People take legal matters into their own hands every day, and sometimes they lose money and property in the process. You can make a legally binding contract without using an attorney, but you are risking missing some big legal loopholes and laws you may not be familiar with that can not only make your contract invalid but can actually cost you in the end. When you are selling or purchasing real estate, tackling the creation of a will or even just loaning money to a friend, a consultation with an attorney can be a positive step. I'll show you when and why you need an attorney.
If you are considering a bankruptcy filing, you are probably at that point where you are ready for some real relief from your financial woes. You want to make sure that you get the most benefits possible from your chapter 7 filing, and there are a few issues to make yourself aware of before you file. Read on and take note of these three issues that could stop you from filing bankruptcy.
Income Limits
The Bankruptcy codes underwent some changes in an effort to bar the rich from filing for bankruptcy just to get out of paying their debts. So now, if you make too much money you may not be able to file. The upper limit varies by state and is based on your state's median income. You may be okay to file in one state, but not another. You may not want to make a move in order to file, but for some it could make financial sense to relocate to a state with a higher median income. Be sure to abide by the residency guidelines for filing, since you may need to live for a certain length of time to file in a particular state.
You may be able to use certain deductions to reduce your income enough to allow filing. Some forms of debt, such as medical bills or high mortgages, are deductible so check with a bankruptcy attorney.
Another option could be filing a chapter 13 instead of a chapter 7 since income is not a consideration for 13. It is more of debt reorganization plan, rather than a debt forgiveness plan like chapter 7 is, however.
Too Soon
You can file for bankruptcy as many times as you like or need, but there are some limits on how long you need to wait between filings. Be sure to note that the time is counted from your most recent bankruptcy's discharge date, not the date you filed. There are different time limits depending on what you last filed and what you are wishing to file now. For example, if you want to file chapter 7 after your last chapter 7, you have to wait at least 8 years.
Fraud
If you have run afoul of the bankruptcy courts and had your bankruptcy dismissed, it will depend on the level of wrongdoing. The cases are evaluated on a case-by-case basis and in some cases you may be granted a reprieve. On the other hand, you could also find yourself barred from filing for bankruptcy for life.
For more information, contact a firm such as Olson Kulkoski Galloway & Vesely SC.
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