Call McMaster Law Firm, LLC to learn more about the benefits of filing Chapter 7.

January 3, 2011

Wed, 28 Sep 2016 20:17:01 GMT

Case Filings Report – “ New Case Filings by Division and County” report has been posted for the Month of December 2010 . Please click here to see the reports posted on the court website.

January 13, 2011

Wed, 28 Sep 2016 20:15:40 GMT

Judicial Opinions – An update has been posted to the court’s Judicial Opinions webpage. For the “10 Most Recently Posted” opinions, please click here.

February 2, 2011

Wed, 28 Sep 2016 20:13:50 GMT

Case Filings Report – New Case Filings by Division and County report has been posted for the Month of January 2011 . Please click here to see the reports posted on the court website.

Bankruptcy in Anderson

Wed, 28 Sep 2016 20:05:34 GMT

When, Why or Why Not?

Confused about what filing for Chapter 7 or 13 bankruptcy means? Unsure if it is the right time for you to file? The McMaster Law Firm, LLC is here to answer all your questions. If you live in Anderson and considering bankruptcy, call us at 864-232-1550 to schedule a private consultation with one of our experienced bankruptcy attorneys.

Should You Consider Bankruptcy

Wed, 28 Sep 2016 20:03:11 GMT

Are you being harassed by debt collectors? Do you have an overwhelming amount of debt? Then it might be time to discuss with us your options for filing bankruptcy.

Pickens County had 14 people file for Chapter 7 or Chapter 13 bankruptcy in February. Get the facts and learn what will work best for you. Call The McMaster Law Firm to schedule a free, private consultation. If you live in the Pickens area, contact us at 864-232-1550 . If you live in the Clemson area, contact us at 864-653-2091 .

The McMaster Law Firm proudly serves the greater South Carolina upstate area. For a list of phone numbers for your area, visit our Contact page .

Life After Bankruptcy

Wed, 28 Sep 2016 20:00:22 GMT

Many people still have a stigma about how bad their credit will be after declaring bankruptcy. Not only is bankruptcy nothing to be ashamed of, but it is also possible to rebuild a better credit history after bankruptcy. Here are some things every person should know about improving credit after bankruptcy:

Old Debts Are Erased

People who file for bankruptcy are usually already suffering a low credit rating with no possibility of climbing out of debt. Therefore, the truth is that filing for bankruptcy cannot further damage a score.

Time Heals All Scores

After debts are discharged through bankruptcy, they are closed by the credit grantor. After seven years, discharged credit charges are eliminated from credit reports.

New History Can Be Built

Who a borrower was in the past does not have to impact the kind of borrower he or she can be in the future. Establishing new credit and making on-time payments can improve a credit score.

Bankruptcy is not the end of the line for people but can provide a fresh start and result in better credit ratings. Those who wish to improve their credit can do so – even after declaring bankruptcy. For more advice on how to increase a credit score after bankruptcy, visit The McMaster Law Firm, LLC in Greenville.