Chapter 7
What is Chapter 7 Bankruptcy?
Below are our most often asked questions about Chapter 7 bankruptcy.
Chapter 7 bankruptcy is a liquidation bankruptcy. Technically this means that upon filing bankruptcy, the court appointed trustee liquidates the assets of your bankruptcy estate and sells them for the benefit of creditors. However, that sounds a lot worse than it really is. Most Chapter 7 bankruptcy's are considered 'non-asset' cases. This means that the trustee makes a determination that there are no assets to be liquidated for the benefit of creditors.
You may have assets such as a car or home, but this does not mean you will lose them as part of the bankruptcy proceeding. In fact, most debtors are able to keep all of their assets without losing one piece of property! When the bankruptcy laws were passed, the intent of the Chapter 7 Bankruptcy law was to give debtor's (a debtor is a person who declares bankruptcy) a fresh start. Taking all of your assets and leaving you on the street corner is not giving you a fresh start. This is why the law allows you to keep assets under different exemption categories. There are exemption categories for your home, your car, your household goods, your retirement, etc.
What all of this means for you is that it is possible to discharge (discharge means to get rid of) your debt while keeping your home, car, bank account, and other assets. This gives you the ability to start over and truly get the fresh start the government intended.
Can I keep my belongings in a Chapter 7 Bankruptcy?
When we prepare your bankruptcy petition, we make sure to list all of your assets. We then place them into what are called exempt categories. There are different exemption categories and different standards for exemptions. We will determine which standards will best suit your situation.
Our goal is to ensure that you keep all of your personal belongings and assets. It is our job to represent you and make sure the bankruptcy is beneficial to you, our client. If we see problems with your case, we will be sure to let you know before you file.
In almost every case we handle, our clients are able to retain all of their assets.
Do I have to go to Court?
There is one court hearing you will need to attend. This hearing is called the Section 341 meeting, or the meeting of creditors. It is an opportunity for the Court appointed trustee to inquire about your case and the information you have provided. It is also an opportunity for your creditors to ask you about your case.
When we attend the hearing with you, an attorney will be present to represent you to ensure your rights and that creditors are only allowed to ask questions which are relevant. Should any creditor get out of line, we are present to reign them in and control the proceeding.
When you go to Court, you must bring proof of your identify (driver's license or other identification) and your social security card. If you do not have a social security card, you may bring other proof of your social security number such as a paystub, medical benefits card, W2, or tax return.
If you do not bring these items, the trustee will continue the hearing and require you to come back a second time.
What is the Cost?
The Court will charge you $299.00 for the filing fee. This amount of money must be in a money order or certified check. The Court does not take cash or personal checks.
Our firm will charge you a base fee up front of $999.00. Depending on your case, there may be additional fees. Our fees are based upon our experience, expertise, and knowledge of bankruptcy. Our view of fees is that you get what you pay for. There are some firms out there who charge less than us and you may even be able to find a typing service to do it for you. But bankruptcy is alot more than having a set of papers prepared.
Declaring bankruptcy is not a static event. Creditors must be contacted, communication with the Court must be maintained, and the trustee must be satisfied that your case is being handled properly. Taking care of these issues only comes with experience and exposure to the bankruptcy system and the Court. The Jump Law Group has the expertise, knowledge, and experience to ensure that you receive the best representation throughout the bankruptcy process.
We recognize that there is a reason you are declaring bankruptcy and we have priced our services accordingly. Understanding that it is tempting to pay a petition preparer $149.00 for your original papers, is it wise to gamble your financial future based upon the lowest price?
You must also be forewarned. The bankruptcy rules became much more restrictive after October 17, 2005. Not only are the risks greater in filing, but if your case is dismissed, the automatic stay that protects you from creditors will not be present in subsequent cases.
Hiring the Jump Law Group provides you with a team that has the experience to make sure your case goes correctly and is ready to step in when the case does not go the way it should.
How will bankruptcy affect my marriage?
This is a touchy question to answer. We can't tell you how it will affect your marriage, but our experience has been that most of our clients relationship problems stem from financial issues. Many of our clients have reported that their relationship improves once the stress factor of money is removed. It is a fact that the biggest reason people get a divorce is because of money problems.
What about cosignors on accounts?
If someone cosigned on a debt with you, then they are equally liable for the debt. Discharging the debt in bankruptcy will remove your liability on the debt, but the codebtor will still be liable. The company can collect against the cosignor.
Will I be able to buy a home after bankruptcy?
If you take steps to rebuild your credit using our bankruptcy case management software and you use your post bankruptcy credit responsibly, it will be possible to purchase a home at market interest rates in only a few short years.
How quickly you are able to purchase is up to you. Some people make rebuilding their credit a priority, others only get started when they want to purchase a home or new car. We recommend you start rebuilding the day after you file.
Do not try to rush into buying a new home or car immediately after your bankruptcy. Take the time to rebuild your credit and purchase a home you can afford with an interest rate you can handle.
Won't bankruptcy ruin my credit for at least the next 10 years?
Wrong! This is the biggest myth about bankruptcy. Everyone thinks that filing bankruptcy destroys your credit. WRONG! It is what occurred before you filed bankruptcy that destroyed your credit. Most everyone waits too long to file bankruptcy. As your credit score dwindles so do your resources.
Bankruptcy will be on your credit report for 10 years, yes. However, you are going to rebuild your credit using our exclusive "Bankruptcy Case Management Software." We expect you to have excellent credit in under two years.
Are all of my debts dischargeable?
No, certain taxes, student loans and child support, and other domestic support obligations are non-dischargeble. Debts incurred by fraud are nondischargeable if the creditor brings an adversary action against you. This means that you will still be liable for these debts after the bankruptcy. A consultation with the Jump Law Group will assist in determining what debts may not be dischargeable from the above list.
A friend of mine told me he heard of another guy who lost his house!
You can file bankruptcy and not lose your vehicle or your home. In fact, you can file bankruptcy and continue to make payments on your house and car as if the bankruptcy never happened. You are allowed certain equity exemptions so that losing your home and vehicle are not an issue. We will never let you file your case without making clear up front whether your home is at risk or not.
Should I keep certain debts? The lady at Citibank has been really nice to me.
It makes sense to keep paying on certain debts, like your home and your car. These are known as secured debts. There is a lien against the property you purchased with the money given to you by the creditor. For your other debts, like Citibank, these are unsecured. You should NEVER reaffirm or keep these debts. This is a bad idea. Remember that these are corporations, not individuals who you are borrowing money from. They win either way, if you keep the day you continue to pay and give them outrageous fees and interest. If you discharge the debt, they get to write the amount off on their taxes as bad debts.
Why the Jump Law Group? A Paralegal said she would do it for $75.00
There are many bankruptcy attorneys in the area who do excellent work. Jay Jump is one of the few who can count bankruptcy as a mainstay of his practice. Over the past two years, Mr. Jump has developed a true consumer protection firm. As a former public defender, he honed his trial skills representing those who could not afford representation. He has taken those litigation skills to the bankruptcy forum and effectively advocates for his clients on a daily basis. In the past three years, Jay Jump has taken on the big credit card companies and won . . . repeatedly. He continues to fight against the large mortgage companies and other creditors who charge clients fees and interest improperly. Armed with consumer protection statues such as the Unfair and Deceptive Acts or Practices Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act, Mr. Jump is doing more than taking clients through a bankruptcy, he is truly ensuring that they get a fresh start.
Other law firms are taking notice. Counsel from around the country will often consult with Mr. Jump on how to handle cases, his materials have been used at national conventions as examples of how to proceed in bankruptcy court and Mr. Jump has been asked to speak at both debtor's and creditor's legal education seminars for other attorneys.
But Mr. Jump is not the only reason to choose the Jump Law Group. The entire office is dedicated to the cause of the consumer debtor. Each day they effectively represent and advocate for their clients. It is a singular cause they campaign for and that is to ensure that each client walks away from the Jump Law Group with the help and assistance they need to get their lives back on track.
If you are thinking about having someone type your papers up for you for $99.00 or whatever, good luck. You get what you pay for. Remember a typist or paralegal CANNOT give you legal advice. You would be foolish to rely on it. You are about to eliminate your debts and start over with a second chance. Don't you think you owe it to yourself and your family to do it right?
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