CHAPTER 7 CONSUMER BANKRUPTCY A LEGAL FINANCIAL FRESH START
The legal right to file bankruptcy in the United States exists because unanticipated situations can arise that prevent borrowers from repaying debts as agreed to at the time the debts were incurred. The vast majority of bankruptcy filers are victims of unexpected circumstances that arise beyond their control.
Although some consumer bankruptcy filings are the result of poor financial management, most are due to job loss, injury or illness, divorces, or any number of other unanticipated circumstances beyond the borrowers’ control.
There was a time when it was extremely difficult to reestablish credit after seeking relief through bankruptcy. Fortunately, banks, finance companies, and other consumer lenders now realize that policy made no sense. After all, these petitioners had good credit ratings, but ran into a little bad luck. Since they were good credit risks before they filed the bankruptcy, they will be good credit risks going forward. This is because peoples’ natures do not change, their circumstances do. Today, reestablishing credit begins right after filing the bankruptcy case for nearly all consumers who file for protection under Chapter 7 of the United State Bankruptcy Code.
BENEFITS FOR CONSUMERS WHO FILE A CHAPTER 7 BANKRUPTCY
The biggest benefits of filing a Chapter 7 Bankruptcy are the elimination of nearly all debts and immediately stopping all legal collection actions. These include repossessions, foreclosures, wage garnishments, bank account levies, collection letters, and collection phone calls.
Secured and unsecured debts are both discharged (eliminated) in the bankruptcy. However, secured debts have a lien on the property securing the debts. Therefore, if you want to keep the car, you have to keep paying the car loan also. All states now have laws protecting most personal property belongings; vehicles, household furnishings, clothing, appliances, and pretty much everything else. However, there are exceptions for some types of personal property. The most common exceptions are for luxury items, recreational vehicles (boats, ATV’s, etc.), and large bank balances.
What Should You Do?
Anyone who is running behind on payments to creditors, should definitely seek legal representation in order to successfully navigate this complex and stressful process.
I do not charge my clients by the hour. I charge my clients a flat, fixed fee. My clients know what my representation will cost when they retain me to represent them. During the representation, communicating with me will never cost you more. I firmly believe that you should be able to contact your attorney as often as needed, without hearing the sound of a cash register each time and every time you do.
After reading this, I hope that you will reach out to see if you may want to hire me to guide you through this difficult, complicated, but necessary process. Simply send a request for a free, confidential, no obligation case evaluation. I will be able to assess your situation and advise you regarding moving forward with the process, what to expect, and what this will cost for me to represent you.