Are Your Creditors Shaking You Down?
We understand that financial struggles can be overwhelming, and we are here to help guide you through the process of filing for bankruptcy.
There are two main types of consumer bankruptcy: Chapter 7 and Chapter 13.
Chapter 7, also known as a “liquidation” bankruptcy, allows individuals to discharge their unsecured debts, such as credit card debt and medical bills.
Chapter 13, also known as a “reorganization” bankruptcy, allows individuals to keep their assets and pay off their debts over a period of three to five years.
Our law firm has extensive experience in helping individuals navigate the bankruptcy process. We will work with you to determine which type of bankruptcy is best for your specific situation, and will guide you through every step of the process.
If you are struggling with overwhelming debt, please contact our office to schedule a consultation. We are here to help you find a solution.
We understand that the process of filing for bankruptcy can be confusing and overwhelming. That’s why we’ve compiled a list of frequently asked questions to help guide you through the process. Here you will find information on the different types of bankruptcy, eligibility requirements, the impact on your credit, and more. We hope that this information will help you make an informed decision about your financial future. If you have any further questions, please don’t hesitate to contact our office to schedule a consultation.
Chapter 7 and Chapter 13 bankruptcy are two different types of consumer bankruptcy. Chapter 7, also known as a "liquidation" bankruptcy, allows individuals to discharge their unsecured debts, such as credit card debt and medical bills, but they might have to liquidate some assets to pay off the creditors. On the other hand, Chapter 13, also known as a "reorganization" bankruptcy, allows individuals to keep their assets and pay off their debts over a period of three to five years through a repayment plan proposed to the court. Eligibility and exemptions vary depending on the type of bankruptcy and the specific laws of the jurisdiction. Contact us to determine which is best for you.
To qualify for bankruptcy, you will need to pass a means test, which compares your income to the state median income. If your income is below the median, you may qualify for Chapter 7 bankruptcy. If your income is above the median, you may still qualify for Chapter 7 bankruptcy, but you must pass a “means test” to confirm eligibility. For Chapter 13 bankruptcy, the court will look at your income, expenses and debts to determine if you qualify. You must have a regular income to be eligible for Chapter 13 bankruptcy.
It depends on the type of bankruptcy you file. In Chapter 7 bankruptcy, certain assets, such as a primary residence and a vehicle, may be exempt from liquidation. In Chapter 13 bankruptcy, you may be required to include the value of your home and car in your repayment plan. If you are considering a bankruptcy, do NOT sell, buy, or transfer assets before consulting with a bankruptcy professional.
The length of the bankruptcy process can vary depending on the type of bankruptcy you file for and the specific circumstances of your case. The Chapter 7 process typically takes about four to six months from filing to discharge. The Chapter 13 process can take up to five years, with the debtor making payments to the court-approved repayment plan during that time.
Filing for bankruptcy can have a negative impact on your credit score. However, it may also provide a fresh start for rebuilding your credit. The bankruptcy will stay on your credit report for up to ten years, but we show our clients how to start rebuilding their credit by paying bills on time, maintaining a low balance on credit cards, and obtaining new credit.
There are limits on how often you can file for bankruptcy. You can typically file for Chapter 7 bankruptcy every eight years and Chapter 13 bankruptcy every two years. However, there are some exceptions to this rule, so it's best to consult a bankruptcy attorney for guidance.
Student loans are generally not dischargeable in bankruptcy, unless you can prove that repayment of the loans would cause an undue hardship. This can be difficult to prove, and it's best to consult a bankruptcy attorney for guidance.
Once you file for bankruptcy, an automatic stay goes into effect, which prohibits creditors from contacting you or taking any collection actions against you. This includes phone calls, letters, and lawsuits. However, there are some exceptions to this rule, such as for child support or alimony payments, taxes, and certain types of student loans. Creditors may also request permission from the court to lift the automatic stay in order to continue collection efforts. It's always best to consult with a bankruptcy attorney if you are experiencing any issues with creditors after filing for bankruptcy.
Preparing for Bankruptcy
Preparing for bankruptcy can be a complex process, but working with a bankruptcy attorney can make all the difference. Before filing for bankruptcy, it’s important to gather all of your financial records and understand your current financial situation. Our experienced legal team will help you determine the best course of action, answer any questions you have, and provide guidance and support throughout the entire process. With our help, you can feel confident and prepared as you take the first step towards a brighter financial future.
If you’re ready to take control of your finances, provide us with your contact information using the form below. A member of our knowledgeable and compassionate legal team will call you within 5 business hours to schedule a consultation.
Please note that we do not handle corporate bankruptcies (Chapter 11 or otherwise).