As a bankruptcy lawyer, clients often ask us we if their case is a simple one. Unfortunately, bankruptcy cases are not particularly simple. The laws are very specific and it can take longer to prepare the case than some might realize. With trustee and creditor meetings, there are several steps in the process. However, there are varying degrees of complexity. When you visit our office, we can let you know how complex your case is and what the process will look like.
Do I have a simple bankruptcy case?
For your bankruptcy case to be considered simple, you need to be able to exempt all of your assets in Chapter 7. This means that none of your assets will be seized to pay creditors. We can review your situation and let you know if this is possible during a consultation and financial review. Also, in order for your bankruptcy case to be simple, all of the debt that you have would need to be unsecured debt.
Unsecured debts are not secured by a deed of trust or another sort of lien. For example, medical bills and credit card bills are unsecured debts. If you do not pay the bills or credit card debts, there is nothing to collect on. By comparison, if you do not pay your car note, the bank can send someone to tow it away.
Other factors that can make your case more simple are:
Having an income lower than your state’s median income per household size
All of your debts can be discharged (only certain ones apply).
Your tax returns have been filed
There are no other complications
When you speak with a bankruptcy lawyer in our office, we can let you know if we can consider the case simple and what you can do to file without complications. If your case is like most and is more complicated than a simple bankruptcy filing, we can still help you.
Why Your Bankruptcy Case May Not Be Simple
When working with a bankruptcy lawyer in our office we will do what we can to help you keep your assets. This includes your home, vehicles, family jewelry and furniture. Keeping your assets requires additional effort, work, strategy and time so that the trustee does not liquidate them. This is certainly worth the effort to retain what you have worked so hard for. We will plan with you and do whatever we can to preserve your assets. Your case may also be more complicated if you are willing to liquidate some things while keeping others. Essentially, the more assets you have, the more complicated the case.
Secured Debts
The debts that you have also influence the complexity of your bankruptcy case. If you have a lot of secured debts, they cannot be wiped out like your unsecured ones. If you want them to be, you need to be willing to give up the asset that they are tied to. For example, getting rid of an auto loan means giving back the car. For secured debts that you want to keep paying on (like your home) you will need to reaffirm them and continue to make payments as agreed. We can help you with all of this as your bankruptcy lawyer so it really doesn’t matter if your case is simple or complex. As long as you have legal help, you will be protected.
NOTE: This is for informational purposes only and does not constitute legal advice.