Bankruptcy gives an outlet to struggling debtors and an opportunity for a fresh start. The Davis bankruptcy attorneys at Pakpour Banks LLP offer compassionate legal services to meet your needs.
At Pakpour Banks LLP, we dedicate ourselves to serving clients and their families. When you are struggling with debt, it is hard to plan for the future. Creditors harass you and garnish your wages. The pressure of debt makes you argue with your spouse. Maybe you feel like you’ve let your family down. Filing bankruptcy can stop debt collection efforts and get you moving forward.
Bankruptcy isn’t giving up. It’s taking control. Let our compassionate, experienced Davis bankruptcy lawyers support you through the process. When you call our office, you reach an understanding professional who will help you sort through your options. Contact us today if you’re ready to get started on your goals. Hablamos español.
What Are the Benefits of Filing for Bankruptcy?
In 1934, the U.S. Supreme Court stated that the goal of bankruptcy was to give debtors a fresh start. Bankruptcy erases (discharges) many consumer debts after a liquidation or period of repayment. For those who find themselves underwater with debt, bankruptcy is a “new opportunity in life and a clear field for future effort.” Most individual consumers file Chapter 7 or Chapter 13 bankruptcy. When you file bankruptcy with us, you get immediate relief from debt collections and a seasoned counselor who will guide you through every step of the process.
What Happens in Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy requires a debtor to liquidate their assets, with some exceptions. First, the debtor submits a list of their debts, assets, and income to the bankruptcy court. Then, the court assigns a U.S. Trustee to the case, who holds a meeting to determine the rights of the debtor and creditors. Most consumer debt cases are “no asset” cases, meaning the individual’s assets are exempt or subject to a lien. In these cases, there is no distribution to unsecured creditors, like credit card debt and some medical debt. If assets remain after accounting for liens and exemptions, the U.S. Trustee will collect and liquidate the assets for distribution to creditors who make a claim. After the liquidation, the debtor receives a discharge of eligible debts.
The downside to Chapter 7 bankruptcy is that the debtor must pay filing fees up front, including a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge. The courts typically allow debtors to pay these fees in installments, so long as the last payment is completed within 120 days of filing (or 180 days if you can show just cause).
What Happens in Chapter 13 Bankruptcy?
Unlike in Chapter 7, a Chapter 13 bankruptcy does not require liquidation of assets. Instead, the debtor reorganizes with a plan to repay what they can over three to five years. The creditors and bankruptcy court must approve the plan. If the debtor makes all payments under the plan, they receive a discharge on any remaining debt. Chapter 13 allows debtors to reschedule secured debts (like a mortgage) and repay them on new terms under the plan.
Usually, Chapter 13 stops foreclosure proceedings and allows debtors to cure delinquent mortgage payments over time. Chapter 13 is like a consolidation loan, where the U.S. Trustee collects and distributes the payments to creditors. The filing fee for a Chapter 13 bankruptcy includes a $235 case filing fee and a $75 miscellaneous administrative fee. These fees may be paid in installments if approved by the court.
When Might Bankruptcy Lead To Litigation?
When debtors have few assets available for distribution, most debtors receive a discharge quickly after a single hearing. However, there are opportunities for disputes. Creditors can dispute the asset’s worth, the amount owed, or whether the discharge should include certain debts.
Third parties may also complain about who owns the property and whether it belongs in the bankruptcy estate. It is also common for creditors to dispute how much money should go to lawyers, accountants, auctioneers, or other professionals. When there is an objection, the resolution process is much like a civil court trial process.
There can be evidence discovery, pretrial proceedings, settlement efforts, and a trial before a judge or jury. If your case involves a dispute, your lawyer will help argue your case and ensure a fair outcome. The Davis bankruptcy lawyers at Pakpour Banks LLP have experience litigating bankruptcy disputes and will keep you updated through every stage of the case.
What Does a Bankruptcy Lawyer Do?
A bankruptcy attorney protects your interests. When creditors are clamoring for what money you have, your attorney will fight for you, your family, your home, and your assets. Your attorney will help you complete all the paperwork and disclosures required for a bankruptcy case. They will help you enforce the automatic stay, keeping creditors from instigating debt collection actions or wage garnishment against you. They know what exemptions will apply to your assets, so the court can allow you to keep your home or car—if those are your goals. Ultimately, your attorney will ensure that the steps you take during bankruptcy will help you meet your future goals. They will guide you on everything from filing the petition to the right way to take on post-bankruptcy debt.
What Distinguishes the Davis Bankruptcy Attorneys at Pakpour Banks LLP?
With a long history of helping individuals, Pakpour Banks LLP has been helping clients overcome their legal problems since 2013. We know that life is challenging when you’re thinking about filing for bankruptcy. That’s why we make ourselves available and accessible to our clients. When you feel overwhelmed, a compassionate professional at our office will be here to listen.
Once we understand your situation, one of our experienced Davis bankruptcy lawyers will explain your options and help you decide whether bankruptcy is right for you. You don’t need to know whether Chapter 7 or Chapter 13 is right for you before you call. We will help you decide what to do to meet your financial goals and get to where you want to be. Contact our office today!
Our firm handles other types of cases as well, including: