Litman Associates Logo
HOME OF
1 (877) GOT-TAXES?
& GotTaxes.com

Debt Settlement and Bankruptcy

If you are you ready to stop hiding from your creditors and start your life over, debt free, let us know in confidentiality. Call us at 732.725.7070 (NJ) | 718.207.8400 (NY) | 877.GOT-TAXES | 877.468-8293 (toll free)

We will review your situation in detail and refer you to one of our quality bankruptcy attorneys who deal both with individuals and businesses.  They practice with a particular emphasis in the areas of Chapter 7 and Chapter 13 bankruptcy. One of the goals of the Bankruptcy Code is to give debtors a fresh start, without the burden of overwhelming debt.

We work with a team of experienced bankruptcy attorneys who are ready to assist you if you come across a financial hardship. They examine and analyze cases of every prospective client by meeting with them and reviewing in detail their unique circumstances. A plan is established, which will help the client in their financial struggles. Our philosophy is that every case is unique and every client requires an individual approach.

We understand that difficult times may lead to the accumulation of financial debt. Many try to manage the financial burden on their own without the help of a bankruptcy attorney. However, you may worsen your financial situation and create a greater financial problem without some professional debt relief consultation. If you are one of the individuals who cannot overcome a financial hardship, we advise that you to seek advice of an experienced attorney.

There are many debt management options and the United States Bankruptcy Code governs the Bankruptcy laws. The primary goal of these bankruptcy laws is to provide debtors with an opportunity for a fresh start.

Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are the two consumer bankruptcies that are commonly used by the Debtors to discharge their debt. When the Debtor receives a Discharge Order, this means that the Debtor is not legally obligated to pay back any of their Debt that was discharged through the bankruptcy. Basically, a Debtor is able to start fresh after receiving this Discharge Order.

If you are struggling financially or have already lost hope, do not hesitate to contact us, as we will help you find options. Every client will receive personal and undivided attention and can be sure that they will receive high class legal representation. Our team of experineced bankruptcy attorneys have filed hundreds of successful bankruptcy petitions on behalf of clients, which is proved by their success rate and satisfaction.

Chapter 7 and Chapter 13 Bankruptcy eliminates unsecured debt. Some examples of unsecured debt that Chapter 7 may eliminate are: most personal loans, credit cards, medical bills and deficiencies on repossessed vehicles.

In most times Chapter 7 Bankruptcy is the quickest, least expensive and easiest way to discharge your debt. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as would with Chapter 13. Instead, the bankruptcy Trustee gathers and sells the debtor's nonexempt assets and uses the proceeds from this sale of the non exempt property to pay creditors in accordance with the provisions of the Bankruptcy Code. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a Trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property and therefore potential debtors, prior to filing for bankruptcy, should seek the advice of Bankruptcy Attorney.

When a Chapter 7 petition is filed, the U.S. Trustee's Office appoints an interim Trustee to administer the case and if need be, liquidate the debtor's nonexempt assets. If all the debtor's assets are exempt or subject to valid liens, the Trustee will normally file a "no asset" report with the court, and there will be no distribution to unsecured creditors. This is typically the way most Chapter 7 cases are resolved. But if the case appears to be an "asset" case at the outset, then the Trustee sends out a proof of claim to all the creditors in the case and these creditors must file their claims with the court within 90 days after the first date set for the meeting of creditors. A governmental unit, such as IRS or Labor Department, however, has 180 days from the date the case is filed to file a proof claim. In the typical no asset Chapter 7 case, there is no need for creditors to file proofs of claim because there will be no distribution. The primary role of a Chapter 7 Trustee, in an asset case, is to liquidate the debtor's nonexempt assets in a manner that maximizes the return to the unsecured creditors.

Chapter 13 may offer individuals a number of advantages over Chapter 7 Bankruptcy.  You may consider Chapter 13 Bankruptcy as a good option if you do not meet the criteria for filing a Chapter 7 Bankruptcy. Chapter 13 offers individuals a number of advantages over liquidation under Chapter 7. Perhaps most significantly, Chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this Chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the Chapter 13 plan on time. Another advantage of Chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the Chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signers. Finally, Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 Trustee, who then distributes payments to creditors. Individuals will have no direct contact with creditors while under Chapter 13 protection.

To qualify for Chapter 13 Protection, you must be an individual with regular income. There are also certain debt limits which may prevent you from filing for Chapter 13 Protection. Specifically, Individuals having more than $250,000 in unsecured debt and more than $750,000 in secured debt are precluded from filing for Chapter 13 Protection.

Please note, we do not provide legal advice through this website and visitors of this website should schedule an in-person consultation for such. This website only provides general information over the internet that under no circumstances should be construed as legal advice to be applied to any specific factual situation. Since the information is current when posted on this website, we are not responsible for any outdated information.

Bankruptcy laws are challenging to understand and that is why it is recommended that you consult with a qualified attorney before filing for bankruptcy.  Feel free to call us so we can help you with your debt situation in full confidentiality.

« Back to main services

English | Русский

© 2017 Litman Associates LLC • Built by Synthesis Creative