Bankruptcy

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.

Bankruptcy in general.

If a party or his/her business is experiencing financial problems, there is a type of bankruptcy that may help. There is no requirement that one must owe a certain amount in order to be able to file a bankruptcy, only the inability to pay his/her debts. For most individuals there are two types of bankruptcies that are normally filed. A Chapter 13 bankruptcy, also called a wage earner or a bill consolidation, is the type of bankruptcy in which one pays off his/her creditors, often at a reduced amount, over a period of 3 to 5 years. A Chapter 7 bankruptcy, also called a straight bankruptcy, is the type of bankruptcy in which one completely wipes out his/her debts, except on secured debts where one wishes to keep the security. Examples of secured debts would be houses with mortgages and cars that are financed. For example, the house is the security for the mortgage and the car is security for the car loan. If one files a Chapter 7 straight bankruptcy and wishes to keep the house or car, payment to the creditor must continue.

Bankruptcy Questions

Can I choose which creditors to list?

It is necessary to list all creditors. When filing a Chapter 7 bankruptcy, also referred to as a straight bankruptcy, one may be able to continue paying some creditors. Usually this would be continuing to pay on a house or a car in order to keep the house or car.

Can my taxes be included?

In a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation, one can pay off his/her taxes over a period of 3 to 5 years. In a Chapter 7 bankruptcy, also referred to as a straight bankruptcy, one may be able to wipe out the liability for certain taxes.

Can I bankrupt my student loan?

One can pay on his/her student loan under a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation plan. This may not discharge what one owes on the student loan but would prevent any collection efforts while under the Chapter 13.

Can I keep all my property?

Usually, a bankruptcy can be designed so that one can keep all of his/her property and discharge all, or a portion of, the debt. Usually this is accomplished by filing a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation, but can be done, in some cases, by filing a Chapter 7 bankruptcy, also referred to as a straight bankruptcy.

Can I keep my house and car?

Usually, a bankruptcy can be designed so that one can keep his/her house and car and discharge all or a portion of the debt. This is the case even if the party is many months behind on the house mortgage or car payment. Usually this is accomplished by filing a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation.

Can I get my repossessed car back?

Usually, a repossessed car may be returned by filing a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation. In addition, one may be able to lower the monthly car payment that he/she is supposed to be making.

Can foreclosures be stopped?

Usually, a foreclosure on a house can be stopped by filing a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation. This would allow one to continue paying on his/her house and to catch up on the mortgage payments missed over a period of 3 to 5 years.

How does my attorney get paid?

On a Chapter 7 bankruptcy, also referred to as a straight bankruptcy, we charge a fee before we file the bankruptcy. However, on a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation, there is usually no up-front fees, and the fee is paid as one pays off his/her debts over a period of 3 to 5 years.

How are the court costs paid?

On a Chapter 7 bankruptcy, also referred to as a straight bankruptcy, one must pay the court costs directly to the court prior to being granted a discharge, usually several months after the bankruptcy is filed. However, on a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation, the court costs are paid as one pays off the debts over a period of 3 to 5 years.

Do I have to pay my bills in full?

Under a Chapter 7 bankruptcy, also referred to as a straight bankruptcy, one may wipe out his/her bills completely. Under a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation, one may reduce his/her payments on secured debts, such as cars and furniture loans, and may be able to pay off credit card and other unsecured debts for as low as 10 cents on the dollar at no interest.

How does it affect my credit?

While one is under a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation, he/she may not buy anything on credit unless he/she has the permission of the bankruptcy court. However, if one has filed a discharge in a Chapter 7 bankruptcy, also referred to as a straight bankruptcy, he/she can buy things on credit although the credit rating may reflect the filing of the bankruptcy. It has been our experience that although one can still obtain credit, a higher interest rate is usually required on the loan.

What is a bill consolidation?

A Chapter 13 bankruptcy is sometimes referred to as a bill consolidation. In a Chapter 13 bankruptcy, one consolidates his/her bills and pays them off over a period of 3 to 5 years, often at a reduced amount and often at a reduced interest rate or at no interest.

What is a wage earner plan?

A Chapter 13 bankruptcy is sometimes referred to as a wage earner. In a Chapter 13 bankruptcy, one pays his/her bills over a period of 3 to 5 years, often at a reduced amount and often at a reduced interest rate or at no interest. Normally these payments are deducted from one's wages, if employed.

How will this affect a cosigner?

Creditors are not able to take legal action against a cosigner on a debt if the cosigner is an individual and if he/she pays the debt off in full under a Chapter 13 bankruptcy, also referred to as a wage earner or bill consolidation.

Will I lose my retirement?

If one's retirement is in a qualified plan ( and most are), the retirement will be exempt in bankruptcy and he/she will be able to keep it.