CONSUMER BANKRUPTCY

Chapter 7 bankruptcy, commonly referred to as “Personal Bankruptcy,” provides debtors with the ability to have a “fresh start” in their lives. When your bankruptcy petition is filed, an automatic stay goes into effect, meaning that the Court creates an order which prohibits creditors from harassing you or taking further action to collect on the debts owed. Even though you file for Chapter 7 bankruptcy, you may be allowed to keep a majority of your real and personal property.

Chapter 7 Bankruptcy is designed for debtors who are facing financial difficulties who do not have the ability to pay their existing debts. In 2005,The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was enacted, which provided for extensive changes in bankruptcy law. One of the more important aspects of the new law is that Chapter 7 bankruptcy is limited to debtors whose income is less than the median income in the state in which they live. This is determined by the “means test,” which is a mathematical test that we can conduct on your behalf to ensure that you are eligible for Chapter 7 bankruptcy.

In addition to the means test created under the 2005 BAPCPA, debtors are also required to attend a credit counseling course within 180 days prior to your filing for bankruptcy, and also requires that you attend a financial management course after your bankruptcy petition has been filed, but before it has been discharged. We can provide you with contact information for agencies which provide these courses. The fees for these courses range, but the fee may be waived if you are eligible depending upon your income.

In a Chapter 7 bankruptcy, there are certain types of debt which are considered non-dischargeable, meaning that even though you have filed for bankruptcy and your bankruptcy is ultimately discharged, you will still be liable for these debts. In debts that are dischargeable, there are types of property that are exempt and those that are not exempt. Exempt property refers to property that you are able to retain and that can’t be used to pay off your creditors. Non-exempt property refers to property that will be used during the bankruptcy to pay your creditors. At Marine View Law & Escrow, we will review your assets and advise you regarding which assets are exempt.

Our legal fees for representation in a bankruptcy case vary depending upon the number of creditors and the complexity of your case. However, we do charge reasonable flat fees for a Chapter 7 Bankruptcy. We offer an initial in office consultation with one of our attorneys or a telephone consultation to review your  bankruptcy case, if you are considering this option.

A Chapter 13 bankruptcy differs from a Chapter 7 bankruptcy, in the sense that while a Chapter 7 is considered a "liquidation" , a Chapter 13 is essentially a repayment plan for individuals who either make a higher income than allowed under a Chapter 7 bankruptcy, or who wish protection from creditors while making repayment arrangements over a three or five year time period.

Contact the attorneys at Marine View Law & Escrow us if you are considering a Chapter 7 or 13 bankruptcy.