Macdonald Law

07/02/2020

AM I ELIGIBLE FOR CHAPTER & BANKRUPTCY?

Chapter 7 Eligibility
To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. 11 U.S.C. §§ 101(41), 109(b). Subject to the means test described above for individual debtors, relief is available under chapter 7 irrespective of the amount of the debtor's debts or whether the debtor is solvent or insolvent. An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start." The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations. 11 U.S.C. § 727(a)(1). Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

05/20/2020

What is bankruptcy, and will the process wipe out all of my debts?

Bankruptcy refers to a federal court procedure that allows debtors to catch up on their debts by having some of them discharged and others repaid, depending on the type of bankruptcy. The process is available to both businesses (which often file for Chapter 11) and consumers (usually Chapter 7 or Chapter 13).

After getting court approval, the court shields you from lawsuits and some other adverse actions while you work through the procedure. For consumers, bankruptcies are almost always either "liquidations" (Chapter 7) or "reorganizations" (Chapter 13). In a Chapter 7 proceeding, property may be sold (liquidated) to pay back creditors. In a Chapter 13 proceeding, consumers typically keep most of their property but must establish a plan to repay at least some of their debt within three or five years.

The court issues a protective order when you file for bankruptcy called an "automatic stay," which stops most creditors from contacting you about your debts or making any collection efforts. Only the court has the authority to lift the automatic stay and allow creditors to seek repayment of debts.

Bankruptcy can help you get rid of some, but not all, kinds of debt. For instance, unsecured debt from credit cards and hospital bills may be forgiven in many cases. But child support, alimony and taxes may not be discharged. Student loans are not dischargeable unless the debtor can prove that repayment would cause an undue hardship (which is very difficult to prove). Also, creditors may argue that a given debt should not be discharged, subject to the bankruptcy judge's approval.

info: https://bankruptcy.findlaw.com/what-is-bankruptcy/bankruptcy-frequently-asked-questions.html

04/07/2020

Should I file for Bankruptcy?
If it seems like you’re drowning in debt, make an appointment to meet with us. We can advise whether bankruptcy is the right choice for you, and which type of bankruptcy best suits your situation. 208-263-6546

http://macdonaldlawoffices.com/

12/10/2019

You've done everything possible to avoid Bankruptcy. You've cut spending, sold assets to try to catch up on bills, tried to negotiate with your creditors but nothing is working and taking off the pressure you live with everyday. Read this article from credit karma and hopefully it will help you wrap your mind around filing for Chapter 7.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, could help you get relief from debts. But it comes at a price.

11/20/2019

Macdonald Law supports Sandpoint Community Resource Center. Congrats on 10 years of serving Bonner and Boundary County. You are a critical and valuable resource for our communities. Thank you for everything you do.
SCRC wants to be the one place for people to come for help with needed social services in Bonner and Boundary Counties. They have developed a library of over 400 state and local resources and can assist you in person, via email or online to easily access available services. Their website is full of helpful information, including events and programming for Seniors, Youth, Veterans and more.

Let us help you find the resources and services you need. We are connected to over 350 state and local providers that may be able to help resolve your situation. Open 10 am -2 pm Monday through Friday. We offer a friendly and compassionate response to those in need.