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Chapter 7 Archives

Chapter 7 on private student loans

New Hampshire residents may be interested in learning more about the effects that Chapter 7 bankruptcy can have on certain private loans. Some of these loans may be discharged by Chapter 7 bankruptcy in as little as three months, and debtors won't face any tax liability for the discharge. Debtors may be relieved to learn that lenders are no longer able to recover an outstanding balance once the statute of limitations has passed.

Benefits of filing bankruptcy

Many people in New Hampshire are facing the endless problem of mounting debt. As they are forced to take more short-term loans and credit card debts to keep up their day-to-day expenses, their monthly minimum payments continue to grow, and their ability to meet them continues to fall. Even a minor interruption in their financial picture can have drastic consequences.

Supreme Court examining mortgage liabilities

After the events in the New Hampshire real estate market over the last several years, many homeowners in the state are in possession of a home that is worth less than they paid for it. This can have dire effects on the debtor's ability to repay the mortgage, as the mortgage may be taken out for more than the value of the home on the open market. Mortgages such as these are referred to by the term "underwater," and they are the subject of a current case brought before the United States Supreme Court.

When bankruptcy can be a good choice

New Hampshire consumers who are struggling with overwhelming debt are often hesitant to file for bankruptcy. While it is considered to be an acceptable option for businesses that need to reorganize debt, personal bankruptcy is both highly stigmatized and surrounded by myths. When a debtor is insolvent, bankruptcy is often a much better option in the long run than is struggling to pay debts through a debt management plan.

Qualifications for having tax debt discharged through bankruptcy

Individuals who are overwhelmed by financial obligations may be able to obtain a measure of relief by filing for Chapter 7 bankruptcy and getting some of their debts discharged. In some cases, past due income tax obligations may be discharged through bankruptcy as well. However, there are certain qualifications that they need to meet before this can occur.

Stripping a mortgage lien in a New Hampshire bankruptcy

The bankruptcy court may strip a creditor's lien on a property as part of the bankruptcy process if it is from an unsecured debt. Second mortgages often become unsecured debt as part of Chapter 13 bankruptcy proceedings in cases where the property has very little or no equity. Chapter 7 bankruptcy usually leaves them as secured debt, preventing the debtor from avoiding foreclosure due to a default on a second mortgage.

Is credit counseling required before filing for bankruptcy?

Individuals in New Hampshire who are considering bankruptcy must take a credit counseling course within 180 days prior to filing. The course must be taken through a credit counseling organization that is approved by the Department of Justice's U.S. Trustee Program. During this course, a counselor will go over the debtor's finances, discuss alternatives to bankruptcy and develop a personalized financial plan.

Circumstances drive choice between bankruptcy chapters

In general, there are two options open to individuals filing bankruptcy in New Hampshire. Chapter 7 is also known as straight liquidation bankruptcy because the debtor's nonexempt assets are liquidated, and the proceeds are used to pay off debts. Chapter 13 bankruptcy involves the establishment of a payment plan and is open to debtors who have regular income.

Start Your Case Today

Whether you have a family law issue, an estate planning question or are considering bankruptcy, I can help you find a sustainable solution that provides relief and hope. Schedule your consultation at my Nashua, New Hampshire office today by calling 603-635-4149 or by sending us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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