Chapter 7 is commonly referred to as a “ fresh start” or “clean slate”. It allows you to discharge or wipe-out certain unsecured debts, such as credit cards, medical bills, and some older tax obligations. There are some debts, such as student loans, child support, and recent tax obligations that are not dischargeable.
Yes, most clients will keep all of their assets. Also, if a debt is secured with an asset, such as a home the debt may be “reaffirmed” and you may keep the asset. However, you will need to stay current with your payments. Alternatively, you may choose to surrender the asset. If you surrender it then you discharge, or wipe out, the debt that was owed on the asset.
Yes, immediately after we file your bankruptcy your creditors must not contact you. They may only contact us. Also, bankruptcy will stop wage garnishments, end most lawsuits, and halt repossessions and foreclosures.
Yes. Most of our clients keep all of their property in a Chapter 7 and Chapter 13 Bankruptcy. If your home is secured by a mortgage then you must begin paying regular monthly payments to maintain ownership. Past due balances will be part of the repayment plan in a Chapter 13 Bankruptcy. You will have 3 to 5 years to pay off these past due balances.
Yes. We can stop the foreclosure sale at any time before it has taken place.
Yes. You have 10 days to file bankruptcy from the day your car was repossessed. We can retrieve your vehicle during this time. However, You will be required to show proof of insurance before you retrieve the vehicle.
Chapter 13 is for “wage earners”. It consolidates your past due balances into one payment that is made over a period of 3 to 5 years. During this time you continue to make all current payments, such as your mortgage payment . Your consolidated monthly payment is determined by your income and expenses, often only 10 cents on the dollar or 10% of the unsecured debt.
Unfortunately, your credit has already been damaged. Completing a Chapter 7 or Chapter 13 bankruptcy is the first step to reestablish your credit rating. Your credit will be re-established sooner than you might think. Many people who file for bankruptcy are able to obtain home loans, car loans, and credit cards, after filing.
The new Bankruptcy Laws are designed to decrease the number of people who are eligible to file for Chapter 7 Bankruptcy. Therefore, your ability to qualify for a Chapter 7 discharge is based upon a complex series of calculations that compares your debts to your income. However, as with any law, the new bankruptcy statutes are subject to interpretation. If one attorney has told you that you do not qualify it does not mean we will not take your case.
Past due child support is considered a “priority debt”. In a Chapter 13 bankruptcy past due child support must be included in the payment plan. It will be consolidated with the rest of your debts.