BANKRUPTCY
At Acquista Law Offices, we assist people in filing for relief under the
United States Bankruptcy Code. We can help you get the “fresh
financial start” afforded under the new bankruptcy laws.
A Chapter 7 “liquidation” bankruptcy, or sometimes known as “straight” bankruptcy, allows an individual to “discharge” or avoid paying their “unsecured” creditors (those not secured by collateral like a house or vehicle), while normally keeping their personal property and pension, among other property they own. Also, in a Chapter 7 bankruptcy a “debtor”, the person who filed, can keep or “reaffirm” their house or car they are paying for so long as they are current on those payments at the time of filing and that continuing the payments after bankruptcy will not cause them an undue financial hardship. The “exemptions” available to each debtor under the bankruptcy code to protect your property are, in part:
- Homestead Exemption - $21,500
- Vehicle Exemption - $3,900 in one vehicle
- Household Goods Exemption - $11,500
- Jewelry Exemption - $1,500
- Pension Benefits Exemption – up to 100% to protect pension payments, your 401(k), IRA, or other retirement plan.
These amounts are doubled for a married couple filing jointly.
A Chapter 13 bankruptcy is available to individuals who don’t quality for the Chapter 7 “liquidation” bankruptcy, but do not have all the cash flow to pay things like credit card bills, or have fallen behind on house or car payments and want to avoid a foreclosure or repossession. Normally, a Chapter 13 case should be considered to protect secured property, like a house or car that you wish to keep because of a significant equity position, and are being threatened by the creditor. A Chapter 13 normally involves the debtor creating a repayment schedule that last anywhere from 36 to 60 months to repay all of the secured debt delinquency and a pre-determined portion, if any, of your “unsecured” debts.
If you are in a financial situation that seems insurmountable and need a “fresh financial start” for you and your family, call our office and let us help you get back on the track to financial freedom.