Facing foreclosure? Been served with a lawsuit? Are your wages being garnished? Are tax entities not working with you and threatening to levy? Are creditors threatening to lien your property? Do you have judgments against you? Do you want to recover recently repossessed property? Want to eliminate or consolidate your debt? Need a lower car payment? The Law Offices of Hasti Daneshvar is here to help you. We will take the time to find a solution to your problems and as members of the National Association of Consumer Bankruptcy Attorneys (NACBA), we are up to date on all the rules and nuances of bankruptcy law.
Bankruptcy could be your solution!
Bankruptcy is more common than you might think. Many of the most successful and famous companies and people have filed for bankruptcy in the past. Recent years have had some of the highest volumes of bankruptcy cases in the last two
The vast majority of bankruptcies are filed by good hardworking people that would pay their creditors if it were possible but have fallen on hard times. Unfortunately creditors are not willing to wait until your situation improves. You deserve a fresh start!
CHAPTER 7 BANKRUPTCY
Chapter 7 bankruptcy is sometimes referred to as a “liquidation” or “straight” bankruptcy. It is generally the quickest form of bankruptcy, taking three-to-four months to complete from the date of filing until you get your discharge. Chapter 7 bankruptcy eliminates most unsecured debts, including credit cards, medical bills and personal loans. You may be able to discharge debts owed for older taxes. Chapter 7 also discharges most secured debts such as car loans and home equity lines of credit (HELOC). Chapter 7 can also stop wage garnishments, and stop lawsuits filed by creditors through an automatic stay.
The Law Offices of Hasti Daneshvar offers a free 30 minute consultation where we review your financial history. We analyze your actions before filing bankruptcy, such as maxing out credit cards, transferring titles to property, or whether you previously filed bankruptcy. If the review is clean, we can proceed with preparing to file your case.
Upon filing your case, a few things occur. First, an automatic stay is triggered. This stay stops most collections, lawsuits, wage garnishments and creditors from otherwise contacting you. Chapter 7 also temporarily stops foreclosure.
Second, once you file, your assets automatically get placed into the bankruptcy estate. Understanding your assets and their value is critical before filing Chapter 7. The Chapter 7 trustee controls your property in this bankruptcy estate until he or she abandons your property and your case is closed. Depending on the situation, it may be possible to keep your car and home provided your payments are current, and the equity does not exceed the exemptions. We can usually “exempt” and protect most if not all of your property, meaning you get to keep everything even though you get rid of your debts.
Third, your case is assigned to a Chapter 7 trustee. A hearing called the “341 meeting of creditors” will be scheduled approximately 30 days after you file. At this hearing you will meet with the trustee. The trustee will inquire into the representations made in your petition, including income, assets and debts.
From the date of your 341 meeting of creditors, a 60-day window of time is triggered. If at the end of the 60 days no party objects, your debts that are dischargeable are forgiven by order of the bankruptcy court, meaning you no longer have to pay for them.
Getting back your property and getting a discharge of your debts are the two critical components of Chapter 7. They are separate events that occur independently from each other. The goal in Chapter 7 bankruptcy is therefore to protect and preserve your assets, and to discharge as much debt as possible.
CHAPTER 13
Chapter 13 bankruptcy is a repayment plan where you consolidate your debts and make a payment on your debt over a three to five year period. While in a Chapter 13 bankruptcy debt repayment plan, the creditors cannot collect from you, and the creditors are required by a Federal Court order to adhere to the terms of the plan. The Law Offices of Hasti Daneshvar will help you figure out if you qualify for a repayment plan, and help you to pay the least amount required.
The payment plan looks at what you can afford over the three to five year period. After making payments within the plan, your remaining unsecured debts (such as credit cards and medicals) are discharged, and you continue to pay your mortgage, car loans and other secured debts that survive the bankruptcy.
Chapter 13 bankruptcy offers two major benefits over Chapter 7 bankruptcy. 1) Any late payments or “arrearages” can be made up over the repayment periods. 2) Second mortgage or home equity lines of credit (HELOC) may be “stripped,” potentially eliminating your second mortgage or HELOC. This Chapter can be useful to people who are facing foreclosure, have property they want to keep or for those who need bankruptcy protection, but do not qualify under Chapter 7 bankruptcy.
