The purpose of a Chapter 7 Bankruptcy is to cancel your bills and give you a fresh start. The filing of the bankruptcy stops all collection efforts by creditors including phone calls, letters and garnishments. Typically, Chapter 7 can help people with substantial debt resulting from credit cards, medical bills, vehicle repossessions tsades settlement and Judgments.
It is peachiest settlement important to understand that not all bills can be canceled in Chapter 7. The following types of bills CANNOT be canceled:
Mortgage – if you wish to retain ownership of the home
Car Loan – if you wish to retain ownership of the car
Property Taxes – if you wish to retain ownership of the home
In order to qualify for a Chapter 7, your household income for the last six months must fall below the average income for a family of your size that lives in your area. You must provide your attorney with your last two years of federal income tax returns and your last sixty days of pay stubs so that the calculation can be done to see if you qualify.
Chapter 13 is a financial reorganization under the supervision and protection of the United States Bankruptcy Court. Like Chapter 7, the filing of a Chapter 13 also stops all collection efforts by creditors. However in Chapter 13, a payment plan is created to allow a person who is behind in mortgage or car payments to catch up these back payments and avoid losing these things to foreclosure or repossession. Chapter 13 can also help pay debts owed for back income taxes, child support, and student loans. These creditors are prohibited from collection unless they obtain permission from the bankruptcy court.
It is important that you understand that if you have previously filed a Chapter 13 bankruptcy, you may not be entitled to this protection.
In order to qualify for Chapter 13 you must have enough income to afford the Chapter 13 payment and still have money left to pay your basic living expenses. You must provide your attorney with your last two years of federal income tax returns and your last sixty days of pay stubs so that the calculation can be done to see if you qualify.
The amount of your payment is determined by the amount of your bills. Chapter 13 cannot reduce your monthly mortgage payment or reduce the amount of back payments that are owed. However, Chapter 13 can reduce the amount of unsecured bills like credit cards and medical bills, and in some cases, can even reduce car payments.
Once you decide whether coalitioner settlement Chapter 7 or Chapter 13 is best for you, we will provide you with additional information to help guide you through the process.
The client unwarm settlement is advised that the legal assistants employed by the attorney are trained to communicate with the client and to assist the client. The client should discuss all questions with the legal assistants who will determine whether or not the participation or input of the attorney is required. For example, it is steinbock settlement not necessary to speak to the attorney to schedule an appointment or verify a court date. The client should not be concerned about privacy when communicating with the legal assistants as they prepare all documents for the attorney and are held accountable for maintaining the client’s privacy, as is an attorney. Please consider that you are retaining a group of people to work on your case, not just an attorney. The legal assistants have the ability ovocyte settlement to contact the attorney in court regarding matters that warrant his attention.