As a law firm, our bankruptcy services are diverse. We are able to handle your bankruptcy regardless of how complex it may seem. We understand what to look for and can help you navigate what can be an incredibly complex process.
When you go into a bankruptcy with your eyes wide open and fully aware of your options, you can then make decisions that will positively impact your financial situation today and in the future. It is critical that you take this long-term mindset because bankruptcy is not something you can complete and then forget about. It will remain on your credit report for years to come, and you will have to live with its consequences.
Simultaneously, if you handle it correctly, the financial benefits will far outweigh this potential negative. Our job is to work with you to ensure that you receive all the benefits you are entitled to without some of the drawbacks that would be associated with a bankruptcy filing that was not done with forethought or precision.
Begin by Negotiating
Our bankruptcy services can begin long before you actually file for bankruptcy. We can speak with you about your goals, look at the various debts you have, and then speak with each one of your creditors about the possibility of renegotiating terms. In many cases, this is in your best interest and theirs. If an agreement can be reached in regards to how much should be paid and when you may not need to file for bankruptcy but could still experience significant financial relief.
If your creditors are unwilling to negotiate or if they’re unwilling to take as large of a cut as is necessary for you to become financially successful, it then becomes necessary to finalize your bankruptcy filing and proceed in court. However, before doing so, you need to know about the types of bankruptcies you can file.
Chapter 13
During a consultation to discuss our bankruptcy services, we will go over what your income and assets are in relation to your actual debts. In the majority of cases, people can afford to make debt payments, so long as they pay a far lesser amount. In a chapter 13 bankruptcy, you have the ability to do so. You will make a payment each month. The trustee then divides the payment among your creditors according to the plan. Not only do you get to save time, but you also save a great deal of money. Remaining unsecured non-priority debts go away after completing the court ordered payment plan.
Chapter 7
The traditional type of bankruptcy is Chapter 7. People refer to Chapter 7 as liquidation. Chapter 7 eliminates your debts through the liquidation process. However, before you can reach this point, you must take a means test and qualify. In other words, if you make too much money, you may not qualify for a liquidation bankruptcy. At this point, you would need to decide whether or not you want to file a Chapter 13 and make smaller payments to creditors.
A Chapter 7 discharge means that the case wipes out your unsecured non-priority debt. In Chapter 7 the trustee either sells your assets for the benefit of your creditors or the Court rules that you do not have any assets to pay your debts. This will give you a fresh financial start from which you can rebuild.
If you are considering filing for bankruptcy, we encourage you to call and schedule an appointment so we can discuss our bankruptcy services and how we can help you in greater detail.