Unexpected expenses, loss of income and other problems can leave you with mounting debts that you cannot pay back on time, exposing you to harassment by bill collectors and, worse, debt collection lawsuits. If you are in that situation, you may be able to file for bankruptcy to either discharge or restructure your debts. Abrams Law Group in Fresno, California, we are ready to advise you of your options under bankruptcy law and help you get a fresh start.
One bankruptcy option is a Chapter 7. If successful, it results in eliminating your debts except those that by law are not dischargeable. Upon filing for bankruptcy, an automatic stay goes into effect that stops most of your creditors from trying to collect what you owe. Chapter 7 requires the liquidation (sale) of some of your property to pay off a portion of your debts. However, federal and state law allows certain property to be exempt from liquidation.
Most people cannot file for Chapter 7 unless they pass a “means test,” which determines whether they are able repay at least some of their debts. You also might not be able to file if you received a bankruptcy discharge too recently, were dismissed from bankruptcy for misconduct or tried to cheat your creditors. We can advise you whether Chapter 7 bankruptcy is right for you and will guide you through the entire process.
If you are not eligible for Chapter 7 or wish to avoid liquidation of assets, another option is a Chapter 13, also known as a wage earner’s plan. This remedy requires you to agree to a plan to repay your debts over a three-to-five-year period. If successful, Chapter 13 offers such benefits as protecting your home from foreclosure and allowing you to pay off only a portion of your total debts while at the same time reestablishing a good credit rating.
To qualify for Chapter 13, you must be an individual with enough steady income both to pay your monthly household expenses and to keep up with the repayment plan. There are also limits on how high your debts can be. The court must confirm the plan and creditors have the right to object. As your counsel, we can prepare a plan suited to your financial circumstances that is calculated to win court approval.
Abrams Law Group is pleased to offer free bankruptcy consultations to those struggling with debt. Call us at 559-431-9710 or contact us online. Our Fresno office is conveniently located at 5412 North Palm Avenue, just three blocks west of the Yosemite Freeway. We are a debt relief agency.