WHY BANKRUPTCY MAKES FINANCIAL SENSE:
If you have debt, filing for bankruptcy could be one of the smartest financial decisions you ever make. For example, every payment you make to a creditor is money that you could have put towards your retirement instead, and retirement funds are 100% protected in a bankruptcy. So long as you have large debts, your credit score will be at a standstill. With a bankruptcy, your debts are wiped out, and although your credit score also gets wiped out, you can start improving your score immediately instead of plugging away at it for another 20 years. Bankruptcy gives you a fresh start immediately, and you can start rebuilding your credit soon after you file. Most of my clients receive credit offers within weeks of filing, and any loan that you reaffirm, such as a car loan, will also improve your credit score month by month.
BANKRUPTCY FEES ARE A FANTASTIC VALUE
We charge $1,250 for a chapter 7 bankruptcy. For this amount, you can discharge all of your qualifying debts! It is a bargain compared to what it would cost to pay off all of your debts. Our firm can help you set up a payment plan that works for you, and we can even set you up with a payment plan for the $335 court fee too.
IN MOST CASES, YOU CAN KEEP ALL OF YOUR PROPERTY.
Most cases are "no asset" cases. In a "no asset" case, you receive a complete discharge of all qualifying debts, and you get to keep all of your property. Most people wish to keep their home or car, and in most cases, this is possible so long as you continue to make the required payments on the loan and sign a new agreement with the lender. After a Chapter 7 Bankruptcy has been discharged, the debtor is no longer required to pay any discharged debts that accrued before filing. Please see below for examples of debts that generally cannot be discharged in bankruptcy.
MOST PEOPLE CAN QUALIFY FOR A CHAPTER 7 BANKRUPTCY:
The most common types of bankruptcy are Chapter 7 and Chapter 13:
Under a Chapter 7 Bankruptcy, you pay a $335 filing fee to the court and in exchange, all unsecured debts are completely discharged (with some exceptions). To qualify for a Chapter 7 bankruptcy, your average income must fall below a certain amount. This is called "means testing". Those who make above the means test may not qualify for a Chapter 7 Bankruptcy, and may have to make payments under a Chapter 13 plan. However, this number is not a hard number. If you think your income is too high to file for a Chapter 7, you should meet with an attorney. Often, there are other factors that an attorney can help you include in your filing that will help you qualify for a Chapter 7 despite your higher income. Click here to see if your average income is below the means test for your state.
A Chapter 13 Bankruptcy can be advantageous for a debtor. It allows a debtor to catch up on past due mortgage or car payments and keep this property. However, The debtor must agree in good faith to pay off the debts in 3-5 years, which requires monthly payments to the trustee. If the debtor makes the required payments, she can keep her property and discharge her remaining pre-filing debts.
SOME DEBTS CANNOT BE ERASED IN BANKRUPTCY
Keep in mind that certain debts, such as most taxes, student loans, alimony, child support, and court fines and fees are generally not dischargable in bankrupty. This means you must continue to pay these debts even after you file for bankruptcy.
Every situation is different, and you should consult with a lawyer if you think bankruptcy or an IRS negotiation might be right for you.
Contact Andersen Law to schedule a free consultation with our Eugene chapter 7 bankruptcy attorney. We can answer your questions and explain your options for dealing with your credit card debt, medical debt and other financial problems.
We charge low flat rates for our individual bankruptcy clients.