Chapter 7 bankruptcy is quick and inexpensive - the process is over in just about four months, and no payments are made to the court. You don’t have to turn in an annual budget or ask permission later to sell or buy property. But there are other reasons to choose chapter 7:
- No property is lost in well over 98% of our cases to the trustee. We help you plan exemptions, so property is kept.
- The collection calls stop immediately many of our clients have to pick up the phone to see if it is still working
Over 97% of our clients qualify for a Chapter 7. We look for the deductions so higher income applicants can file a Chapter 7. If you don’t look for these deductions, you may be forced to file a Chapter 13. Since the attorney makes triple the fee in Chapter 13, some attorney don’t find those deductions. We do.
Within 7 - 10 days after filing a Chapter 7 you and the creditors receive a notice of the place and time of the 341 hearing that is about 4 - 6 weeks after filing. A Chapter 7 is best for persons that have little equity in their home or cars, average or below average income and a majority of unsecured debts.
Chapter 13 has special tools for special problems that allow you to handle tax debts, foreclosures, student loans and the ability to strip a second mortgage. Chapter 13s allow you to protect a cosigner and manage special situations. If you don’t have these situations, you probably shouldn’t be in Chapter 13.
Chapter 7 Bankruptcy is a simple, straightforward way to eliminate most debts, especially unsecured debt. This means credit card debt, bank loans, medical bills, pay-day loans, and old utility bills. It is designed to give consumers a fresh start and quickly stops creditor garnishments, lawsuits, and harassment.
There are some long-term debts like mortgages and student loans which are not manageable in chapter 7. Debts like taxes and mortgage can often be modified or paid back over time and in part. In those cases, you may need to file chapter 13.
Not all attorneys are created equal. Some work to become very good in a certain area such as working with foreclosures and student loans. Look at the reviews. Find someone who knows what he is doing when you come to him with your Foreclosure, student loan or tax debt.
Every case is different, and this isn’t like ordering a pizza. If a pizza isn’t right you can blame Papa Johns. You didn’t bake it. But in a bankruptcy you have to work together with the attorney to get the bankruptcy done. It is really bad when the attorney doesn’t know the recipe for the pizza or how to bake it. And some of them don’t. In bankruptcy, the client has to work with the attorney to make sure the mortgage gets modified, stripped or back out of default.
We educate our clients with resources on our website. I personally draft petitions with clients to insure the petition are prepared correctly. I never hand you over to a paralegal. After a Chapter 7 petition is prepared pretty much the client just has to take the second class and show up in court. Sometimes a redemption to purchase the auto is done or the client asks us to remove a judicial lien.
The information is overwhelming. It can be hard to make the proper decision. It can be impossible to find your way without qualified help. But do not hesitate to give us a call. We are always available to discuss your case and the different options you have.
But one thing is certain – time is of the essence! If a foreclosure has been filed against you the bank has hired an attorney at 250 to 350 per hour to prosecute the foreclosure. It comes out of the equity in your home. If the credit card company is suing you should not wait until after they have garnished 15% of your wages and attached your home. Maybe we can get it back. Maybe we can’t. The sooner you file a Chapter 7 or 13 the sooner this stops. The sooner see us about filing the more options you have. Call now.