Chapter 7 Bankruptcy Attorney
Under a Chapter 7 Bankruptcy, the debtor typically seeks to eliminate most if not all unsecured debt. Secured debts are loans where you “pledged” a piece of property as collateral for a loan. Common examples are car loans and home mortgages. Your car loan is secured by your car. You home loan is secured by your house. Conversely, unsecured debts are those loans that have no collateral. For example, credit card debt is often a type of unsecured loan. For more detailed information contact a bankruptcy attorney in Beloit.
Having your bankruptcy lawyer in Beloit file The Chapter 7 Bankruptcy typically provides a fresh start for the debtor by eliminating most of the individual’s debts. The debtor is allowed to exempt certain assets from the creditors. Any non-exempt assets must be turned over to a Trustee where the assets are sold and the proceeds are distributed to creditors.
When you file a petition for Chapter 7 Bankruptcy you have the option of reaffirming a debt. An example of this is when you want to keep your home. If you are current on your mortgage payments you typically have the option of reaffirming the loan. This is an agreement between you and the mortgage holder, where you agree not to discharge the loan in bankruptcy and to keep paying on the loan and the mortgage holder agrees not to foreclose on your home.
In addition, there is what is called a Means Test. This is a method of determining whether you are eligible to maintain a Chapter 7 bankruptcy. The debtor’s income and expenses are examined determine if they are able to pay $100 per month for 60 months to unsecured creditors.
A document called the Statement of Current Monthly Income and Means Test Calculation is used to calculate a person’s disposable income. The disposable income is used to determine the monthly payment a person can make to his or her unsecured creditors. Enlist the help of your Beloit bankruptcy attorney to accurately complete this step is critical.
Our team of experienced Beloit bankruptcy lawyers have been serving Rock County clients since 1893 and has helped countless families deal with their financial issues.
We’ll be around if future issues arise, unlike some other firms that have saturated the market with advertising and who may not be here in the future once the current debt crisis passes. For more information, you can contact our office and set up a free consultation with one of our experienced bankruptcy attorneys to determine if a bankruptcy is right for you.