Bankruptcy

If your creditors are making your life miserable, Bankruptcy may be able to help make a lot of the frustration disappear.  Here at the Sandoval Law Firm we are here to help you evaluate your options, to determine if Bankruptcy is the answer for you. We can also help you decide when would be the best time for you to file Bankruptcy. 

The U.S. Bankruptcy Code delivers protection to people in financial jeopardy who are suffering under mountains of debt. Today, millions of people are exercising this protection. Many Creditor’s have selected this option. You also have that right.  To make an appointment to evaluate your options, call us at 505-247-4944.

The Bankruptcy laws were created by Congress to provide relief to those who have been overwhelmed by debt from credit cards, divorce, job loss, identity theft, staggering medical bills or disability. Usually, however, a combination of unfortunate events contributes to significant financial woes. Some seemingly manageable credit card debt can become insurmountable when combined with a job loss. So, stop blaming yourself for your situation and take control of it.  When you file for Bankruptcy an “Automatic Stay” order is issued.  This will prohibit any further action by your creditors to collect their debts from you. The calls and bills will stop. You won’t have to worry about repossession of your car or foreclosure on your home. You will have the chance to get your situation back in order.

Chapter 7 Bankruptcy is designed for individuals who wish to make a fresh start, but cannot pay their debts from their income.

Chapter 7 Bankruptcy is for those with little or no income beyond that necessary for food, shelter, and other necessities. The most common reasons for consumer Bankruptcy are: garnishments, foreclosure, unemployment; large medical expenses; seriously over-extended credit; marital problems and other large unexpected expenses.

The Process

The Bankruptcy process requires you to do specific things, such as obtaining a credit counseling briefing before filing and completing a debtor education course after filing.  I will  assist you through what is required of you and make sure that your case is up to code and following all guidelines and time lines.  This is critical because your discharge could be denied because of a failure to complete all the requirements.

A Chapter 7 filing includes a petition, schedules of assets and liabilities, and a statement of financial affairs.  The person filing a Chapter 7 is referred to as the “debtor.”  The person or company to whom your debt is owed is called the “Creditor.”

At the time of filing, an order staying all collection procedures, garnishments, foreclosures and law suits is issued. This means that all your creditors must immediately stop bothering you.  Garnishments must stop immediately. Foreclosures are stopped.

Approximately 30 days later, a “Meeting of Creditors” is held.  The debtor(s) must attend this meeting and Creditors may appear and ask questions regarding the debtors’ financial affairs and property. The trustee will question the debtor on his financial affairs. The trustee is not a judge, but an individual appointed by the United States Trustee to oversee Bankruptcy cases It is important for the debtor to cooperate with the trustee and provide any financial records or documents that the trustee may request.  Note, that if a husband and wife have filed one joint petition, both must attend the Creditors’ meeting.

At the end of the case, the individual debtor receives a “discharge” from the  obligation to pay debts listed in the Bankruptcy petition.  Chapter 7 Bankruptcy cases move relatively quickly, and you may receive your discharge in just a few months. A discharge will eliminate unsecured debts like credit card debt, medical bills, most personal loans, judgments resulting from car accidents, deficiencies on repossessed vehicles, some older tax debts, payday loans, and garnishments.  Certain debts are classified “non-dischargeable debts” and cannot be discharged, or can only be discharged under very specific circumstances. These include child support, most student loans, judgments for DWI, debts incurred by  fraud, and many tax debts.

As a general rule, all debts are discharged except:

  • Alimony and support obligations;
  • Certain taxes, and court fines;
  • Debts incurred by fraud, embezzlement, larceny;
  • Debts arising from willful and malicious injury;
  • Debts arising from driving while intoxicated; and
  • Certain educational loans;

Before filing for Chapter 7 Bankruptcy, you will have to qualify through a Chapter 7 means test. Although there was a lot of media hype about the Chapter 7 Bankruptcy means test disqualifying people from filing for Chapter 7 Bankruptcy when it was introduced in 2005. The truth is that more than 96% of potential Chapter 7 petitioners still qualify. In the unlikely event that you are one of those few who do not, filing Bankruptcy may still be an option; this time in the form of Chapter 13 Bankruptcy.

Want to stop those garnishments, foreclosure, or harassing creditor phone calls and collection letters?

Contact us today.  We are a debt relief agency.  We help people file for Bankruptcy relief under the Bankruptcy Code. We even make it easy for you to afford your Bankruptcy. We can begin your case for a small down payment, and you can pay our low fees in an easy installment plan. Call now to make your appointment at 505-247-4944.