Without a good credit profile, creditors as well as insurance companies conspire to raise insurance rates and interest rates ending up in digging you deeper and deeper into debt.  This office assists persons and families in reorganizing and discharging debt under Chapter 7 as well as Chapter 13 of the Federal Bankruptcy Code. 

Chapter 13 Wage Earner Plans

A Chapter 13 Wage-Earner plan is one which assists persons whose income doesn't allow them to discharge their debt under Chapter 7 Bankruptcy.  Although persons filing under a Chapter 13 Wage-Earner plan must expend some effort, our offices ensure that the benefit they gain vastly exceed effort expended.  Under Chapter 13 Bankruptcy, people are still entitled to benefits not given by others without authority under the Federal Bankruptcy Code, such as Debt Consolidation companies. 

Chapter 13 Bankruptcy Wage-Earner Plans are vastly superior to any debt consolidation plans.  Although there are some reputable debt consolidation companies out there, they cannot compete with what Bankruptcy can do for you.  First, debt consolidators cannot control actions taken by your creditors, including keeping creditors from bringing suit, but Bankruptcy forces them to participate while imposing a stay against further collection activity.  In addition, creditors must accept your repayment plan arrived at with our attorneys.  Debt consolidators cannot force creditors to participate and if they do, they cannot control whether they follow your plan or devise their own plan.  One thing they do guarantee is that their plans benefit themselves more than they benefit you.  How do you feel about handing over your hard earned money to a complete stranger one who is more committed to your creditors and getting paid they they are committed to you?  Horror stories include paying debt consolidation companies thousands of dollars before their clients find out they are being sued and then told to read the fine print which states that the Debt Consolidation company gets their fees up front.  In fact, there are many misconceptions about Bankruptcy including debt consolidation and forgiveness which this office sets to rest in 10 Bankruptcy Myths.   This office offers assistance to families and persons seeking protection under the Federal Bankruptcy Act.

Individuals or families filing for relief under Chapter 13 must only pay what they can afford to pay over a limited period of time before receiving a discharge.  A Chapter 13 debtor must commit income, or what is called their "best effort" to repay their debt during the time in repayment.  A debtor's best efforts are defined as household income less payroll deductions and household and related expenses.  A Chapter 13 discharge means different things to different people.  For persons not qualifying, or desiring to file under Chapter 7 and whose income falls below the median income level for a family of your size, you must commit to a 3 year repayment term.  However, if your income falls above the median income level, you must commit to a 5 year repayment period to obtain the full benefit of filing under Chapter 13.

Lien Avoidance

Some enter bankruptcy to expunge liens against real estate which cause indebtedness to exceed the value of realty.  In these cases, the second mortgage is forgiven and lien is removed.  In addition, the second mortgage company must share pro-rata with other creditors so there is no guarantee that they will receive a cent or they may be fully repay without interest.

Cram down

Under Chapter 13, persons may reduce, or cram down, what is owed on debt secured by liens that can be paid over 60 months.  For example, if $38,000 is owed on a vehicle and the vehicle is only worth $20,000.00, the less is what you will pay at the prevailing rate of interest.

Debt Consolidation

Debt consolidation companies exist by virtue of a contractual relationship between themselves and some of your creditors.  I mention some creditors because I have yet to encounter a single Debt Consolidation company who is contractually bound to every creditor.  Debt Consolidation Companies derive their powers from a contractual relationship between creditors and themselves.  Bankruptcy, on the other hand, derives its authority through powers granted by Congress of these United States and to a limited extent, legislatures of the state in which you reside share to the extent of allowable exemptions.  To the extent that one differs from the other, you get to pick which set of exemptions benefit you the greatest. 

Chapter 7 Bankruptcy - Liquidation Bankruptcy

Chapter 7 of the code has varying effects for various people and is vastly superior to any debt consolidation plan available on the market.  Chapter 7 Bankruptcy allows qualified debts to be entirely wiped from a credit profile without any obligation to repay.  

Our clients are ensured that they received the benefit of all exemptions under the law whether they apply to lowering income tax penalties offsetting earnings while also safeguarding property in the liquidation context upon seeking protection.   After obtaining a fresh start under all chapters of the Bankruptcy Code, our clients are ensured they receive the full benefit of a discharge of debts including the clearing of credit following discharge.