Michael D. Tracy has Solutions
Feeling down, Bunky, because of constant creditor calls? That ol' foreclosure notice gettin' to ya?
Worried about wage garnishments or losing your house?
Well, we have solutions!
The law in our country recognizes that the overall economy works better when people are making and spending money. It is not good for the overall economy to have people burdened with debt for the rest of their lives because of bad luck or momentary poor judgment.
Bills can mount up for many reasons, such as illness, loss of job, gambling and the like. The federal bankruptcy laws allow you to get rid of all those pesky credit card bills, keep your sanity and start fresh with a new set of credit cards.
The standard bankruptcy for most people that wipes out those credit cards is filed under the federal bankruptcy laws, commonly called a "Chapter 7" bankruptcy. You can keep a lot of your property, such as a car, house, clothes, retirement accounts and the like. These are called "exemptions" . The law puts some monetary limits on these exemptions, but most people find them liveable and keep most if not all of their existing property.
Chapter 13 is another area of the bankruptcy. It was formerly called a "wage earner plan". To file under this law you need an income. Most people use this plan to save a house from foreclosure. Under Ch. 13 your past due payments on your home (and/or other secured debt) are paid off over a period of time (usually 36 to 48 months). The court usually wipes out your credit card debt as part of the "plan".
The lender has no choice in this matter, as the bankruptcy court forces the lender to take these back payments in this manner. There is some cost to this, such as attorney fees (usually under $2,000.00, with most of it paid as part of the monthly payments, the trustee's fee, and a court filing fee of about $200.00).
Our general fee for a Chapter 7 is $2,200.00 plus the court fees