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 us today to schedule a free consultation with a caring criminal defense attorney. We understand that this is a difficult time for you, and we’re here to provide the support and guidance you need. Our team is committed to defending your rights and protecting your freedom. Call us now or fill out the contact form below to get started. We look forward to hearing from you and helping you through this challenging situation.