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over which they cannot scale to reach you by phone, mailings, e-mails, lawsuits, etc., until the status of the debt and the creditor's rights to proceed are determined by the Bankruptcy Court. A debtor must qualify based on gross income as well as net income, and some complex rules apply. We must consider the effect on your home, car and other personal assets, since some are exempted (protected) and some are not. A Chapter 7 filing does not prevent foreclosure if the arrearages are not cured promptly. We must also determine which of your debts can be discharged (terminated) in a Chapter 7 filing and which are not. Legal fees will typically range from $1500 to $2500 depending on complexity of the case. Fees can even be below or above this range if the case merits it. Court filing & credit report fees are extra. We are not a "discount house" - but our fees are competitive and our services top quality! BEST ADVICE: Call for a free office consultation to discuss your particular situation, answer all your questions and concerns, set fees and consider the alternative courses of action. The final decision to proceed (or not) is solely yours. Home and weekend appointments available based on needs. PERSONAL SERVICE. In a Bankruptcy case, when you call me, you'll talk to ME. I will personally conduct your intake interview, answer all your questions, quote an affordable and competitive fee, and provide you with competent and meaningful legal services. You can also e-mail me and I will personally answer your inquiries. |
While there are many considerations as to what alternative is best, in fact it all depends on a debtor's individual situation. So there is not a one-list-fits-all set of circumstances. As a practical matter, if a debtor is feeling stressed out because the monthly debt payments are overwhelming and therefore it seems that he/she cannot meet living expenses at the end of each month, or if you need to stop an impending foreclosure of your home, repossession of your car, or wage garnishment, then certainly a Chapter 7 filing should be considered. It need not necessarily be the "last resort." Often it is the best alternative, providing for full, permanent and immediate relief as well as providing a true "fresh start." A Chapter 7 filing will stop ALL creditors in their tracks! It creates a legal "wall" between you and your creditors |
Basically, a Chapter 13 filing is for debtors who do not qualify for a Chapter 7 because their earnings (gross or net) are too high, or they have too much unprotected equity in their home, or they need to prevent foreclosure by paying arrearages over a period of time, or some other consideration. What happens is that the Bankruptcy Court will impose a payment plan based on the debtor's excess net income, which the creditors generally must accept, and the debtor pays back a portion of his/her debt over a period of 3-5 years. Upon completing the plan, some of the debts would be eligible for discharge. This procedure is much more expensive than a Chapter 7, with typical fees starting at $4000. Given the high volume of Chapter 7 filings, our office is currently not accepting Chapter 13 cases, but will refer them out to another law firm for handling. |