At Herrick & Hay P.C. we know how hard it can be to deal with issues such as Bankruptcy. We have helped clients who need the talents of experienced and focused attorneys.
Please see our Bankruptcy FAQ page for more information relating to your questions.
Chapter 7 Bankruptcy - Our economy is uncertain. Many consumers are already facing the strain of financial crisis and creditor harassment. While no one wants to file for bankruptcy, Chapter 7 may offer relief and a fresh start. In most cases you will be able to keep your home, your vehicles, household goods and retirement plans. Filing for Chapter 7 may allow you:
- Protection From Creditors- You must continue to pay creditors who have a security interest in property that you want to keep, but exemptions usually protect other property which you own outright. You are protected from your creditors from the moment the bankruptcy is filed (the "Automatic Stay").
- Harassment-In general, creditors do not have the right to continue to harass you. They cannot contact your employer and they are prohibited from suing you, garnishing your wages and from taking any other prohibited action against you once you file for Chapter 7 protection.
- Discharge Debt-The discharge of debt which you shall receive extinguishes most debt (except for spousal and child support, recent taxes and student loans, and a limited number of other obligations). For example, credit card debt, medical debt and other honest obligations are usually discharged by a Chapter 7 bankruptcy filing.
Chapter 13 Bankruptcy- Chapter 13 bankruptcy is a personal reorganization or payment plan in which you make payments to a bankruptcy trustee, usually for 36 months (never more than 60 months). The trustee then pays your creditors at least some portion of the debt owed. To file a chapter 13 you only pay the court costs. The attorney fee is paid by the trustee from your Chapter 13 plan payments. Some of the most common reasons debtors choose Chapter 13 are:
- To stop a home foreclosure or vehicle repossession
- To pay non-dischargeable debts, such as recent taxes or student loans
- To stop tax liens
- To discharge other debts which might not be discharged under Chapter 7
Income-The amount of your monthly payment to the trustee is based on your ability to pay (i.e. your disposable income). You may keep reasonable and necessary income to support yourself and your family. We propose the monthly payment amount, based on your family budget.
Creditors-Unsecured creditors such as major credit cards, medical debt and unsecured loans usually receive payment from the trustee of only a small percentage of the total debt owed, depending on your ability to pay. The remaining unpaid portion of these debts will be discharged when you complete your Chapter 13 payments to the trustee. Secured creditors receive from the trustee the current value of the secured property, often far less than the total debt owed to them. You keep your property.
While the goal of Chapter 13 is similar to Chapter 7 bankruptcy, only an experienced and competent bankruptcy lawyer can give you the guidance you need to determine if Chapter 13 will help resolve your financial problems. We will help you decide if Chapter 13 is right for you based on your personal situation.
At Herrick & Hay P.C., Attorneys at Law we approach your legal matter with experience and personal service. While our clients often turn to us for bankruptcy, DUI and drunk driving issues, we also assist clients in other matters, such as nursing home abuse or neglect, and social security disability. We have two convenient locations where you can meet with a quality attorney and have your case reviewed. We have reasonable fees and offer a free consultation. To file a chapter 13 you only pay the court costs. The attorney fee is paid by the trustee from your Chapter 13 plan payments.
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