Lakeville Bankruptcy

It may be advantageous to file Chapter 7 Bankruptcy and wipe out debt if there is a significant amount of dischargeable debt that an individual can no longer afford to pay.

The following debts are considered dischargeable in Chapter 7, credit card debt, medical debt, car loans, personal loans, payday loans (sometimes called cash advance loans), and utility bills. Not all debt can be erased through bankruptcy, alimony, child support, recent tax debts, and student loans are all non-dischargeable debts.

Right after you file for Chapter 7 bankruptcy, at automatic stay immediate goes into effect. An automatic stay stops collection agencies or law firms from collecting on your debts or contacting you by law.

Chapter 7 is sometimes referred to as liquidation bankruptcy, but it is very rare that the debtor’s assets are liquidated. Typically, you are able to keep all your property, sometimes referred to as assets in a Chapter 7 filing. Assets are cash, clothes, furniture, cars, etc. You are able to keep your assets up to a certain valued amount, this is referred to as the exemption limit.

In addition to attorney fees, there is a $338 fee paid to the U.S. Bankruptcy Court to file for Chapter 7.

There is a filing fee of $338 paid to the U.S. Bankruptcy Court for Chapter 7 Bankruptcy. As well as attorney fees which change based on the case.

Chapter 13, referred to as the wage earners plan, is best suited for those who have a regular income and want to safeguard their assets. Your debts will be reorganized, and you will repay some of all your debts through a 3-5-year payment plan. Once the payment plan is completed any remaining debts will often times be discharged. Your total debt may be significantly lowered in Chapter 13 bankruptcy.

Priority debts are non-dischargeable in Chapter 13. Priority debts can be child support, spousal support, or recent income tax debt but they can be paid off in your 3-5-year repayment plan. Chapter 13 bankruptcy may lower your interest rate on your car as well as lower the overall balance. It also allows you to catch up on your mortgage or homeowner’s association (HOA) fees. Most importantly you are typically able to keep your property, as well as protect your co-signer.

A huge advantage of Chapter 13 bankruptcy is the ability to modify your payment plan if your financial situation changes. Being able to change your plan is much better than defaulting on payments. Also, if you qualify you may be able to convert your filing to Chapter 7 if that better suits your current financial situation.

There is a cost of $313 to file for Chapter 13, as well as a fee for the Chapter 13 trustee. You will also have attorney fees, which vary for each case.

Filing for bankruptcy on your own is possible but can be tricky. Most financial situations are complex, so it is best to rely on an qualified attorney to receive the best possible outcome. It is also a good idea to learn about your different options from a bankruptcy lawyer, that is why Hoglund Law offers a 100% free phone consultation with one of our lawyers. We are here to help guide you in the right direction that will benefit your family and you.

A Bankruptcy Mill is a large firm with little experience and professionalism that has a high volume of client turnaround. Most of these firms cause errors in their client’s cases due to their lack of attention to detail.

Before retaining a law firm ask yourself the following:

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

If bankruptcy is not the right fit for your financial situation do not worry as debt settlement or debt consolidation might be a better fit.

Debt settlement is a settlement negotiation between a creditor and a lawyer, as a result the creditor will forgive part of the debt. Creditors prefer settlement over bankruptcy as they will receive some payment rather than none.

Debt consolidation is when multiple debts are rolled into one single payment, this will also lower the interest rate of the loan. Consolidation simplifies your life as you will only have to stay on top of one monthly payment.

Having burdensome debt can be stressful and intimidating but you are not alone. By working with an experienced bankruptcy lawyer, we can help alleviate the stress. Lakeville residents, call Hoglund Law today to begin your fresh financial future.