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QUESTIONS ABOUT BANKRUPTCY
What services does HANK4HELP provide?
We specialize in helping people who are experiencing financial stress
by providing Chapter 7 and Chapter 13 Bankruptcies, as well as Offer
and Compromise. Bankruptcy is a federally guaranteed right that
helps families and individuals with financial problems seek a fresh
start.
What is a Chapter 7 Bankruptcy?
Chapter 7 is a liquidation bankruptcy that commonly gives relief
from unsecured debt such as credit card, medical bills, lawsuits,
garnishments, and car repossessions by liquidating (turning assets
over to the Court that have high equity) and then discharging
(wiping out) debt. A Chapter 7 Bankruptcy does not change secured
agreements (such as car leases, real estate mortgages, and tax
liens). A Chapter 7 Bankruptcy lasts approximately four months.
A Chapter 7 Debtor cannot have more than $200.00 in extra income
after their living expenses have been paid and cannot have filed
a Chapter 7 Bankruptcy in the last 8 years.
About 30 days after a Chapter 7 Bankruptcy is filed in Bankruptcy
Court, a hearing is conducted in front of a Trustee, a court-appointed
administrator of the case. A discharge is granted once the Trustee
determines that:
- The Debtors’ household income is below the state median;
- The Debtors have no assets with large equity that must be sold
to pay the Debtors debts; and
- The Debtors are not abusing the bankruptcy system.
- What are the general results of a Chapter 7?
- Stops bill collectors form contacting you.
- Stops garnishments, lawsuits and judgments.
- Stops utility shut-offs.
- Keep the debt you want to keep.
- Obtain a “fresh start” from most unsecured debts.
- Provides for return of Drivers Licenses suspended for unpaid
judgments.
- Many people have better credit ratings after a bankruptcy than
before.
- Many people have normal credit scores 3 years after a bankruptcy.
What is a Chapter 13 Bankruptcy?
A Chapter 13 Bankruptcy is a reorganizational type of bankruptcy
filed by an individual with income. The individual prepares a “plan”
to repay their bills. Taxes are usually paid in full. Secured debts
are usually paid in part and unsecured debts are paid pennies on
the dollar.
- What are the general results of a Chapter 13?
- Stops real estate foreclosures, auto and furniture repossessions.
- Stops lawsuits, garnishments and tax levies.
- Pay back some debt on a reduced basis (For example, you would only
pay debt for what your car is worth, not how much you owe. Another example
is paying what you can afford to pay of your credit card debt, not paying
the entire credit card debt.)
- Protects co-signers.
- Stops the IRS, child support and student loans collection practices.
- What are the advantages of a Chapter 13 over a Chapter 7?
- A Chapter 7 Bankruptcy only deals with unsecured debt while a Chapter
13 Bankruptcy deals with taxes, secured and unsecured debt.
- In a Chapter 13, no attorney fees are paid upfront.
- Propose your own repayment plan (for example, it allows you to get
caught up on the house payments in 3 to 5 years and pay the credit cards
a nickel on a dollar.)
- In Chapter 13, you pay some secured debt on a reduced basis.
- Chapter 13 bankruptcies protect co-signers.
- You get to keep your assets in a Chapter 13.
- In Chapter 13, there is no waiting period after a prior bankruptcy
(after a prior bankruptcy, there is an 8 year waiting period to file a
Chapter 7.)
- Chapter 13 Stops IRS interest and penalties from accumulating.
What is Offer and Compromise?
Offer and Compromise is an agreement between the IRS and the taxpayer
as to how taxes are to be settled and paid (usually on a reduced
basis that you can afford and the IRS agrees to).
Will I lose my house?
In over 40 years of doing Chapter 7 Consumer Bankruptcies and serving
thousands of clients, we have never had a client lose their house
to the Bankruptcy Court and have saved hundreds of homes from mortgage
foreclosures for our clients. It is extremely rare that Consumers
lose any asset in a Bankruptcy.
How soon can I file bankruptcy to stop
foreclosure on my house or get the creditors to stop calling?
Attorney Sefcovic, P.C. does same-day filing, which will immediately
stop your foreclosure and put an end to the creditors calls.
How can bankruptcy help with my credit
card debt?
Credit card debt is one of the most common reasons people file bankruptcy.
A Chapter 7 bankruptcy usually fixes the problem because a Chapter
7 Bankruptcy will:
1. Eliminate your unsecured debts and
2. Wipe out debt on secured items that you no longer want.
How can bankruptcy help with medical bills?
Medical bills are one of the most common reasons people file bankruptcy.
Filing bankruptcy will:
1. Eliminate your unsecured debts, including wiping out all of your
medical bills,
2. Wipe out debt on secured items that you no longer want, and
3. Restructure some secured debts, if you file for a Chapter 13
Bankruptcy.
How can bankruptcy help with my financial
problems after a divorce or separation?
Divorce and separation are one of the most common reasons people
file bankruptcy. After a divorce or separation, two families must
get by on the income that used to support just one family. This
decreases your income and increases your bills.
Filing bankruptcy will:
1. Eliminate your unsecured debts,
2. Wipe out debt on secured items that you no longer want, and
3. Restructure some secured debts, if you file for a Chapter 13
Bankruptcy.
How can bankruptcy help with a reduction
in income?
Filing bankruptcy will reduce your bills by:
1. Eliminating your unsecured debts,
2. Wiping out debt on secured items that you no longer want, and
3. Restructuring some secured debts, if you file for a Chapter 13
Bankruptcy.
Can I file for bankruptcy?
After the Bankruptcy Reform of 2005, almost all people can file
bankruptcy with the aid of a skilled bankruptcy attorney.
What if I don’t have enough money
to file for bankruptcy?
HANK4HELP (Attorney Sefcovic, P.C.) will work with you to find a
mutually- agreeable payment plan.
Can I go bankrupt on a debt from a lawsuit?
Clients have asked, “My creditors sued me and won, can I now
go bankrupt on that debt?”, and the answer is “yes!”.
How will bankruptcy affect my credit?
Most clients have better credit scores after a Bankruptcy than before
and are able to buy cars and homes two to three years after their
Bankruptcy is over.
Why does Mr. Sefcovic (Hank) spend time
in both Bay City and Flint?
Hank is often asked why he spends time in Bay City and in Flint.
The US Bankruptcy Court Eastern Division of Michigan has one bankruptcy
judge who spends half his time in Court in Flint and half his time
in Court in Bay City. Therefore, Hank is available to clients at
the locations of the Judge and US Bankruptcy Court in the Eastern
Division of Michigan, which are Bay City and Flint.
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