About Bankruptcy

Chapter 7 Bankruptcy

Chapter 7 is the liquidation chapter of bankruptcy and what most people refer to as "straight bankruptcy" or "total bankruptcy." Chapter 7 gives you a fresh start and will discharge your credit card, medical, business, and other debt without any monthly payments. Your creditors will never be able to contact you again. In most cases, you can keep your house and car, in addition to everything else you own. Chapter 7 is not right for everyone, but we will evaluate your circumstances carefully and try to make your bankruptcy as quick and painless as possible. You may have heard that bankruptcy laws eliminated Chapter 7, but this is not true and Chapter 7 remains an option for many of our clients.

Chapter 13 Bankruptcy

Chapter 13 is a plan for reorganization, similar to debt consolidation. You will make a single monthly payment to the Chapter 13 Trustee, who will then disburse payments to your creditors. A Chapter 13 typically requires payments for 36 to 60 months, and in most cases you will pay only a fraction of your credit card and medical debt, not all of it. You should rest assured that your monthly payment will be affordable. Most people who file Chapter 13 cases are delinquent in their mortgage payments. A Chapter 13 reorganization plan allows you to bring your mortgage current, usually on better terms than your mortgagee will offer. Another benefit of Chapter 13 is the ability to keep all of your assets, no matter how valuable. So, if you are concerned about too much equity in you home or protecting family heirlooms, a Chapter 13 bankruptcy might be a good solution for you.

Collections

Bill collectors can be merciless. They call and call. They insult you and disregard all of your reasonable efforts to work with them. They make threats of garnishment and criminal charges, and they often lie. Eventually they may call your employer, family, or neighbors. If bankruptcy is the right solution for you, we can help stop the calls.

Foreclosure

If your home is in foreclosure, do not panic. Come in as soon as possible, and we can discuss your options. A bankruptcy will stop the foreclosure. If you want to keep your home, a Chapter 13 may allow you to cure the arrearage and get back to normal. If you can no longer afford your home, or wish to abandon your home for some other reason, a Chapter 7 may discharge your obligation to the mortgagee.

Lawsuits & Judgments

Have you recently received a certified letter from a Clerk of Courts? Is there a lawsuit pending against you? Are you in the middle of a lawsuit? Lawsuits can result in judgments that will complicate your life. Your wages may be garnished, your bank accounts may be garnished, and a lien may be placed against your home. Bankruptcy can accomplish many things. It will prevent a lawsuit from being filed or stop a lawsuit in progress. It will prohibit the collection of any judgment, and may result in the release of any liens. Timing is always important, so consult with an attorney as soon as possible.

Garnishments

Are your wages being garnished, or did you receive notice they are about to be garnished? Bankruptcy will stop the garnishment. It does not matter how long your wages have been garnished thus far, nor how much you still owe. A bankruptcy will also stop bank account garnishments, which can come with no warning and cripple your ability to pay ordinary living expenses. In some cases, you may be able to recover all or a portion of any funds that have already been garnished from your bank accounts. Timing is always important, so consult with an attorney as soon as possible.

Income Tax Refunds

Income tax refunds are considered cash in a bankruptcy. Therefore, it is important for you to consult with an attorney before you receive your refunds. When you receive an income tax refund prior to filing a bankruptcy, you should never pay back loans to family members, friends, or employers, and you should never send $600.00 or more to one of your creditors.

Bankruptcy Fees

Our fees are different for every client because they are based on the actual difficulty of the case. We charge fair and reasonable fees in every case. Our fees vary because we want to be sure that our clients with simple cases never pay too much. Our fees typically start at $600.00 for simple consumer cases, and $1500.00 for small business cases, in addition to court costs.