What is the difference between Chapter 13 and Chapter 7?
We provide two different types of consumer bankruptcies– Chapter 7 and Chapter 13. Chapter 7 is the “Start Fresh” bankruptcy. It will get rid of credit card debt, medical debt, old auto repossession charges and debts from lease or apartment deficiencies. It may also get rid of old personal income taxes (Come in to see if your taxes qualify). Chapter 13 is like a Chapter 7 “plus”. If you qualify for a Chapter 7, it can do everything a Chapter 7 can and more. It may allow you to “cram down” the price of your car to its true value (rather than what you owe on the contract) and might allow you to “strip off” a 2nd mortgage and get rid of it like a credit card. It may also allow you to pay off IRS tax debt or credit card debt at no interest.
What is the benefit to filing for Bankruptcy?
Immediately after filing and giving notice to your creditors, the calls will stop. The foreclosure will stop. There will be no repossession or eviction. This “stay” allows time for you to get things in order and either make payments or arrange for an orderly return of property. And surprisingly, your credit rating will start to rise sharply after filing and discharge, causing you to possibly have a better credit rating than if you’d paid all your creditors off.
Will bankruptcy stop lawsuits and will it stop garnishments?
Yes–almost immediately for just about all lawsuits and garnishments. The “stay” as mentioned above, gives you some breathing room so we can look at your financial situation and see if we can get rid of the judgments or possibly pay them off over a longer period of time with no interest. Garnishments can take up to 25% of your gross income. If you get a court summons, come to us at Lauber Dancey to discuss your options. It costs you nothing and may save you a lot.
Will I lose my home? Car?
If you are current on your home and we can protect the equity, you won’t lose your home. If you are current on your car, you won’t lose your car. One of the first questions the attorneys at Lauber Dancey will ask is “What are your goals?” Do you want to keep your home? Do you want to keep your car? We will give you all the options so you can make the decision that is right for you and your family. And if the creditors are knocking because you are behind, we can protect your home and car by forcing your creditors to accept a longer payment through the bankruptcy court.
My car was just impounded! What do i do?
Yes! But you must move quickly. Get proof of insurance and make an appointment with Lauber Dancey immediately. We can get your car back within 10 days by filing a Chapter 13 bankruptcy. As long as the car hasn’t been sold by the dealer, you can get your car back and make long term payments on that car, normally at a lower interest rate.