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WHAT WILL A CHAPTER 7 BANKRUPTCY DO FOR ME?
A chapter 7 bankruptcy will discharge your unsecured debt while allowing you to keep most if not all of your personal belongings. A chapter 7 bankruptcy is often a quick, affordable and practical method of eliminating your debt and moving on with your life.
WHAT IS UNSECURED DEBT?
Unsecured debt, like the name states, is debt that is not secured by any collateral. Typically unsecured debt can be found in the form of credit card debt, 2nd mortgages, payday loans, cash advances, unsecured personal loans, deficiencies from foreclosed homes or repossessed automobiles and more.
DO I REALLY HAVE TO SELL ALL MY BELONGINGS TO PAY OFF CREDITORS?
While chapter 7 bankruptcies are technically called liquidation, most people file their bankruptcy and keep most of their personal belongings. The law allows certain exemptions where people can protect equity they have in certain possessions. People can protect equity they have in their homes, cars, clothes, furniture, personal belongings, 401k’s, insurance policies, bank accounts, cash on hand and much more.
CAN A BANKRUPTCY HELP ME SAVE MY HOME?
YES. Chapter 13 bankruptcies are a powerful tool consumers can use to save their home from foreclosure. A chapter 13 bankruptcy is a different type of bankruptcy where individuals repay a portion of the debt they owe depending how much they can afford. If a homeowner has not paid their mortgage for several months, is behind on the payments and has an ability to repay the amount he owes over time (usually 3 to 5 years), then a chapter 13 bankruptcy may allow the homeowners to stop foreclosure and save the home. Once your case is filed, a quick call to the entity selling the home can IMMEDIATELY STOP FORECLOSURE. DO NOT ALLOW ANYONE TO TAKE YOUR HOME. CALL THE X LAW GROUP FOR IMMEDIATE ADVICE.
CAN A BANKRUPTCY DO ANYTHING TO STOP MY WAGE GARNISHMENT OR MY BANK LEVY?
YES. Once a bankruptcy is filed an automatic stay is created that protects clients from any collection attempts. Any efforts to contact, collect, annoy, threaten or harass plaintiffs is against the law and is very serious.
CAN A BANKRUPTCY REALLY GET RID OF THE 2ND MORTGAGE ON MY HOME?
YES. In certain cases it is even possible to discharge huge 2nd mortgages. If a person’s home is worth less than the value of the 1st mortgage, many courts have ruled this debt is unsecured and can be discharged like any other unsecured debt. Ask one of our knowledgeable attorney how we can help you get rid of your 2nd mortgage.
CAN BANKRUPTCY STOP LAWSUITS AGAINST ME?
YES. Once your case is filed lawsuits immediately stop and no other court action may proceed without the parties submitting the issue to a judge for review.
HOW WILL BANKRUTPCY AFFECT MY CREDIT SCORE
Many clients find themselves filing for bankruptcy because they have not been paying their monthly mortgage, credit cards bills and car payments. Most clients that consider bankruptcy then have already done a great deal to ruin their credit score. Usually a bankruptcy will reduce your credit score at least 140 points. Many clients however report that a year after their discharge, their credit score is significantly higher than it was before they filed. Many people report their credit scores rise as much as 150 points 12 months after their discharge.
I HAVE ALREADY FILED ONCE FOR BANKRUPTCY, CAN I EVER FILE AGAIN?
YES. You may able to refile in as little as four years after you last filed depending when and what chapter you filed. A short consult with one of our experienced attorneys can help clarify if you are eligible to file and for what chapter.
ARE THERE DEBT LIMITS IN A CHAPTER 7 CASE?
Federal bankruptcy law states that there is no limit to how much debt a debtor can discharge in a chapter 7 case. Debtors can have as little as $5,000 debt or more than $250,000 in unsecured debt and still discharge this debt without a problem.
I HAVE SIGNIFICANT ASSETS, CAN I STILL FILE FOR BANKRUPTCY?
YES. Debtors who own significant assets are still eligible to file for either chapter 7 or 13 bankruptcy. In chapter 7 cases debtors are allowed to exempt a certain amount of assets from the reach of creditors. This means that debtors usually go through a chapter 7 bankruptcies keeping their home, car and all their personal property.
Debtors who file chapter 13 bankruptcies are not subject to debt limits on the other hand. Instead, a debtor’s repayment plan may sometimes depend on the amount of assets a debtor has. A consult with one of our experienced attorneys will help debtors understand what assets are able to protected before starting the bankruptcy