Law Offices of Angela Habeebullah
Bankruptcy
Bankruptcy in Missouri and Kansas
- Are you receiving menacing phone calls from creditors?
- Is your home at risk of foreclosure due to too many missed mortgage payments?
- Are you feeling simply overwhelmed by the sheer volume of your debts?
- Are you looking for a way out from under this oppressive debt?
If you answered yes to any of the above questions, bankruptcy might be a viable solution to your financial problems. Bankruptcy can immediately put an end to harassing phone calls and halt the foreclosure process on your home. It can provide you with a fresh financial start. It can also, however, have significant consequences on your financials and credit. An experienced bankruptcy attorney can help you determine whether bankruptcy is the right option for you.
There are numerous types of bankruptcy. Below is an explanation of the two most common forms of consumer bankruptcy.
Chapter 7 Bankruptcy
If you answered yes to any of the above questions, bankruptcy might be a viable solution to your financial problems. Bankruptcy can immediately put an end to harassing phone calls and halt the foreclosure process on your home. It can provide you with a fresh financial start. It can also, however, have significant consequences on your financials and credit. An experienced bankruptcy attorney can help you determine whether bankruptcy is the right option for you.
There are numerous types of bankruptcy. Below is an explanation of the two most common forms of consumer bankruptcy.
Chapter 7 bankruptcy is the most common type of bankruptcy used by U.S. debtors. Chapter 7 bankruptcy allows debtors to be absolved from most if not all of their unsecured debts. There is no minimum amount of debt necessary for a Chapter 7 bankruptcy. The debtor may be an individual or a business entity. Debtors are required to receive credit counseling from an approved counselor at least 180 days before filing, which your attorney can arrange.
The Chapter 7 bankruptcy process begins with the filing of a petition in bankruptcy court. The debtor must include a detailed list of assets and liabilities, current income and expenditures, contracts and leases, and copies of tax returns. Spouses can file jointly or individually.
The filing of a bankruptcy petition will stay most collection attempts, meaning the calls, garnishments, lawsuits, and collection letters will stop. However, the stay is only temporary. Within 40 days after the petition is filed, the debtor will be questioned under oath concerning his filing.
Those granted discharge from debts under Chapter 7 will generally be released from individual debtors. Failure to discharge a debt will only occur in limited circumstances, such as where the debtor failed to disclose all debts or assets, fraudulently transferred or destroyed property, and failed to keep adequate books.
Chapter 7 bankruptcy can result in the loss of your home, depending upon your mortgage amount and your state’s homestead tax exemption. An experienced bankruptcy attorney can evaluate your individual case and determine the effects bankruptcy could have on you.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is less commonly used and more complex. It is also referred to as individual debt restructuring. Under a Chapter 13 bankruptcy, individuals can develop a plan to repay their debts. By filing under Chapter 13, a debtor can halt the foreclosure process and save their homes. This process allows debtors to restructure their debt so that their secured assets are salvaged and the debt becomes manageable.
To be eligible under Chapter 13, an individual or unincorporated business must have unsecured debts less than roughly $360,000 and secured debts less than approximately $1,000,000. A corporation or partnership cannot file under Chapter 13.
The process begins just as a Chapter 7 filing, with the debtor filing a petition in bankruptcy court. The process then becomes more complex, requiring the filing of a repayment plan within 15 days after the filing of the petition. A trustee is appointed who will distribute the funds to creditors in accordance with the plan.
Both Chapter 7 and Chapter 13 bankruptcy are multifaceted processes requiring much attention to detail. They can have significant consequences on your financial life, and should only be entered into after consultation and with the assistance of an experienced bankruptcy attorney.
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Bankruptcy FAQ
Considering the prospect of declaring bankruptcy can be stressful and intimidating. You likely have many questions about the bankruptcy process, as it is multifaceted and complex. To this end, we have prepared the following list of Frequently Asked Questions about Consumer Bankruptcy. The following is intended as a brief overview; a knowledgeable bankruptcy attorney in your area can further advise you as to your
specific case.
Although you often hear the term, many people do not understand the full meaning of the word. Bankruptcy is a legal process wherein individuals struggling with debt can eliminate most or all of their debts. Bankruptcy is designed to provide the filer with a fresh financial start. There are numerous different types of bankruptcy. Consumer bankruptcy is generally divided into Chapter 7 and Chapter 13 bankruptcy, which will be further explained below.
Chapter 7 bankruptcy is the most common form of consumer bankruptcy. In this procedure, the filer asks the court to discharge most of the debts owed. Most individuals who have unsecured debt file for this type of bankruptcy.
Chapter 13 bankruptcy is used in more limited circumstances. It is often called “reorganization” because under this process, you request the court allow you to enter a repayment plan in which you pay your debts back over time (usually between 3 to 5 years). Individuals with more significant assets, such as homes or vehicles, may elect to use this process.
Filing for bankruptcy does not have to cost you an insurmountable fee. At the Law Offices of Angela Habeebullah, we offer affordable rates that make the solution of bankruptcy a viable option for you.
This is an individual determination best made by your skilled local bankruptcy attorney. At The Law Offices of Angela Habeebullah, we will gather vital information during your initial consultation, such as your debts, assets, and creditor information, to determine whether bankruptcy is an option for you
It depends. Under Chapter 7 bankruptcy, you may lose your home if you are behind on mortgage payments or, even if current, depending upon the amount of equity in the home and the amount of homestead exemption to which you are entitled. Under Chapter 13 bankruptcy, you will not generally lose your home if you repay missed mortgage payments and continue to make regular payments. An experienced bankruptcy attorney will evaluate your individual housing situation.
It is always in your best interest to engage the services of a knowledgeable bankruptcy attorney. Bankruptcy is one of the most complex areas of law, with confounding statutes and frequently changing rules. An experienced bankruptcy attorney will navigate you through the bankruptcy process and ensure your compliance with the law. Attempting to do so alone is a risky proposition.