Chapter 7
In this current economic climate, many people are being burdened with overwhelming debt. People are living on credit cards more than in any time in the credit card history and the rising interest rate and increasing late fees are eating away at any disposable income.
There is relief under the bankruptcy code. You can file a Chapter 7 bankruptcy, which is a straight bankruptcy. Chapter 7 is for people who fall under certain income level and provides economic relief and a fresh start in life for those who have little or no money left over after paying for basic living expenses. This will eliminate hospital bills, credit card bills, will put an end to any garnishment of your wages, put an end to those annoying creditor calls, and still allow you to still keep your home, property, and automobiles.
A common misconception of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA) is that no one can file a Chapter 7 anymore. This is simply not true. The laws made it tougher to file a Chapter 7 and put more requirements on the debtors before they can file, but you still can file a Chapter 7. A debtor must now fall at or below the state’s median income level for a certain size family, otherwise a “presumption of abuse” will arise. Even if the “presumption of abuse’ arises, you may still be eligible for a Chapter 7 upon a showing of good cause.
Also, a debtor must complete a credit counseling class before filing a bankruptcy petition and must complete a personal financial management course before receiving your bankruptcy discharge. These courses may sound tough, but in reality they can be completed in as little as an hour in the comfort of your own home, either by telephone or by internet, with little or no effort on your part.
If you are receiving creditor calls, have a garnishment, or need a fresh start to a more secure financial future, then call us today for a free, no obligation consultation and see what Johnson and Wilk can do for you! We will fully review your financial situation to see if chapter 7 is available for you.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.
Chapter 13
Chapter 13 is a debt repayment plan that allows you to keep your car and home, even if you are behind in your payments, and you can keep all your assets. It also allows you to consolidate your debts into one payment where you can repay them within 3-5 years, with no interest, late fees, or penalties accruing on your unsecured debts.
The amount of your plan payment depends on your income, monthly living expenses, and the amount of your debt. Your unsecured debt (credit cars, medical bills, utility bills, etc.) can be repaid as little as 10 cents on the dollar. Once you have completed your chapter 13 plan and receive your discharge, you will never again owe those debts. They are wiped away and you will get a fresh financial start.
If you have a house that may go into foreclosure or are about to have your car repossessed, then you will want to consider a chapter 13. The chapter 13 will stop your foreclosure, provided that you file your bankruptcy case before the sheriff’s sale. Also, the chapter 13 will stop any repossession action against you. The chapter 13 will also stop any garnishments on your paycheck and stop all those harassing creditor calls.
If you have:
- A house that will go into foreclosure; or
- A car that may be reposed; or
- A garnishment; or
- Debts that are getting out of control; or
- Creditors harassing you;
Call us today for a free consultation and see how Johnson and Wilk can protect you home and your dreams and give you a fresh financial start. We will review your financial situation to see if chapter 13 is available to you.