Vonnahme Law doesn’t give you a huge pile of homework to complete. We sit down with you and go over everything in our office. We will answer all of your questions and work with you to find the best solution to not only rid you of debt, but to give you a fresh start in your financial life.
See if your eligible for a Chapter 7 bankruptcy
Chapter 7 Eligibility
|Household Size||Income Limits|
|Each Additional Person||Add $8100.00 per person|
Include all income except Social Security. If you are below the Median Income for your household size, you qualify for a full discharge of your debts. Debts that cannot be discharged
- Most student loans
- Taxes or fees owed to the government
- Domestic Support Obligations (child support, alimony, etc.)
Frequently Asked Questions
What do I do about all of the creditors that call me? Once you file for bankruptcy, your creditors cannot contact you for debt collection while the case is pending. If all of your debt is discharged, they have no reason to call you after the case.
Will this stop the garnishments coming out of my check?
Yes, your creditor cannot continue to garnish your paycheck during the bankruptcy process. Once your petition is filed, garnishments will stop. We will explain how this works at you appointment.
What will happen to my car that I am paying on?
This would require a Reaffirmation Agreement. For instance, if you have a vehicle that still has 3 years left on the loan, you may reaffirm that loan, keep the vehicle, and continue make the monthly payments with no changes.
Will I lose all my property?
No. Most of your assets have exemptions that protect them from bankruptcy. Exemptions are a little complicated, but we will explain this to you in detail at you initial consultation. For example, your home and retirement accounts are fully protected. Your furniture, electronics, bank accounts, appliances, etc. are usually all exempted. There is a dollar amount, but as long as you do not own luxury items that are worth a great deal of money, you should be okay.
What types of property can I lose?
There are some assets that are not exempted. These are mostly luxury items that are not necessities (even though a person loves their boat, the law does not count that as a necessity unless you make your living on it). Boats, airplanes, a Rolex, or an ATV are examples of items that are not exempted. This does not necessarily mean you will lose these items. We can discuss this further in your initial consultation.
What is the process and how long does it take?
- We will put together your Petition. (a few days)
- You will need to complete a Credit Counseling Class online that takes about 45 minutes
- We will then file your Petition.
- You will need to complete a Debtor’s Education Class online that takes about 2 hours.
- Four to six weeks later we will have a 341 meeting with the Trustee to go over the Petition. (takes literally about 5 minutes)
- We will file any Reaffirmation Agreements for any secured loans (like your vehicle) you do NOT want discharged.
- You receive your discharge of your debts!This whole process takes about three (3) months.
Are there other options besides bankruptcy?
Yes. There are businesses that will consolidate your debt and you will be required to make a monthly payment to them. Sounds good, but there are a few drawbacks. Pay attention to the interest rate this Debt Consolidation company is charging you. They wouldn’t be doing this if they weren’t making a profit. This can be over 20% on top of your debt. Because of this, the process can take 3-5 years or longer.
What about my credit score?
Most people this isn’t a problem because by the time a person is at the point when he or she is considering bankruptcy, their credit score is already low. Bankruptcy will affect your credit, more at first and less over time. It will stay on your credit report for 7-10 years. The question you need to ask yourself is this: If I don’t file bankruptcy, where will I be a year from now?
Call Vonnahme Law and set up a free initial consultation. We will see if you qualify and explain the entire process to you before you make any decisions. 712-258-8272