If you have substantial credit card bills, car loan payments or are facing foreclosure, bankruptcy may be the best option available for saving your home and getting a fresh start.
Filing for either a Chapter 7 or Chapter 13 bankruptcy causes an automatic stay goes into effect, requiring creditors to cease all collection actions and banks to halt foreclosure proceedings. Although the stay is temporary and may be challenged, it can help you avoid home foreclosure or repossession.
At Hedtke Law Firm, we can review your financial situation and discuss the best options available and see if you qualify for a fresh start. We will come up with a solution and give you tips on rebuilding your credit after your bankruptcy.
If you’re receiving calls from collection calls or threatened legal action, contact the Hedtke Law Firm today to schedule an appointment and discuss your situation. We can help you get a fresh start.
Chapter 7 Bankruptcy
Chapter 7 requires debtors to pass the Means Test. Generally speaking, if your monthly income is less than California’s mean monthly income for houses of a similar size, you can file under the terms of Chapter 7.
If you qualify, your credit card balances, personal loans and most other forms of unsecured debt will be discharged. Some tax debts are also dischargeable in bankruptcy.
Chapter 13 Bankruptcy
If you cannot pass the Means Test requirements for Chapter 7 bankruptcy or have secured debts (ie mortgage arrearages) you will likely have to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy is essentially a reorganization of your unsecured debt. You will be required to submit a repayment plan for approval by the court.
Typically, under the terms of Chapter 13, you must make payments to repay a portion of what you owe over a three- to five-year period. While your debts will not be automatically discharged as in Chapter 7 you may only have to pay back a portion of the entire debt owed.
A bankruptcy judge must approve your monthly payment plan and a trustee will be appointed to distribute your payments to creditors. While creditors can object to the terms of a proposed plan, once a judge accepts it there is very little they can do.
Contact California Bankruptcy Attorneys At Hedtke Law Firm.
If monthly bills and calls from creditors have you worried or if you are facing foreclosure, contact the Hedtke Law Firm at 909 736-3111 for a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.