How Can You Get Out Of Debt, Stop Creditor Harassment, And Get A Fresh Start?

(I may be a debt relief agency, depending on the interpretation of the latest bankruptcy laws passed by Congress.)

FORECLOSURE?
Did you re-finance when money was easy? Have an Adjustable Rate Mortgage that re-set after the price of your home fell, so you could not re-finance again, like the mortgage broker told you you could? Now you cannot keep up with the payments?
An estimated 1 in 5 homes with mortgages have negative equity, are now worth less than what is owed on the house.

BUSINESS RE-ORGANIZATION
Did you take over a business that is now losing money? You take in cash, but cannot keep the bills up to date? Behind on witholding taxes for employees? State government or IRS liens and levies threatening your continued operation?

GARNISHMENT, REPOSSESSION
Are you facing garnishment of your wages, even though you want to pay your bills? Threatened with losing your car or truck, maybe the only way to get to work?

Have your creditors refused to work with you?

You need answers and help. That is what this site is for, a resource for you.

WHAT IS BANKRUPTCY?
by NCLC
Bankruptcy is a process under federal law designed to help people and businesses get protection from their creditors. An important goal of bankruptcy is to give individuals with debt problems a chance for a fresh financial start. For some, bankruptcy does this be eliminating the legal obligation to pay debts. Others gain an opportunity to get current on mortgages and car loans or to pay off debts at a reduced amount. Filing bankruptcy also immediately stops most creditors from seeking to collect debts, at least until things are sorted out in the bankruptcy process.

IS IT TRUE THAT THE NEW BANKRUPTCY LAW WILL PREVENT ME FROM FILING BANKRUPTCY?
by NCLC
There were many changes made to bankruptcy by a law passed by Congress in 2005. Some news reports have suggested that these changes prevent many individuals from filing bankruptcy. It is true that the changes have made the process more complicated. But the basic right to file bankruptcy and most of the benefits of bankruptcy remain the same for most individuals.

CHAPTER 7
by NCLC
Chapter 7 is known as “straight” bankruptcy or “liquidation.” The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep. In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors.

If you want to keep property like a home or a car and are behind on the mortgage or car loan payments, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.

CHAPTER 11
You hear about big companies, K-Mart, the airlines, et cetera, filing Chapter 11 to re-organize while they keep operating.
But small businesses, even individuals, can file Chapter 11. It cost more than other chapters, and there is a boatload of paperwork, but gives you greater control.
Unless the court appoints a trustee, rarely done and only for specific reasons, you will be the trustee of your case, what is called the debtor in possession. That means you keep your business running, whether it is renting out houses or commercial property, operating a store, whatever it is.
Unlike Chapter 13, you have 120 days, maybe more, to file your plan dealing with creditors. An you are not bound by the 5 year chapter 13 limit on plan length.
There is a debt limit for filing Chapter 13; if you owe more than that, you can still file a Chapter 11 case.

CHAPTER 13
by NCLC
Chapter 13 is a type of “reorganization” used by individuals to pay all or a portion of their debts over a period of years using their current income. In a chapter 13 case you file a “pan” showing how you will pay off some of your past-due and current debts over a three to five year period. The most important thing about a chapter 13 case is that it will allow you to keep valuable property — especially your home and car — which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made. I most cases, these payments will be at least as much as your regular monthly payments on your mortgage or cart loan, with some extra payment to get caught up on the amount you have fallen behind. You will need to have enough income in chapter 13 to pay for your necessities and to keep up with the required payments as they come due.

IS MY INCOME TOO HIGH TO FILE A CHAPTER 7?
by NCLC
Most consumers who are considering bankruptcy should be able to file under chapter 7. However, if you income is above the median family income in your state, you may have to file a chapter 13 case. Higher income people must fill out “means test” forms requiring detailed information about their income and expenses. If the forms show, based on standards in the law, that they have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that they can not file a chapter 7 case, unless there are special extenuating circumstances.

CAN I OWN ANYTHING AFTER BANKRUPTCY?
by NCLC
Yes! Many people believe thy can not own anything for a period of time after filing for bankruptcy. That is not true. you can keep your exempt property and anything you obtain after the bankruptcy is filed. It is important to check the exemptions that are available in the state where you live. (If you moved to your current state from a different state within two years of your bankruptcy filing, you may be required to use the exemptions from the state where you lived just before the two-year period.)

This website is not intended to constitute legal advice or the provision of legal services. By posting and/or maintaining this website and its contents, Kurt O’Keefe does not intent to solicit legal business from clients located in states or jurisdictions where Kurt O’Keefe is not licensed or authorized to practice law

Some links within this website may lead to other sites. Kurt o’keefe does not necessarily sponsor, endorse or otherwise approve of the materials appearing in such sites.

Kurt O’Keefe, Esq.

3156 Penobscot Building

Detroit MI 48226-4105

Phone:  313-962-4630

Fax:  313-216-2999