Can filing a chapter 7 or chapter 13 bankruptcy benefit you
If you have been turned down for a loan modification, have dropped out of debt settlement, have too much debt, facing foreclosure, have creditor lawsuits pending, have judgments or garnishments, are being harassed by collection calls, want to repair their credit but need to address their debt issues first A debt solution like bankruptcy should really only be used as a last possible solution. When someone declares them self bankrupted, all debt collection action against that individual are prevented. The court awards an "automatic stay", which with a couple of exclusions means that banks cannot come after the money owed to them. Some exclusions that filing a bankruptcy can not eliminate are student loan debt, alimony, child support and taxes. Declaring bankruptcy should be evaluated very thoroughly and carefully. Other debt solutions like debt negotiation, debt counselling and debt consolidation should definitely be considered first.
Ask a local bankruptcy attorney about how Chapter 13 bankruptcy (debt reorganization) has helped others keep their homes, cars, and other property while catching up on past due balances, or how Chapter 7 bankruptcy (debt elimination) has helped millions of people wipe out credit card debt, medical bills and other unsecured debt—and how they may be able to help make sense of your financial situation. Learn more about the options available to you under U.S. Bankruptcy Code connect with a local attorney today. Simply fill out our free bankruptcy case evaluation form below to speak with a local bankruptcy lawyer who can evaluate your case. Bankruptcy is a federal court proceeding that will help eliminate or payback debt. Bankruptcy is for individuals, married couples or businesses that are unable to pay their debts. Bankruptcy is for people that are drowning in debt and see no relief in sight. Bankruptcy is the legal method designed to forgive debt.
Chapter 7 Bankruptcy
This bankruptcy is designed to payback the creditors with what you currently have and give you a new start. This will stop the harassment of creditor’s calls and put you on the track to a new financial future. To qualify for Chapter 7 a person must make less than the median income for your area. If they make more than this they can still qualify but they will have to take the means test. The means test is to assess if you are able to pay back the creditors in five years or less. The median income is different for each area and we will help you determine if your client qualifies for Chapter 7. It also allows you to keep some of your possessions. These are called “Exempt Items.” An exempt item is an item that is not accounted for in your bankruptcy proceedings. While exempt items vary from state to state, generally Chapter 7 items are the same. These items generally include: your home, one vehicle, personal items, retirement savings in pension funds, 401K and IRA. You will only be allowed to keep your home and vehicle if you can afford your payments after bankruptcy. Filing a chapter 7 bankruptcy will cost you between $1,495 - $1,995*
Chapter 13 Bankruptcy
Chapter 13 is commonly for “high” income earners with “less” debt and is called the ‘wage earners bankruptcy’. For Chapter 13, you will repay what you owe the creditors, although generally not the full amount. The repayment amount will be carefully calculated. You will be responsible for gathering documents and collecting financial information of all your bills and debts. This information will determine how much you can afford to pay to the creditors without going back into debt. The plan payments will be based on your disposable income. This means the payments to the creditors will be made on the money you have left over after paying rent, car loans, utilities and other necessities. Once the plan payments have been calculated a trustee will be appointed to oversee the payments and ensure they are being made. This repayment will take place over a few years, generally three to five years. Chapter 13 will also allow you to eliminate some of your debt, yet this varies from state to state. We will let you know which debts can be eliminated and which debts we can decrease. Generally, debts that you owe to the government, such as taxes, will not be eliminated. Yet, Chapter 13 will stop penalties and freeze interest rates on the money you owe. Filing a chapter 13 bankruptcy will cost you between $2,395 - $2,995*
Emergency Bankruptcy Filings:Sometimes a person needs to file bankruptcy right away to stop a foreclosure, repossession, eviction, execution sale, tax levy, or utility shut-off. The Bankruptcy Rules allow the debtor to initiate a bankruptcy case by filing only the three page petition. *Additional fees may apply – depending on the difficulty of the case, filing fees and consultant fees. The listed cost of Bankruptcy includes consultation, filing prep, filing with the courts, post petition work, 1 court appearance for a Chapter 7, and the 2 court appearances necessary for Chapter 13 by a licensed attorney.
Personal bankruptcy is an option that millions of Americans have used to eliminate unmanageable debts, or stop home foreclosure. Is filing bankruptcy right for you? Take the first step today — Simply fill out case evaluation form below to connect with a local bankruptcy lawyer for a free case evaluation.