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Yes, in most cases our clients keep their homes and vehicles. There is a limit as to how much property can be protected in bankruptcy, so the first duty of our office is to complete an inventory of your property and to identify those assets which may be at risk. This is where our firm’s experience matters. Bankruptcy laws are complicated, and you need to hire an attorney that has handled thousands of cases just like yours. Too many people do lose their homes, cars, tax refunds, bank deposits, and other assets because they hired the wrong attorney.

Yes, there is a court hearing that takes place about 30 days after a case is filed. About six to 10 cases are scheduled for the same half-hour time slot, so these hearings tend to last about 3 to 5 minutes in most cases.

In every Chapter 7 case, a trustee is appointed to review the paperwork and to liquidate the non-exempt property. Every state has laws that protect your basic property, and we refer to these laws as Exemptions. The Chapter 7 Trustee has the duty of liquidating the property that is not exempt. Now, just because an asset is not protected, that does not automatically mean the asset will be lost. It is not uncommon for some debtors to have a few thousand dollars of unprotected equity in a vehicle, and part of our firm’s service is to negotiate with the trustees to keep the asset by paying off the non-exempt equity and to know when to steer clear of Chapter 7 in cases where too much equity is at risk.

Our firm’s policy is to provide a free initial consultation in person or over the phone. Bankruptcy is not always the right decision, and you need an attorney honest enough to review all your options. We are here to help you, not judge you.

Chapter 13 Stops Foreclosures: Homeowners are allowed to cure an existing mortgage default over the three- to five-year payment plan. The homeowner must resume the regular house payment the month after the case is filed, and they are permitted to make an additional payment each month through the bankruptcy trustee to slowly eliminate the mortgage loan default.

Lien Stripping: If you have a second mortgage and the value of the home is less than the amount owed on the first mortgage, Chapter 13 has the special power to “strip off” the second mortgage debt. At the completion of the bankruptcy case, the junior mortgages are simply discharged. Chapter 7 will not strip off a junior lien.

Cram-Down of Auto Loans: Owe more on your vehicle than what is worth? Owe $10,000 on a car that is worth only $5,000? If the vehicle was purchased more than 910 days (about two and a half years) prior to the bankruptcy, Chapter 13 allows debtors to pay off only what the car is worth at an interest rate currently set at 5.25 percent.

Non-exempt Assets Are Protected: Unlike a Chapter 7 case, the trustee in Chapter 13 does not have the power to liquidate unprotected assets. So, if you have too much equity in a home or vehicle, Chapter 13 is the safer choice.

Tax Debts: Many tax debts cannot be discharged. The Chapter 13 payment plan can be used to pay off these taxes so that you emerge from bankruptcy 100 percent debt-free.

Co-Signer Protection: Chapter 13 has special protection for co-signers of consumer debt. Debtors may pay off those debts in full before other debts are paid.

Ongoing Medical Bills: Although Chapter 13 only discharges those medical debts owed at the time the case is filed, the case may be converted to Chapter 7 at any time and newly incurred medical debts may be added. So, in cases where a debtor lacks health insurance or in cases where there is a chronic medical condition resulting in ongoing medical debt, Chapter 13 may be the better choice until the condition changes.

Lower Filing Fee: Unlike a Chapter 7 case, attorney fees are typically paid through the Chapter 13 plan, so it is less costly to file Chapter 13 initially. In the long run Chapter 7 is the cheaper way to file, but many debtors simply cannot afford to pay the upfront fees required to file Chapter 7.