Learn more about the various bankruptcy solutions that MVP Law Group can provide. Contact us today for a Free Consultation to learn more!
PROVIDING LEGAL SOLUTIONS
The law provides relief for individuals and businesses seeking protection from their creditors. The various forms of bankruptcy allow debtors to eliminate or restructure their debts and move forward. The attorney at MVP Law Group, A PC handle most types of bankruptcy filings on behalf of clients who are facing excessive debt, foreclosure, garnishment of wages or the failure of a small business.
Our lawyer understand that the road that brought you to your search for a bankruptcy attorney was a very bumpy and pretty scary one. You’re likely frightened, intimidated, perhaps embarrassed, and no doubt feeling overwhelmed. But there is a way out–there are real solutions–and the good news is, you’ve already taken the first and most important step toward solving your financial problems: you’ve recognized your need for some help, and you’re visiting our website. The dread of potentially losing your home, the incessant harassment from creditors, the lawsuits, wage garnishments, bank levies–we understand how stressful they are and the damage they can cause to your health, your work performance, your marriage, and your reputation in the community. We can help in a very tangible way.
Frequently Asked Questions
Do I qualify for bankruptcy?
The qualifications for each type of bankruptcy is different. For Chapter 7 bankruptcy, a person’s disposable income must be low enough to pass a specific “means test”. The means test helps you determine if you are eligible for Chapter 7 bankruptcy. This test looks at your income and expenses and kicks you out of Chapter 7 if the numbers don't fit within certain guidelines. The means test also helps determine the length of your payment plan in Chapter 13 bankruptcy. For Chapter 13 there are dollar thresholds for the amount of secured and unsecured debt one may have in order to qualify. The means test is a great determinate on the type of bankruptcy that should be filed.
What is the difference between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 is known as a “liquidation” bankruptcy. This type of consumer bankruptcy liquidates most debts, allowing the debtor to make a fresh start. With the Chapter 13 “reorganization” bankruptcy, filers pay creditors through a three- to five-year repayment plan, based upon their current income. In addition, the “eligibility” requirements for each is different. For Chapter 7 one’s disposable income must be low enough to pass the “means test”, while with Chapter 13 there are dollar thresholds for the amount of secured and unsecured debt.
Which one is right for you?
The type of bankruptcy that you can be filed will depend upon your personal situation. For many debtors, Chapter 7 bankruptcy is a better option than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and the debt is wiped out, thus allowing the debtor to make a fresh start. With Chapter 13, filers pay creditors through a three- to five-year repayment plan, based upon their current income. But with the Chapter 13 “payment plan” bankruptcy, the debt is not “discharged” until after the payment plan is completed.
Is declaring bankruptcy worth it?
Most people consider bankruptcy when their debts become insurmountable, they are receiving calls from collection agencies, and they are facing foreclosure on their property. Given these circumstances, a lot of people consider filing bankruptcy under Chapter 7. The basic idea in a Chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property (except for “exempt” property which the law allows you to keep). In most cases, a lot of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors. If you want to keep property like a home or a car and are behind on the payments on a mortgage or car loan, a “debit renegotiation'' would be part of this process. That is because Chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.
What happens if I declare bankruptcy?
The first thing filing bankruptcy does is that it immediately stops all of your creditors from seeking to collect debts from you (at least until your debts are sorted out according to the law). The bankruptcy filing will also stop foreclosure on your home, prevent repossession of a car or other property, restore utility service, and allow you to challenge the claims of a creditor. Bankruptcy may make it possible for you to eliminate the legal obligation to pay most or all of your debts. This is dependent upon your financial situation, your income, amount of debt, and the type of bankruptcy you file.
Types Of Bankruptcy Filings
This type of consumer bankruptcy liquidates most debts, allowing the debtor to make a fresh start. It is often called “liquidation.”
This type of bankruptcy allows debtors to reorganize their debts, helping them develop a payment plan for three or five years that repays some or all of the debt. This type of bankruptcy is sometimes known as a “payment plan” bankruptcy.
This type of bankruptcy is intended to help businesses reorganize. It may be initiated by the business owner or by creditors seeking payment. It is also known as “reorganization” and may apply to some individuals with a large amount of debt.
As a consumer who has gone through the bankruptcy process you are protected under your Bankruptcy Discharge and the Fair Debt Collection Practices Act (FDCPA). You have rights that protect you from the harassment of debt collection.
Answering Questions And Guiding Clients Through Bankruptcy
The law provides relief for individuals and businesses seeking protection from their creditors. The various forms of bankruptcy allow debtors to eliminate or restructure their debts and move forward.
We work with clients to be sure they understand the bankruptcy choices that are available to them under California and Federal law. We educate them about the benefits and disadvantages of each type of filing so that clients know what to expect.
Learn more about the bankruptcy legal solutions that MVP Law Group can provide. Contact us today for a Free Consultation to learn more!