Bankruptcy: The Basics
Bankruptcy is a federal process which allows consumers to forgive certain debts. The law recognizes that, unfortunately, sometimes bad things do happen to good people. Bankruptcy law recognizes that some consumers are just unable to meet the unreasonable repayment demands from creditors. Bankruptcy laws are based on forgiveness rather than punishment. Bankruptcy does not seek to deter or regulate certain behavior as other laws do; it simply recognizes that there are sometimes circumstances beyond the consumer's control which can only be addressed through the cancellation of debt.
For help with your individual bankruptcy needs, contact at Moore Ames Law, PLLC today to schedule a FREE initial consultation to discuss your legal rights.
Once you file for bankruptcy, an automatic stay is put into effect which immediately stops creditors from attempting to collect any debt from you. The automatic stay stops all types of harassing and intimidating creditors’ collection efforts such as phone calls, collection letters, wage garnishments, lawsuits, and bank levies to name a few.
Upon completion, the consumer receives an Order of Discharge from the Bankruptcy Court. This Discharge is a legal release from the dischargeable debts. Creditors are left with no legal cause to contact you or pursue these dischargeable debts listed in the bankruptcy petition.
There are several options available to consumers under the US Bankruptcy Code. The most common bankruptcy is to file a Chapter 7 which allows a consumer to discharge most debts. Another bankruptcy available is to file a Chapter 13, in which you propose a federal debt consolidation plan to rearrange your financial affairs and repay just a portion of your debts. The Chapter 13 plan allows you to restructure your debts in a way that is manageable based on your disposal income.
Bankruptcy: Chapter 7
The most common type of bankruptcy is known as Chapter 7. The basic purpose of Chapter 7 is to provide you with a fresh start by wiping out certain debts such as credit cards, medical bills, repossession deficiencies and civil law suits. In Chapter 7, there is no repayment required for most unsecured debts. Your debts are wiped out completely and permanently. In most Chapter 7 cases, the consumer is able to keep all of their property and eliminate most of their debts. It truly allows you a fresh start. The entire process takes approximately 3 to 4 months to complete and allows you get back on your feet quickly.
Bankruptcy: The Chapter 7 Process
Approximately a month from filing the petition, consumers are required to attend a meeting with a trustee of the bankruptcy court. The trustee is bankruptcy attorney, not a judge, and the purpose of the meeting is to give creditors a chance to ask questions, although it is very rare that any creditors actually attend. During this meeting, the trustee will be entitled to ask you standard questions about your financial affairs and other items stated in your petition. Besides confirming the accuracy of the information in your petition, the trustee is also looking for people who are hiding assets or trying to defraud the system.
Bankruptcy: Protect Your Assets/Know Your Rights
When you file bankruptcy, your all of your assets (property) becomes subject to administration by the bankruptcy court. This is often referred to as the "bankruptcy estate." However, this does not mean that you must give up your property. In New Hampshire, residents are provided generous exemptions which are used to protect your property from the trustee of the bankruptcy court. Any non-exempt (non-protected) property can be taken by the trustee and sold to pay your creditors. This is one of the most important reasons why you need an experienced bankruptcy attorney to assist you in exemption planning prior to filing your bankruptcy petition.
Typically, consumers are able to protect all of their assets and the trustee does not take any property. However, please be aware that all property recently given away to friends or family members is also considered property of the bankruptcy estate and the trustee may attempt to recover this property. Therefore, before giving away this property or paying off certain creditors, contact Moore Ames Law, PLLC to get accurate legal advice you need.
Let Moore Ames Law, PLLC help assist you in protecting what’s important. Call today to schedule a FREE initial consultation to discuss your legal rights.
Bankruptcy: When to File
Bankruptcy is never an easy decision to make. Many consumers put off filing so they may “wait and see” if their situation improves. Sometimes it does, however, most consumers find themselves in a far worse financial situation. The decision to file must be a financial decision based on the amount of debt you have, your current monthly income and your current ability to repay those debts.
If you do not believe that you will be able to repay your creditors in full within several years, bankruptcy should be given serious consideration. To learn more about your options, you should contact an experienced bankruptcy attorney to assist you with this process. Instead of struggling with minimum payments for months or years and ending up in the same place you are today, you can use that time to rebuild credit and save money for the future. Learn more about bankruptcy and your options by contacting Moore Ames Law, PLLC today at (603) 232-6189 or at (603) 772-6025.
In this time of financial uncertainty, if you have debt that you will not be able to repay in the foreseeable future, you probably will benefit greatly from filing bankruptcy and taking a debt-free fresh start.
By filing bankruptcy with Moore Ames Law, PLLC, you give yourself an opportunity to immediately rebuild and re-establish credit. Many people believe that they will never be able to get credit cards, car loans or mortgages if they file bankruptcy. This is not the fact. When you get your discharge, you will be surprise by the credit offers that you receive. Bankruptcy is not the end for you financially, it’s only the beginning.
For experienced bankruptcy assistance, contact Moore Ames Law, PLLC. Our firm takes great pride in the service we provide and will work with you in any way we can. Contact us today to schedule a FREE consultation with one of our bankruptcy attorneys.
Statewide Bankruptcy Attorneys
At Moore Ames Law, PLLC, our firm is committed to educating consumers on their rights during this stressful time. Don't wait – start rebuilding your credit for a better future. Please contact us today at (603) 232-6189 or (603) 772-6025 to schedule a FREE initial consultation with one of our experienced attorneys. We are a debt relief agency. We help assist people file Bankruptcy under the US Bankruptcy Code.