Debt Resolution and Bankruptcy Law
Bankruptcy provides debt relief for those who are being crushed by overwhelming debt. In this economic time, many people find themselves unable to keep up with their debts after experiencing a reduction in income, job loss, divorce, or other circumstances beyond their control.
Chapter 7 bankruptcy can be an effective method of discharging (eliminate) most of your debt, giving you the fresh start you need. Many people who file Chapter 7 bankruptcy do not lose any property due to allowable exemptions. You will be able to keep your house, car, and retirement savings in most cases. In addition, any income you earn after filing is yours to keep.
A debtor must qualify to be able to file Chapter 7. You must also pass what is called the "Means Test." The Means Test limits who can file Chapter 7 to a certain income threshold based on the state’s median income and your household expense.
Ch. 7 Stops these actions:
Ch. 7 Eliminates these debts:
Foreclosure Action on your home
Garnishment of your bank accounts and wages
Repossession of your car
Court dates that you may have to attend relating to your debt
Credit Card Debt
Judgments / Garnishment against you
Chapter 13 may be an effective alternative for those who do not qualify for Chapter 7. Chapter 13 is a repayment plan for certain debts of the individual debtor who has a regular source of income. By establishing a repayment plan that is based on only what you can afford, a successful Chapter 13 filing can allow you to catch up on certain debts to keep those assets while relieving you from other debts. The plan can be complete within a 3 to 5 years period.
If you are overburdened by debt filing for bankruptcy is not always the right solution. There may be alternatives we can explore to help you in your hardship situation.
Debt Settlement is the process whereby we negotiate with your creditors to have them accept a discounted lump sum payment which settles your debt in full. This can be an effective method of reducing debt without having to file for bankruptcy. In most cases, only unsecured debts such as credit cards, medical bills, personal loans, and accounts in collections would qualify for debt settlement. In some cases, we can negotiate a reduction of second mortgages as one lump sum payment as part of a debt settlement or real estate short sale.
Debt Settlement is a hardship based program available to those who suffer from legitimate financial hardship and cannot continue to pay debts under the original terms. Creditors are often willing to settle your debts in order to avoid a lengthy and costly collections effort or possibly lose repaymentall together if you file for bankruptcy protection. A successful debt settlement negotiation may save a debtor a significant percentage of the total amount owed.