Bankruptcy Blog For You

Among the 50 states of America, New Hampshire is one which is not suffering or going through from the financial hardships as much in our troubled economy as some other states. According to a survey in 2009 they did have over 5,000 filings. It points out that a number of consumers are interested in filing bankruptcy at the present days. Filing bankruptcy in the state of New Hampshire has a lot of advantages. Though there are many new debt relief options appearing on the financial horizon but some of them are not as lawful as others. A Mystry to unfold
Filing bankruptcy depends on the unique circumstances of the consumer. Though bankruptcy offers protection and relief to your financial aspects discharging many debts. But before filing you have to decide whether bankruptcy is the right debt relief option for you or not. We have compiled a list of resources to help you research, find a lawyer, and decide how New Hampshire law will affect you when filing for bankruptcy.
You cannot afford to pay your mortgage.
You can only afford to pay the minimum payments on credit cards and loans.
You have lost your job or the only chance to earn a significant amount of money.
You are going through a separation or divorce case.
You are frequently receiving notices from creditors that your bills are past due.
You are thrashed with overwhelming medical expenses.

Before filing bankruptcy you also have to remember that bankruptcy does not cancel or discharge all kinds of debts. Such as
Fines owed to federal or the New Hampshire government agencies
Several Taxes
Current Cash Advances
Student Loans
Alimony & Child Support
Purchases in more than $550 made within 90 days of filing bankruptcy
Debts accrued as a result of a fraudulent activity

Bankruptcy also has some negative impacts on your credit record such as your decreasing the reputation of your credit score which carries a black mark that lasts for at least 10 years.

Bankruptcy has six different chapters which carries its own personal characteristics regarding various benefits and drawbacks.
The majority of US consumers opt to declare bankruptcy under Chapter 7 or Chapter 13 which are undertaken by the laws of U.S. Code Title 11, carrying specific state regulations.

Both on the one hand the chapter 7 bankruptcy provides a good scope to start your financial career afresh and on the other hand the chapter 13 bankruptcy provides you the courage to reorganize your financial career by wiping out your debts.

Filing Chapter 7 bankruptcy in New Hampshire:
Chapter 7 bankruptcy is well known as the ‘liquidation’ bankruptcy. In this process you are bound to give your valuable assets to a court appointed trustee, aside from 'exemptions’. Then those are placed in the control of a bankruptcy trustee who liquidates the properties applicable in outstanding liens and debt related responsibilities.
This is a legal procedure which is intended to free you from financial problems like unsecured debt obligations. But you also must remember that chapter 7 does not wipe out debt like mortgages or car payments because they are secured by collateral. Individuals, partnerships, corporations, and married couples who are all qualified to file Chapter 7 Bankruptcy. It is the most common type of bankruptcy and can be used to release or discharge most of your unsecured debts within four to six months.

In this process you will usually receive your discharge soon after you file and you will also get allowed to keep any money you earn after you file.
Chapter 7 means test:
In 2005, the Bankruptcy Prevention and Consumer Protection Act (BAPCA), made the process of filing Chapter 7 Bankruptcy more difficult. It required an income test, additional credit counseling prior to filing bankruptcy, and a completion of financial management course before the discharge of your debt. The main reason of this is to attract more and more consumers to file for a chapter 13 bankruptcies instead of chapter 7 bankruptcies.
To qualify for filing Chapter 7 bankruptcy, you have to pass a 'means test' to prevent bankruptcy abuse. This test is taken in order to determine if your income is below the median income of your community or the given state. In New Hampshire, the median income figure used is
For a single person: $55,766
For two persons’- $65,751
For three persons’-$77,008
For four persons’- $93,186 and an additional $6,900 for each addition family member.

New Hampshire bankruptcy exemption process:
If you have qualified by passing for the Chapter 7 bankruptcy ‘means test’, then you will have several federal and state exemptions to protect necessary forms of your property to lessen the destructiveness of bankruptcy to you and your family and allow you sufficient possessions to start your financial career afresh. Only state exemptions are applicable in New Hampshire. Those exemptions include:
Homestead exemptions: Real property, or artificial home, up to $100,000.
Wage exemption: Earned but unpaid wages of debtor and the spouse, fees of jury and witness, payroll account deposits when designated as such, 50 times the federal minimum hourly wage per week, wages of a minor child.
Tools of Trade: 1 yoke of oxen or a horse needed for farming or teaming.
Uniforms, arms, and tools used by military members, Up to $5,000.
Retirement plans: Firefighters, public employees, federal pension, Police officers, and unpaid benefits.

Insurance: Fraternal society benefits, unlimited amount, homeowner’s insurance proceeds up to $5,000, firefighters insurance.
Personal property exemptions: Church Pew, Burial plot, Books and Bible to $800, Motor vehicle to $4,000, Proceeds for lost or destroyed exempt property, Clothing, Refrigerator, Cooking utensils, Cooking and heating stoves, bedding and beds, Domestic fowl to $300, 1 cow, 6 sheep and their fleece, 4 tons of hay, 1 hog or pig or its meat (if slaughtered), Food and fuel to $400, Furniture to $3,500, Jewelry to $500, Sewing machine.
Miscellaneous: Property of business partnership, Wages of minor child, fees of Jury and witness.
Communal benefits: Unemployment compensation, workers ‘compensation, unlimited amount ,aid to aged, blind, disabled and families with dependent children, unlimited amount .
Wildcard: Unused portion of books and bible, tools of trade exemptions to $7,000,$1,000 of any assets, food and fuel, furniture, jewelry, motor vehicle.

Chapter 13 bankruptcy in New Hampshire:
Chapter 13 is more appropriate for those consumers who have a reasonable amount of monthly disposable income which will enable you to meet a debt repayment plan. This type of bankruptcy allows you to keep all of your property and assemble small monthly payments and at the end of the three- to five-year repayment plan, your remaining debts can get discharged.

The eligibility criteria for filing chapter 13 bankruptcy:
Chapter 13 bankruptcy is well known as the ‘wage earner’ bankruptcy because this form of bankruptcy is designed for those persons or sole proprietors who earn a stable and regular wage. But for filing this type of bankruptcy you need to fulfill some basic criteria. If you have no more than $1,010,650 in secured debts or $336,900 in unsecured debts then only you can qualify for this form of bankruptcy. After filing, the collections process stops, but you have to follow closely or continue the repayment plan. This bankruptcy process is designed with the bankruptcy trustee who communicates between the debtor and creditors.
Conclusion:
To file bankruptcy in New Hampshire the first thing you need is taking help of an efficient bankruptcy attorney. It is not so easy always to find such an expert. For those persons, who don’t know where to begin, the state bar association may have recommendations to consider, and so may state or local legal websites. This source provides sufficient legal helps throughout this complicated process and makes it simple to obtain in order to gain victory over the debt troubles.