Bankruptcy Information - and more!

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Bankruptcy is the legitimate means of getting a fresh financial start from overwhelming debt. Bankruptcy may be a good solution if any of the following apply and you are:

• unable to pay more than the minimum payments on credit cards or are behind on payments
• unemployed or underemployed and can't keep up with your bills
• working multiple jobs just to keep afloat
• never getting ahead on your debts
• unable to get credit because of negative/derogatory information on report
• facinglawsuits/judgments/garnishments
• foreclosure or repossessions
• suffering constant stress about bills or making ends meet

WHO QUALIFIES FOR CHAPTER 7 BANKRUPTCY?

Single individuals, a spouse, married couples and corporations may all file for Chapter 7 bankruptcy relief. For debtors whose debts are primarily consumer, to qualify for Chapter 7, you must pass the "means test" which measures ones ability, or "means," to pay back debt. If you make too much money and have measurable disposable or discretionary income, you would not qualify for Chapter 7. Attorney Lewis will advise you whether you are eligible based on your income, family size and necessary living expenses.

KEEP YOUR HOME, CAR AND EVERYTHING YOU OWN

Chapter 7 bankruptcy discharges personal liability on debts and in turn, creditors receive any "non-exempt" assets that you have. For the majority of people who file Chapter 7, this means keeping everything as "exempt" from the creditors of the bankruptcy estate. Attorney Lewis analyzes every client's individual situation to determine if there is equity in property or assets of any type that would subject that property to liquidation. By far, the most common asset to be liquidated in Mr. Lewis' practice can, in circumstances, be all or part of a tax refund. Mr. Lewis advises clients appropriately in this situation with regard to timing of filing and what asset, if any, would be subject to liquidation.

Chapter 13 is a powerful tool used by individuals with a regular source of income to reorganize debt and in many cases, pay back only pennies on the dollar to unsecured creditors. Chapter 13 consists of a debt repayment plan that ranges anywhere from 36 to 60 months and allows one to:

• stop debt collection activity/harassment
• stop wage garnishment/liens/frozen bank accounts
• stop debt collection lawsuits
• stop foreclosure / repossession
• stop interest from accruing and pay back most unsecured debts at no interest
• refinance certain loans with security interests (i.e. vehicle installment loans)
• keep everything you own
• discharge a portion of unsecured debts or secured debts on surrendered collateral
• spread out loan arrears (i.e. missed mortgage payments) over the applicable repayment period
• get immediate relief without having to pay the full attorney fees and court costs of Chapter 7
• consolidate most or all debts into one lower, single payment
   

Chapter 13 is similar to debt consolidation, but unlike debt consolidation programs that are voluntary for creditors to participate in and where high interest and fees continue to accrue, Chapter 13 permits one to pay down unsecured debt without accruing interest, fees, or creditors deciding to sue you and pursue judgments to take assets or money through liens and garnishments.

In Chapter 13, a single monthly, biweekly or weekly payment is made to the court-appointed bankruptcy Trustee who is responsible for paying all scheduled creditors who file claims to be paid.

WHO FILES CHAPTER 13 BANKRUPTCY?

A single individual, individual spouse or married couple can file for Chapter 13 bankruptcy relief so long as at least one person has a stable income of any type. Sometimes, one may file Chapter 13 for a specific purpose (i.e. stop a foreclosure). Often, one files Chapter 13 because he or she does not qualify for Chapter 7 because of income limitations or liquidation of assets. Chapter 13 allows you to keep everything you own and pay back only what you can afford to pay back based on your best efforts in paying all disposable income to creditors and doing so subject to the best interest of your creditors under the law.

Is your car underwater? Well, maybe not literally, but do you owe more than what it's worth? If it has been at least 910 days (approximately 2 1/2 years) since the car was purchased and financed, you may be able to "cram down" the payment on the loan to the current fair market value of the vehicle rather than what you currently owe on the loan.

For example, if you purchased your vehicle 3 years ago and have a balance owing of $15,000, but your vehicle is only worth $9,000, you may be able to "cram down" the payment through Chapter 13 and pay back only $9,000. As an added benefit to the cram down provision, a vehicle paid through Chapter 13 can be refinanced at prime rate plus 1-2% which is currently about 10%. Chapter 13 can save one a lot of money over the life of an installment loan and in many cases, get a much better deal on financing and repayment over the course of the Chapter 13 plan repayment period.

WHAT ARE THE DEBT LIMITATIONS IN CHAPTER 13?

There is no minimum amount of debt for one to be afforded relief under Chapter 13 but there is a maximum. At a minimum, Chapter 13 is a feasible option if any amount of debt has created a burden to pay back debts and existing liabilities. The law does limit the availability of Chapter 13 to those having less than $465,275 in unsecured debt and no more than $1,395,875 in secured debt(s).

Lewis Legal Services believes in fair, competitive pricing. We are not the cheapest bankruptcy firm - we don't cut corners or cut the quality of service your case requires. By the same token, you will find that many law firms are much more expensive. After all, you have to pay for their high overhead, high salaries and big advertising budgets. At Lewis Legal, you pay only for the work that is absolutely needed to complete your case - it's that simple!  

So, why are there no prices listed?  Well, we base all fees on the complexity of your given case.  Some law firms quote super-low flat fees to draw you in, get you invested, and then hit you with the hidden fees and extra costs.  Some "big box" firms flat out hit you with high fees, selling the false idea that bigger means better.  At Lewis Legal Services, your fee is based on the work that is needed to have a successful case and it will be established after an informed consultation with no hidden fees or bogus ad-ons. At the end of our initial consultation, you will be given a flat fee

Chapter 7 cases require that all fees be paid in full before case will be filed.  Upfront fees for Chapter 13 cases vary based on circumstances of the case.

Lewis Legal Services, in many cases, will meet and beat bankruptcy fee quotes from reputable attorneys and law firms.  At Lewis Legal Services, competitive and fair fees make the difference.