Anyone can file bankruptcy; however, not everyone qualifies for a Chapter 7 Bankruptcy. To determine if you can file a Chapter 7, your attorney will perform a "means test." The means test analyzes your income, expenses and family size to determine whether you have enough disposable income to repay your debts. Those who don’t qualify for Chapter 7 can choose instead to restructure their debts and pay them off through Chapter 13 bankruptcy.
One of the advantages of a Chapter 13 bankruptcy is its ability to stop a pending foreclosure. Once the chapter 13 bankruptcy is filed, the mortgage company must stop all collection activity, even a foreclosure auction. You then have the ability to get current on your mortgage and repay the arrears through the bankruptcy plan over the course of three to five years. You will generally emerge from bankruptcy in better financial condition, as your unsecured debts will also be discharged.
In most cases, your he ultimate goal of a Bankruptcy is to receive a "discharge" of your unsecured debts.
A discharge is a court order in your bankruptcy case that releases you from personal liability for most debts. Once a debt has been discharged, a creditor is no longer allowd to try to collect the debt. However, not all debts are dischargeable. Certain debts, such as alimony, child support, and student loans, cannot be discharged. Contact us for more information about what debts can and cannot be discharged.
Chapter 13 Bankruptcy is for those who income is too high to qualify for a chapter 7. Known as a “wage earner’s bankruptcy” you will make monthly payments for 36 to 60 months to a Chapter 13 trustee. The trustee will then distribute the funds to your unsecured creditors. The repayment period will vary depending on your income and typically lasts for three to five years. The monthly payment is calculated by subtracting your family's monthly necessary living expenses from your family's take home pay.
Since the monthly plan payment will not typically be enough to repay all of your debts, when you reach the end of your repayment term, the remaining debt will be discharged.
Chapter 7 bankruptcy is the fastest and most common form of bankruptcy. A Chapter 7 bankruptcy eliminates most types of debt with court protection. While some debtors will have to give up luxury items, such as vacation homes, or expensive cars; most filers do not.
MoreIndividuals and families who have sufficient income to repay a portion of their debts over time must file a Chapter 13 Bankruptcy. In a Chapter 13, your attorney will create a debt repayment plan known as a "Chapter 13 Plan." The term of the repayment period typically lasts for three to five years.
MoreIf you are facing foreclosure, a Chapter 13 bankruptcy can be a powerful tool in saving your home. A Chapter 13 will stop any foreclosure proceedings against you as long as the petition is filed prior to the completion of the foreclosure sale.
MoreAn adversary proceeding in bankruptcy is a separate lawsuit filed within the bankruptcy case. Like most lawsuits, it starts when someone (the creditor, the bankruptcy trustee, or you) files a complaint.
MoreAfter a bad divorce and foreclosure on my house, not to mention a list of other debts, I found myself with no way out. I turned to Dax in my time of need of professional help. He was understanding and assured me things would be fine. Through his professionalism and knowledge I was able to successfully file bankruptcy.
Dax was well informed and prepared to help me through this difficult process. It would have been rough if I had to have done this on my own.
We would highly recommend Attorney Dax Grantham. He is knowledgeable, easy to talk with, and highly effective! We couldn’t have asked for a better attorney ! We were overwelmed, Attorney Grantham quickly guided us thru the process of Chapter 7 Bankruptcy, We got our discharge and We were able to save our house at a very reasonable rate thanks to him.
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