Should I Give My House Back To The Lender If I File Bankruptcy?

Your home is your most valuable asset, so when you are in danger of losing it the instinct to take steps to keep a roof over your family’s head kicks in quickly. For homeowners who are behind on mortgage payments, there are some options that will allow you to keep your home and keep your family sheltered. Some lenders will work with you to do a refinance, but with many government programs that were implemented under President Obama expiring at the end of 2016; it could become more difficult to talk your lender into rewriting your loan. This fact may cause many people to consider giving their home back to the lender, rather than continue to struggle to make the payments. But there is another choice.

If you file for bankruptcy, you can save your home. Here are some things to think about if you are facing a foreclosure:

●          A Chapter 13 bankruptcy will allow you to pay the past due payments over time, while also making regular payments.

●          If you have any judgments against you that have been reduced to a judgment lien and attached to your home, you can have those liens avoided in bankruptcy. This might make it easier to sell your home or to refinance at more favorable rates because the title will be clear.

●          Any foreclosure action that is pending when you file a bankruptcy case has to stop, and this gives a chance to decide if you are going to try and keep your home or give it back to the lender.

It might be that without a huge house payment you are in a better position to pay the rest of your bills. Or, it might be that once you no longer have to pay a bunch of credit cards each month, making your mortgage payment is doable. The decision to save your home, or give it back, is yours. But we will help you make a choice that makes sense, and one that will work with your budget.

For more information about how bankruptcy can help save your home, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

How To Stop A Wage Garnishment

If your take home pay is already not enough to cover your expenses, imagine the stress that can be added to your life if your wages are garnished. But that is exactly what can happen if you fall far enough behind on your bills, and your creditor sues you for the past due debt. Once a lawsuit to collect money is filed, the creditor will stop at nothing to collect what is owed. And, if the case has reached judgment the most likely next step is to garnish your wages. This can be a real hardship, but there are some things you can do to take back control of where you money goes each month.

Many times you can seek an order from the Court that issued the garnishment, declaring you exempt from being garnished. But this requires you to appear in Court and explain your finances to a Judge, and argue persuasively for a refund of your money and/or that the garnishment be released. This can be tricky, because the Court will have discretion in what they order, and most times the creditor will get to keep at least some of your money. Another option, which does not have as many unknown factors, is to file for bankruptcy:

●          When a bankruptcy case is filed, all collection efforts have to stop. This includes pending lawsuits as well as pending garnishments.

●          Your lenders are not only required to stop legal action, but they are also no longer allowed to call you and ask for payment of their debt. So, if you have an account that is behind but that has not yet been sued on, you can expect the calls to stop the minute you file a bankruptcy case.

You work hard for your money, and when you have bills to pay it is best to keep as much of it as you can. For help stopping a garnishment, or to keep the repossession man out of your front yard with a hook up for your car, call us today.

For more information about bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.

What Happens If I Have A Financial Emergency After I File Bankruptcy?

Filing bankruptcy can help you get your finances in order, so when an unexpected expense comes up you are prepared. But even with the best planning, things will happen that could not have been foreseen. Maybe you or a loved one becomes seriously ill or is in an auto accident. Or, perhaps there is a natural disaster and your home is leveled from its foundation. Whatever emergency comes up in your life, if you have filed bankruptcy you might be wondering how to stretch and already tight budget to cover an emergency cost.

There are some things to take into consideration if you have a financial emergency after you file bankruptcy, such as:

●          Whether you are allowed to take out a loan to cover the expense, and if so how you get approval to do so. In some instances if you take on new debt after your bankruptcy case is filed, you have to ask the Court to approve the new debt.

●          Whether the elimination of debts in your bankruptcy case has freed up enough funds to allow you to pay for the emergency while still successfully completing your bankruptcy case. If you have filed a Chapter 13 you may need to ask the Trustee to reduce your Chapter 13 Plan payments for a while in order to let you take care of the emergency, and then get back on course with your bankruptcy.

●          Whether you will be approved for a loan and if so whether you can manage the repayment terms. Many lenders are willing to loan money to people who have filed bankruptcy, but often times the rate is higher which means a payment that could be outside your reach. You are well advised to make sure your budget can handle the new expense, so you don’t get into further financial trouble.

We know that life happens, and that when it does it can be hard to meet an unexpected need. We are here to help you come up with financial solutions that work and that will allow you to get back on your feet.

For more information about bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.

How Does A Bankruptcy Exemption Work?

Nearly every type of legal proceeding has its own special terms, and if you are not familiar with the words being used, you can easily become confused. Bankruptcy is one area of law where there are more than the usual list of legal terms that seem foreign, but with a little background knowledge you can feel comfortable talking about your case. For instance, the discharge is what you are seeking when you file bankruptcy. An entry of discharge in your case is what makes your debts no longer due. The automatic stay is the legal mechanism that prevents creditors from contacting you once you file a case. And the 341 meeting is just the informal hearing where you meet the trustee who is handling your case and answer questions about your debts and assets. Another term you will hear a lot is the word “exemption”. This simply means which assets are exempt from a creditor’s reach during your case, and you do have choices when picking your exemptions.

The Bankruptcy Code contains a list of federal exemptions, and you can use these exemptions or you can use the exemptions provided by the state. Every state has a different list, and sometimes the state exemptions are more valuable than the federal exemptions. Some of the more common exemptions include:

● A set value in your vehicle, meaning the value of your car up to that valuation point is exempt from being attached by a creditor.

● A set value in your home, which also means the value of your home, is exempt from creditor attachment up to that value.

● Jewelry.

● Your personal items, such as clothing and household goods.

● Certain savings and retirement accounts.

● Antiques and works of art.

When you are deciding whether you should claim the state or federal exemptions, many factors can come into play. Sometimes the length of time you have lived in the state plays a role, and could cause you to claim your prior state’s exemptions. This might make a difference, depending on the value of things you owned prior to moving, so it is critical to have your attorney do a thorough review of your choices. If you have questions about what you should do, call us today.

For more information about bankruptcy exemptions, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.

How A Chapter 7 Bankruptcy Is Different From A Chapter 13 Bankruptcy

There are a couple of different kinds of bankruptcies, but there are two chapters that apply to individual consumer filers. Individuals, and married couples, most typically file a bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code. Both chapters will allow you to eliminate debt, but the way you get to this result is not the same. If you are thinking about filing for bankruptcy, it is important to first understand the options available to you and how the determination is made as to which chapter you qualify to file.

A Chapter 7 bankruptcy is different from a Chapter 13 in the following ways:

•         A Chapter 7 is a liquidation of debts while a Chapter 13 is a reorganization of debts. This means that in a Chapter 7 you are able to get rid of certain debts, and in a Chapter 13 you come up with a repayment plan.

•         A Chapter 7 lasts about 3 to 6 months, but a Chapter 13 can take up to 5 years to complete.

•         If you want to keep your car in a Chapter 7, chances are you will have to reaffirm the debt and repay it according to the terms of your original car loan. But in a Chapter 13 you can reduce the balance by paying only the value of your car instead of the balance on the loan, and you might even get to pay the reduced amount at a lower interest rate.

•         In a Chapter 7 if you are behind on your house payments the mortgage holder can require you to get caught up all at once, but in a Chapter 13 you can pay the arrearage over time.

•         You can eliminate all of your unsecured debt, like a credit card or payday loan, in a Chapter 7 case but in a Chapter 13 case you have to pay back at least a portion of your unsecured debt load.

Most people prefer to file a Chapter 7, because it is shorter and lets you eliminate credit card debts. But that does not mean Chapter 13 cases are not helpful. There are plenty of benefits to filing a Chapter 13 bankruptcy case, and we can help you realize those benefits. The type of case you are eligible to file depends on your particular financial condition, and how that compares to the amount of secured debt you owe. Let us tell you what your options are, and then let us help you put a plan in action.

For more information about the different types of bankruptcy cases, call us today or reach us online at www.law-ri.com. We will help by looking at the facts of your case and giving you options to reach your financial goals.

A Step By Step Guide To Bankruptcy Basics

If you have ever been to a book store, or searched online for a “how to” guide, you have probably come across top ten lists or books with illustrations on how to get something done. There are guides for just about everything, from how to repair a leaky faucet to how to paint your toenails. If your question involves how to budget your money, how to get out of debt, or what to do if you are not able to pay all of your bills you may have found articles and lists on what bankruptcy can do for you. But the best source for bankruptcy basics is to ask a qualified attorney who has experience filing bankruptcy cases.

A step by step guide to some bankruptcy basics, and what you can expect if you have decided to file a case includes the following:

•         Bankruptcy is designed to eliminate debt you can no longer pay, so your money is freed up to pay for the things you need. The process is initiated by filing a petition. The petition will list out all of your debts, and all of your assets. In order to get this information in one place, you will need to hang on to your paystubs and make a list of all the debts you pay each month.

•         Once your documents have been examined by a bankruptcy attorney, you will be told what chapter of case you qualify to file. A Chapter 7 is a liquidation of your debts, and a Chapter 13 is a plan of reorganization of your debts.

•         After the case is filed, you will appear before the Trustee who has been assigned to oversee your case, and answer any questions about your debts. This is called the 341 meeting, and some of your creditors may be present as well. The questions from creditors are usually harmless, and focus on whether you intend to keep making payments.

•         In a Chapter 7, you can expect to receive your discharge between 3 to 6 months after you file and in a Chapter 13 the timeline is up to 5 years. Once discharge is entered, the debts included in your case are no longer due. But this does not mean that you have to pay them during your case, you do not (unless you reaffirmed the debt, or  are repaying it through a Chapter 13 Plan).

•         During your case you do not have to worry about being harassed by your creditors for payments, because all collection actions have to stop the minute your case is filed. This includes wage garnishments, foreclosures, collection lawsuits, and repossessions.

Every case is different, and we make sure to let you in on any unique facts about your case from the start. Our goal is to help you get out of debt, while understanding how the process works. Call today to find out more.

For more information about bankruptcy and how to manage debt, call us today or reach us online at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations for more convenient one on one office visits.

Four Things To Know Before You File Bankruptcy

Getting a bankruptcy case ready to file can take a lot of work. Most of the work is done by your attorney, but there are some tasks that fall to you to get the ball rolling. When you sit down with a bankruptcy attorney to talk about your options, you will learn what is needed in order to have a case prepared. And, the more documents and information you can provide at your initial meeting, the less you will have to dig up later.

Four things you need to know before you file bankruptcy are:

•         Your income will be examined for the 6 months prior to your case being filed. So you will need to be prepared to provide paystubs for this time period, and should also have at least the last 2 years’ worth of income tax returns on hand.

•         All of your debts have to be listed when you file your case, you are not permitted to leave anything out in the hopes of still using a credit card or taking out a loan from a particular lender. You will need to know everyone you owe money to, the amount owed, the payment address, and the account number. This information is used to show your total debt load, and is also how the Court knows who to give notice to that you have filed.

•         If you have not filed taxes, you will need to have them prepared and then give them to your attorney for processing. Your attorney will be able to hand over your returns to the taxing authorities for filing, and the Court will want to see the returns before your case can be completed.

•         You will be required to take a credit counseling class before you file, and before the Court will enter your discharge. Most times you can take these courses online, and have a certificate of completion sent to your attorney electronically. The sooner you plan to complete these courses, the less you will have on your plate.

We know how stressful it is to not have enough money, and we want to help you. We have experience helping people prepare for what it means to file bankruptcy, and can help you too. Call us today.

For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Three Things To Know About How Filing Bankruptcy Can Help You

If you are having a hard time paying all of your bills, bankruptcy is a good way to get out from underneath of overwhelming debt. Eliminating debt is the biggest benefit to filing a bankruptcy case, but there are other advantages as well. Some of the positive effects of bankruptcy are well-known, while others are not as immediately apparent. For example, it is a pretty well-known fact that bankruptcy can eliminate or significantly reduce your debt load. But it is a lesser known fact that filing bankruptcy can actually help your credit score start to repair itself. This is because the debts you were not paying prior to filing a case were being reported as past due or delinquent, but after you file the notation will be that the debt has been discharged in bankruptcy. And while having a bankruptcy filing on your credit does not necessarily improve your credit score, it does bode well for you to have the information that you are behind on payments be removed from your report.

There are benefits as well, and here are three things to know about how filing bankruptcy can help you:

•         If there is a current lawsuit against you, for collection of a debt or to foreclose on your home, that case must stop. Any action to repossess your vehicle must also come to an end the minute you file a bankruptcy case..

•         Depending on the chapter of case you file under, you might be allowed to pay less for your car and at a lower interest rate to boot!

•         If your income has gone down due to a wage garnishment, that garnishment must stop. This will put more money in your pocket, allowing you to get current on your bills or to make your house payment without struggling.

We know that it sounds scary to have to file bankruptcy, but the benefits waiting for you are worth taking the step. We can help by looking at your finances and letting you know what type of case you qualify to file, and then prepare your case for filing. Once filed we stand by you every step of the way, so you feel comfortable about your decision. If you are experiencing financial difficulty, call our office for help getting your finances back on track.

For more information about how bankruptcy can help you, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Will Bankruptcy Get The IRS Off My Back?

Any unpaid debt you have can be stressful, but some types of debt can cause more anxiety than others. For example, you might be more concerned about being to pay your house payment than you are about being able to pay your dentist, and you might have more worry about a past due tax bill than you do a late payment on your auto insurance. If you have too much debt, and are struggling to get it all paid, bankruptcy is a good answer. But, if part of your debt is past due taxes you need to know a few things before you file a bankruptcy case.

Most taxes are not eligible for a bankruptcy discharge, which means the IRS will still expect you to pay. There are limited circumstances in which you can eliminate certain taxes by filing bankruptcy, but since those are not commonplace it is important to understand what happens if you file bankruptcy while you owe taxes. A couple of ways bankruptcy can help you if you owe taxes include the following:

•         Eliminate other debt so you have more funds available to pay your taxes. When you are not required to make all of your monthly payments, you can use that money to put towards a payment plan on taxes, or to save up so when your tax bill comes due the next year you will have the funds on hand to make the payment.

•         Stop calls and lawsuits, so you have a chance to breathe and figure out your next step towards financial freedom.

If taxes are the main reason you are seeking to file bankruptcy, you should think about what alternatives you have to repay a tax bill. The IRS does have several programs available, and you can probably work out a doable repayment plan, or have your taxes placed into uncollectible status. Depending on your needs and financial circumstances, a work out with the IRS might provide more relief than filing bankruptcy, the only way to make this determination is to talk with a knowledgeable debt management and bankruptcy attorney. It could be that you need to take action with the IRS regarding your taxes, and file bankruptcy to handle your other debt. Whatever your needs, we can help. Call us today to find out more.

For more information about bankruptcy and taxes, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

Five Things To Look Forward To After You File Bankruptcy

Any time you take a major step in life, you wonder what will be around the corner. For instance, if you have recently been married you might be wondering when you will have children or when you will buy your first house as husband and wife. Or, if you have just been hired on at a new job, you might be thinking about how to get to the next level salary-wise or how to earn a promotion to a different position. Having something to look forward to helps us to do the things we need to do on a daily basis, until we get to the goal we are trying to reach.

When your goals involve your money, it is important to stay on track so you don’t wind up without enough funds to do the things you need to do. If getting to your financial goals included filing for bankruptcy, here are five things you can look forward to after your case is over:

●          You will no longer owe any of the debts that were discharged. This will increase the amount of money you have each month, because you will no longer be responsible for making a lot of payments on debts that were not going down.

●          You will not be getting calls or letters from creditors, because their debts will have been discharged and no longer payable.

●          If you were being garnished before you filed a case, you will now enjoy your full paycheck rather than a lower amount due to money being held out for a garnishment.

●          If your home was being foreclosed on, or your car up for repossession, you can rest easy knowing those things won’t happen as long as you provided for those debts within your bankruptcy case.

●          You will have learned from the past, and be prepared to come up with a budget that works and a savings plan to prevent future financial struggle.

These benefits are long lasting, and will help you to get the fresh financial start you need to make sense of your budget. If you are having a hard time keeping current on all of your bills, and need a way to get some relief, call us today for help. We will go over all of your options with you, and make sure you understand your choices.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

Three Tips To Prepare You For Bankruptcy

Most things that come up in life happen without any warning or notice, and so you can be caught off guard and not know where to go. But with money matters, there are usually signs along the way that signal financial distress. Many times when people are unable to pay their bills, they know they have not made a payment. The struggle to make ends meet is very real, and it is rare for a person in that circumstance to have no knowledge or idea that they need help getting back on track.

If you are experiencing a hard time with your budget, or have had unexpected expenses that you cannot pay, you should consider filing for bankruptcy to get out of debt and for a fresh financial start. Here are three tips that will help you get ready to file a bankruptcy case:

●          Keep track of what you have not paid, and the last date on which you were able to make a payment. This can be something as simple as taking out a sheet of notebook paper and starting a list, or doing something more elaborate like making a spreadsheet of your debts and the status of payments.

●          Write down all of your monthly expenses, even if you are not able to pay them each month. This will give you a good idea of where your money is going, and how much you need to make sure everything gets paid.

●          List out your assets, including the value you believe your car has and how much money you make each pay period. This will let you see how much you bring in, and you can compare this list to the list of expenses so you know where you can reduce or cut back on things.

Once you have a good idea of what your monthly finance picture looks like, gather your paystubs and most recent tax returns and head to our office to talk it over. We can look at your expenses, and how they compare to your income, and let you know what type of bankruptcy will work for you.

If you have more questions about bankruptcy, contact us today at www.law-ri.com. We will help you get prepared for what comes after we file your case, and have multiple locations where we schedule appointments.

Am I Allowed To Keep An Emergency Credit Card If I File Bankruptcy?

One of the scariest things is to have an emergency come up, and have no money available to cover the expense. A lot of people try to establish an emergency savings fund for these instances, but it is not always possible to put extra money aside each month. Other times, use of a credit card is necessary to pay for new tires or a home repair. But if you have too much debt and cannot pay it all back, an emergency fund is not likely to solve your financial problems. One thing that will help you though is to file for bankruptcy.

But what do you do if you file bankruptcy and still have an emergency? Are you allowed to keep an emergency credit card during your case? The most probable answer is no, and here is why:

●          When you file a bankruptcy case you are required to list out all of your debts, including all of your credit cards.

●          The debts that are listed in your bankruptcy will be discharged, which means they are no longer due. When your case is finished you cannot be asked to pay for a discharged debt. When one of those debts is a credit card you had hoped to use for an emergency, the card issuer will not let you continue to use the card since it is no longer considered a valid debt.

●          Creditors stop extending credit when you file bankruptcy, at least your current creditors will take this step. Many credit card companies will even close your account, making it impossible to use the card even if you tried.

If all of this has you worried that you will find yourself in need of fast cash without any options, keep in mind that when you discharge a debt you don’t have to pay it anymore. Without all of the payments you are currently making, you save money each month. So your best bet to prepare for an unexpected expense is to take the money, or at least a portion of it, that you were paying toward debt that is being discharged and start a savings account or emergency fund. This way, when you need to get a new washer or dryer, there will be a fund already in place with the money you need. Even the smallest amount each month can add up, and if you encounter an expense before you have enough money saved, there are lenders that will work with you even with a bankruptcy on your credit.

For more information about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Is Chapter 7 Or Chapter 13 Bankruptcy Better?

When you have more debt than you can pay, finding a way out will give you peace of mind and relieve the anxiety associated with drowning in too much debt. Some options include refinancing, asking for lower rates or a restructuring of your payment plan, and even bankruptcy. For consumers, there are two main types of bankruptcy cases and each one offers valuable benefits. A Chapter 7 case is a liquidation of all your debts, meaning the debts you have are wiped out entirely unless you decide to keep making the payments. A Chapter 13 is a reorganization of your debts, into a repayment plan that fits within your budgetary restrictions.

But which type of case is better, or is there a preference among those who file for bankruptcy? Most everyone who has considered filing wants to file a Chapter 7, but that does not make it the best choice or even the better choice. What works for your neighbor may not work for you, so it is important to understand the differences between Chapter 7 and Chapter 13 bankruptcy cases. Some of those differences include:

●          The time it takes to complete a case: Chapter 7 cases are generally over in 4 to 6 months, and Chapter 13 cases can take up to 5 years to complete.

●          Which debts are to be repaid: all unsecured debts are dischargeable in a Chapter 7, but in a Chapter 13 the debtor pays back some percentage of their unsecured debt. The percentage you will be asked to repay depends on the outcome of the means test, which is a mathematical computation that is performed prior to filing. The means test examines your income as it relates to the total amount of secured debt you have, and if there is any income left over after paying all of your secured debt you will be expected to file a Chapter 13 case and put that extra money towards repayment of part of your unsecured debts.

●          How car and home loans are handled: in a Chapter 7 if you want to keep your car and your house, you will need to reaffirm those debts. This means you will sign a document called a reaffirmation agreement, and that document acts like a new contract for the debt. Once your case is over, any debts you have reaffirmed will still be due. In a Chapter 13 if you want to keep these things you can do so by providing for repayment of the debt in your Chapter 13 Plan, and can even pay less than what you owe on your car with the balance being discharged. For repayment of home loans in a Chapter 13, if you are behind you can pay back those past due payment over several months during your plan. These features of a Chapter 13 are unique, and not available in a Chapter 7.

Which type of case you prefer will depend on your particular circumstances, and whether you have filed a prior bankruptcy. To find out more, call our office for a review of your case.

If you have more questions about bankruptcy or need help deciding what to do about overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Who Is Eligible To File A Chapter 13 Bankruptcy?

If you are not eligible to file a Chapter 7 bankruptcy case, you should consider filing a Chapter 13. A Chapter 7, while more preferable due to its ability to eliminate all of your unsecured debt, is not the only choice when you have more debt than you can handle. A Chapter 13, which is like a consolidation of debts, allows you to eliminate most of your unsecured debt and you can also reduce the amount you owe on your car.

You are able to file a Chapter 13 bankruptcy under the following circumstances:

●          You are an individual or a couple with more debt than you can pay.

●          You are an individual or couple with enough disposable income each month, even if it not enough to pay your unsecured debts in full, but to put a little towards those debts after making payment on all of your secured debts.

●          You own a small business, with debts taken out in your individual name, and you are not able to pay those debts or keep your business open.

While a Chapter 13 does last longer than a Chapter 7, and require repayment of at least some of your unsecured debts, it is still an attractive option if you are struggling financially. In a Chapter 13 case you are allowed to pay less than what you owe on your car and possibly even pay it at a reduced interest rate. Chapter 13 matters also handle mortgages in a favorable way, by letting the borrower pay out the arrearages over several months rather than up front, while still making the regular payments as they become due. Doing this will stop your mortgage lender from filing a foreclosure against you, which allows you to stay in your home while you sort through your money and come up with a budget. There is no better place to seek solace and find comfort than in your own home, and when you are dealing with the stress that goes along with having less money than you need each month, the comfort is well worth the work it takes to have a successful Chapter 13 plan.

If you have more questions about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

Who Is Eligible To File A Chapter 7 Bankruptcy?

Most things in life have requirements that must be met before a person can participate. For instance, if you want to drive a car you have to pass the driver’s test first and get your driver’s license. If you want to vote, you have to 18 and then register to vote. And, if you want go to school or get a job, you have to fill out an application first and be admitted or hired on as an employee. But the same is not necessarily true for those that need to file bankruptcy. While there are some requirements, they are not difficult to reach, and people who need help with their bills can usually find it in the process of filing bankruptcy.

There are two types of consumer bankruptcy cases; a Chapter 7 and a Chapter 13. Chapter 7 is the most preferred type of case, because it does not last as long and you can wipe out all of your unsecured debt in a Chapter 7. In contrast, a Chapter 13 is longer and will require you to pay back some of your unsecured obligations. So, who is eligible to file a Chapter 7 bankruptcy? The following information sheds some light:

•         An individual, or couple, who have more debt than they can pay.

•         An individual, or couple, who show that their disposable income amount is such that there is nothing left over each month to put towards any portion of their unsecured debt.

•         A sole proprietor who is in business for himself, with debts being held personally rather than in the name of a company.

•         A self-employed person who does not have enough money to stay on top of all of their debts.

The key in a Chapter 7 case is the means test, and that is the test that will show how much disposable income you have to put towards unsecured debt. If there is nothing left from your income, after your secured debts are paid each month, you should qualify for a Chapter 7 case. Our team of experienced debt management and bankruptcy professionals knows how to perform the means test, and can do this for you so you know what type of case you qualify to file. Call us today for help with your finances, so you can get a fresh start.

For help with managing overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.