Bankruptcy Chapter 7 – Chapter 7 Bankruptcy Lawyers | Recovery Law Group

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Chapter 7

Bankruptcy Chapter 7

Are you buried under unsecured debts, credit card debt, or medical bills? Are you looking for a safe options to legally eliminate these financial obligations? Are you confused about how to file bankruptcy and the process involved? When bankruptcy is filed, a majority of these debts are discharged and certain protection laws are put in place to make sure that creditors and debt collectors cannot harass you and your family. This means that the legal obligation to pay these debts is lifted from you personally and discharged. The creditors and debt collectors are no longer eligible to contact you, and if they do, you have the authority to report them. In certain instances, we can even file a lawsuit AGAINST your creditors if they have violated the federal law when attempting to collect the debt through what is known as an FDCPA, FCRA or TCPA violation.

Filing Chapter 7 Bankruptcy can help discharge the following types of debts.

  • Credit Card Debt (Including overdue and draft late fees)
  • Collection Agency Accounts
  • Medical Bills
  • Business Debt
  • Past-Due Rent and Utilities
  • Auto Accident Claims (Except under Drunk Driving Laws)
  • Payday Loans
  • Some tax debt

Immediate Release from Financial Strain

An automatic stay is one of the most powerful aspects under consumer bankruptcy laws. When a bankruptcy case is filed, an automatic stay immediately comes into effect; it stops the law suits, creditors, wage garnishment, and debt collectors from bothering you.

Simply put, you get your due right of help and the pressure from financial institutions and creditors is released in as early as a week.

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is a unique legal model designed to assist people burdened with unsecured debts. It works as a cleanser, by wiping off the slate and providing you a solid foundation to begin from scratch with a fresh start.

How Chapter 7 Bankruptcy Works

After your consultation, the attorney will prepare schedules and petitions that contain details of your wage, income, and assets. These petitions will be submitted to the bankruptcy court.

After the case is filed, the court chooses a bankruptcy trustee to supervise your case. The bankruptcy trustee is responsible to settle the issue by ensuring that all of your available assets are distributed among your creditors but most chapter 7 filers keep all of their property and possession's. However, some property is exempted from the distribution. Such properties include:

  • Clothing
  • Furniture
  • Work tools
  • A certain amount of equity in your home
  • Past-Due Rent and Utilities
  • A vehicle up to a certain value

The property laws may differ from one state to another. Some states allow a "wild card exemption". This wild card is used to protect the properties that are not exempt from distribution.

The court will issue you a Personal Financial Management Course. The creditors can, in certain instances object to the discharge in 60 days. Once the 60-days period is completed, the discharge can be entered. It works as an injunction i.e. it prevents the creditors and debt collectors from pursuing the debt collection process.

The Bankruptcy Discharge

A fresh financial start is possible with the bankruptcy discharge. A fresh start is impossible with creditors and debt collectors chasing or harassing you or if any discharged debt remains on your credit report.

The bankruptcy sanctions are applicable only when a creditor or debt collector violates the discharge injunction, which may occur in many cases. If such violations occur, the court may order the creditor or debt collector to pay you money for a violation of the federal laws.

The responsibility of a bankruptcy law firm does not finish simply by entering the discharge, but this is where most of the bankruptcy firms leave you on your own. However, we understand the need of consumer protection even after entering the discharge and during the process. Therefore, we offer all our valued clients a free post-discharge credit report audit service. It is necessary for continued protection or to take instant action against any creditor violating the laws or putting your fresh start into danger through inaccurate credit reporting or other illegal activity. We represent our clients all across the country. With us, you can take a fresh start anywhere in the United States.

The Chapter 7 Means Test

The Chapter 7 bankruptcy is not for everyone. In the legal system, it is designed to provide protection to those only who truly cannot pay their debts. A financial analysis, or means test, is necessary to take to qualify for the Chapter 7 Bankruptcy. We help steer you through the process and determine whether or not we are able to qualify you for you Chapter 7 Bankruptcy discharge.

The original means test calculation is often overwhelming and complicated. However, a reliable attorney can provide you with adequate information and knowledge in this regard. Are you confused about what to expect in the means test? Have a look. (http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics)

Each state has median income standard as per the household size. Compare your income with the median income of your state. If the ratio of your median income is lower than the average median income in your given state, you are mos likeley eligible for a Chapter 7 Bankruptcy.

In the second scenario i.e. when your median income is more than the average median income of a household in the given state, you can still file a Chapter 7 Bankruptcy. In this case, your prospective disposable income over the next five years will be calculated. If this income is less than $6000 total, or $1,250 per year, you are eligible to file Chapter 7 Bankruptcy. If the sum disposable income of the next five years is more than $10,000, you cannot file Chapter 7 Bankruptcy. However, this is a more complex calculation and certain assets or debts can and should be excluded to arrive at this number. That's why it is important to work with and speak to an attorney who knows your state laws and will help guide you through the process.

If your disposable income is between $6,000 and $10,000, more complex calculations are conducted by your attorney. Most often, a comparison of your balance of unsecured and non-priority debts with disposable income provides the answer. However, we understand this process is confusing and can be daunting when trying to learn the legal system and fight off creditors, bills and harassment. Contact one of our bankruptcy intake staff and law firm today to get a no hassle (Free) case evaluation!

Is Filing Chapter 7 Bankruptcy Easy?

The future of your financial assets and budget management is based on effectively filing bankruptcy and properly discharging all of your debts. Therefore, taking a risk of attempting to do it on your own at this stage of financial uncertainty in your life could lead to increased debt amounts and the permanent loss of certain assets, that could have been saved, since time is of the essence in these situations.. When undergoing your tough times, you may speak with a law firm that says they handle bankruptcy as "part" of their practice and that they can file your paperwork and discharge the debt. However, a majority of these attorneys do not have adequate experience required to provide reliable protection and help put a stop to the harassment and creditor violations. Not that these attorneys are doing a bad service to their clients, rather, they are just not as equipped as our firm, to focus on bankruptcy work and creditor violations such as FDCPA, FCRA, TCPA, and other federal violations that allow you the consumer to sue the creditor and collect damages on your behalf. We are reliable and dependable with a combined 30 years of experience in providing successful protection to consumers in bankruptcy matters.

Besides that, we also offer highly personalized services to our valued clients. With case-specific evaluations and consultations, we help find solutions that do not rely on cookie cutter techniques. With us, you can take the first step towards 720+ credit score and head to a brighter future.

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Stop worrying about your future and stressing about your financial situation by contacting our law firm for a free consultation to understand your legal rights immediately. Wajda & Associates and our staff are here to guide you through the process with the least amount of stress possible. We can put an end to the financial burden from secure and unsecure debt while helping to also stop any creditor harassment.

Not only will we make the calls stop... if they continue we will sue them on your behalf to collect damages if they have violated the law in an attempt to collect a debt.

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