Articles Posted in Chapter 7 Bankruptcy

Chapter 7 Bankruptcy can be filed by individuals or married couples and is often called a “consumer” bankruptcy. A Chapter 7 bankruptcy typically takes about six months to completely close. A chapter 7 case begins by filing a petition with the bankruptcy court serving the area where you live. In addition to the petition, you must also file various schedules and sworn statements. A husband and wife may file a joint petition or individual petitions. Even if filing jointly, a husband and wife must both file all the documents required of eligible individual debtors. If you have secured debts such as a mortgage or vehicle that you wish to retain, they will go through the Chapter 7. You will sign what is called a “Reaffirmation Agreement” which in simple terms means you sign back up for the debt. If you have unsecured debts such as credit cards, medical bills, payday loans, etc a Chapter 7 will wipe out these debts. If you are facing garnishment, a Chapter 7 will stop such creditor actions. The Chapter 7 filing fee is $338. This fee must be paid to the clerk of the court upon filing unless the court specifically allows you to pay in installments. Our fees are income-based. Give us a call. We are happy to let you know up front what the fees will be once we discuss your specific situation. We utilize income to determine fees not only because it’s fair, but also because this flows with the workload required on our end when filing bankruptcy cases. The higher the income, the more that is required (ie: Means Test, etc) to meet eligibility standards.

Who Is Eligible To File For A Chapter 7?

Published on: May 29, 2012 | Frank Coxwell

Most individuals will qualify to file for Chapter 7 regardless of the amount of debt. However, income must also be considered when filing for Chapter 7 bankruptcy. For example, if disposable income is sufficient to fund a Chapter 13 repayment plan — which is determined by your attorney completing what is called a “Means Test” which subtracts certain allowed expenses and monthly payments for certain debts from your gross income — you will not be allowed to use Chapter 7 bankruptcy but rather qualify for a Chapter 13 bankruptcy.

This is an area where it is important to consult with an experienced bankruptcy attorney. Your attorney will review your situation in depth through the “Means Test” process and advise you accordingly based upon the results.

So to sum it all up – an individual, a partnership, a corporation or other business entity may qualify to file for Chapter 7 so long as:

Are you living paycheck to paycheck?

Published on: September 7, 2011 | Frank Coxwell

Despite everybody’s opinion that the economy is getting better, one thing is for sure – if you’re living from paycheck to paycheck, things are tough no matter what they say. If you suffer an illness, pay cut, or lose your job and miss a week (or heaven forbid several weeks) of pay – you’re in a world of hurt! Roughly 42% of Americans report that they live this way, barely making ends meet. What’s worse, more and more Americans are stealing from their future to live today – 21% of workers have stated they reduced their 401K contributions and/or personal savings in the last year and 34% say they aren’t contributing at all to such programs. As an attorney who helps people solve debt problems, I see people making mistakes and doing things that actually make the situation worse than it has to be. They are too ashamed or afraid due to myth and rumor to discuss bankruptcy with an attorney so they first deplete their 401K, all other savings, borrow all they can from friends & family (which adds difficulty to others), and sell their possessions – all of which could have been prevented. In most cases bankruptcy will protect your money and property. Bankruptcy is not what it used to be. Creditors spend millions of dollars to spread the propaganda that only bums and fraudsters file bankruptcy. The truth is very different. Bankruptcy is a very powerful consumer protection law and financial tool that it is an intricate part of our American economic system. Our founding fathers took the idea of bankruptcy from the Bible and fashioned laws to give every American the right to a fresh start and a huge part of that fresh start is the protection of your money and property that will help you to begin that new life!

What is Chapter 7 In Mississippi?

Published on: September 22, 2009 | Frank Coxwell

There are many types of bankruptcy, but only two types that most Mississippi residents would be interested in.

Chapter 7 is what people refer to as total bankruptcy, liquidation or complete bankruptcy. Where a Chapter 13 proposes a plan to repay your creditors over set period of months, Chapter 7 wipes out or discharges your debts right away without any payment and gives you a clean slate.

The Chapter 7 will still allow you to keep your house and vehicles. The unsecured creditors such as credit cards and medical bills are totally wiped out, discharged, and can never be collected from you. There is nothing deducted from your paycheck and you are responsible for continuing to make the monthly payments on the house, car and truck and any other property you intend to keep.