What is bankruptcy?
Filing bankruptcy triggers an “Automatic Stay” which immediately stops all of your creditors from seeking to collect debts from you until your debts are sorted out or discharged according to the law.
For most consumer purposes, bankruptcy is:
A legal proceeding
by someone who cannot pay their bills,
seeking a fresh financial start
as provided by the Bankruptcy Code.
All bankruptcy cases are handled in federal court.
Advantages of Bankruptcy:
A Fresh Start to get your life back in order.
Most debt balances go to zero.
Immediately stops repossession, utility shutoff, foreclosure, garnishments, and sometimes eviction.
Property and income can be protected from credit card companies and other unsecured creditors.
Many liens can be eliminated or modified.
Your driver’s license may be regained for an unpaid accident judgment, which could lead to employment and income.
*Lawyer Fees: $1,199
The above attorney fee is for an individual Chapter 7 and covers the below services:
In-person interview and exemption planning
Advice regarding Chapter 7 vs. Chapter 13
Preparation of required documents and schedules
Application to Pay Filing Fees in Installments
Representation at the Meeting of Creditors
Representation at the discharge hearing
Minor routine tasks involved in an undisputed case
General advice throughout the course of the case
INITIAL PHONE CONSULTATION IS FREE
What is Chapter 7?
Chapter 7 is known as “straight” bankruptcy or “liquidation” and is by far the most popular. The process will typically last about 3 months, and our goal is that at the end of the process all or the majority of your debts will be discharged (or legally forgiven).
When a debt is discharged, the creditor you owed money to previously (including credit card companies, doctors and lawsuit plaintiffs) is forever prohibited from trying to collect it from you OR reporting it to a credit bureau.
Generally, those who file chapter 7 keep all of their property except property which is very valuable or which is subject to a lien that you cannot avoid or afford to pay. Contact us now to schedule a free consultation and learn more.
What is Chapter 13?
Chapter 13 bankruptcy is very different from Chapter 7 bankruptcy. Chapter 13 is a type of “reorganization” used by individuals to pay all or a portion of their debts over a period of 3 to 5 years using their current income (non-exempt assets are not liquidated).
You use a portion of your income to pay what you can afford to your creditors over a 3 to 5 year period, depending on your income and how much of your debt you can afford to pay.
In order to utilize a Chapter 13 bankruptcy successfully, you must have enough income to meet the payment obligations agreed to in your Chapter 13 plan.
Contact us now to schedule a free consultation and learn more.