Many think of “going bankrupt” as a bad thing. It may actually be a good thing. If you are mired in debt, being harassed by creditors, and worried about your future, a Chapter 7 bankruptcy may be the answer.
Chapter 7 “fresh start” bankruptcy law provides protection from creditor collection efforts, and discharges most debts. Depending on your debts and income, you may be qualified to file under this section of the Bankruptcy Code. The day you do, all collection efforts must stop. Letters, phone calls, and any other communication must go through your attorney.
Unsecured debt is generally discharged. This is debt that is not secured by a car, boat, home or other item. These are debts that required a higher interest rate, since they were unsecured, and at risk. Credit card debt falls into this category.
If you have debt from an auto loan, you may have to give up the car depending upon your circumstances. This is secured debt. Jacques Law Office, P.C. will take the time to analyze your situation and give appropriate counsel in order for you to make the best decision possible.
Most people qualify to file under Chapter 7. The “means test” has been required since the law was amended in 2005. Your income is compared with that of families of similar size in your state. If yours is above average, then your actual debt and income are compared. If you are deemed able to pay a significant portion of your debts on a payment plan, you may be forced to file under Chapter 13.
Chapter 13 is called a “wage earner’s” bankruptcy. You must agree to a payment plan of three to five years, but may be able to keep your home and cars if there is sufficient income to do so.
Contact Jacques Law Office, P.C. to learn about what debts may be discharged and how you can gain a “fresh start.” Call us for help with your legal needs. Call 208.344.2224 for our Caldwell office or our Boise location.