A Chapter 7 Bankruptcy provides immediate relief for people dealing with debts such as medical bills, credit card debts, rent, and certain tax debts. In addition, Chapter 7 provides an automatic stay which prohibits your creditors from collecting on the debt. The automatic stay stops creditors from harassing phone calls, evictions, garnishments, foreclosure, repossessions, and other collections.
Soon after filing Chapter 7, you will receive a discharge from bankruptcy and most of your debt will be wiped clean. Your old creditors will not be able to contact you in the future regarding those discharged debts*.
It is a common misconception that you will not be able to keep any of your belongings when going through bankruptcy and that is false. The bankruptcy code allows for "exemptions" which we can utilize to protect your property during your bankruptcy. It is important that you consult with a bankruptcy attorney to ensure that you are protecting your property.
Contact us @ 313-626-6550 to start your filing today!
*Debts stemming from criminal activity, domestic support obligations, and student loans are not able to be discharged and will survive the bankruptcy.
A Chapter 13 Bankruptcy is a repayment plan for people who are considered "wage earners." Some people are ineligible to file for Chapter 7 due to their earnings and must enter a repayment plan for their creditors. Additionally, some people file for Chapter 13 in order to take advantage of the benefits of a repayment plan.
Chapter 13 offers people the opportunity to keep property that may have been taken under a Chapter 7 filing and the ability to discharge certain debts that are not dischargeable in a Chapter 7. Most significantly is the capability to "cram-down" a car's owed debt to the current value of the car. As a Chapter 13 debtor, you may be able to pay only the value of the car and not what was originally owed on the car.
A Chapter 13 Bankruptcy can last three to five years, depending on the amount of money you earn. In this bankruptcy, you must pay all of your disposable income into the plan and the assistance of counsel will benefit you greatly to ensure your plan represents an accurate depiction of your finances. In many cases, you may not have to pay all of the debt that is owed to your unsecured creditors and the debt will be eliminated upon the closing of your case.
Contact us @313-626-6550 to start your filing today!
Once your case is filed, the automatic stay goes into effect and all wage garnishments must stop. If the garnishment is not the result of a domestic support obligation or a non-dischargeable debt, you may also be able to recover wages garnished during the 90 days preceding the filing for Chapter 7. Garnishments are one of the major factors which influence people to file for bankruptcy.
If you are behind on your rental or mortgage payments, bankruptcy can serve as your protection to stop your landlord or bank from taking the property away from you. The automatic stay is immediate and if you are at risk of losing your home, please act quickly to prevent financial loss. However, an automatic stay will not help you if you cannot afford your home as it will only give you time to pay or negotiate with your landlord to maintain possession.
If you are behind on your car payments and at risk of repossession, stress can consume you on a daily basis. In today's society, the ability to drive your car to and from work is essential and the threat of losing your car can further damage your financial health. Filing bankruptcy and receiving an automatic stay will stop your car creditor's collection activity and give you an opportunity to either pay back your debt or release the debt completely. Your decision to keep or release the car may determine whether Chapter 7 or Chapter 13 is in your best financial interest.
Sometimes a garnishment or foreclosure needs immediate attention and you should contact our office immediately! An automatic stay can stop your creditors from acting and protect your assets once the bankruptcy is initiated.
At our office, you are able to file bankruptcy for $0 down and begin your financial restart. Contact our office for information on payment plans.
Submit these documents and we will be able to help you receive your emergency protection within 24 hours of submission:
Copyright © 2021 The Thomas Firm, PC - All Rights Reserved | LEGAL DISCLAIMER: We are a debt relief agency. We help people obtain relief from their creditors by filing for bankruptcy. Nothing posted on this website shall constitute legal advice. If you need legal advice please contact our office to schedule an appointment. No attorney-client relationship exists until we have a written contract.