bankruptcy services list

bankruptcy services overview

Bankruptcy Options: Most individuals have two distinct choices when it comes to filing bankruptcy - Chapter 7(liquidation) and Chapter 13 (debt repayment).

Chapter 7 - liquidation

Chapter 7 bankruptcy is the most common type of bankruptcy. It is designed to help people get a fresh start, to start over, to give individual consumers and families a chance for a new beginning financially. It wipes out your "unsecured" debts, that is, it wipes out your obligation to pay certain types of debts, like credit cards and medical bills. Filing a Chapter 7 immediately stops all collection activities against you. It stops all creditors from bothering you, or suing you. Certain types of debts are not wiped out however. Student loans, some taxes, parking tickets, will survive a Chapter 7 bankruptcy.

Another name for Chapter 7 is Liquidation. That is because when you file Chapter 7, the Court-appointed Trustee temporarily owns all of your property. And, if you own too much property, the Trustee can liquidate or sell the property to raise money for your creditors. However, you can in most cases keep all of your exempt property. This does vary with the facts of each case, but we can protect your exempt property using one of the chapters of the bankruptcy laws.

We use Chapter 7 bankruptcy when we have a client with a great deal of unsecured debts, like credit card debts and medical bills, and when they don’t earn too much money or own too much property. If an individual earns more than a certain amount, as set out in certain census bureau statistics, the Court may require that they file a Chapter 13 type bankruptcy (a repayment plan) rather than a Chapter 7 because the Court and Congress feel that they can afford to pay back their creditors at least a percentage.

Or, if they own a great deal of property, like a home with a great deal of equity, the Court, and Congress, and even the State of Rhode Island Legislature feel that you should pay back a certain percentage of your debts. That percentage will depend upon what you earn, the size of your family and the amount of nonexempt property that you own, among other factors.

To determine which type of bankruptcy is most appropriate for you requires an analysis of your financial affairs, including your income (now and over the last several years), the members of your household and the property you own now and have owned over the last 4 years.

Any bankruptcy filing will stop creditor harassment and stop collection activities, but you must be sure you are filing under the correct chapter and that all your options have been explained to you.

Chapter 13 Bankruptcy – The Repayment Plan

Chapter 13 bankruptcy is a court-supervised repayment plan, a consolidation of your debts into one payment, paid to the Court appointed Trustee. The Court has the power to force your creditors into one affordable payment. You pay the Trustee, and then each month, the Trustee distributes the money to your creditors according to the Chapter 13 Plan approved by the Court and created by your Attorney.

Chapter 13 is designed to help people save their home and car, and to stop foreclosures or repossessions. It is designed to pay back your creditors over time, to pay off the debts you cannot wipe out in a chapter 7 like student loans, taxes, past due mortgage payments, or parking tickets. We can also use chapter 13 to protect a cosigner from creditor harassment.

We can consolidate all of your debts (including credit card balances) and often you will not have to pay interest, or even pay back the debts in full.

Filing a chapter 13 case will stop a foreclosure in the State of Rhode Island as long as you file the chapter 13 before the foreclosure sale.

Filing a chapter 13 can stop the repo man from taking your car; we can even get the car back after it has been repossessed in some circumstances (for example, if you need the car to get to work). We also use Chapter 13 to protect your cosigners from collection activities while you make the payments through the Court.

It is important that you discuss all of your options and your entire financial circumstances with an experienced attorney before you make your final decision as to which path you should take. Often refinancing your home can be an option to avoid bankruptcy, but you must be careful of people trying to take advantage of you. Sometimes refinancing is not possible, or even a good idea. The danger of refinancing is that you pay off your credit cards with a new loan, secured by your home, but you once again run up those credit cards, so you then owe the higher mortgage and all the credit cards. Especially beware of interest only loans, adjustable rate mortgages and balloon payments. If it sounds too good to be true, it probably is!

Chapter 13 Repayment Plans typically run for three to five years, depending upon many factors, including your income, living expenses, the number of people in your household, the type of debts you have, and the amounts you owe.

The Federal Bankruptcy Laws are complicated. There are many ways an attorney can manipulate the Bankruptcy Laws to work for you. You should consult only with a bankruptcy attorney before you make any decisions regarding your financial problems. To determine which type of bankruptcy is most appropriate for you requires an involved investigation into your financial affairs, including your income (now and over the last several years), the members of your household, and the property you own now and have owned over the last 4 years.

Any bankruptcy filing will stop creditor harassment and collection activities, but you must be sure you are filing under the correct chapter and that all your options have been explained to you. And that your attorney has reviewed your case in sufficient detail to provide you with all of your options.

Durations of Chapter 13: The typical Chapter 13 plan will last between three and five years. If your financial situation improves during that time, you may choose to pay off your Chapter 13 plan in a shorter amount of time without penalty.

No matter which avenue you decide to pursue, The Law Offices of Rego & Rego can make the process simpler, less intimidating and as painless as possible for you.
We welcome the opportunity to be of service. To arrange a consultation to discuss your legal issues, please phone our office at 401.253.2500 (Toll Free 800.645.2560).

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.