Is Bankruptcy right for me?
Many people struggle with the idea of whether they should file for bankruptcy because they feel like it is intended for other people. There is an unfair stigma surrounding bankruptcy that makes people feel like they have done something wrong by falling on hard financial times and that only a bad person could need the help of a lawyer to resolve financial hardship. That is simply not true. You can rely on us to give you honest answers to your questions and to fully explain the benefits and potential drawbacks of filing for Chapter 7 or Chapter 13 bankruptcy.
Just how fast can we move?
If you contact us at the end of the day to stop a foreclosure scheduled for the following day, out lawyers can do it. If your car is about to be repossessed, we can help you keep it. Even if your car has already been taken, as long as your creditor has not sold it, we may be able to get it back for you. If your wages are about to be garnished, we can help you keep them. Even if the wage garnishment has already started, we can make it stop before money is taken from your next paycheck. Ask about our emergency bankruptcy filing.
Do I qualify?
Chapter 7: People who pass the means test and have not received a discharge under this chapter within the last eight years will qualify for Chapter 7.
Chapter 13: Your unsecured debts must total less than $336,900, and your secured debts must be less than $1,010,650
How long does it take?
Chapter 7: Most proceedings can be completed within approximately six months.
Chapter 13: Typically between three and five years, depending on the length of your payment plan.
What can an Emergency Bankruptcy filing do for you?
It varies per client but it can stop creditor harassment, avoid foreclosure, stop repossession, stop wage garnishment, and restore utilities!! Often before they happen!!
How are creditors repaid?
Chapter 7: If you have any nonexempt property that could be sold at auction, it may be used to raise money to repay creditors.
Chapter 13: You will make monthly payments according to a court-approved repayment plan, and your trustee will distribute the money to your creditors.
When do I receive my discharge?
Chapter 7: If no objections to discharge are file, your case will be discharged approximately 60 days after your meeting of creditors
Chapter 13: you will receive your discharge at eh end of your repayment plan.
What kind of protection do I receive?
No matter what bankruptcy chapter you file under, you will receive the protection of the automatic stay as soon as your petition is filed.
Do you owe income tax to the state or federal government?
We help people address tax debt through bankruptcy. If your tax debt is more than three years old, it may be considered unsecured debt. Like other unsecured debt, it can be discharged.
Even if your tax debt is more recent, and thus not dischargeable, bankruptcy is still a positive step toward a resolution. Filing bankruptcy stops interest and penalties from accruing.
Tax debt is considered a priority debt. While tax debt may not be dischargeable, if it is part of your overall debt load, our experienced lawyers can offer guidance about how bankruptcy can serve as a positive solution for you.
What should I bring to my first appointment?
The following documents will be critical whether you are going to file Chapter 7 bankruptcy or Chapter 13 bankruptcy:
- Proof of income for the last six months
- Copies of state and federal income tax returns for the last two years
- Copies of personal property assessments and real estate assessments if you own real estate
- List of all creditors, including balances, account numbers and their addresses-or bring all your bills
- If you are buying a vehicle, bring all loan information
- If you are financing a house, bring all mortgage information.
What can I keep?
One of the biggest misconceptions people have about bankruptcy is that they will lose all of their property, so they are surprised when we tell them they can keep everything. Very rarely does anyone actually have to give his or her property while filing. If your property is at risk, we will advise you prior to filing bankruptcy.
Is Chapter 7 Bankruptcy Right For Me?
Many people hesitate to file for Chapter 7 bankruptcy because they believe that they will lose everything they own in the process. The Bankruptcy code was not written for the benefit of only creditors. It was written to give people who were struggling with unmanageable debt the opportunity to make a fresh start. At the pray Law Firm, we work with you to develop a plan that supports your vision for your future.
Is Chapter 13 Bankruptcy Right for me?
Chapter 13 bankruptcy can be a good solution for people whose income level prevents them from seeking debt relief under Chapter 7. In a Chapter 13 filings, you make monthly payments to a trustee according to a court-approved payment plan. In many ways, Chapter 13 bankruptcy provides you with more options and a greater level of control over the outcome.
In some ways, Chapter 13 works in the same way as a consolidation loan, often with no interest. All your debts are paid with one payment to your trustee who distributes the money to your creditors. You don’t need to worry about how much each creditor receives or even if the debt is paid in full. As long as you complete your payment plan as approved by the court, your debts will be discharged at the end of it.
What is the greatest advantage of a chapter 13 bankruptcy over a Chapter 7?
You are not at risk of losing any property!!! Your trustee will not be able to seize any of your property to sell at auction since you are making regular payments on your own. In addition, you may be able to repay any arrearages as part of your Chapter 13 bankruptcy if you are behind on your mortgage payments.
Is it too late to stop garnishment?
At our firm, we have the ability to do an emergency bankruptcy filing. This can stop creditor lawsuit from progressing to a judgement. It can stop a judgement from leading to wage garnishment. Even if the garnishment has already started, we may be able to stop it before money is taken from your next paycheck. In most cases, filing can be done in a matter of hours!
Can credit card debt be sipped out in a Chapter 7 or Chapter 13 bankruptcy?
There are certain criteria that must be met in order for credit card debt to be discharged in a chapter 7 filing. At the Pray Law firm, we will review your situation and give you our best recommendation regarding a debt relief plan.
Contact One Of Our Bankruptcy Lawyers
Our founding attorney, Kent L. Pray, is an experienced bankruptcy attorney in North Little Rock. He has been practicing exclusively in bankruptcy law since 1995. He has handled thousands of bankruptcy cases for individuals and small business owners, including Chapter 7 and 13 filings. Christian Frank is an experienced bankruptcy and debtor/creditor lawyer. He has helped thousands of clients find solutions to financial challenges since 2001 and can help you.
We are dedicated to helping you deal with your debt problems.