Bankruptcy

Bankruptcy can be a vital option for someone facing significant financial hardship. Oftentimes, people are in need of relief due to the loss of a job, an unexpected health problem, or unforeseen expenses. At times like these, you need someone in your corner who understands how the law can work for you. You want an attorney to handle all aspects of your case and to answer all of your questions. We provide bankruptcy expertise in order to help you sleep better at night and put you back on the right financial track.

Chapter 7 Fresh Start

Chapter 7, also referred to as “basic” or “straight” bankruptcy, eliminates many (or most) of your debts almost instantaneously and allows you to keep "limited" amounts of your property.  These limits are oftentimes more generous than you might think.

In most cases, it permanently stops garnishments, lawsuits, and harassment from bill collectors. It also stops efforts to repossess your vehicle and/or to foreclose on your home, but only temporarily in most cases. Chapter 7 is a good solution for those with substantial credit card debts, signature loans, medical bills, department store debts/lines of credit, and in some limited circumstances unpaid taxes. It is usually not a good solution if you are behind on your mortgage payment or your car payment.

If the Debt Relief you need is available through Chapter 7, it is preferable to Chapter 13, because the relief is fast, there are no payment plans to monitor, there are no Trustee's fees to pay, and the attorney's fees are less.

Chapter 7 is your best remedy when:

• Most of your debts are credit cards, signature loans, medical bills and department store charge cards;
• Your household income is “average” and you are only capable of meeting your fixed monthly living expenses and household necessities;
• Your house either has no equity or a modest amount of equity;
• You are current on your mortgage payment(s) and your car payment(s).

The Swaney Law Firm recommends that you should strongly consider the possibility of a Chapter 7 Bankruptcy before considering other options because it is quicker and cheaper in almost every case, and you avoid being tied up in a repayment plan which can last anywhere from 36 to 60 months. Back to Top >>

Chapter 13 Earner's Plan

Chapter 13, which is oftentimes referred to as a "wage earner" plan, is a remedy which also provides consumers with substantial relief from their debts. It is different than Chapter 7 Bankruptcy because it requires that you make payments for at least three years and as many as five years to a Court appointed Trustee. The Trustee then distributes the money received to make either full or partial payments to your creditors based on the requirements of the law and the status of those creditors.

In return for making this good faith attempt to repay at least part of your debts, a Chapter 13 Wage Earner’s Plan makes significant benefits available to a consumer. These include:

1. Stopping any and all garnishments, lawsuits, foreclosures, repossessions and bill collector harassment in short order;
2. Giving you as many as 48 months to catch up on missed mortgage payments, late charges and fees while still keeping your home;
3. Allowing you to keep your car and to pay for it through your Chapter 13 Plan. In many cases you pay only what the car is presently worth, rather than what you owe on the car note. In addition, even when you have to pay the full principal due on the note, you are likely to pay a lower interest rate through the Chapter 13 Plan;
4. You can often pay little or nothing on many of your debts, like credit cards, department store accounts, signature loans, and other unsecured loans;
5. You get up to five years to pay off back taxes, with no further interest or penalties;

You should strongly consider choosing the Chapter 13 option when:

1. You are behind on your mortgage and you need time to catch up;
2. You are behind on your car payment(s);
3. You have significant equity in your residential real estate or other property and you want to protect those assets;
4. You have a steady source of income;
5. You owe taxes for any of the last three tax years. Back to Top >>

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