New Bankruptcy Fees Coming November 1, 2011

Posted on October 31, 2011 by ConnerLawOffices

The U.S. Bankruptcy Court will be increasing case filing fees on Tuesday. The following notice was given:

The following case filing fees will increase as of Tuesday, November 1:

Chapter 7 $ 306.00

Chapter 11 $1046.00

Chapter 12 $ 246.00

Chapter 13 $ 281.00

Adversary Proceeding Fee $ 293.00

Additionally, the following miscellaneous fees will increase on November 1:

Certification $ 11.00

Exemplification $ 21.00

Copy of Audio Recording $ 30.00

Amended Bankruptcy

Schedules $ 30.00

Record Search $ 30.00

Document Filing/Indexing $ 46.00

Record Retrieval Fee $ 53.00

Returned Check Fee $ 53.00

Notice of Appeal Fee $293.00

Plan accordingly!

Let There Be Light!

Posted on October 6, 2011 by ConnerLawOffices

Can my utilities get cut off if I file bankruptcy?

In Massachusetts, the answer depends on several factors.

As soon as you file bankruptcy, the automatic stay goes into effect. The automatic stay prevents creditors from taking action to collect a debt. So if you owe money to a utility company for unpaid bills, the utility company is a creditor, and it cannot take an action to collect the money you owe them. This means, they cannot cut off your service because you have not paid your bill, regardless of how much you owe. Even more, if they already cut off your utilities, they have to restore service once you give them notification that you have filed bankruptcy. This can take 1-2 days.

However, a utility company, under the Federal Code, has the right to demand adequate assurance of payment. If the deposit is not paid within 20 days of the bankruptcy filing, the utility provider has the right to terminate service (as long as they comply with all other state laws regarding the termination of utilities).

Under Massachusetts state law, however, there is an extra twist. Private utilities companies are prohibited from requiring a security deposit in order to restore utilities services. Municipal utilities may require a security deposit, and they are able to put a lien on your property to secure the debt.

Either way, once you file, the utility company will most likely close your old account and open a new one for you, so you should not receive a bill that includes any amount owed prior to filing for bankruptcy. If you notice that your account number has been changed, or that you have an unusual bill amount that has been pro-rated, this may be the reason.

Also, remember, you will have to keep paying your new bills! If you miss a payment after you file for bankruptcy, the automatic stay will not apply, and your service could be shut off!

To help weigh the pros and cons of filing bankruptcy, and the effect that will have on your utilities services, you should talk to a bankruptcy lawyer in your state.

What is a Charge Off?

Posted on September 30, 2011 by ConnerLawOffices

"Charge off" is an accounting term that has some serious implications.

“Charge off” is a term that misleads a lot of people. It sounds great. It sounds like “discharge” or “write off.” It sounds like the creditor has given up and isn’t going to try to collect that debt after all. This is an understandable and common misconception.

What Does “Charge Off” Really Mean?

“Charge off” is an accounting term. It just means they assume you are not going to pay the debt any time soon. Federal regulations require that debts be “charged off” when they are 120 or 180 days late, depending on the type of loan it is.

Why? The Federal Reserve has to make sure that banks have enough money to cover their customers’ checks. At the time when a debt is charged off, it is assumed that the debt isn’t going to get paid any time soon, so they can’t count on having that money to cover their customers’ check.

What Can Happen After My Debt Is Charged Off?

You still legally owe the debt, even though it was charged off. So, a creditor can still do anything after a charge off that they could do before a charge off.

They can keep calling you to collect the debt. They can sue you to collect the debt. They can subscribe to updates to your credit report and wait until you have more money or assets, and pop up out of the blue to collect from you years down the road. If they don’t want to do these things, they can sell your debt to someone who can do all that calling, suing and waiting.

What Can a Charge Off Do to My Credit Score?

The charge off is considered a major derogatory, and it can be the beginning of many more. If the debt goes to a debt collector, that’s another major derogatory. If they sue you and get a judgment, that’s another major derogatory.

What Can I Do About a Charge Off?

You only have a few options. Pay the debt or get rid of the debt. If you want to pay the debt, a credit counseling agency may be able to help you. You could work out a settlement or a payment plan. Either way you should consider talking to a Bankruptcy Attorney. Plenty of Bankruptcy Attorneys offer free consultations so you can make sure you are considering all of your options.

If you file a consumer bankruptcy, you can generally include th

is charged off debt and get a “discharge.” This will actually legally remove your obligation to pay the debt and the creditor’s ability to try and collect the debt, so it can prevent those extra major derogatories from the collection account or a judgment.