BANKRUPTCY IS A LEGAL RIGHT
Bankruptcy is a legal right guaranteed by the laws of the United States. It is designed to help people restructure or wipe out all or some or all of their debt. Bankruptcy cases filed are governed by the federal Bankruptcy Code and are administered by the bankruptcy courts.
When you file a bankruptcy, you are called a debtor. As a debtor you us the bankruptcy code to get a fresh start. Personal bankruptcy is meant to provide you relief from your debt. If your bankruptcy ends with a discharge, your creditors rights against you are forever terminated. Under federal law, your creditors may not come back after you to collect discharged debts.
DEBTS THAT ARE TYPICALLY DISCHARGED
Below is a list of the most common dischargeable debts. It must be noted that any misconduct or fraud in connection with the below categories might deem the debt non-dischargeable.
- Credit card debts
- Collection accounts
- Medical bills
- Personal Loans
- Utility bills
- Repossession deficiencies
- Auto accident claims (except those involving a criminal offense)
- Business debts
- Lease debts
- Judgments (unless there is fraud)
- Tax debt past a certain number of years
- Attorney fees
- Revolving charge accounts
You Will Rarely Lose Property If You File Bankruptcy
A misconception of bankruptcy has to do with property that you are allowed to retain. Most of our clients get to keep all of their property. We can advise you about what assets you will be able to keep.
Bankruptcy is a powerful tool that we can use to help you get a dignified fresh start. We have helped over 5000 people solve their financial problems. Call us today for a free consultation to see if we can help you.
CHAPTER 7 BANKRUPTCY
A Chapter 7 Bankruptcy is a liquidation bankruptcy that allows most people to completely wipe out their unsecured debt such as medical debt, credit card debt, personal loans, judgements, lease and collection debt. A debtor can usually keep their home and car in a Chapter 7 but they must be and remain current on their monthly payments. To qualify for a Chapter 7, a person must have not filed Chapter 7 bankruptcy in the last eight years ago and be able to pass an income test called “the means test.” The means test uses the median income for your household size and expenses based on the IRS standards of living.
In a Chapter 7, the trustee takes control over debtor’s assets and sells any unexempt property to pay back creditors. Fortunately, most people do not have any assets of value or nonexempt assets to be liquidated. This The bankruptcy code allows exemptions on real and personal property so that the debtor will have some assets when the bankruptcy is finished. Although bankruptcy is federal law, each state may choose to use its own exemptions.
A chapter 7 remains on your credit report 3 years longer than a chapter 13. We have been very successful in advising our clients how to rebuild their credit after their bankruptcy.
BENEFITS OF FILING CHAPTER 7
- You receive a fresh start. When the bankruptcy court issues a discharge, the only debts that you will be responsible for are the secured assets that you reaffirm and any debts excluded (most taxes, student loans, child support) from a Chapter 7 discharge.
- Your Creditor’s will have to cease all collection activities and wage garnishment attempts are immediately terminated
- Except for inheritances, any income that is acquire after the bankruptcy is your property
- There is no debt minimum
- Your case usually finished within 3-5 monthsYour case usually finished within 3-5 months
CHAPTER 13 BANKRUPTCY
WHAT CAN A CHAPTER 13 DO FOR YOU?
- Protect and keep all your assets
- Stop Mortgage Foreclosure and catch up the delinquent payments over time
- Possible strip wholly unsecured second mortgages
- Discharge credit cards, medical bills, certain types of taxes and other debts by making and affordable repayment plan that can range from 0 percent to 100 percent dependent upon the value of your assets and your income
- Repay debts with 0% interest
- Pay some of your Attorney’s Fees during the life of the plan
- You are dealing with a Chapter 13 Trustee who really wants your business rather than a Chapter 7 Trustee who hates all of the new paperwork.
- You can reclaim personal property that was repossessed pre-petition.
- And much more
OVERVIEW OF A CHAPTER 13
WHAT CAN A CHAPTER 13 DO FOR YOU?
Chapter 13 is the section of the United States Bankruptcy Code which enables qualified individuals, or small proprietary business owners who desire to repay none or part of their debt over a period of 36 to 60 months their creditors but currently experiencing financial problems.
This bankruptcy is really a “pay what you can afford” for a specific period of 36 to 60 months after which you are relieved or discharged from the remaining balance of certain debts
It offers a unique opportunity to catch up past due mortgage arrearages or car payments over 36-60 months. Thus, allowing you time to catch up and keep your assets.
THE REPAYMENT PLAN
In Chapter 13 plan you propose a debt repayment reorganization plan, but the payment can be anywhere from 0% to 100% of your unsecured debt, depending on your income and value of your property.
WHO CAN FILE A CHAPTER 13 BANKRUPTCY?
- Corporations and partnerships are precluded from filing a chapter 13.
- Only an individual or two people who are married, with regular income who owes, on the date you file the petition, less than $419,275 in unsecured debt and $1,257,850 in secured debts.
SOME UNIQUE BENEFITS OF A CHAPTER 13
- Chapter 13 protects individuals from the collection actions of their and allows and permits individuals to keep their real estate and personal property.
- You may be able to discharge debts in a Chapter 13 that would not be dischargeable under other chapters such as marital dissolution equalization payments, debt allocated in a divorce, non-criminal fines, and other specialized debts.
Finally, a chapter 13 is a dignified solution to your financial problems. You have the peace of mind that you did your best to pay part of your debt back and still receive the benefit of a discharge. If you would like to see how a chapter 13 bankruptcy would help solve your financial problems call Rowdy today for a free consultation.
$0 MONEY DOWN
$O Down Bankruptcy
Zero money down bankruptcy filing; sounds too good to be true, what’s the catch? There is no catch! If you Need to file bankruptcy...or think you might need to but think you can't afford to file for bankruptcy relief. We have a solution! We are offering to get your bankruptcy case filed for "$O Money-Down" Bankruptcy* No "up-front" fees. No "up-front" costs. If you qualify, and lots of people do, your get filed for "Zero Money-Down". Why pay hundreds or even thousands to another lawyer, if you can get experienced, quality representation, with us, for "Zero Money-Down"?
Our Firm has helped thousands of good people get out of debt. If you ask for my help, here is what will happen:
- Our first action will be to stop the obnoxious phone calls from debt collectors. When you retain my Firm, I will direct you to inform every debt collector who is calling you and sending you letters that I am your attorney. This will force the debt collectors to stop calling you and sending you said letters.
- If any of these debt collectors contact you once we start working together, let me know. I'll fight back – they are required to obey fair credit collection laws.
- Next, we'll discuss your financial situation and create a plan to end your debt problems once and for all.
- If you choose to retain our Firm, we will agree to a flexible payment plan you can afford to pay your attorney fee and filing fee.
- Your case will be filed and your creditors will receive notice of the filing from the Bankruptcy Clerk. The filing creates an “Automatic Stay” that prohibits any creditor from collecting their debt and stops all lawsuits, foreclosures, repossessions and all other collection efforts.
- As your case wraps up you will receive your Discharge.
- After your case is complete, you and I will review your credit report and I will advise you how to raise your credit score after the bankruptcy.
At your free consultation there will be no charge to have me review your situation. You will be under no obligation whatsoever! If I can’t help you, I’ll let you know immediately. I refuse to waste your time or your money. You will get an honest assessment of your bankruptcy options. If you do choose to retain my Firm, you will get an honest, hard-working lawyer and all my experience as a proud defender of consumers.
Rebuilding Your Credit After Bankruptcy
HOW TO REBUILD YOUR CREDIT AFTER BANKRUPTCY
The primary factor that is in effect to rebuild your credit after a bankruptcy is demonstrating that you can receive small loans and repay them on a timely basis.
If you obtain a secured credit card, which means you will only be able to charge the amount that you have prepaid. Use this credit card a little over the period of the month and then pay the credit card invoice in full and on time.
The months that you make your payment pursuant to the terms of the credit card agreement, your score will improve. In approximately twelve months your credit should be on a more solid ground, and in 24 months you should have a good credit score.
Most people believe that when the Chapter 7 bankruptcy will stay on their credit report for the next 10 years that no one will give them a loan during this time period. That’s not true. The fact is that the longer that your bankruptcy is in your past, the less weight a lender will give to the negative impact of the bankruptcy.
STEPS TO TAKE AFTER YOUR BANKRUPTCY TO REBUILD YOUR CREDIT
- Create a budget-The credit counseling that you completed as part of your bankruptcy provided you training on budgeting, but if not, don’t hesitate to seek help from a credit counseling agency. All nonprofit credit counseling agencies offer free basic consumer help on topics such as budgeting.
- Begin to build an emergency fund-Research has shown that as little as $250 in savings for an unexpected expense can protect you from financial stress.I recommend Dave Ramsey’s website that has great information on budgeting and emergency funds.
- Check your credit score-There are several ways to get a free credit score, from websites such as NerdWallet. You should track your score monthly and evaluate your progress.
- Make timely payments on the debts you kept after the bankruptcy (car loan, mortgage, etc.)
- Avoid changing jobs frequently to avoid periods of gaps of income.
- Maintain a positive income to debt ratio
- Apply for New Credit lines
- Consider a Cosigner or Becoming an Authorized User on someone else’s account
- Keep the payments current on all credit cards
- Make sure that your payments are being reported to all three credit bureaus
Take The Bankruptcy Qualification Test
- Have you lost your job? Yes/No
- Are you having difficulty paying your credit cards in full each month? Yes/No
- Are you behind on your house payment? Yes/No
- Are you behind on your car payment? Yes/No
- Do you want your car payment lowered? Yes/No
- Do you only pay the minimum on your debts? Yes/No
- Do you often ask for loans from friends and family? Yes/No
- Have you gotten a payday loan? Yes/No
- Do you owe back taxes? Yes/No
- Do you not have any money left over each month after you have paid your bills? Yes/No
- Have you had overdrafts on your bank accounts? Yes/No
- Have you been sued? Yes/No
- Are you being threatened with a garnishment? Yes/No
- Do you have tax debt? Yes/No
If you have answered Yes to two or more of these questions it is important to sit down with an experienced bankruptcy attorney to analyze you financial situation. Call our experienced lawyers today for a free consultation to discuss if bankruptcy is right for you. We offer a $0 Money Down bankruptcy program.