Q I'm considering credit counseling or debt consolidation. Does that work?
A The credit counceling and debt consolidating agencies work for the credit card companies. Their purpose is to keep people out of bankruptcy so that the credit card companies may continue to collect. Unfortunately this tends to keep you and your family in debt for many years. Consider your interests and your family's well-being first, and speak to a lawyer before visiting a credit councelor or debt consolidator.
Chapter 7 Q&A
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Q What is Chapter 7 Bankruptcy?
A Chapter 7 of the United States bankruptcy code is a kind of personal bankruptcy that offers individuals a fresh financial start by discharging, or excusing, many unsecured debts (such as credit card debt, medical debt and more). Chapter 7 is sometimes referred to as "liquidation" because, in theory, your bankruptcy trustee can liquidate (that is, sell off to raise cash) any of your assets that aren't protected by your state's exemptions. But many people who qualify for Chapter 7 bankruptcy have few or no non-exempt assets, so liquidation doesn't usually play a large role.
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Q What is the Bankruptcy Automatic Stay?
A The automatic stay is one of the first protections offered to those who file for bankruptcy. In most situations, the automatic stay takes effect as soon as the initial paperwork in a bankruptcy case has been filed. Once activated, it protects filers from all forms of collection, including repossession, foreclosure, garnishment and lawsuits.
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Q How Long Does it Take to File Chapter 7 Bankruptcy?
A One we get all your information, we can file your case in a matter of days. In some cases, we've filed for protection on the same day in order to prevent a foreclosure or an eviction. However you are advised not to wait until the last minute.
Chapter 7 cases tend to take much less time than Chapter 13 cases. While a Chapter 13 repayment plan can last several years, Chapter 7 filers generally get their discharges in a matter of several months.
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Q Do I Need a Chapter 7 Bankruptcy Lawyer?
A The bottom line is that we do not offer any legal advice on this Website. This is all simply information that will help you to understand the process. The only advice we do offer is to get an attorney.
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Q What is the Chapter 7 Means Test?
A The means test is a qualifying test that you must pass before you are eligible to file under Chapter 7 of the U.S. Bankruptcy Code. It was introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The actual test involves a series of calculations, including a comparison of your family's income to the median income of a family your size in your state.
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Q What are the Chapter 7 Bankruptcy Fees?
A Legal fees are based on the number of creditors and the complexity of your case. Start by contacting us and taking advantage of our Free Consultation.
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Q Whats the difference between Chapter 7 and Chapter 13 Bankruptcy?
A You may have heard of Chapter 13 bankruptcy, which is the other type of personal bankruptcy available to those struggling with debt. There are a few major differences between the two chapters.
Chapter 13 is more of a reorganization of debts than an out-and-out discharge: rather than excusing filers from unsecured debts, Chapter 13 gives filers a chance to catch up on past-due balances while continuing to make payments.
Chapter 13 bankruptcy is often pursued by petitioners interested in saving a home from foreclosure and/or those who have had a temporary financial setback but earn a regular salary.
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Q Did the New Bankruptcy Law Make it Harder to File Chapter 7 Bankruptcy?
A While the Chapter 7 means test was intended to tighten the qualification requirements to file Chapter 7 bankruptcy, most people have found that this form of bankruptcy protection is still available to them even after the new law. For those people who may not qualify for Chapter 7 bankruptcy, Chapter 13 bankruptcy may still very well be an option.
Chapter 11 Q&A
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Q What is Chapter 11?
A Chapter 11 of the United States Bankruptcy Code is often referred to as a "reorganization" bankruptcy.
Often involving a corporation or partnership (though it can pertain to sole proprietors and individuals), the debtor usually proposes a plan of reorganization to keep the business alive, and to repay creditors over time. find out more
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Q Is Chapter 11 advisable for an individual?
A It would take a very special set of circumstances, most likely individuals would want to look at Chapter 7 or Chapter 13, however the best advice we can give you is to talk to an attorney, who can help you to decide which chapter of the is best for you.
Chapter 13 Q&A
Q What is Chapter 13 Bankruptcy?
A Chapter 13 of the United States Bankruptcy Code is sometimes referred to as a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. find out more
