Bankruptcy: A Fresh Start
For more information about bankruptcy, go to http://www.sfnewstart.com
"[I]t gives to the honest but unfortunate debtor...a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt."
--U.S. Supreme Court
Chapter 7 or Chapter 13 Bankruptcy Relief may be the solution you've been looking for. You are in the company of millions of other honest, hardworking Americans who have been devastated by the high cost of living, underemployment, job loss or illness. Bankruptcy relief exists specifically to give people just like you a fresh start. Attorneys Michael Scholtes and Marlene Fong can help.
Stop the phone calls, discharge the debt and get a new start. Do not let debt and worry run you life. Bankruptcy relief can put you back in charge.
Getting Started: It’s Easy
If you want to know if you qualify for Bankruptcy Relief complete our Bankruptcy Assessment Form (click the Free Online Bankruptcy Assessment listing in the Menu to your left).
Take a few minutes to fill out the Assessment Form by giving us a snapshot of your personal and financial situation and we can provide you with advice specifically tailored to your circumstances. This is a no-obligation evaluation. You decide whether you want to proceed.
Chapter 7 and Chapter 13
Chapter 7, entitled Liquidation, contemplates an orderly, court-supervised procedure by which a trustee takes over the assets of the debtor’s estate, reduces them to cash, and makes distributions to creditors, subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation for certain dischargeable debts. These cases are called “no-asset cases.” A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge just a few months after the petition is filed. Amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require the application of a “means test” to determine whether individual consumer debtors qualify for relief under chapter 7. If such a debtor’s income is in excess of certain thresholds, the debtor may not be eligible for chapter 7 relief.
Chapter 13, entitled Adjustment of Debts of an Individual with Regular Income, is designed for an individual debtor who has a regular source of income. Chapter 13 is often preferable to chapter 7 because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a “plan” to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 relief under the means test. At a confirmation hearing, the court either approves or disapproves the debtor’s repayment plan, depending on whether it meets the Bankruptcy Code’s requirements for confirmation. Chapter 13 is very different from chapter 7 since the chapter 13 debtor usually remains in possession of the property of the estate and makes payments to creditors, through the trustee, based on the debtor’s anticipated income over the life of the plan. Unlike chapter 7, the debtor does not receive an immediate discharge of debts. The debtor must complete the payments required under the plan before the discharge is received. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect. The discharge is also somewhat broader (i.e. more debts are eliminated) under chapter 13 than the discharge under chapter 7.
Restoring Good Credit
Bankruptcy no longer has the negative stigma it once had. Lenders know that people who have been discharged are less of a risk because they now have a clean slate and will not need to, nor can they, file Bankruptcy again any time soon. Immediately after your Bankruptcy is discharged you will be able to obtain some credit, though at higher interest rates. Lenders say it takes about two years to reestablish good credit.
If debt has become unmanageable for you, Bankruptcy may be the answer. We’re here to help you with a new start.
We are a Federally Designated Debt Relief Agency and Bankruptcy Lawyers who help people who file for Bankruptcy under the Bankruptcy Code.