BANKRUPTCY

Premier Law can assist you with your bankruptcy and help you reestablish your credit. We provide confidential advice to clients facing this difficult decision. We fully explain the law so that you understand the process, your rights, your options, and the effects of bankruptcy. Our attorney Stephanie Peng worked as a bankruptcy attorney at the largest consumer bankruptcy firm in the States and interned at the U.S. Bankruptcy Court for former bankruptcy judge Hon. Arthur Greenwald and at the United States Trustee's Office, a department of justice agency overseeing the administration of all bankruptcy filings. For a resonable fee, you will get the personal service of an experienced attorney with big firm background.

_______________________________________________________________________________

Chapter 7- Straight Bankruptcy/Liquidation

In a bankruptcy petition filed under Chapter 7, a debtor seeks to obtain a discharge of debts, which is a court order that absolves the debtor from having to pay debt classified by the bankruptcy law as "dischargeable."Most debts are dischargeable, such as credit card balances, line of credit, judgments and medical bills. Certain types of unsecured debt are allowed special treatment and cannot be discharged. Such nondischargeable debts include, without limitation, most student loans, spousal support, child support, criminal fines, and certain types of tax debt. The discharge serves as a permanent injunction against otherwise potential collection action for debt incurred prior to the bankruptcy. In essence, a Chapter 7 bankruptcy discharge allows a debtor to proceed forward without financial turmoil and get a fresh start in life.

A Chapter 7 bankruptcy debtor is able to retain all property categorized as "exempt."Exemptions are laws that allow a debtor to keep certain types and amounts of money and property. For example, exemption laws allow a debtor to protect a certain amount of equity in the debtor's residence, motor vehicle, household items, life insurance, and retirement plans. If there is any non-exempt property, a Chapter 7 bankruptcy filing results in the liquidation of a debtor's nonexempt assets. Upon the filing of a Chapter 7 petition, a United States Bankruptcy Court Trustee is assigned to evaluate and sell a debtor's nonexempt assets. The proceeds of any such sale are used to pay off creditors. In most cases, all property is exempt and debtors are able to keep all their assets.

_______________________________________________________________________________

Chapter 7 - Bankruptcy Costs in Time and Money

The whole Chapter 7 bankruptcy process takes about four to six months and commonly requires only one trip to the courthouse. The debtor must also complete credit counseling and money manage course with an agency approved by the United States Trustee. Our office arranges the two courses for our clients so they can take these courses online or over the phone.

_______________________________________________________________________________

Chapter 7 - Eligibility Do you qualify?

• You cannot file for Chapter 7 bankruptcy if you obtained a discharge of your debts in a Chapter 7 case within the last eight years, or a Chapter 13 case within the last six years.
  

• You will need to pass the means test, a formula designed to limit Chapter 7 bankruptcy to those who truly can't pay their debts.

  • If your current household monthly income is less than the median income for a household of your size in your state, you pass.

  • If your current monthly income is greater than the median income, deduct specific monthly expenses from your current monthly income (your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly disposable income and multiplies it by 60. If your 60 month disposable income is less than $6,575, you pass. If your 60 month disposable income is greater than $10,950, you do not pass. If the figure is more than $6,575 but less than $10,950, you pass if it is less than 25% of your unsecured debts.

  • Click here for a means test calculator

If you don't pass the means test, you are limited to filing Chapter 13 bankruptcy.

_______________________________________________________________________________

Chapter 13 - Consumer Reorganization

Chapter 13 of the U.S. Bankruptcy Code provides debtors with opportunities to pay off their debts through a court approved payment plan.

In a chapter 13 case, the debtor proposes a plan to repay certain creditors over a period of time. The debtor makes monthly payments to a court appointed bankruptcy trustee for three to five years. A chapter 13 case may be advantageous in that the debtor is allowed to get caught up on mortgages or car loans without the threat of foreclosure or repossession, to keep both exempt and nonexempt property, to pay back taxes, and to consolidate student loans. The debtor's property is protected from seizure from creditors, including mortgage and other lien holders, as long as the proposed payments are made and necessary insurance coverages remain in place. In addition, interest and late fees do not accrue in a chapter 13 payment plan.

Upon the completion of the plan, the debtor will receive a discharge of debts.

_______________________________________________________________________________

Chapter 13 Eligibility - Do you qualify?

• Chapter 13 bankruptcy isn't for everyone. Because it entails the repayment of debts, you must prove to the court that you can afford the payment obligations. The court might not allow filers whose income is too irregular or too low to file for Chapter 13.

• If your total debt burden is too high, you are ineligible. The secured debts cannot exceed $1,010,650, and the unsecured debts cannot be more than $336,900.

_______________________________________________________________________________

Call us today to find out which form of bankruptcy works for you. We can stop garnishments, repossessions, foreclosures, collection calls, lawsuits and help relieve you of your high credit card debts and medical bills! We will help you save your home, your cars, your retirement accounts, and your wages!