Practice Areas

LEARN ABOUT CHAPTER 7

Chapter 7 bankruptcy is a process provided for under the United States Bankruptcy Code by which you are entitled to a fresh start.

Chapter 7 may eliminate most kinds of debt. Some examples of unsecured debts are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.

In addition to getting rid of your debt, you normally can keep all of your property. During your office consultation we will discuss this with you. So long as your car and mortgage payments are current, and there is no significant equity in your property, we should have no problem making the arrangements for you to reaffirm the debt and keep the property; that is our goal.

Stop Creditor Harassment

If creditors are bothering you at work, harassing your family, friends and neighbors or calling at all hours, you can put a stop to this immediately upon the filing of your Chapter 7 bankruptcy case.

Eliminate Repossession Debts

After a vehicle finance company repossess your car they auction it to reduce their loss. You are still responsible for the balance on the car, called a ' deficiency balance'. We can eliminate your liability for the entire deficiency balance. Remove the risk of lawsuits and garnishments by filing for a Chapter 7.

Stop Garnishments

A Chapter 7 bankruptcy is one of the most effective ways to immediately stop garnishments. Garnishments can diminish your hard-earned income making it nearly impossible for you to afford basic necessities. Chapter 7 bankruptcy will stop the garnishment and restore your income for more important necessities.

End Lawsuit/License Suspensions

Virginia law allows for the suspension of your driver's license if you failed to maintain liability insurance at the time of the accident. We can help you get your license reinstated if it is suspended due to an uninsured car accident or unpaid parking tickets. We can also stop lawsuits related to those car accidents.

If you are being sued, and you own a home, we strongly urge you to contact our office for a free office consultation immediately about filing a bankruptcy case. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your hard-earned wages.

Lower Your Car Payment by Redemption

We can use Chapter 7 redemption to lower your payment. Many people are forced into bankruptcy because a loan company has over-financed a vehicle. A high car payment can make it impossible for you to afford to pay even your month to month expenses. The redemption process can force a creditor to accept a payoff on you vehicle for only the value of the vehicle. We can direct you to lenders to provide new financing for the redemption on your vehicle.

For example, if you owe $20,000 on a vehicle that is only worth $10,000, we can force the existing finance company to accept a redemption of $10,000 as a payoff on the vehicle and direct you to a lender to finance the $10,000 balance. We can reduce your vehicle payment, save you thousands of dollars on the vehicle and eliminate your other debts along the way.

Rebuilt Your Credit

The ability to reestablish your credit after a bankruptcy is better than it has ever been before. Bankruptcy can remain on your credit for up to 10 years, but you can start to reestablish your credit immediately.

Credit is your ability to borrow money. Many lenders determine whether or not to lend you money by examining your debt to income ratio; how much outstanding debt you have compared to your income. Remember, the reason that your credit is poor right now is because you have so much outstanding debt. Ask yourself who would you rather loan money to; the person who has $20,000 in credit cards and could file a bankruptcy at any time, or the person who has already filed bankruptcy, has no remaining debt, and could not file another Chapter 7 bankruptcy for another eight years.

Many of my clients are able to purchase a vehicle on financing the day they receive their bankruptcy discharge. You will typically pay a higher interest rate than a person with unblemished credit, but ask yourself how low of an interest rate you would be able to get in your present situation. You should be able to finance a home within two years after receiving a bankruptcy discharge, so long as you can provide a minimum down payment and show the ability to make the monthly mortgage payment. Many of our clients receive credit card solicitations within months of receiving a bankruptcy discharge.

Keep Your House, Car and Personal Belongings- Reaffirming

Mortgage lenders, automobile and furniture finance companies are usually more than happy to keep accepting your current monthly payments both before and after a Chapter 7 bankruptcy. This is called reaffirming your debt. They are in the finance business to make money, not to repossess your property. When the finance company reaffirms the debt, they have the comfort of knowing that you have no other outstanding debts, you cannot file Chapter 7 bankruptcy for another eight years, and they can continue to collect the principal plus interest under the original loan agreements. We will assist you in making arrangements to reaffirm your debts on your home, cars, and household good that you are financing.

LEARN ABOUT CHAPTER 13

A Chapter 13 Bankruptcy case can save your home from foreclosure or prevent the 'repo' man from taking your car. Chapter 13 is a debt repayment plan through which you consolidate your debts and make a payment on you debt over a 3 to 5 year period. While in a Chapter 13 debt repayment plan, your creditors cannot collect from you, and your creditors are required by a Federal Court order to follow the terms of the plan.

You must understand that under Chapter 13 bankruptcy you must be working or have a consistent source of income (e.g., retirement or disability income) for your repayment plan to be approved by the Bankruptcy Court. You must be able to pay your monthly living expenses and also make a payment to the bankruptcy trustee to consolidate your debts.

Stop Foreclosure Immediately

If your home is in foreclosure, a Chapter 13 bankruptcy filing will stop the foreclosure any time prior to the sale, and allow you to repay your mortgage arrears through your Chapter 13 plan. You will still be obligated to make all future mortgage payments directly to the mortgage company, but they may not foreclose to collect any outstanding mortgage payments.

Save Your Car

If the 'repo' man is looking for your car, a Chapter 13 bankruptcy filing will also stop the finance company from repossessing your car. The past due payments and the entire balance on your vehicle loan will be consolidated into the Chapter 13, which you will pay off over the next three to five years. Under certain circumstances we can even recover your vehicle after repossession and consolidate the remaining balance.

Protect Cosigners

Your cosigners receive the same protection that you receive under Chapter 13. Through a Chapter 13, we can protect your cosigners from collection activity, and the creditors must wait to be paid through the Chapter 13 plan. If your friend or relative cosigned on your vehicle, and you are having trouble affording the payments, we can put your remaining balance inside a Chapter 13.