For many of our clients who are not able to work, they also have related financial problems. Solomon Law counsels our clients about their financial options. For some people, bankruptcy may be the best alternative. We offer a low flat fee rate (plus costs), for which we will prepare all of your paperwork, help you fulfill other requirements, and attend a meeting on your behalf with a bankruptcy trustee.
The most important decision when filing for personal bankruptcy is choosing whether to apply through Chapter 7 of the bankruptcy code, or Chapter 13.
Chapter 7 bankruptcy is for those people who have low income or no disposable income. No payment plan to creditors is required. When your bankruptcy plan is approved, you essentially are done with the process. Some assets may be retained through “exemptions.” You possibly can save your house and car. If the exemptions allow in your case, you can keep your wages if you have disclosed them fully, and keep your tax refund.
Chapter 13 bankruptcy is for people who have a stable job or other source of regular income. A payment plan to creditors is required, through which you will pay back a portion of what you owe. Generally, Chapter 13 is better for your credit in the future than a Chapter 7 bankruptcy. Chapter 13 may be the one type of bankruptcy available to you if you cannot pass some tests for qualifying for Chapter 7, such as having significant 401(k) assets. In Chapter 13, you can save your house, and possibly your car. “Exemptions” allow you to keep some assets, and you may even be able to keep some “non-exempt” assets. Child support income may be able to be deducted. You may pay back income taxes at no interest. Limits exist for how much debt you can discharge in Chapter 13, but the limits are fairly high.
Let us help you start fresh financially. Contact Solomon Law today.