Filing for Bankruptcy

Bankruptcy

Most people face financial difficulty at some point in their lives, often caused by no fault of their own. Such difficulties include personal injury, illness or death in the family, unemployment or under-employment, divorce, natural disaster, or simply not earning enough income to be able to pay the bills. Financial stress can also take a toll on you physically and emotionally. If this describes your current situation, then we understand that you are worried. However, you are not alone. We can be of assistance.

Chapter 7

Chapter 7 is the simplest and most common form of bankruptcy filed in the United States. It is the type that most people think of when they hear the word "bankruptcy." A Chapter 7 bankruptcy will wipe out almost all types of debts, such as medical bills, credit cards, repossession deficiencies, credit union loans, personal loans, store cards, credit lines, payday loans, and more.  There are a few debts, a Chapter 7 bankruptcy may not discharge, including student loans, debts incurred through fraud, child support obligations, and certain tax debts.

Advantages Of Chapter 7

  • Gives people a fresh start by wiping away most types of debt 100%
  • Stops garnishments for dischargeable debts
  • May discharge some tax obligations (Federal and State)
  • Stops harassing phone calls and letters from creditors
  • Chapter 7 is the fastest type of bankruptcy, with most cases completing within 90 days
  • Once a bankruptcy case is filed, the Court immediately puts an automatic stay, or hold, on any collection of the debtor
  • It prevents Repossessions.

Chapter 13

Generally, Chapter 13 permits the individual who is temporarily unable to pay their debts to keep their property by repaying their creditors over a specific period, typically 36 to 60 months, while maintaining keeping your property. You will work with me to set up a Chapter 13 bankruptcy plan, and after the plan is paid out, you receive a discharge of your debts. We work directly with you to set the proper payment for you, given your income, expenses, and the types of debts you owe.

Advantages Of Chapter 13

  • It allows fixed credit obligations (such as a car) to be spread over a period of 60 months.
  • It automatically stops creditors from proceeding with foreclosures, garnishments, suits, repossessions, and levies.
  • It allows tax (Federal and State) obligations to be paid out through the Chapter 13 plan (and can save you interest and penalties).
  • It allows arrearage or judgments for alimony or child support to be paid through your Chapter 13 plan.
  • Attorney’s fees do not have to be paid upfront and can be financed through the plan.
  • Mortgage arrearage (the amount you are behind on your house) can be paid out through the Chapter 13 plan.
  • It stops harassing letters and telephone calls from creditors.
  • In many cases, it can result in lower payments
  • It prevents Repossessions.

What Does It Cost To File Bankruptcy?

The following are some of the costs incurred to file bankruptcy.

Court Costs

Currently, the Filing fee for Chapter 7 is $335, while the Filing fee for Chapter 13  is $310.  

However, the entire filing fee does not have to be paid upfront. It can be paid through your Chapter 13 plan payments. 

Credit Counseling Fees

It can be completed online in our office for $50.00.

Credit Report Fees

The cost is $33.00 in individual cases and $66.00 in joint cases.

Attorney Fees

The attorney fees vary depending on the type of case. After your initial consultation, we can determine the Attorney Fees and will give you those fees in writing.  (Chapter 13 fees will be paid through your monthly plan payments.)

Checklist For Initial Consultation

So that we may have a better understanding of your financial situation, please provide the following items at our initial consultation:

  • Two Most Recent Years Tax Returns
  • 6 Months of Pay Stubs (If you receive paystubs)
  • Proof of your current income (if you receive paystubs, then last two pay stubs are required)
  • List of your creditors
  • List of medical bills you owe

How Can Our Law Firm Help You?

Our Law Firm helps our clients get back on the path to financial stability, whatever the cause of their economic difficulties. We will be with you every step of the way and will carefully explain the bankruptcy solutions available under Chapter 7 and Chapter 13.

My clients receive sound, thoughtful advice, consultation, and representation in bankruptcy and related matters both in and out of court. We take time to ensure that you have a thorough understanding of all the possible solutions to your financial hardships.

If you are facing a heavy financial burden, we can help you determine whether filing for bankruptcy may offer relief.

My goal is to help you receive your FRESH START and to make sure that you are comfortable and confident throughout this process. If you are facing a financial burden that seems out of control, please do not hesitate to contact me for assistance today.!

File A Bankruptcy!