Hounded by Creditors? We can help!
Cost
Our fees vary depending on the type and complexity of your case; a simple Chapter 7 starts at $1,000 for the attorney fees. Note, there are additional costs which you may need to take care of including: a filing fee for the court, the cost of bankruptcy classes, and the cost to get your credit report. For a Chapter 13 case, we generally charge the same initial fee and the remainder is paid out through the bankruptcy plan. Our minimum retainer is $100 and most of our clients will make payments on the remaining balance until it is paid in full. Please note, we cannot file your bankruptcy petition until our fees are paid.
Getting Started
We schedule free initial intakes so that you can sit down with the attorney and talk about which options are appropriate for your situation. If you retain our services, you will also meet with our office manager and bankruptcy case manager, Melanie who will interview you about your finances and personal situation. Unlike many bankruptcy firms, we walk you through the process carefully and won’t simply give you a form to fill out. We will be there to help you, ensuring that your bankruptcy filing leads to a successful fresh start.
What Different Types of Bankruptcy Cases Should I Consider?
There are four types of bankruptcy cases provided under the law:
- Chapter 7 known as “straight” bankruptcy or “liquidation”.
- Chapter 11 known as “reorganization” used by businesses and a few individual debtors whose debts are very large.
- Chapter 12 reserved for family farmers.
- Chapter 13 which is sometimes called “debt adjustment”.
Most individuals filing bankruptcy will want to file under either Chapter 7 or Chapter 13. Either type of case may be filed individually or by a married couple filing jointly.
Chapter 7: Straight Bankruptcy
In a bankruptcy case under Chapter 7, you file a petition asking the court to discharge (excuse payment on) many of your debts. The basic idea is to wipe out your debts in exchange for giving up any non-exempt property. In most cases, much of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors. For example, boats or recreational vehicles are usually not exempt, so if these items had any value the bankruptcy trustee would sell them and distribute payment to your creditors.
Many people simply don’t own anything of value that would be sold, and thus their debts are excused. If you want to keep property like a home or a car and are behind on the payments on a mortgage or car loan, you may need to file a Chapter 13.
Chapter 13: Debt Adjustment
In a Chapter 13 case you file a “plan,” designed by our office, showing how you will pay off some of your past-due and current debts over 3-5 years. The most important thing about a Chapter 13 case is that it will allow you to keep valuable property (typically your home and car) which might otherwise be lost, provided you can make the proposed payments.
In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, plus some additional amount allowing you to catch up on any back dues payments and to pay a portion for unsecured creditors (such as credit card companies).
You should consider filing a Chapter 13 plan if:
- You have too much equity in your home to file a Chapter 7.
- You earn too much income to qualify for a Chapter 7.
- You own your home and are in danger of losing it because of money problems.
- You are behind on secured debt payments, but can catch up if given some time.
- You have other valuable property which is not exempt.
You will need to have enough income in Chapter 13 to pay for your necessities and to keep up with the required payments as they come due.