The bankruptcy system gives you a new start. It is not structured to destroy your life. It is designed to rebuild it.
If you want to keep your house or your car and continue to make payments, you can usually do that.
You are allowed to keep ordinary items necessary to go forward with your life.
No one barges into your home and takes your furniture.
Retirement plans are exempt! You do not need to take money from your retirement plan to pay your debts.
ASSESSMENT of YOUR CURRENT FINANCIAL POSITION
A "Means Test" is a financial calculation the court uses to determine if you are eligible to file a Chapter 7 bankruptcy instead of a Chapter 13 bankruptcy.
It is a straightforward calculation we can do for you.
If you've landed on this page, you probably meet the qualifications.
All debts must be listed.
If the debt is for a car or a mortgage, you can generally keep paying the debt if you want to keep the property.
If you want to keep a luxury yacht or a vacation home in the Cayman Islands....probably not.
This can be complicated, but I can evaluate and explain your options when you come in for a free consultation.
In most cases, these types of debts are not discharged:
- Child support
- State and federal liens
- Student loans
- Debts obtained through fraud
- Debts incurred through willful injury/wrongful death
The list varies depending on the type of bankruptcy filed, but these are the ones most difficult to discharge.
Freeing yourself of credit card and medical debt can help you utilize incoming revenue streams to deal responsibly with other types of debt that cannot be erased.
What if I need a 2nd or even a 3rd chance to fully recover?
CHAPTER 7 to CHAPTER 7
- 8 years after the first filing
CHAPTER 13 to CHAPTER 13
- Two years after the first filling
CHAPTER 7 to CHAPTER 13
- Four years after Chapter 7 filing
NOTE: You cannot get another discharge of debts if you file a 2nd or 3rd bankruptcy less than eight years after the previous one.
However, there may be other reasons to file before that time limitation.
Now that the waters have calmed what can I expect?
Now is the time to start rebuilding your financial life.
You will be considered a subprime borrower at first which means you will have a higher interest rate.
This time is crucial for recovery.
Making all car and house payments (and new credit card payments) on time helps rebuild credit.
The more consistent you are with on-time payments, the quicker you can regain a favorable credit rating.