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Raleigh Bankruptcy Lawyers

  • What is Chapter 13 Bankruptcy?

    Chapter 13 Bankruptcy is an option for people who are able to set up a payment plan for at least a portion of their bills. These people are usually wage earners, or they have some kind of monthly income from which they can make the plan payments.
  • What exactly is a 341 Hearing?

    A 341 hearing is a hearing required by the Bankruptcy Code under Section 341. It is often referred to as the Meeting of Creditors. Once a bankruptcy case is filed, your hearing is usually scheduled with 30-45 days. This is the chance for your appointed Trustee to ask you questions about your case.
  • Can I file bankruptcy if I am retired?

    If you are thinking about filing a Chapter 7 bankruptcy, individuals who have retired file quite often. Many times, people think that they have enough money in savings to survive after retirement, but after a period of time, they find out that they have fallen short on their plans.
  • Will bankruptcy stop the seizure of my personal property?

    If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which prohibits a judgment creditor from following through on a seizure.
  • Do I have to have a job to qualify for Chapter 13?

    The Chapter 13 is often referred to as a Wage Earners Plan, but wages can often be in the form of other income. In order to qualify, all sources of income must be considered.
  • Will everyone know that I filed bankruptcy?

    There are generally three ways to find out about a bankruptcy filing. First, if you are a creditor listed in a case, you will receive ntice of the filing. Next, you can find out about a filing if the Debtor tells you that he has filed. Finally, the Bankruptcy Court has a website that can be used to verify a filing.
  • Can a personal loan be discharged in bankruptcy?

    A personal loan, so long as it is not secured by property, is an unsecured liability that can be discharged in bankruptcy.
  • I want to come into the office for a free consultation, but I don’t remember everything that I owe. Can I still come in for an appointment?

    Absolutely! When you come into the office for your initial consultation, you will meet with an attorney who will conduct a complete financial analysis. If you decide that you want to retain our law firm to file your bankruptcy case, you will then be given a packet of information to complete. At that time, you will be instructed on how to obtain all of the information that is required to file. This will include instructions on how to obtain your credit report.
  • What Exactly Do Lawyers Do In Bankruptcy Proceedings?

    Before anything else, it is possible for the average person to file their own bankruptcy case. Possible, however, does not mean practical – especially when the full scope of the various types of bankruptcy comes into the picture.The first and most important step a bankruptcy lawyer takes is to organize all the information about your assets and liabilities. The lawyer creates a schedule, evaluates your current income and expenditures, writes up executory contracts and comes up with an overall statement about your finances. This will tell if you will qualify for Chapter 7, or 13 bankruptcy.The next step is to submit all necessary documents. These include credit counseling sessions for individuals, monthly net income statements, funds owed to state or federal institutions and the like. The lawyer will use these documents to file for bankruptcy and will make sure everything is submitted in a timely manner.The lawyer will then serve as your legal representative, mediating between you and your creditors to make sure that everything goes smoothly and that you don’t commit to something you do not fully understand. This is especially important since you may get duped into agreeing to unfavorable terms if you do not know exactly what you are doing in the first place.A bankruptcy lawyer does all these things while you continue on with your life, focusing on the things that matter, like your job and your family. The lawyer ensures that you appear for matters only when your presence is absolutely needed – preventing you from wasting time and energy while you get your life back on track.
  • What exactly is a 341 hearing?

    A 341 hearing is a hearing required by the Bankruptcy Code under Section 341. It is often referred to as the Meeting of Creditors. Once a bankruptcy case is filed, your hearing is usually scheduled with 30-45 days. This is the chance for your appointed Trustee to ask you questions about your case. The questions are generally fair, reasonable, and easy to answer. It is also the chance for your creditors to question you. Most of the time, your creditors will not appear at the hearing, but if they do, your attorney will be there to help you. Usually, there is an entire room full of people in your exact situation and there is no reason to be embarrassed or nervous.
  • If I file for Chapter 13, can I put my student loans through the plan?

    Yes, student loans can be listed in a Chapter 13 and once the case is filed, all interest and penalties will cease on the amount that is to be paid back through your Chapter 13 Plan. If you are a parent and you have obtained a student loan for your child, you can also list the loan in order to pay it back through the Chapter 13. Again, all interest and penalties will stop on the amount that is to be paid back through your Chapter 13 Plan.If your student loan is not paid back in full, the remaining balance is non-dischargable. When your Chapter 13 Plan is complete, you can then contact the student loan company and set up payment arrangements to finish paying the portion that was not included.
  • Can I file for bankruptcy if I am retired?

    If you are thinking about filing a Chapter 7 bankruptcy, individuals who have retired file quite often. Many times, people think that they have enough money in savings to survive after retirement, but after a period of time, they find out that they have fallen short on their plans. Often, a medical problem or an unforeseen situation causes individuals in retirement to experience financial difficulties.In a Chapter 13, a wage earner is defined as an individual with a steady, monthly income and retirement income, pension or social security is often used to help retired folks qualify to consolidate all of their debt.
  • Can a personal loan be discharged in bankruptcy?

    A personal loan, so long as it is not secured by property, is an unsecured liability that can be discharged in bankruptcy.
  • Can I get fired if I file for bankruptcy and my employer finds out?

    It is illegal for anyone to fire an employee strictly because they have filed for bankruptcy.
  • If I have an apartment lease that is behind in payments, can I file for bankruptcy and move out of the apartment? Will I still owe what is behind?

    When you file for bankruptcy, you must assume or reject all of your leases or executory contracts. An apartment lease can be assumed if you are current in your payments and want to continue to pay on the lease. This would allow you to remain in the apartment for the remainder of the lease. If you desire to move out of the apartment, you can reject the lease at the time of filing for bankruptcy and the deficiency will be discharged after you file.
  • What are some things that I should not do before I file a Chapter 13 or a Chapter 7?

    A Chapter 13 is a better option when you have a mortgage that is behind in payments. A Chapter 13 allows you to consolidate the arrearage in mortgage payments and pay the amount back over an extended period of time. If you file for straight bankruptcy (Chapter 7) and want to keep your home, you must be current on the payments on the date of the filing of the Chapter 7. The same is true with an automobile. Chapter 13 is a better option when you have a car note that is behind in payments. A Chapter 13 allows you to stop the repossession of the automobile and pay the car note back over an extended period of time.
  • I heard that bankruptcy can improve your credit score. How is that possible?

    Filing a bankruptcy can improve your credit score, especially if you have bad credit. When you file for bankruptcy and eliminate your debt, your income to debt ratio will improve, thereby improving your overall credit score. Also, the creditors know that you cannot file another bankruptcy for a certain period of time, and you become a better credit risk. If you file for a Chapter 13 bankruptcy, you can often use your payments that are being made to the Trustee as a credit reference. If you have good credit, then filing for bankruptcy may damage your score.
  • When is Chapter 13 a better option than filing a Chapter 7?

    A Chapter 13 is a better option when you have a mortgage that is behind in payments. A Chapter 13 allows you to consolidate the arrearage in mortgage payments and pay the amount back over an extended period of time. If you file for straight bankruptcy (Chapter 7) and want to keep your home, you must be current on the payments on the date of the filing of the Chapter 7. The same is true with an automobile. Chapter 13 is a better option when you have a car note that is behind in payments. A Chapter 13 allows you to stop the repossession of the automobile and pay the car note back over an extended period of time.
  • I heard that if you file for bankruptcy, you will never be able to buy any kind of property again. Is this true?

    This statement is completely false. The Bankruptcy laws were designed to provide individuals with a fresh start, which includes the ability to buy and sell real estate. There are no laws that prohibit you from buying homes, cars, trucks or personal property.While you are in a Chapter 13, you must obtain permission from the Bankruptcy Court to sell or purchase real estate.
  • I heard that under the new bankruptcy laws, it is much harder to file for bankruptcy. Is this true?

    This statement is not true! The truth is that that you can do just about everything when you file under the new laws that you could do under the old laws. There are a few exceptions, but our attorneys know the law and help you use it to your advantage. In some ways, the new law actually provides more benefits to filing for bankruptcy.
  • Will a bankruptcy stop the seizure of my personal property?

    If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which prohibits a judgment creditor from following through on a seizure. When a Chapter 13 case is filed, it provides you with an opportunity to compel a creditor to accept repayment of the judicial lien that was previously imposed upon the property.
  • Will a bankruptcy stop a garnishment on my wages?

    If you are currently experiencing a garnishment, you will be able to stop a garnishment by filing a bankruptcy case. As soon as a Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order that prohibits a creditor from garnishing or levying any of your assets, including wages and income tax refunds.
  • What are some of the most common things that cannot be wiped out in a straight bankruptcy?

    The most common types of debt that cannot be discharged or wiped out in a Chapter 7 are student loans, back taxes under a certain period, child support, maintenance or alimony, credit card debt that was used to pay off back taxes, accident claims where there was a determination of intoxication, debt incurred by the willful and malicious injury to another, court fines and criminal restitution and certain co-signor liability if you want to protect a co-signor on the account. If you have this type of debt, it will not be eliminated. There are other types of debt that are non-dischargeable, but these are the most common.
  • How soon can I get into the office for a free consultation with a bankruptcy attorney?

    Often, we can get you into the office the same day that you initially call. If you’d like to make an appointment, call (919) 845-7721 and you can speak to our receptionist who will set you up for a free consultation.
  • When a Chapter 13 Plan is filed, do I still have to pay all of the interest on my credit cards?

    Credit cards are considered unsecured debt and a Chapter 13 stops all interest on unsecured liability. A Chapter 13 often allows you to pay only a portion of the unsecured debt, and when the Plan completes in three to five years the debt is paid in full. You can finally see the light at the end of the tunnel.
  • If I file for bankruptcy, do I have to take a credit counseling course?

    Under the new bankruptcy laws, all Debtors must complete a credit counseling course within 180 days before a case is filed with the Court. The credit counseling course can be taken on-line by computer or over the phone. On an average, it takes approximately 60-90 minutes. When a you come into our office, we will give you a packet with the names of the credit counseling agencies that are approved in North Carolina. Once the course is completed, a credit counseling certificate is faxed to our office and is eventually filed with the Court.
  • How do I know where my case will be filed and in what Court?

    When a debtor files for bankruptcy, the debtor must list the county for his or her primary place of residence. In North Carolina, there are three basic bankruptcy districts. The first district is called the Eastern District of North Carolina. The second is the Middle District of North Carolina and the third is the Western District of North Carolina. There are also different branches in each district. For example, the Middle District of North Carolina has a Durham Division and a Greensboro Division. When you come into the office and complete the questionnaire, our staff will determine the district in which you would file.
  • I want to file chapter 13 and protect my Dad who co-signed on the loan for my car. Once I file for Chapter 13, can the car creditor go after my Dad?

    When an individual files for Chapter 13, there is a provision in the Bankruptcy Code that provides that the filing of a Chapter 13 not only stops any action to collect a debt from the debtor, but also stops any action to collect a debt from a co-signor who is listed on the petition. In order to fully protect the co-signor under the Chapter 13, the debt must be paid in full at the contract rate of interest. The payments however, can often be extended and therefore the monthly payment to the creditor can be decreased.
  • If I have a boyfriend or domestic partner, can we file for bankruptcy together?

    In order to file for a bankruptcy case together, the Debtors must be married.
  • I want to surrender my house and file a bankruptcy. If the bank forecloses on my house after I file, will I have to pay the balance?

    When an individual files for bankruptcy, they are given an option to reaffirm (keep) or decline the secured debt that they have. If a house is surrendered, the deficiency on the house is discharged or eliminated in the bankruptcy.
  • I want to surrender my house and file a bankruptcy. If the bank forecloses on my house after I file, will I have to pay the balance?

    When an individual files for bankruptcy, they are given an option to reaffirm (keep) or decline the secured debt that they have. If a house is surrendered, the deficiency on the house is discharged or eliminated in the bankruptcy.
  • My husband owes some back taxes that got out of hand. So far so good, but we may need your help at some point. Can you assist in that area?

    As far as the tax liability goes, income taxes that are over 3 years old can be discharged or consolidated if they were filed on time. If they weren’t filed on time, there are other rules that apply. Other taxes, such as payroll taxes, have different rules. Contact us today to know all of your rights.
  • I am a retired postal worker and my retirement just isn’t enough to cover all of my bills. After I pay my monthly bills, I have nothing left to live on. I thought that I had saved enough to get me through the years, but I’m really getting nervous about my situation. I have a bunch of credit card bills and even though I want to, I just can’t pay them anymore. What can I do?

    To consolidate your debt under a Chapter 13 Plan, you must have a regular and consistent source of income. Monthly retirement or social security is often used to qualify.When you come into the office, you will meet with an attorney who will perform a complete financial analysis. They will give you all of your options under both Chapter 7 and Chapter 13.We have helped many individuals who are facing retirement and it seems that in the last few years, it is more common to see clients who are approaching the Golden Years. Times are tough, and often retirement plan are the first thing to be cut in a tough economy. It’s important to remember that you do have options. Retirement should be a time of enjoyment and peace, not a time of major financial stress.
  • Do I have to have a job to qualify for a Chapter 13?

    The Chapter 13 is often referred to as a Wage Earners Plan, but wages can often be in the form of other income. In order to qualify, all sources of income must be considered. Thsi would include social security, disability, unemployment, income from a friend, income from a boarder or renter, income from self-employment, child support and business income.
  • If I file for a Chapter 7 or a Chapter 13, will I lose any of my property?

    Under Chapter 7, there are state exemptions in North Carolina that list what you are allowed to keep. For example, a single individual can keep a house with $35,500 worth of equity. In addition to the equity issue, if you want to keep a secured item, you must be current on your payments when you file. The lawyer will perform a complete property analysis regarding your assets.Chaper 13 was designed to allow an individual to keep the property that they own. If you qualify, our office will determine the payment that is necessary to allow the retention of all of your assets.
  • It’s Not Just The Little Guys

    In 2001 Pacific Gas & Electric, California’s largest utility company filed for Chapter 13 The state just went through deregulation causing wholesale energy prices to soar, making it almost impossible for the company to buy energy for less than the cost of selling it. The company, which had 13 million customers at the time, amassed $8.9 billion in debt. Pacific Gas emerged from bankruptcy in April 2004.Even some of the largest companies in the world face bankruptcy. They seek the help from attorneys like us for assistance in moving forward. This is proof that you can bounce back, no matter how bad your situation or dept is we can help!
  • What happens if I file bankruptcy but a creditor has already filed a lawsuit against me?

    When a lawsuit is filled against you, generally you have about 30 days to get it taken care of. It you fail to do so in that time, the creditor will win by default. Regardless whether you file a Chapter 7 or 13, as long as you do it within the given time frame it will stop the judgment from being entered.
  • How to Deal with Harassing Creditors

    If you took out a loan or credit and your creditors are constantly hounding you for the money, then these tips will help get them off your back.The first and most effective way to do so is to start paying up your debts. Take a long, hard look at your budget and set aside a portion to pay off your loans. Explore other income-generating options like selling, taking part-time jobs, freelancing on the Internet, or even starting a small home-based business.Second, be prepared to explain your circumstances to your creditors. You’ll want to write up a letter explaining what you’re going through right now, but more importantly you’ll want to attach the budget you drew up along with a payment schedule that works with your current income. It’s a gesture of good faith showing that you are indeed preparing to pay off your debts.If the harassing creditors are pounding on your door all day and night despite all these measures, then you need to contact a lawyer in your area like those found in our Attorney Wake Forest or Raleigh branches. We’ll help you explore your legal options and let those creditors know that you are ready, willing and able to take them to court if they continue harassing you in an inappropriate manner.
  • What should I know about Bankruptcy and the economy?

    2012 marked the fifth anniversary of the beginning of the great recession, which began in 2007 and ended in 2009. Four years later, we, as a country are undeniably on the road to recovery. However the road to recovery is a long and slow process. In 2012 alone, there were 1,261,140 bankruptcys filed in the US. Of these bankruptcy’s, over 1,219,000 were non business related. If you are in this situation or know you may be headed towards it, you may want to do research on the internet; or simply contact one of our bankruptcy attorneys as soon as possible.
  • Will a bankruptcy case stop a levy from the Internal Revenue Service or the State of North Carolina?

    If you are facing a levy from the Internal Revenue Service or the State of North Carolina, you will be able to stop the levy by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which prohibits the government from continuing its levy. When a Chapter 13 case it filed, it provides you with an opportunity to compel the governmental unit to accept repayment of the debt and stops the levy previously entered.
  • I have a bunch of medical bills that my insurance will not cover. The collection agency is constantly calling me. Can I consolidate these bills under a Chapter 13?

    Medical bills often create an overwhelming and stressful situation. One major medical problem can virtually wipe out a family’s financial security. In reality, medical bills are considered mere unsecured debt that can often be discharged in a straight bankruptcy or paid back for as little as $2.00 per day under a Chapter 13. Once you file for relief, all creditor interaction must stop, including the annoying phone calls, garnishments and lawsuits.In a recent edition of Consumer Bankruptcy News, it was reported that 79 million Americans have medical debt and that 1 in 3 workers spend 10% of their income on health care.
  • *Legal Disclaimer*

    Content contained on or made available through the Web site is not intended to and does not constitute legal advice and no attorney-client relationship is formed. By using the blog, you agree that the information on this blog does not constitute legal or other professional advice and no attorney-client or other relationship is created. The accuracy, completeness, adequacy or currency of the Content is not warranted or guaranteed. The opinions expressed at or through the blog are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Your use of information on the Web site or materials linked from the Web site is at your own risk.
  • Will everyone know that I filed for bankruptcy?

    There are generally three ways to find out about a bankruptcy filing. First, if you are a creditor listed in a case, you will receive ntice of the filing. Next, you can find out about a filing if the Debtor tells you that he has filed. Finally, the Bankruptcy Court has a website that can be used to verify a filing.Once than the above, it is highly unlikely that anyone will find out that you have filed for bankruptcy. It is probable that you personally know someone who has filed for bankruptcy. It could be a neighbor, an uncle, a co-worker, or a friend. Often times, people find out about a filing because someone they know tells them about their case and how much it has helped them to get their life back under control.
  • Why should I come to see you instead of trying to consolidate through a credit counselor that I saw on television?

    Before doing anything, you should evaluate all of your options. Go to the Credit Counselor and see what they can offer. Consolidating under Chapter 13 is much more powerful. Often times, the credit counselor will call each of your creditors to see if they will accept a lower payment or a lower interest rate. The creditor has control over the payment terms.A Chapter 13 plan is designed to pay the creditors back according to your income and expenses. Interest is automatically eliminated for unsecured debt and reduced from certain secured debt. A plan is submitted to the Court and the creditors must accept the filing.A credit counselor is often powerless to consolidate back taxes, student loans, automobile payments, child support, co-signed debt or any other secured debt. A Chapter 13 can usually incorporate this type of debt.
  • My neighbor told me that if I file for bankruptcy, I can include income taxes that I owe the IRS. Is that really true?

    Yes, your neighbor is correct. Income taxes are treated in several ways. Often, if a tax liability is over three years old and you have filed the tax returns on time, you can wipe out the tax liability in a Chapter 7 or a Chapter 13.If it is determined that the tax in non-dischargeable, you can often pay the tax liability back through a Chapter 13 and extend the amount over the life of the plan. For example, $3,000 can be paid back in a 48 month plan at only $62.50 per month, with no interest and penalties.
  • If I file for Chapter 7 or Chapter 13, will my creditors have to stop calling me at home and at work?

    Once a case is filed with the Court, all creditor contact must stop. A creditor is forbidden to send you a letter, call you on the phone, leave you a voicemail message or even send you a monthly bill.The laws are designed to protect you and the creditors can take NO further action to collect the debt.
  • It’s Not Just The Little Guys

    In 2001 Pacific Gas & Electric, California’s largest utility company filed for Chapter 13 The state just went through deregulation causing wholesale energy prices to soar, making it almost impossible for the company to buy energy for less than the cost of selling it. The company, which had 13 million customers at the time, amassed $8.9 billion in debt. Pacific Gas emerged from bankruptcy in April 2004.Even some of the largest companies in the world face bankruptcy. They seek the help from attorneys like us for assistance in moving forward. This is proof that you can bounce back, no matter how bad your situation or dept is we can help!
  • What happens if I file bankruptcy but a creditor has already filed a lawsuit against me?

    When a lawsuit is filled against you, generally you have about 30 days to get it taken care of. It you fail to do so in that time, the creditor will win by default. Regardless whether you file a Chapter 7 or 13, as long as you do it within the given time frame it will stop the judgment from being entered.
  • How to Deal with Harassing Creditors

    If you took out a loan or credit and your creditors are constantly hounding you for the money, then these tips will help get them off your back.

    The first and most effective way to do so is to start paying up your debts. Take a long, hard look at your budget and set aside a portion to pay off your loans. Explore other income-generating options like selling, taking part-time jobs, freelancing on the Internet, or even starting a small home-based business.

    Second, be prepared to explain your circumstances to your creditors. You’ll want to write up a letter explaining what you’re going through right now, but more importantly you’ll want to attach the budget you drew up along with a payment schedule that works with your current income. It’s a gesture of good faith showing that you are indeed preparing to pay off your debts.

    If the harassing creditors are pounding on your door all day and night despite all these measures, then you need to contact a lawyer in your area like those found in our Attorney Wake Forest or Raleigh branches.  We’ll help you explore your legal options and let those creditors know that you are ready, willing and able to take them to court if they continue harassing you in an inappropriate manner.

  • What should I know about Bankruptcy and the economy?

    2012 marked the fifth anniversary of the beginning of the great recession, which began in 2007 and ended in 2009. Four years later, we, as a country are undeniably on the road to recovery. However the road to recovery is a long and slow process. In 2012 alone, there were 1,261,140 bankruptcys  filed in the US. Of these bankruptcy’s, over 1,219,000 were non business related. If you are in this situation or know you may be headed towards it, you may want to do research on the internet; or simply contact one of our bankruptcy attorneys as soon as possible.
  • Will a bankruptcy case stop a levy from the Internal Revenue Service or the State of North Carolina?

    If you are facing a levy from the Internal Revenue Service or the State of North Carolina, you will be able to stop the levy by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which prohibits the government from continuing its levy. When a Chapter 13 case it filed, it provides you with an opportunity to compel the governmental unit to accept repayment of the debt and stops the levy previously entered.
  • I have a bunch of medical bills that my insurance will not cover. The collection agency is constantly calling me. Can I consolidate these bills under a Chapter 13?

    Medical bills often create an overwhelming and stressful situation. One major medical problem can virtually wipe out a family’s financial security. In reality, medical bills are considered mere unsecured debt that can often be discharged in a straight bankruptcy or paid back for as little as $2.00 per day under a Chapter 13. Once you file for relief, all creditor interaction must stop, including the annoying phone calls, garnishments and lawsuits.In a recent edition of Consumer Bankruptcy News, it was reported that 79 million Americans have medical debt and that 1 in 3 workers spend 10% of their income on health care.
  • *Legal Disclaimer*

    Content contained on or made available through the Web site is not intended to and does not constitute legal advice and no attorney-client relationship is formed. By using the blog, you agree that the information on this blog does not constitute legal or other professional advice and no attorney-client or other relationship is created. The accuracy, completeness, adequacy or currency of the Content is not warranted or guaranteed. The opinions expressed at or through the blog are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Your use of information on the Web site or materials linked from the Web site is at your own risk.
  • Will everyone know that I filed for bankruptcy?

    There are generally three ways to find out about a bankruptcy filing.  First, if you are a creditor listed in a case, you will receive ntice of the filing.  Next, you can find out about a filing if the Debtor tells you that he has filed.  Finally, the Bankruptcy Court has a website that can be used to verify a filing.Once than the above, it is highly unlikely that anyone will find out that you have filed for bankruptcy.  It is probable that you personally know someone who has filed for bankruptcy.  It could be a neighbor, an uncle, a co-worker, or a friend.  Often times, people find out about a filing because someone they know tells them about their case and how much it has helped them to get their life back under control.
  • I feel bad about filing for bankruptcy. Do people usually feel this way?

    For the most part, people feel bad when they first come into the office, but after finally finding a solution, most people are relieved and happy that they now have a plan.  Let’s face it, no one wants to file for bankruptcy, but the reality is that times are tough.  You can’t watch the news or get on the internet without hearing about someone filing for bankruptcy or contemplating fiing.  Unemployment is at an all time high.  Gas prices are soaring.  People are getting laid off every day.  Bad things happen to good people and many times, the best solution is to file.  It certainly doesn’t make you a bad person.  What do you think the creditor harassing you on the phone would do if they were in the exact same situation as you?  Let me assure you that they come into the office to file for bankruptcy more than you realize.
  • Why should I come to see you instead of trying to consolidate through a credit counselor that I saw on television?

    Before doing anything, you should evaluate all of your options.  Go to the Credit Counselor and see what they can offer.  Consolidating under Chapter 13 is much more powerful.  Often times, the credit counselor will call each of your creditors to see if they will accept a lower payment or a lower interest rate.  The creditor has control over the payment terms.A Chapter 13 plan is designed to pay the creditors back according to your income and expenses.  Interest is automatically eliminated for unsecured debt and reduced from certain secured debt.  A plan is submitted to the Court and the creditors must accept the filing.A credit counselor is often powerless to consolidate back taxes, student loans, automobile payments, child support, co-signed debt or any other secured debt.  A Chapter 13 can usually incorporate this type of debt.
  • My neighbor told me that if I file for bankruptcy, I can include income taxes that I owe the IRS. Is that really true?

    Yes, your neighbor is correct.  Income taxes are treated in several ways.  Often, if a tax liability is over three years old and you have filed the tax returns on time, you can wipe out the tax liability in a Chapter 7 or a Chapter 13.If it is determined that the tax in non-dischargeable, you can often pay the tax liability back through a Chapter 13 and extend the amount over the life of the plan.  For example, $3,000 can be paid back in a 48 month plan at only $62.50 per month, with no interest and penalties.
  • Last night, my automobile creditor came and repossessed my car. If I file a Chapter 13, can I get my car back?

    If you qualify for a Chapter 13, we can often get a repossessed vehicle back from the creditor.  You will need to pay the cost of the repossession and provide proof of insurance.  For example, if you currently owe $9,000 on your car and you purchased the car three years ago, your car may only be worth $6,000.  A Chapter 13 would allow you to pay the value of the car, or $6,000 over a 3-year period.  You could possibly reduce your car payment from $333 per month to only $166 per month and drop the interest from 21% to only 5.25%.
  • If I file for Chapter 7 or Chapter 13, will my creditors have to stop calling me at home and at work?

    Once a case is filed with the Court, all creditor contact must stop.  A creditor is forbidden to send you a letter, call you on the phone, leave you a voicemail message or even send you a monthly bill.The laws are designed to protect you and the creditors can take NO further action to collect the debt.