Buffalo Bankruptcy

If you are looking to wipe out most or all of your debts, then it may be time to talk to an attorney about Chapter 7 bankruptcy.

Medical debts, car loans, credit card debt, payday loans (also called cash advance loans), utility bills, or personal loans are all discharged in a Chapter 7 Bankruptcy filing. Not all debts can be erased through bankruptcy. In particular, alimony, child support, student loans, and recent tax debts will not be discharged.

An automatic stay legally stops creditors from visiting you at home, contacting your employer or family members, lawsuits, and garnishing wages/benefits. This stay is put effect immediately following the filing of your petition.

Typically, you are allowed to keep assets, or anything that you own that has value in Chapter 7. Assets can be homes, cars, furniture, jewelry, clothes, etc. About 95% of debtors are able to keep all of their assets that fall below the exemption limit. The exemption limit is the set amount your assets must be below in order to keep them.

Typical expenses in a Chapter 7 filing include a $338 fee and attorney costs, which depend on the complexity of the case.

If you are looking to stop foreclosure on your home, then Chapter 13 Bankruptcy is the right fit for you. Your debts will be re-organized first, then you will make monthly payments on your debts. This payment plan is normally 3-5-years and at the end, any remaining balance will be erased.

Chapter 13 Bankruptcy may allow you to discharge credit card bills, medical bills, and mortgages. Non-dischargeable debts, also called priority debts, consist of child support, student loans, homeowner’s association (HOA) fees, and income tax debts. At times, these payments can be merged into the payment plan.

Your co-signer and non-exempt property will be protected in a Chapter 13 filing. You will also have a few options if your income were to worsen while in the repayment plan. First, you can modify your monthly payment amount to better suite your current financial situation. If this is not feasible, you may convert your filing to Chapter 7 if your attorney sees fit.

The U.S. Bankruptcy Court requires a trustee fee plus a $313 filing fee. Your attorney’s price will depend on the complexity of the case.

Any bankruptcy attorney will advise you to first speak with a lawyer to discuss your options as the cost of filing incorrectly can be higher than paying a lawyer. Even if your finances seem simple, it is best to explore your options with the help of a professional. Coincidentally, Hoglund Law offers a free 30-45-minute phone consultation.

A typical bankruptcy mill will have high fees and poor results. This is due to their lack of experience in debt relief.

Ask yourself the following before retaining a law firm:

• Was your consultation with an actual attorney?
• Was payment discussed before your financial situation?
• Have you heard good things about this firm?

Yes, you may want to also take into account debt consolidation or debt settlement.

Rather than discharging your debt, they will be negotiated to a reasonable amount that you can afford to make monthly payments on. Creditors prefer debt settlement to bankruptcy, as they receive nothing in bankruptcy.

Debt consolidation is just as it sounds, it gathers all your debts into one monthly payment. This removes multiple interest rates from your debts so the final amount may be much lower and helps simplify your life as there is only one payment to worry about.