Bankruptcy: You Need An Experienced Qualified Attorney

Bankruptcy can you provide you with many options in dealing with your debts, which are not afforded to you under other laws. Depending upon the type of filing, you can eliminate your unsecured debts such as credit cards or medical bills and in some cases even back taxes. Do not trust such complex legal matters to a document preparer or unskilled attorney. If you are in danger of, or being threatened with, wage levy or garnishment, lawsuits, foreclosure or repossession; contact an experienced, qualified attorney today.

Your case will be governed by a complex mix of state and federal laws. You need the services of an attorney well versed in these arrears to guide you through the complex maze of the legal system. Only an experienced attorney has the knowledge and training to assist you in determining which chapter of protection fits your needs and particular situation.

Chapter 7 is a liquidation of your non-exempt (unprotected assets). Upon filing your case you will be under the protection of the federal courts by an injunction known as the automatic stay. This prevents creditors from taking such actions as garnishing or levying your wages, foreclosing upon your home or repossessing your vehicle. Creditors must also stop any legal actions they may be taking against you. To qualify for relief, under Chapter 7, you must have not filed a previous case, in which a discharge was entered in the past eight years and your average income must be below your states median income, which is determined by a complex analysis known as the means test. Upon filing your case a Chapter Trustee will be appointed to oversee your case and determine what, if any unprotected assets may be available to liquidate to cash to pay unsecured creditors. In most cases under Chapter 7, which is available to both businesses and individuals, you will never need to step into a courtroom or appear before a judge. Many Chapter 7 cases are determined to be "no asset cases" meaning there is no non-exempt property available to be liquidated to pay creditors. At the conclusion of your case a federal Judge will enter an order discharging, or eliminating, your unsecured debts.

Chapter 13 is a reorganization of your debts. In Chapter 13, like in Chapter 7, the automatic stay goes into effect immediately upon your filing your petition. A filing under Chapter 13 is generally required if you are over the median income, based on the Means Test, or have a previous filing for relief, under Chapter 7, in the prior eight years. Chapter 13 is often preferable to Chapter 7 as it allows the debtor to keep such property as a house or car, you in most cases will also payoff your vehicle which they are behind on payments on, by reorganizing the debt and paying off the arrearages over a period of time.

In Chapter 13 if you owned your vehicle for the 910 days prior to filing for bankruptcy, you can in many instances repay only the fair market value of the vehicle rather than what is actually owed. Additionally, you may be able to lower your interest rate on the balance of your payments. Many time the savings realized by this provision alone can more than compensate you for the costs of hiring an attorney to handle your entire case.

In Chapter 13 if you owned your vehicle for the 910 days prior to filing for bankruptcy, you can in many instances repay only the fair market value of the vehicle rather than what is actually owed. Additionally, you may be able to lower your interest rate on the balance of your payments. Many time the savings realized by this provision alone can more than compensate you for the costs of hiring an attorney to handle your entire case.

Another area that is gaining popularity for homeowners is Chapter 11. Chapter 11 is a reorganization plan in which you are your own Trustee known as the Debtor in Possession. Your attorney can advise you if Chapter 11 is right for you.

Many homeowners are seeking the advantage of reorganizing under Chapter 11. In these proceedings you, known as the Debtor in Possession, will serve as your own Trustee. There are numerous advantages in dealing with vehicles and rental properties available in Chapter 11, which are not available in other