What can filing bankruptcy do for you?
- Stop harassing phone calls from creditors
- Stop garnishments and bank levies
- Stop a pending foreclosure and have time to catch up past-due mortgage payments or obtain a loan modification*
- Restructure high interest car loans*
- Reinstate suspended driver's license*
- Strip off totally unsecured second mortgages*
- Give you the freedom to take care of you and your family
Bankruptcy Information
“You are so nice, for an attorney.” We hear that a lot. People contemplating bankruptcy feel embarrassed and ashamed about their situation, and usually have been subject to nasty calls from collectors. We will not judge you or look down on you for being in debt. It is easy to get in debt, and it only takes one negative event, such as an illness, a job loss, or a divorce, to push someone over the edge. So do yourself a favor before you cash out a retirement plan or borrow more money: schedule a consultation with an attorney to discuss your bankruptcy options. Even if you don’t end up filing a bankruptcy, at least you will have learned about all of your options.
Bankruptcy is there for people who have gotten in over their heads, and need relief from their debts so they can move on with their lives. It is called a “fresh start “, and instead of struggling to pay back your debts for years to come (if ever), you need to use your resources to take care of yourself and your family. It doesn’t matter how you got there, what matters is what you can do now. In the initial consultation, we will go over all your options: Chapter 7 bankruptcy, Chapter 13 bankruptcy, or not filing bankruptcy at all. We will discuss your specific situation and decide together what makes sense for you.
“I feel so much better after taking to you.” We hear that a lot, too. And when we hear that we consider our job well done.
So, if you are struggling with debt, and want to discuss your particular situation with a qualified attorney during a free initial consultation, please give us a call.
Frequently Asked Questions (FAQ's)
The following information is intended to provide you with general information about bankruptcy, but is not a substitute for seeking the advice of an attorney practicing in the area of Bankruptcy Law. Therefore, we strongly urge that anyone who reads the following obtain an opinion from an attorney before taking any action with regards to a bankruptcy, and not to rely upon the following as anything more than general information, versus legal advice.
1. What is bankruptcy? Bankruptcy is a Federal Court supervised procedure to get rid of debt you are unable to pay back. You can keep certain property, or assets, by exempting them from the reach of creditors.
2. What is the difference between a Chapter 7 and a Chapter 13 Bankruptcy? A Chapter 7 Bankruptcy is a liquidation proceeding, intended for people who do not have unexempt assets and who lack sufficient income to pay back their creditors. In a Chapter 7, unsecured debts (like credit card debt, medical bills, and past-due rent) are discharged completely in most cases. It is a fairly quick process, as the time from filing the bankruptcy to discharge is about four months.
A Chapter 13 or “wage-earner” bankruptcy, is a reorganization and repayment plan, where you can make payments over time. Through a Chapter 13 repayment plan you can stop a foreclosure and catch up past-due mortgages; restructure high interest car loans or other secured loans; reinstate suspended driver's licenses (if the license is suspended for failure to pay tickets), and pay back tax debt without further penalties or interest. You can also get completely rid of a second mortgage if the value of your house is less that the balance owed on your first mortgage. This can be a significant savings! A Chapter 13 also allows you to keep property you might lose in a Chapter 7 bankruptcy. The repayment plan typically runs between 36 and 60 months.
3. What kind of debts are dischargeable? Generally, unsecured debts, such as credit card debts, medical bills, utility bills, etc. are dischargeable in bankruptcy. Non-dischargeable debts include child support payments, taxes, student loans, government loans, court fines, and damages owed to victims of accidents caused by the debtor while under the influence of alcohol or drugs.
Also, debts incurred shortly before filing a bankruptcy, or incurred by someone who didn't intend to pay the debts back, can be non-dischargeable, as can debts incurred through fraud or misrepresentation, theft, intentional or malicious injury to another.
Finally, car loans and similar "secured" loans can be discharged in a bankruptcy, but will also require surrender of the property subject to the loan. If the debtor wants to keep the property, they must keep making payments on the debt after discharge. In some cases it makes sense to formally renew your obligation to pay for the property through the "Reaffirmation" process, where you "reaffirm" your obligation to pay the loan despite the bankruptcy.
4. What kind of property can a person keep? You are allowed to keep a certain amount of value in different kinds of property. In general, you can keep household items, such as furniture and appliances, and other personal property including cars, as long as those items are not worth more than the exemption schedules provide. You can also have equity in a house and still file for bankruptcy.
5. Can I be fired if my employer learns that I file bankruptcy? No. The U.S. Bankruptcy Code prohibits an employer from terminating or discriminating against a person who has filed for bankruptcy.
6. Can I be “denied” a bankruptcy? Anyone can file for bankruptcy. But, if you have received a Chapter 7 discharge in the last 8 years, you cannot file another Chapter 7 bankruptcy and receive a discharge. If the court determines that you have
income available after payment of your living expenses, you may be required to file a Chapter 13 repayment plan rather than an outright Chapter 7 bankruptcy. Finally, if you have property that cannot be protected or exempted, the court may sell it to generate money for your creditors.
7. Can creditors continue to try to collect their debts from me after I file? As soon as the bankruptcy petition is filed, an automatic stay goes into effect, prohibiting the creditors from contacting you or taking any further collection activity against the debtor. Once the creditors receive notice of the bankruptcy, they must leave the debtor alone. Creditors who continue to contact a debtor or harass them for payment after a bankruptcy filing, violate the automatic stay can be fined and punished by the Court for doing so.
THE ABOVE INFORMATION IS GENERAL IN NATURE AND IS NOT INTENDED TO BE RELIED UPON BY ANYONE. THIS INFORMATION IS NOT A SUBSTITUTE FOR THE SERVICES OF A QUALIFIED BANKRUPTCY ATTORNEY AND SHOULD NOT BE TAKEN AS ADVICE BY ANYONE WHO READS IT. DO NOT RELY UPON THIS INFORMATION WITHOUT FIRST DISCUSSING YOUR CASE WITH AN ATTORNEY OR OTHER QUALIFIED INDIVIDUAL. THE MANLEY LAW FIRM, PS, INC. DOES NOT CONSIDER ANYONE WHO READS THIS MATERIAL TO BE A CLIENT OF THE LAW FIRM UNLESS OR UNTIL THE INDIVIDUAL CONTRACTS FOR THE SERVICES OF THE MANLEY LAW FIRM, PS, INC.
Bankruptcy is there for people who have gotten in over their heads, and need relief from their debts so they can move on with their lives. It is called a “fresh start “, and instead of struggling to pay back your debts for years to come (if ever), you need to use your resources to take care of yourself and your family. It doesn’t matter how you got there, what matters is what you can do now. In the initial consultation, we will go over all your options: Chapter 7 bankruptcy, Chapter 13 bankruptcy, or not filing bankruptcy at all. We will discuss your specific situation and decide together what makes sense for you.
“I feel so much better after taking to you.” We hear that a lot, too. And when we hear that we consider our job well done.
So, if you are struggling with debt, and want to discuss your particular situation with a qualified attorney during a free initial consultation, please give us a call.
Frequently Asked Questions (FAQ's)
The following information is intended to provide you with general information about bankruptcy, but is not a substitute for seeking the advice of an attorney practicing in the area of Bankruptcy Law. Therefore, we strongly urge that anyone who reads the following obtain an opinion from an attorney before taking any action with regards to a bankruptcy, and not to rely upon the following as anything more than general information, versus legal advice.
1. What is bankruptcy? Bankruptcy is a Federal Court supervised procedure to get rid of debt you are unable to pay back. You can keep certain property, or assets, by exempting them from the reach of creditors.
2. What is the difference between a Chapter 7 and a Chapter 13 Bankruptcy? A Chapter 7 Bankruptcy is a liquidation proceeding, intended for people who do not have unexempt assets and who lack sufficient income to pay back their creditors. In a Chapter 7, unsecured debts (like credit card debt, medical bills, and past-due rent) are discharged completely in most cases. It is a fairly quick process, as the time from filing the bankruptcy to discharge is about four months.
A Chapter 13 or “wage-earner” bankruptcy, is a reorganization and repayment plan, where you can make payments over time. Through a Chapter 13 repayment plan you can stop a foreclosure and catch up past-due mortgages; restructure high interest car loans or other secured loans; reinstate suspended driver's licenses (if the license is suspended for failure to pay tickets), and pay back tax debt without further penalties or interest. You can also get completely rid of a second mortgage if the value of your house is less that the balance owed on your first mortgage. This can be a significant savings! A Chapter 13 also allows you to keep property you might lose in a Chapter 7 bankruptcy. The repayment plan typically runs between 36 and 60 months.
3. What kind of debts are dischargeable? Generally, unsecured debts, such as credit card debts, medical bills, utility bills, etc. are dischargeable in bankruptcy. Non-dischargeable debts include child support payments, taxes, student loans, government loans, court fines, and damages owed to victims of accidents caused by the debtor while under the influence of alcohol or drugs.
Also, debts incurred shortly before filing a bankruptcy, or incurred by someone who didn't intend to pay the debts back, can be non-dischargeable, as can debts incurred through fraud or misrepresentation, theft, intentional or malicious injury to another.
Finally, car loans and similar "secured" loans can be discharged in a bankruptcy, but will also require surrender of the property subject to the loan. If the debtor wants to keep the property, they must keep making payments on the debt after discharge. In some cases it makes sense to formally renew your obligation to pay for the property through the "Reaffirmation" process, where you "reaffirm" your obligation to pay the loan despite the bankruptcy.
4. What kind of property can a person keep? You are allowed to keep a certain amount of value in different kinds of property. In general, you can keep household items, such as furniture and appliances, and other personal property including cars, as long as those items are not worth more than the exemption schedules provide. You can also have equity in a house and still file for bankruptcy.
5. Can I be fired if my employer learns that I file bankruptcy? No. The U.S. Bankruptcy Code prohibits an employer from terminating or discriminating against a person who has filed for bankruptcy.
6. Can I be “denied” a bankruptcy? Anyone can file for bankruptcy. But, if you have received a Chapter 7 discharge in the last 8 years, you cannot file another Chapter 7 bankruptcy and receive a discharge. If the court determines that you have
income available after payment of your living expenses, you may be required to file a Chapter 13 repayment plan rather than an outright Chapter 7 bankruptcy. Finally, if you have property that cannot be protected or exempted, the court may sell it to generate money for your creditors.
7. Can creditors continue to try to collect their debts from me after I file? As soon as the bankruptcy petition is filed, an automatic stay goes into effect, prohibiting the creditors from contacting you or taking any further collection activity against the debtor. Once the creditors receive notice of the bankruptcy, they must leave the debtor alone. Creditors who continue to contact a debtor or harass them for payment after a bankruptcy filing, violate the automatic stay can be fined and punished by the Court for doing so.
THE ABOVE INFORMATION IS GENERAL IN NATURE AND IS NOT INTENDED TO BE RELIED UPON BY ANYONE. THIS INFORMATION IS NOT A SUBSTITUTE FOR THE SERVICES OF A QUALIFIED BANKRUPTCY ATTORNEY AND SHOULD NOT BE TAKEN AS ADVICE BY ANYONE WHO READS IT. DO NOT RELY UPON THIS INFORMATION WITHOUT FIRST DISCUSSING YOUR CASE WITH AN ATTORNEY OR OTHER QUALIFIED INDIVIDUAL. THE MANLEY LAW FIRM, PS, INC. DOES NOT CONSIDER ANYONE WHO READS THIS MATERIAL TO BE A CLIENT OF THE LAW FIRM UNLESS OR UNTIL THE INDIVIDUAL CONTRACTS FOR THE SERVICES OF THE MANLEY LAW FIRM, PS, INC.