Consumer-Bankruptcy

CONSUMER BANKRUPTCY

There is the misconception that a bankrupt debtor is a poor debtor, but regardless of your income bracket, the inability to meet your obligations may make bankruptcy a viable solution for you. Bankruptcy once was considered the worst decision that a debtor made, but now it is the smartest strategy for qualifying debtors. We will assess your financial situation, including the relation of your amount of debt to your income, and then determine if bankruptcy is right for you. We will further determine whether you qualify for a Chapter 7, a complete discharge of eligible debts, or a Chapter 13, a repayment plan for 3 to 5 years. Filing bankruptcy forces your creditors to cease all collection efforts and resolve matters through the bankruptcy process. Depending on which chapter you file, bankruptcy allows you to stop a foreclosure proceeding, discharge your burdensome debt, retain your personal property, and have a fresh start.

What We Do

Educate you about the bankruptcy process to ensure that you are more at ease about your decision to file
Prepare and file your bankruptcy petition
Work with you to get your plan confirmed
Represent you at the 341 Meeting of the Creditors
Respond to any creditor objections
Offer alternatives to bankruptcy for non-qualifying debtors so that you can get some form of relief
Provide high quality expertise at affordable rates.

Frequently Asked Questions

What is bankruptcy?

Bankruptcy is a legal process that gives a debtor a fresh start by getting rid of burdensome debts. Filing for bankruptcy protection forces creditors to stop all collection activities, such as harassing phone calls, mailings, and court proceedings. Bankruptcy may make it possible for you to:

Eliminate debt
Stop a foreclosure on your home and allow you to catch up on missed payments
Prevent repossession of a car (and possibly force a creditor to return repossessed property)
Stop wage garnishment
Restore or prevent termination of utility services.

Which bankruptcy is right for me?

There are several different types of bankruptcies. An individual debtor can file for either Chapter 7, 13 or 11.

A Chapter 7 is commonly referred to as a liquidation bankruptcy because it requires a debtor to give up non-exempt property in exchange for discharging debts.

Chapter 13 is like a repayment plan. It allows you to pay your creditors over three to five years and keep valuable property. In order to qualify for a Chapter 13 plan, you must demonstrate to the court that you can afford to pay all of your bills and make the required payments to your creditors.

Chapter 11 is also a repayment plan but it is limited to businesses and individuals whose debts exceed the threshold established for Chapter 13 debtors.

Determining which bankruptcy is appropriate for you requires an analysis of your income, assets, and types of debt.

Can I file for bankruptcy if I am unemployed?

You may qualify for a Chapter 7 (if you meet other criteria) but you need a source of income to file for protection under Chapter 13.

I have a co-signor on one of my loans, will he be affected if I file for bankruptcy?

It is likely that your co-signor will be affected because the creditor may seek payment from your co-signor. However, you may be able to protect your co-signor under a Chapter 13 depending on the terms of your plan.

Can I discharge my student loans in a bankruptcy proceeding?

It is highly unlikely that you will be able to discharge your student loans. Student loans are discharged only in rare circumstances in which payment would cause the debtor undue hardship.