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Are creditors driving you crazy by calling numerous times every single day? Are you being embarrassed by collection calls at work? Are you staying up half the night trying to figure out how to pay everything? Are you being sued or garnished? Would it be a relief to get rid of your debts and start fresh? No one wants to file a Bankruptcy, but it may be the only way to discharge your debts and give you the fresh start you need. You have done everything you can to repay your debt but, no matter how hard you try, you just can not get it paid off. You have asked your creditors to work with you, but they refuse or they demand payments higher than you can afford. Creditors are constantly calling you and demanding payment and suggest that you borrow money from a friend or a family member, or maybe even put it on another credit card. The creditors only want to hear that you have sent money and when you are sending more. If you’re paying what you can and still falling behind, then bankruptcy may be your best option. CHAPTER 7 BANKRUPTCY Even if you do qualify for a Chapter 7 Bankruptcy, some debts are not dischargeable, such as alimony or child support, student loans, taxes due for less than three years, personal injury damages caused by drunk driving, and debts obtained by fraud, among others. Here at WALLING & FOSTER, P.C. we are experienced bankruptcy attorneys who will advise you as to whether you exceed the income limits, or the asset limits and whether your debts are dischargeable. As soon as the case is filed, the Court issues an Order that STOPS ALL COLLECTION ACTIVITY including foreclosures, repossessions and garnishments. With the current mortgage foreclosure crisis, more and more people are in a position of not being able to afford their home. This may be due to a loss of income from having hours cut, wages cut, or being laid off. Many people are questioning whether they should try and sell their house, even if they can’t get the full amount owed on the mortgage, whether they should sign papers the mortgage company is asking them to sign or whether they should just walk away from their home. Then the questions become, what is the foreclosure process, what happens? How long can I live in my house? Will the mortgage company lock me out of the house? What happens to my credit? We can answer these questions and more in a free 30 minute consultation. At that appointment we’ll talk with you and give you answers based on your own unique situation. CHAPTER 13 BANKRUPTCY Generally, someone who files Chapter 13 Bankruptcy has fallen behind in their bills because they’ve lost a job, been off work for medical reasons or had unexpected major expenses. Once you’ve fallen behind, you may not be able to catch up without the help of the Bankruptcy Court. As experienced bankruptcy attorneys, we will advise you as to whether Chapter 13 Bankruptcy is appropriate for you. Chapter 13 Bankruptcy is a repayment plan for people who are trying to stop a foreclosure or repossession, or people who do not qualify for Chapter 7 Bankruptcy either because they have too much disposable net income each month, too much equity in their home or other assets, or for people who have substantial debts that can not be discharged. Based on the type of debt and the amount of debt you have, a monthly payment is calculated. You generally pay your secured debts in full. Secured debts are anything with collateral attached to them, such as a house, car or furniture. You may pay the unsecured debts anywhere from 10% to 100% of what you owe them, depending on your circumstances. Unsecured debts are things like credit cards, medical bills and personal loans. You will then make that monthly payment to the Chapter 13 Trustee appointed by the Court. A typical Chapter 13 Bankruptcy case lasts between three to five years from filing to discharge, depending upon your income and they types of debts you have. However, if you successfully make all of your Chapter 13 payments, you will receive a Discharge from the Court stating that your case is complete. At that time, most people only have their regular monthly mortgage payment to continue paying. At this time, there is current legislation pending in Congress to help homeowners who are facing foreclosure. Part of that legislation is a change to the Chapter 13 Bankruptcy laws. The potential change would allow the Bankruptcy Court to modify mortgage loans. If the Bankruptcy Court is allowed to modify mortgages, it would be possible to do the following:
The legislation has passed the House of Representatives and is now being debated in the Senate. It appears that this bill will pass, which is good news for homeowners who are struggling to make their house payments. If this bill becomes law, we will be ready and able to help homeowners modify their mortgages and keep their homes. EFFECT OF BANKRUPTCY ON YOUR CREDIT Here at WALLING & FOSTER P.C. we are experienced bankruptcy attorneys who will interview you in person to help you determine if what Chapter of Bankruptcy is right for you. Contact Walling & Foster, P.C. to speak with an understanding and qualified attorney for a free consultation. |
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