Bankruptcy

Many people put off filing bankruptcy because they have unanswered questions, and concerns. Let us take some of the mystery out of bankruptcy, and hopefully answer questions that will allow you to make an informed decision.

Bankruptcy law is a consumer protection law. It is a federal process, which allows you to have your qualifying debts forgiven. Bankruptcy laws are based on forgiveness rather than punishment. The law recognizes that bad things can happen to good people, and sometimes you simply do not have the ability to comply with your creditor’s repayment demands.

Bankruptcy law does not seek to deter or regulate certain behavior, as other laws do; it simply recognizes that there are sometimes circumstances that are beyond your control, which can only be addressed through the cancellation of debts.

Calls from creditors:

Filing for bankruptcy puts into effect an automatic stay, which stops creditors from trying to collect any debt from you. The automatic stay immediately stops creditor phone calls, collection letters, wage garnishments, lawsuits, bank levies, and all other types of harassment, intimidation and scare tactics from creditors.

Once your bankruptcy case is successfully completed, you will receive discharge; which is a legal release of all of your debts. Creditors are left with no legal cause to contact you or pursue debts listed in the bankruptcy documents.

Types of Bankruptcy:

Chapter 7: 

Timeframe & Cost:

For a chapter 7, from the time the case is filed, it takes about 4 months to complete. However most of that time is just waiting for the court to process the discharge paperwork. Your responsibilities (as the debtor) are usually over in about one month.

Most chapter 7 cases can be handled for a flat fee starting at $2,500 plus a filing a fee charged by the court.  If you like, you can make payments on that amount, but we can’t file the case in court until the full fee is paid.

The timeframe and cost of reorganizations depend greatly with the complexity of the issues.  Most business reorganization plans take much longer to create than individual plans.  Knowing what to expect requires and experienced professional familiar with your case.

Bankruptcy is a legal process -- it is not simply filling out forms.  Programs like legal aid or document preparation programs or paralegals are not attorneys and cannot give legal advice.  They make it sound like they’ve done it before and it’s easy, but it’s the consumer taking the risk.  Knowing all the options requires understanding all of the laws relating to the issue.  Many “helpers” are often do not know why the form requests certain information they rely only on the fact that it is “what we’ve always done”.  Do not risk your fresh start.  Hire a professional who will place you in the best position to succeed going forward.