No one every wants to resort to having to file bankruptcy. In fact, most people are ashamed or embarrassed about the prospect, even when the events that lead them to that point were no fault of their own (i.e. illness, job loss, business failure, economic collapse, etc…). But sometimes, selling assets, cutting spending, getting a second job, reorganizing your debts just is not enough. It is as this time, you may have to make the very serious decision to file bankruptcy.
What is Bankruptcy?
Bankruptcy is a court process where people and/or companies with significant debts are able to either discharge, re-organzie or create a payment plan for same. This notion is often referred to as a “fresh start.” Both your specific situation and level of income will dictate the type of bankruptcy you file. Rawlins|Asack handles the two most commonly filed bankrutpcies, Chapter 7 and Chapter 13.
What is a Chapter 7 Bankruptcy?
If your families total income falls below State specific levels, you may be eligible for a Chapter 7. Though Chapter 7 Bankruptcy’s are often referred to as “liquidations”, you are actually provided the ability to protect (or exempt) certain assets up to specific dollar valuations. Thus, if all of your assets are considered protected or exempt in your Chapter 7 case, it is likely you will be able to discharge all of your allowable debts while keeping your assets. However, it is important to note that not all debts are allowed to be discharged and not all of your assets may be exempt. It is here that having a lawyer assiting you with this process is critical.
What is a Chapter 13 Bankruptcy?
If your families total income is greater than State specific levels, that does not mean you are unable to file Bankruptcy. What is does typically mean, however is that you may need to file a Chapter 13. Unlike Chapter 7, Chapter 13 is a payment plan. This payment plan created by calculating your disposable income. Such a calculation can be complex and requires careful consideration and understanding of those expenses that may be deducted from your income and those that may not. Again, this is where having an experienced Attorney is worth its weight in gold. Once you and your Attorney have carefully calculated your disposable income, you will make said payment for 3 to 5 years. After that time period, the amount remaining on your outstanding debts will be discharged, much in the same way they would have been under a Chapter 7.
The decision to file for bankruptcy can be an extremely difficult one. Often, people wonder: How did I get here?; What are my options?; How much will it cost?; What is the impact of a bankruptcy, foreclosure, short sale and/or credit card compromise on my credit? Rawlins|Asack can help you answer these and other questions. With extensive experience representing debtors and creditors in Chapter 7 and 13 consumer bankruptcy petitions and litigation, we are able to assist you in tailoring a proper solution for you, your family and your business.
Remember, filing for protection under the United States Bankruptcy Code is a legal and acceptable form of relief and no person seeking to help themselves under the law should feel ashamed.
Bankruptcy Litigation and Creditor Representation
As a Creditor in a Bankruptcy proceedings it is easy to feel confused, uninformed and helpless. Like Debtors, Creditors have rights in Bankruptcy Court as well. Too often Creditors fail to file the proper paperwork so that they will be paid a portion of their debts or fail to properly pursue debts that may not be dischargeable in Bankruptcy. Rawlins|Asack, utilizes its years of Creditor representation in the Bankruptcy Court to help you analyze your cost/benefit analysis before writing off a debt or throwing good money at bad.
The matters handled by this office on behalf of Creditors include but are not limited to:
1. Motion’s for Relief of Stay;
2. Non Dischargeability Actions;
3. Defense of Fraudulent Conveyances;
4. Defense of Preferential Actions;
5. Defense of Recovery Actions;
6. Filing of Notices of Claims;
7. Defense of Claims;
8. Objections; and
9. Avoidance Actions.
Bankruptcy litigation and creditor representation, requires familiarity with Federal Law and should not be undertaken without careful consideration and consultation of an Attorney.
Rawlins|Asack, LLC. is a debt relief agency. We help people file for relief under the Bankruptcy Code.