Have Your Finances Been Affected By Coronavirus Disease (COVID-19)?
IF YOUR FINANCES ARE AFFECTED BY THE CORONAVIRUS DISEASE (COVID-19), PLEASE CALL ME TO DISCUSS YOUR OPTIONS. I will discuss all your options and offer you a detailed FREE consultation so you can understand if Bankruptcy can help you.
The two available personal bankruptcy options are Chapter 7 or Chapter 13. If you are married, you can file a bankruptcy separately or jointly with your spouse. If you file separately it will not affect your spouse.
In some cases it will be in your best interests to wait to file a bankruptcy. If you feel stressed and just would like to understand your options, please call me. I will be working throughout this crisis to educate anyone who needs advice. The filing of the bankruptcy will offer immediate protection so there is no need to rush.
IF THE CORONAVIRUS HAS RESULTED IN LOSS OF INCOME TEMPORARILY AND YOU CAN’T MAKE YOUR MORTGAGE PAYMENT OR OTHER PAYMENTS, DON’T PANIC. FILING A CHAPTER 13 AT THE APPROPRIATE TIME WILL SAVE YOUR HOME IF YOU FALL BEHIND.
Two Types Of Personal Bankruptcy: Chapter 7 And Chapter 13
A Chapter 7 will allow you to eliminate (DISCHARGE) your credit card debt and most other debts. There is an income qualification to file this bankruptcy.
A Chapter 13 will stop and prevent a foreclosure and allow you three to five years to get caught up on your mortgage if you fall behind on payments. A Chapter 13 can also substantially reduce your credit card payments if your income is too high to qualify for a Chapter 7.
I HAVE THE EXPERIENCE AND KNOWLEDGE TO HELP YOU UNDERSTAND WHICH BANKRUPTCY IS MORE PREFERABLE FOR YOU AND YOUR FAMILY. IN SOME CIRCUMSTANCES ITS BENEFICIAL TO WAIT TO FILE A BANKRUPTCY AND MY CONSULTATIONS ARE ALWAYS FREE.
Individuals Can File A Chapter 7 Or Chapter 13 Bankruptcy
All bankruptcy cases are filed in under federal law and in federal court. These federal laws control and allow you to eliminate (discharge) most debts. My office is trained and registered with the Federal District Court and my cases are filed directly from my office. This is important because the filing of a bankruptcy case creates an a provision under the law called the AUTOMATIC STAY. This provision immediately STOPS the following actions by your creditors, including:
- Garnishments of wages
- Garnishments of bank accounts
- Home foreclosures
- Automobile repossessions
Chapter 7 Bankruptcy: Eliminate Debt And Get A Fresh Start
Chapter 7 is a form of bankruptcy in which you eliminate (discharge) most unsecured debts like credit cards, medical bills, cash advances, old cellular phone bills, personal loans and deficiency balances on car repossessions.
Secured or leased debts – such as house loans and car loans – must be paid back pursuant to your contract if you want to keep the property. There is no payment plan. If you do not want the property, you can stop paying the debt and eliminate (discharge) it. In this case you can keep the property temporarily.
If you qualify for Chapter 7, a discharge (or the clearing of your debts) takes place within approximately four months of filing, and there is typically only one court meeting, called a 341 Meeting of Creditors. There is no Judge at this meeting, only a lawyer who is called a “Trustee.” With my firm, this meeting is usually quick (less than 10 minutes) and low stress.
An Automatic Stay Stops All Collection Immediately
The filing of a Chapter 7 bankruptcy creates the AUTOMATIC STAY, which is a provision under the law that stops all collection such as a foreclosure sale, garnishment or repossession. Creditors must also stop contacting you.
To file a Chapter 7, there is a limit on how much property you can keep and how much income you can earn. If you have too much property or income, you may be eligible to file a Chapter 13 Bankruptcy.
Chapter 13: Stop Home Foreclosure, Auto Repossession And Reduce Unsecured Debt
With a Chapter 13 bankruptcy you will be required to make payments to court-designated trustee, who will then distribute the funds to your creditors. If you qualify, a Chapter 13 will stop or prevent a foreclosure if you are behind on your mortgage. However, you must continue paying your current mortgage payment but the arrearage (amount you are behind) can be paid back over a period of 36 to 60 months. It is important to keep in mind that you must file the Chapter 13 BEFORE THE FORECLOSURE SALE to save the home.
You may also file a Chapter 13 bankruptcy to stop or prevent auto repossession. The court may even allow you to get your car back after its repossessed.
If your income is too high for a Chapter 7, you can qualify to file chapter 13 to lower your credit card balances and other unsecured debt.
Understanding Credit Reporting On The Three Credit Bureaus
There are three credit reports that will be affected by filing for bankruptcy. They are Experian, Transunion and Equifax. The Chapter 7 bankruptcy record can stay on your credit reports for up to 10 years from the filing date, and a completed Chapter 13 bankruptcy can remain on your credit report for seven years from the filing date.
The accounts that were included in your bankruptcy may fall off your credit report earlier, as most negative marks get removed after seven years.
Bankruptcy Can Give You A New Beginning. Call 248-357-3000 Today.
I am attorney Danny Kallabat and I am an experienced bankruptcy lawyer who has been helping people get out of debt and get a fresh start since 1997. At my law firm, Danny Kallabat, P.C., I can stop repossession, foreclosure, wage garnishments and harassing creditor calls. I can also help you eliminate or reduce your credit card debt and medical bills.
I carefully discuss all available options with every client to ensure the best possible results and I am committed to keeping his frees reasonable and competitive. I draw from over two decades of experience as a bankruptcy lawyer to offer you the highest quality of legal representation. I will do everything possible to resolve your matter quickly, while obtaining the best possible results for you. When you retain my office, you can have confidence that you are hiring a lawyer who will treat you with respect, answer all of your questions and protect your legal rights. Call or email me today.
Danny Kallabat, P.C., is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.