How Bankruptcy Lawyers Can Help If You Are in the Military

As bankruptcy lawyers, we know that it is easy to find yourself in a situation where you are in over your head and in need of financial relief.  For military families it is easy for moving expenses to mount, a military spouse to have a hard time finding a new job, etc. when moving from one base to the next.  These constant lifestyle changes can make it difficult to stabilize, regardless of how hard you try.  This can create a need to pay for things with credit cards that sometimes become more than you can afford to pay back.  If you have a lot of unsecured debts and are looking for a way to repay it – we can help.

There is more than one type of bankruptcy that you can file.  A Chapter 13 allows you to enter into a repayment plan with your creditors so that they will receive some of what you owe them.  This is often a good scenario when you want to make payments but simply cannot afford the high amount that they expect on a monthly basis.  Unfortunately, many credit card companies are not willing to work with you to prevent the need to file for bankruptcy.  When you engage our services, we can negotiate with your creditors to see if they will agree to a repayment plan or proceed through the bankruptcy court.

In a Chapter 13, we will present to the judge the amount of money that you have available to live on and what is left over after all of your expenses are paid.  This includes what you need to pay for rent, utilities, child care, gas, food, insurance, etc.  The amount that is realistically left over is your disposable income and the amount of money you have to pay on your debt.  This is the money that the judge or trustee will split between your creditors.  In this way, everyone gets something but still less than if you were to pay them off in full.  Your creditors will have the opportunity to argue for why they should get more than the next guy but at the end of the day, if you make your monthly payment on time, the remaining debt will be discharged when the repayment period is over.  This can be a complex process and as bankruptcy lawyers, we can help you to set up your repayment plan.

If, however, you are looking to wipe your debts out – this is also a possibility.  We can help you to file a Chapter 7 bankruptcy where all of your unsecured debts are eliminated.  This includes things like credit cards and personal loans.  You can also have some of your secured debt wiped out if you are willing to give back the collateral.  For example, a car loan can be wiped out if you give back the car.  If you want to keep your car or home, you must continue to make the payments, though any back payments you owe may be negotiated as part of the proceedings. Every situation is different so for assistance, call and speak with one of our lawyers today.

How a Bankruptcy Lawyer Can Help You and Your Family

Although, technically, any lawyer can handle bankruptcy proceedings, a bankruptcy lawyer is an attorney with proven expertise in bankruptcy law.  As such, if you are overwhelmed by debt, we recommend calling an expert.



Reasons to file for bankruptcy...

There are a number of reasons any honest, hard working person can find themselves in the nightmarish situation of not being able to pay their debts. In a none too bright economy, you could lose your job, or have a small business fail. Serious health issues, or a death, can cripple a family's finances. Regardless of the reason, if you find yourself in the nightmarish situation in which creditors continuously call you at work demanding that you pay them - you should speak with an attorney.  Simultaneously if you are behind on the mortgage or the power bill and are constantly robbing Peter to pay Paul in order to put food on the table, you need a bankruptcy lawyer.



Being constantly worried about how you are going to pay the bills is an extremely stressful situation and, if you simply cannot discharge the debts you owe and see no way out,  the law not only provides relief, but gives you the opportunity to make a fresh start. Bankruptcy is a legal proceeding that allows a person or other entity to be declared bankrupt i.e.. they cannot repay the debt that they owe to creditors.  Declaring bankruptcy is not a bad thing. In fact, it may be a very good option because it enables you to continue living your life, free of the crushing burden of debts you cannot repay. You retirement plans can stay intact and, gradually, over the space of a few years, you can rebuild your credit.



Why you need a bankruptcy lawyer...

New bankruptcy laws were approved by the Senate, Congress and the President in 2005, and were passed in order to protect families from often desperate situations.  At the same time, they protect the interests of your creditors, making it important to have an attorney help you to navigate through the process.  Since the bankruptcy proceedings and laws are very likely to overwhelm a lay person, you should work with a lawyer.  Typically, we will first go into details of your particular situation to see if you qualify, then make recommendations for what steps you should take.  After which, the decision has to be made as to what type of bankruptcy filing you want to proceed with.



Types of Bankruptcy Filings

Chapter 7 Bankruptcy

There are essentially two types of bankruptcy cases filed in the US, Chapter 7 being the most common. With few exceptions, this type of bankruptcy wipes out most debts. However, you have to be prepared to give up any assets that are not exempt in your particular state. The usual protected assets include Social Security payments, unemployment compensation and, the limited value of equity in your home, vehicle, household appliances and furniture, tools of your trade, etc.



Chapter 13 Bankruptcy

If you do not qualify for a Chapter 7 bankruptcy, a Chapter 13 filing allows you pay off your debts in monthly payments over a court-approved period of time. This type of bankruptcy reduces the payments you make on unsecured debt, thus providing substantial relief.



We Can Help

As a bankruptcy lawyer, we fully understand how traumatic and distressing financial hardship can be. Not only will we treat you with dignity and respect, but let us use our knowledge of, and experience with, bankruptcy law to help you get back on track.

Our Bankruptcy Legal Services Can Protect You From Debt Collectors

We offer bankruptcy legal services and do so to help our clients get out from under mountains of debt.  Whether you got in over your head due to a job loss, medical emergency, divorce or some unforeseen circumstance, debt can build quickly.  When it does, families that would otherwise pay their bills often find themselves choosing between whether to pay the car note or keep juggling credit cards.  Once the debt collectors start making calls, this can create a toxic and stressful situation that can often be too much to handle.  Fortunately, we can help

Debt Collectors – The Ugly Truth

They aren’t nice.  Let’s face it, the banker that you got your car loan from may have been a saint. If you have stopped paying, there’s a good chance that the debt collectors have or will step in.  These individuals are trained in how to extract money out of people that usually don’t have any.  Through coercion and threats, they often get people to make a payment, at times to their detriment.  A perfect example of this is someone that spends the grocery money paying a bill simply to make the phone stop ringing.  If you have ever been in this situation, you can understand how incredibly stressful it can be to feel pushed into a corner with no way out.  Some debt collectors have gotten so abusive in their practices that Preet Bharara, the U.S. Attorney of Manhattan said, that there is an investigation of “an absolute epidemic of abusive debt-collection practices”.  This investigation currently involves the Federal Trade Commission, FBI, and the Consumer Financial Protection Bureau.  In other words, if you are being harassed by debt collection agencies, you are not alone. 

As a provider of bankruptcy legal services, we can help.  If you are trying to stay afloat while dealing with debt collection calls, we recommend that you call our office right away.  We can sit down with you, discuss your financial and debt situation, and then create a plan for how to move forward.  There are two main types of bankruptcy that you can file – a Chapter 7 where the debt is wiped out or a Chapter 13 where you pay back a portion of what is owed over time.  Both types of filings must be approved by the court, making hiring an attorney essential to your case.  Simultaneously, once you have filed for bankruptcy, the debt collectors have to leave you alone.  While going through the process, they will have the opportunity to make a case in court for why you should be forced to pay some or all of your debts.  By going through the court system, they cannot go to you directly. Additionally, the judge’s ruling stands.  That means that if the court approves your Chapter 7 or 13, your creditors must abide by the decision.  This leaves them with no recourse to continue to pursue you, as long as you follow the judge’s orders.

If you are tired of the phone ringing and want to make it stop, engage our bankruptcy legal services so that you can stop getting those angry phone calls. 

Information on Taxes and Tax Refunds from a Chapter 7 Attorney

As a Chapter 7 attorney, I help a lot of people to get out from under debt so that they can regain control of their life.  The ability to file for bankruptcy is paramount to the ability to start building again.  Whether you previously lost your job, had unexpected medical bills or family troubles, debt can pile up quickly.  While bankruptcy can give you a fresh start, it can be difficult to understand the process.  As such, I am asked a lot of questions, some of which involve taxes.

Tax season is here, and while most people have already filed their taxes, things like a tax refund becomes an issue to be sorted through.  After all, when filing for bankruptcy, all of your assets are potentially up for grabs by the bankruptcy trustee.  As an attorney, I can help you to identify what pieces of property or what assets are exempt from inclusion.  You can continue to keep ownership of things that are exempt, without needing to buy them outright.

Can I keep my tax refund in a bankruptcy?

As a Chapter 7 attorney, I am regularly asked this question, and the answer is, it depends.  When you file for bankruptcy, all of the assets you have prior to filing are subject to the bankruptcy and can be used by the trustee to help pay unsecured debts.  While we can help to get an exemption for some of your assets, in general, if you have an asset it can be tapped.  Even though taxes were taken out of your check on a bi-weekly basis, that refund could become an asset that the trustee will use.  Whether or not they do, typically depends on timing. 

Everything that you earn, make, or receive after filing for bankruptcy are assets that you can keep.  This prevents creditors from coming after you in the future, asking for more money or for another asset to be sold.  Since tax returns can take a while to process, this could create a situation where the trustee wants to include it.  For example, if you were to file for bankruptcy after filing your taxes, but before receiving your refund, they could ask about it and include it in your assets.  If, however, you have not yet filed your taxes, they would be unlikely to seek inclusion of your refund or at least all of it.  For example, if you file for bankruptcy in the middle of the year, any refunds you were due from money paid to the IRS prior to filing could be used by the trustee.  Money that you paid in after filing bankruptcy would technically be yours.  In this way, your tax refund could be split, or the trustee may not seek to include it at all.  In the years following filing for bankruptcy, any money that you pay to the IRS and subsequent refund would be yours entirely.

If you need further clarification, feel free to call the office and speak with a Chapter 7 attorney today.

Speak With an Attorney About Filing Bankruptcy if You Are Facing a Repossession

As a local attorney, we help families to get out from under debt by taking them through the bankruptcy process.  Very often, this is triggered by a repossession action.  Cars are integral to our daily life and activities.  The ability to drive to and from work, take the kids to school, go buy groceries, etc. is part of daily life, and most people cannot imagine going without that option.  Unfortunately, for those facing financial difficulty, making the car payment may no longer be an option.  Some banks or lenders will work with you while many are notorious for harassment and moving to repossession quickly.  You will know which one you are dealing with based on their tone during phone calls and if they send you a letter with threats.  If you feel that a lender is escalating the situation and you need to keep your car, you may want to file for bankruptcy.

Most people that have difficulty making their car payment have other debts as well such as credit cards and personal loans.  Given how easy it is to access credit, when financial hardship strikes the natural inclination is to use a credit card and maintain life as usual.  This works when the financial situation improves in relatively short order.  However, for millions of Americans the economy got bad and things never fully got better – leaving many households with a mountain of debt.  Over time, it can be difficult to continue meeting obligations once they have reached an overwhelming level.  The car getting repossessed may just be the tipping point, and we recommend seeking help before you get there. 

When you meet with our attorney office to discuss filing bankruptcy, we will review both the secured and unsecured debts that you have.  Typically, unsecured debts are fairly easy to deal with in a bankruptcy filing because there are no assets that can be repossessed by not making the payments.  Secured debts, like an auto loan, can be far more complicated.  Filing bankruptcy will stop the collection action so at a bare minimum the harassing phone calls will stop, and you can continue to live in your home and drive your car while going through the process.  What happens next, depends on several factors. 

For one, what type of bankruptcy do you want to file?  As an attorney, we can help you to file a Chapter 7 bankruptcy that wipes out all of your debts or a Chapter 13 where a repayment plan is arranged with the creditors and approved by the court.  In a Chapter 7, any secured debts that you have either need to be given back or you need to continue making the payment. In a Chapter 13, you will make one payment that is disbursed amongst your creditors (minus your mortgage) after being approved by a judge.  This payment will be ongoing each month for a period of years and then any remaining debt balances will be wiped out.  We can discuss your options in further detail, including how to save your car, during a consultation. 

Speak With a Bankruptcy Attorney if You Plan to Buy a House in the Future

As a bankruptcy attorney, we hear a lot of questions about mortgages. Understandably, people want to know if they will be able to buy a house, refinance, or keep their current home if they file for bankruptcy. While bankruptcy does provide much-needed debt relief, it isn’t for everyone, so it is important to consider what your total financial goals are before pulling the trigger.

Here is what you need to know –

Your credit will be impacted.  When you file for bankruptcy, it will negatively impact your credit score.  However, you must consider what the alternative is.  For example, if you are maxed out on all of your credit cards, have a lot of loans and are making payments late – your credit score is probably already taken a significant dive.  It is common for people that had scores in the 700s to drop into the 500s simply by being overextended and making late payments. If you are in this situation or will be shortly, you’re going to have a lower credit score regardless of whether or not you file for bankruptcy.

You’ll have to rebuild.  As a bankruptcy attorney, we regularly provide clients with suggestions for how to rebuild their credit.  This is an important part of the process.  Once you have filed, you will need to get new credit accounts that you can use and pay on time in order to see improvement in your credit scores.  Most people have to start with a prepaid credit card where you put money on it, use it, and repay it.  While this is borrowing money from yourself, it will start to give you positive credit history again.  Most lenders require three trade lines (credit accounts) showing a good history in order to approve you for a mortgage loan.  Keep this in mind if you want to buy a house in the future so that you can set yourself up for success.

Time heals all wounds (and credit history).  If you wait long enough, the negative effects of filing for bankruptcy will dissipate as long as you have new and positive credit history.  You can ask for the bankruptcy record to be removed from your credit history after seven years though many FHA and VA lenders will give you a mortgage loan two to four years after filing a Chapter 7. Traditional lenders may require a waiting period of four years or more.

Current mortgages.  If you have a home loan now, you can typically stay in your house as long as you continue to make your mortgage payments.  Otherwise, you can discharge this debt but will have to move out.  If you want to stay in your home and refinance your loan, we can help to negotiate with the lender as part of the bankruptcy process, and you may be able to have your payments reduced, at least temporarily.  This may make it possible to make staying in your home affordable. 

To learn more about your mortgage options, call and speak with a bankruptcy attorney.

We Provide Bankruptcy Help for Military Members

As a provider of bankruptcy help, we find that there is a lot of confusion surrounding whether or not military members can file for bankruptcy.  It is commonly thought that those serving should be in a stable financial situation, pay their bills on time, and not have any direct financial issues.  This would be wise considering the situation these men and women are in, especially during deployment.  However, this is not always the case as many members of the military actually have more expenses due to relocating their families, caring for properties while they are away, etc.  With this in mind, it can be easy for military families, just like civilian families, to find themselves facing financial hardship.

If this sounds like you – we can help.  Members of the military have the same legal rights to file bankruptcy that civilians have.  In fact, thanks to the Service Member Relief Act, military members can have some added benefits such as disabled veterans not needing to take the Chapter 7 means test.  The one thing to consider prior to filing is where you are trying to go in your career and whether or not you will need a high-security clearance.  If that is the case, let us know so that we can discuss all of your options.  Bankruptcy may harm your ability to get high-level clearances so we will want to go over this in detail. 

For most military members, the main goal is to have their family financially secure and stable.  With a regular paycheck, mountains of debt can be the one thing that stands in the way of achieving that dream.  This is where filing bankruptcy can be extremely helpful.  While providing bankruptcy help, we will start by learning about the types and amount of debt that you have, including what your payments are.  We will then want to know about your income and family expenses so that we can determine if you should have any funds left over to make debt payments.  If you do, that’s okay.  You may still qualify for bankruptcy. 

There are two main types of bankruptcy that an individual can file.  Chapter 13 is a reorganization that allows you to pay your creditors a portion of what you owe them.  In this scenario, we would work with you to determine how much money you have to allocate towards debt repayments after your bills and expenses like groceries and gas have been accounted for.  Next, a repayment plan would be proposed that states how many years you would be making this debt payment.  If approved, at the end of this term any remaining debt would be wiped out.  This allows you to pay something without having your family suffer on a monthly basis. 

As a provider of bankruptcy help, we can also help you to file a Chapter 7.  In this situation, your debts would be wiped out entirely.  It is important to note, however, that if you want to keep an asset like a home or car that has a loan on it, you will need to continue making those payments.  If you are in the military, or a civilian, call us to discuss your situation and which type of bankruptcy is right for you.