Bankruptcy Help

Our country understands the need to give individuals, families and businesses the ability to
recover from financial hardship. Though no one "wants" to declare bankruptcy, bankruptcy is in
fact the financial-wellness tool of last resort. The two most common forms of consumer bankruptcy
are chapter 7 and chapter 13. Chapter 7 bankruptcy wipes out many debts entirely, but not everyone
is eligible for Chapter 7 bankruptcy. Many debtors must file for Chapter 13 bankruptcy which requires
repayment of at least a portion of their debts.

How Chapter 7 Bankruptcy Works

Bankruptcy under chapter 7 cancels your debts, but you might have to let the bankruptcy court "liquidate" (sell) some of your property to pay your creditors. Chapter 7 requires you to complete credit counseling with an agency approved by the United States Trustee, and you can't use Chapter 7 bankruptcy if you already received a bankruptcy discharge in the last six to eight years (depending which type of bankruptcy you filed) or if, based on your income, expenses, and debt burden, you could complete a Chapter 13 repayment plan. Chapter 7 bankruptcy puts into effect an "Order for Relief" -- known informally as the "automatic stay." The automatic stay immediately stops most creditors from trying to collect what you owe them. So, at least temporarily, creditors cannot legally grab ("garnish") your wages, empty your bank account, go after your car, house, or other property, or cut off your utility service or welfare benefits. At the end of the bankruptcy process, all of your debts are wiped out (discharged) by the court, except debts that automatically survive bankruptcy, such as child support, most tax debts, and student loans, unless the court rules otherwise, and debts that the court has declared nondischargeable because the creditor objected (for example, debts incurred by your fraud or malicious acts).

How Chapter 13 Bankruptcy Works

You cannot file for Chapter 7 if you do not satisfy the new requirements imposed by the 2005 revisions to the bankruptcy law. Under these new rules, you cannot file for Chapter 7 if both (a) your current monthly income (over the six months prior to your filing date) exceeds the median income for a household of your size in your state and (b) your disposable income (the amount left after subtracting certain expenses and monthly payments for debts you would have to repay in Chapter 13), is more than the limits set by law. This is known as the "means test" -- if you have the "means" to repay a certain amount of your debt through a Chapter 13 repayment plan, you are ineligible for Chapter 7 bankruptcy.

Benefits to chapter 13 bankruptcy include the ability to make up missed payments, and to pay over time tax obligations, student loans, or other debts that cannot be discharged in Chapter 7. Also, In Chapter 13, you don't have to give up any property because you repay your debts from your income. If you have nonexempt property that you can't bear to part with, Chapter 13 might be the better choice, especially if you have a co-debtor if you file for Chapter 7 bankruptcy, your codebtor is still liable, but under chapter 13, the creditor will leave your codebtor alone, as long as you keep up with your bankruptcy plan payments.

Bankruptcy Help

First Name* Last Name* Email Home Phone: (999-999-9999)* Work Phone: (999-999-9999)

Address* City* State of Residence* Select Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Canada Puerto Rico Zip*

Why are you considering bankruptcy? (check all that apply) Garnishment
Creditor Harassment
Repossession
Foreclosure
Lawsuits
Illness/Disability
License Suspension
Divorce
Loss of Income
Other

Estimate Total Debt

What bills do you have? (check all that apply) Credit Cards / Store Cards
Personal Loans
Child Support
Student Loans
Auto Loans
Income Taxes
Payday Loans
Medical Bills
Other

Estimate Total Monthly Expenses

Do you own real estate? Select Yes No

If Yes, are you behind in these payments? Select Yes No

Do you own an automobile? Select Yes No

If Yes, are you behind in these payments? Select Yes No

Do you have any additional assets worth more than $1000.00? Select Yes No

If Yes, please describe


What types of income do you have? (check all that apply) Employed, Full-time
Employed, Part-time
Social Security
Pension/Retirement
Child Support/Maintenance
No Income
Other

Estimate Total Monthly Income:

Disclaimer >>

* Debt Help Lawyers will also provide advice and assistance on, among other things, whether your fair debt collection rights are being violated. Debt settlement may also be an option. Under the My Smart Debt Program interventions, validations and disputes, credit card billing disputes, and other consumer financial legal services, may also be available. Home mortgage help may also be an option. Bankruptcy services are not yet available through this website.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.