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Thomas A McAvity

Thomas McAvity’s Answers

367 total


  • Bankruptcy

    If I want file bankruptcy, I can't include medical bills, right? But can I include a medical bill that went into collections? And what is the amount of debt that you have to have in order to file? Thanks!

    Thomas’s Answer

    You not only can list them but you must. Medical debt is easy to eliminate in bankruptcy regardless of whether it is in collections
    We very rarely file bankruptcies for debtors who owe less than $5000; however, the reality is that, given the high interest rates and penalties out there, many debtors who owe less than that amount have no chance of ever getting out of debt outside of bankruptcy. The question isn't really how much you owe but how difficult it would be for you to pay off your debts on your own

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  • I dismissed my bankruptcy due to not being able to make payments. Now my vehicle is going to be repo. Should I surrender it?

    I filed chapter 13 in July due to problems with my home. That was that main reason I filed bankruptcy and the only thing I was behind in. My truck payment was current until the bankruptcy. I dismissed it in november due to the payments exceeding m...

    Thomas’s Answer

    Often Chapter 13 Plans are drafted such that the attorney fees are paid off quickly with the car payments paid off afterwards. It is likely that your attorney drafted your plan in this manner( I would have done so as well) and that your case was dismissed prior to anything being distributed to your car lender. If you do want to save the truck and are resigned to ultimately losing the home, you might find that filing Chapter 13 is now a more affordable proposition. Paying off mortgage arrears, particularly if the Chapter 13 Trustee demands the right to administer the monthly mortgage payments can make Chapter 13 extremely expensive.

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  • What can realistically happen in this circumstance? (Parent Plus Loan)

    My dad wants to take me to court and claim I forged his signature for the Parent Plus Loan. He is refusing to pay loans he took out and is going as far as to lie about it, and hire a lawyer out of spite because I moved out. Would I need a lawyer i...

    Thomas’s Answer

    If he actually sues you, you will need to retain counsel immediately.

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  • WHAT HAPPENS WHEN I VOLUNTARILY DISMISS CHAPTER 13

    My husband and I filed a Chapter 13 Bankruptcy two years ago. We were about $5500 in arrears on our mortgage, owed the IRS approx. $3000 and had a lot of credit card debt and doctor bills. Now that all the overtime has stopped, we have been having...

    Thomas’s Answer

    You really need to check in with your attorney. It is entirely possible that if your original plan anticipated some kind of yield to your unsecured creditors, you may now with the change in circumstances be able to reduce your monthly plan payment. It is really normal for a plan to be devoted at the outset to paying off your car. Your car has to be paid off with interest; whereas, your other obligations can be satisfied interest free so most plan drafters front load the car pay off. Keep in mind that if you convert, you lose one of the best benefits of Chapter 13: The ability to pay off tax and mortgage arrears interest free. Give your attorney a call and good luck!

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  • Car loan was not reafirmed in my bankruptcy 2yrs ago can i turn the car in to them with out them coming after me for the bal

    we filed banruptcy in 2011. found out on credit report car was included. car loan is not reported on credit report. we want to get a new car they wont take the car becouse it was included in bankruptcy. what do we do. can we turn it in with o...

    Thomas’s Answer

    Regardless of whether they come and take it back, your personal liability on the car loan was extinguished by your Chapter 7 bankruptcy filing. If, however, it was a chapter 13 that you filed, you will want to contact your attorney so that your plan can be modified to surrender the car.

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  • Is it okay to write directly to a Bankruptcy Trustee, when you are in active BK and your lawyer disappears on you?

    We filed for Chapter 7 BK a year ago. Our attorney goes quiet on us for weeks on end and now is totally non responsive.

    Thomas’s Answer

    You are certainly permitted to do so, but without knowing a thing about your case, it is pretty much impossible to determine whether it would be a good idea. I would encourage you to write an actual letter to your attorney raising your concerns rather than an email. I will say that usually the reason why attorney do not call back with updates is that there have been real developments since the last time you talked. This is often the case in Chapter 7 Asset cases, particularly those involving short sales or tax refunds since they take a long time to administer. Good luck.

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  • Bankruphy chapter 7 or 13 best?

    Husband's job is shutting its doors for good he has been there for 23 yrs had great credit until know. Need to know what is the best when filing bankruphy 7 or 13 and he has only one thing that is in both ours name where does that leave me I can't...

    Thomas’s Answer

    Not really enough information here to answer your question, but I will say that transferring anything prior to filing without legal advice would likely be catastrophic. If you filed Chapter 7 six years ago, you cannot file Chapter 7 jointly now.

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  • Minimum Payments and BK?

    I have decided to file BK chapter 7 and have min payments due. I'm in Oregon and won't be able to file untill I return after Christmas. Should I still make the payments? I don't want late payments on my credit too. I some how managed to Never ...

    Thomas’s Answer

    Generally, there is little point in making minimum payments on unsecured debts prior to filing chapter 7 bankruptcy; however, there are some exceptions to this general rule. Under certain circumstances, I would actually advise a client to make nominal payments on an unsecured debt in order to rebut a potential dispute fraud claim. I would certainly contact your attorney prior to making any payments on unsecured debts. Also, if you are referring to a car or house payment and you are hoping to keep them, the analysis becomes a bit more involved. Good luck.

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  • Can I make monthly payments to an attorney to file a chapter 7th

    can monthly payments be made to an attorney to file a chapter 7th if I do not have all the money upfront

    Thomas’s Answer

    Our firm does exactly that. We offer clients the ability to pay part of their attorney fees up front while paying the remainder of their attorney fees as well as their entire court filing fee in monthly installments after their cases are filed.

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  • BANKRUPTCY DISMISS

    I HAVE 2 CHAPTER 13 DISMISSALS, CAN I FILE A 7 OR A 13 AGAIN AS MY TAX DEBT IS 9.000. I NEED TO FILE IMMEDIATELY AS MY MEDICAL DEBT IS OVER 80.000. ARE THERE ATTORNEYS WHO TAKE MONTHLY PAYM,ENTS TO FILE AS THE WHOLE AMOUNT IS HARD TO COM...

    Thomas’s Answer

    • Selected as best answer

    You may be able to do so depending on the circumstances of the dismissal. Our firm takes monthly payments and I sure others do as well.

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