2. Bankruptcy can be caused by many factors including the following: - Loss of a job - Illness of a spouse or child - Divorce - Poor money management Indicators that filing for bankruptcy may help you: - Living paycheck to paycheck - Routinely paying your bills late - Routinely overdrawing your checking account - All of your credit cards are maxed out - Behind on mortgage or car payments
3. A few benefits of filing for bankruptcy are: - Psychologically regaining control of your life - Preventing calls from Creditors and Bill Collectors - Restructure Secure Debt
4. Financial stress and ignoring financial problems can cause the following to happen: - Constantly Harassment from Creditors - Collection Agency or Banks could potentially sue you. - Defaulting on a home mortgage = foreclosure - Defaulting on an auto loan = repossession
5. Charges incurred by ignoring financial charges include: - Attorney fees - Debt counseling fees - Payday Loan fees - Auto title loan fees Ignoring financial problems can results in: - Foreclosure on your home - Repossession of personal property and assets - Garnishment of wages
6. Filing for Bankruptcy Can Provide a Fresh Start - Chapter 7 Bankruptcy -Discharges most unsecured debt - Candidates must pass the Means Test, which includes: - Qualification #1: Debtors must have an annual median income less than the state median income for a family of the equivalent size - Qualification #2: - Debtor’s income must be greater than median family income, -Debtor must pay a portion of unsecured debt - If debtor’s monthly expenses don’t require all available income, then debtor must pay a $100/month for six years into a Chapter 13 plan.
7. What is Chapter 13 Bankruptcy? - Debt consolidation plan that allows debtor to restructure debt and pay back in 3 to 5 years. - Debtor must have enough income to cover all monthly expenses and pay into a Chapter 13 plan.
8. Several myths about Bankruptcy include the following examples: - Bankruptcy will hurt my credit for 10 years - Everyone will know I filed bankruptcy -I cannot filed bankruptcy because of BAPCPA - I am a bad person for filing bankruptcy - I can pick and choose what to include in my bankruptcy -It’s hard to file bankruptcy - I will never be able to own property again - I will lose everything I own
9. Other myths about bankruptcy include: - My spouse and I must file bankruptcy together - I can’t get rid of back taxes by filing bankruptcy - I can only file bankruptcy once - I can never get credit again - Only losers file bankruptcy - Creditors can still harass me after I file bankruptcy - Filing bankruptcy causes more family trouble and divorce
10. How do I know what attorney to choose when filing for bankruptcy? - Hire an attorney referred by another attorney - Hire an attorney referred from the State Bar Remember: A good attorney will provide you information in preparation for the consultation.
11. When consulting a bankruptcy attorney, consider the following questions: - Have many bankruptcy cases do you file each year? - How many cases have you successfully taken to discharge? - What percentage of your Chapter 13 cases get confirmed? Also find out: - What bankruptcy associations the attorney belong to? - Will the attorney personally handle my case or will the bulk work be done by a paralegal? - How often will the attorney communicate with me about the status of my case?
12. Be aware of the following after hiring an attorney: - Retainer Agreement - Interview/Case Evaluation - Review of Documentation - Pre-Bankruptcy Counseling - Analysis of Legal Issues - Review of Auto and Home Owners Insurance Policies - Draft, Review, File the Petition - Serve Chapter 13 Plan - Pending Litigation
13. The Allmand & Lee Difference - Allmand & Lee understand the average person needs a bankruptcy attorney - Allmand and Lee’s priority is to make sure clients benefit from their services and receive a fresh start - Allmand & Lee have a high success rate and a wealth of bankruptcy case experience - Allmand & Lee are committed to helping as many clients as they can
14. The Allmand & Lee Difference - Over 20 years of consumer bankruptcy experience - Offers free phone consultation - Free online case evaluations For more information on how Allmand & Lee can help you call us today! 224-884-4176
