Bankruptcy

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.

Bankruptcy is the legally declared inability of an individual or organization to pay bills. It comes under Federal jurisdiction by the United States Constitution which allows Congress to enact uniform laws on the subject of bankruptcies throughout the United States.

The Congress has enacted laws governing bankruptcy in what is known as the Bankruptcy Code.

All aspects of a Chapter 7 bankruptcy filing can be handled in our offices.

Bankruptcy Filing

A Chapter 7 bankruptcy starts with filing a petition with forms and a detailed financial statement with the court. We will help you complete the forms and develop a list of all of your creditors and the amount and type of each of their claims, The petition must also include a statement of the sources, amounts, and timing of your income plus a list of all of your property; and a detailed list of your monthly living expenses.

Please call us for more information about bankruptcy relief from problems with your creditors. We are ready to discuss your options and your situation after bankruptcy.

The New Bankruptcy Law

Under the new law known as the Bankruptcy Abuse Prevention and Consumer Protection Act , Americans who have the ability to pay will be required to pay back at least a portion of their debts. Those who fall behind the state's median income will not be required to pay back their debts. The new law will also make it more difficult for serial filers to abuse the most generous bankruptcy protections. Debtors seeking to erase all debts will now have to wait eight years from their last bankruptcy before they can file again.

Among its many changes to consumer bankruptcy law, the Bankruptcy Abuse Prevention and Consumer Protection Act established a "means test", intended to make it more difficult for people whose debts are primarily consumer debts to qualify for relief under Chapter 7 of the Bankruptcy Code. The "means test" is employed in cases where an individual with primarily consumer debts has more than the average annual income for a household of equivalent size, computed over a 180 day period prior to filing. If the individual must "take" the "means test", their average monthly income over this 180 day period is reduced by a series of allowances for living expenses and secured debt payments in a complex calculation that may or may not accurately reflect that individual's actual monthly budget.

If the results of the means test show no disposable income (or in some cases a very small amount) then the individual qualifies for Chapter 7 relief. If a debtor does not qualify for relief under Chapter 7 of the Bankruptcy Code, either because of the means test or because Chapter 7 does not provide a permanent solution to delinquent payments for secured debts, such as mortgages or vehicle loans.

The Bankruptcy Abuse Prevention and Consumer Protection Act also requires individuals seeking bankruptcy relief to undertake credit counseling with approved counseling agencies prior to filing a bankruptcy petition and to undertake education in personal financial management from approved agencies prior to being granted a discharge of debts under Chapter 7.

Click HERE for more information on Bankruptcy and HERE for a brochure in .pdf format.