Bankruptcy can accomplish the following: Eliminate or significantly reduce your debts. Stop wage garnishments Avoid home foreclosures Stop creditor calls and collection actions
We understand that few people can afford to hire an attorney when dealing with financial issues. To help alleviate the stress of paying an attorney we provide our clients with a free consultation, reasonable fees, and payments plans.
Types of Consumer Bankruptcy
Bankruptcy is a federal legal process to help individuals overcome financial difficulties caused by overwhelming debt. The two main chapters under which individuals file for financial relief are a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Under either Chapter you will be required to file a petition which will list your income, all of your assets, all of your debts and includes a statement of financial affairs, which lists certain transactions in which you have engaged. The petition must be completed as accurately as possible.
More commonly referred to as a liquidation bankruptcy. In a Chapter 7 bankruptcy you will pay little or nothing to your creditors. Upon filing your case, the bankruptcy estate is created, which includes all of your property and interests in property. Upon filing, a Trustee is assigned by the United States Bankruptcy Court to oversee your creditors’ interest in the case, and to administer the sale of any non-exempt assets. A Trustee has authorization to liquidate certain assets if the assets cannot be protected by an exemption. An exemption provides for a certain amount of equity to be protected in different types of assets. The exemptions vary by the type of asset and the exemption amount is governed by state statutes. If there is a statute that applies to a piece of property you own then you will be allowed to apply the exemption and retain the property.
This is a reorganization in which you pay back a portion of your debt to your creditors over a 3 to 5 year time period, as long as certain requirements are met. A formula based on income, expenses and assets determines the length of the Chapter 13 plan, and the amount of the monthly plan payment. At the end of the plan, if the debtor has complied with all requirements set forth in the plan and by the court, the debtor receives a discharge.