Bankruptcy
Chapter 7 - Individual / Consumer Debt
Chapter 13 - Individual Reorganization / Repayment
It's no mystery that times are tough, both financially and emotionally. Liss Law, LLC has handled numerous bankruptcies and is well aware of the many questions and concerns you have. We invite you to come to our office to speak with an attorney in order to know that YOU DO HAVE OPTIONS. There is no worse feeling than that of having nowhere to turn. At Liss Law, we will lay out all of your options, whether it be to file for bankruptcy relief, or to simply choose another avenue, but at least you will be informed as to your options. Once you see the options in front of you, you and only you will decide on what to do. Please call or email if you have any questions.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, sometimes call a straight bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all dischargeable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively quick "fresh start".
One of the main purposes of Bankruptcy Law is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debts.
What is Chapter 13 Bankruptcy?
When someone files for bankruptcy under Chapter 13 of the Bankruptcy Code, their aim is to have the opportunity to repay some or all the debts in their name, in better terms, i.e. lower or no interest. Unlike Chapter 7 which involves liquidation of assets, this process involves restructuring debts which allows the debtor to use whatever income they may have in the future to pay off the creditors. Filing Chapter 13 Bankruptcy is thus applicable for a debtor who has a regular income, and thus can afford to request for such adjustments or reductions.
The United States Bankruptcy Code gives the debtor a ceiling of 5 years, within which the creditors must be paid back. While the attorney will safeguard your interests, the entire process is carried out under the supervision of the courts.
General Bankruptcy - Questions and Answers
Q: What is bankruptcy?
A: Bankruptcy is a process under federal law that allows debtors who owe more money than they can pay to either eliminate their debts or work out a payment plan to pay a portion (or all) of their debts over time.
Q: Will bankruptcy stop all the harassing phone calls and mail from bill collectors?
A: Yes! An "automatic stay" will take effect when you file your case. It will stop the creditor harassment.
Q: Will bankruptcy stop a wage garnishment from a lawsuit over an unsecured debt?
A: Yes. The automatic stay will stop the garnishment.
Q: How long will bankruptcy remain on my credit report?
A: Bankruptcy can remain on your credit report for ten years.
Q: What does "secured" or "unsecured" debt mean?
A: Secured debt is debt that allows a creditor to make a claim on an asset (i.e. home, real property or car).Unsecured debt is held by creditors that have no claim to your assets (i.e. credit cards).
Q: What happens if I file and discover another debt after filing?
A: Your lawyer can amend your case to include any additional debts you may find after the case is filed.
Q: What happens when one spouse files without the other spouse?
A: You need to discuss this carefully with your attorney. The spouse that doesn't file may end up being responsible for some of the debts.
Q: Can I be held responsible for a debt that I co-signed?
A: Yes. You can be held responsible for any debt that you signed an agreed that said you would pay in the event that someone else failed to make the payments (co-signed).
Q: Can all debts be discharged?
A: No. There are certain debts like student loans, government loans, back taxes and other debts that cannot be discharged.
Q: Can I be held responsible for a debt that I co-signed?
A: Yes. You can be held responsible for any debt that you signed an agreed that said you would pay in the event that someone else failed to make the payments (co-signed).
Q: Will I lose my social security payments if I file?
A: No
Q: Am I going to lose my personal property if I file bankruptcy?
A: There are exemptions, both state and federal, that allow you to keep a certain amount of personal property. Your attorney will explain how these exemptions apply to people who file bankruptcy in your state.
Q: Can I pick which debts to put in the bankruptcy?
A: No. You must include all of your debts.
Q: When will I get my discharge?
A: Generally a Chapter 7 bankruptcy discharge is received 60 days after the 341 meeting, or first meeting of creditors. In Chapter 13, your discharge will be sent to you once you have completed the payments under the Chapter 13 plan.