Bankruptcy
SERIOUS
INJURY
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Wrongful Death
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Auto Accidents
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Boat Accidents
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Workers Comp
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Negligence
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Closed Head
Injuries -
Product Liability
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Paralysis
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Nursing Home
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Slip & Fall
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Dog Bites
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Motorcycle Accidents
MALPRACTICE
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Death
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Misdiagnosis
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Birth Trauma
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HMO Negligence
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Brain Damage / Infants
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Hospital &
Doctor
Negligence -
Surgical Errors
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Cancer Misdiagnosis
CRIMINAL
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Drunk Driving
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Felonies
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Misdemeanors
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License
Restoration -
Sex Crimes
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Assault
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Domestic
Violence -
Federal and
State Crimes
BANKRUPTCY
INTRODUCTION
• There are many reasons for financial difficulties, such as loss of a job, death of a bread winner or too many credit card purchases. Money problems can be emotionally wrenching and seriously damage family relations. However disturbing the idea of bankruptcy might initially seem, in fact, bankruptcy laws are there to help those who are unable to pay their bills. This web site reviews your alternatives under the bankruptcy laws. Your lawyer can advise you about your options so that you can get the maximum advantage of the bankruptcy laws.STARTING BANKRUPTCY PROCEEDINGS
• Bankruptcy proceedings begin with the filing of bankruptcy forms at the federal courthouse. The forms are comprehensive and include thorough lists of your income sources, property, debts and living expenses. About a month after your bankruptcy forms have been filed, a meeting of your creditors will take place. You will be required to appear at this meeting with your records. Although most creditors do not attend the meeting, those who do can question you about your income, property and debts.DEALING WITH CREDITORS
• Hendricks & Watkins,PLC can help you deal with your creditors before, during and after bankruptcy proceedings. Before starting bankruptcy proceedings, you are protected by laws that prohibit creditors from harassing you to collect money. Bill collectors may not contact you at unreasonable times at home, and they may not embarrass you by telling your friends, relatives or employers about your debt. Bill collectors may not contact you at work if they know that your employer disapproves. If you have a lawyer, bill collectors may only contact your lawyer. During bankruptcy proceedings, you will receive additional protection from bill collectors. At the beginning of the proceedings, the court will order your creditors to stop their collection activities, including lawsuits, wage garnishments. repossessions and telephone calls demanding payment. It is unlawful for your employer to fire you for seeking bankruptcy protection. After the bankruptcy proceedings have been completed, you must take care when dealing with creditors. Some creditors may try to collect debts that were discharged by the bankruptcy proceedings. These creditors may ask you to renew the debt by signing an agreement to pay it. Consult your lawyer when you are contacted by creditors so that you do not inadvertently obligate yourself to pay an old bill that was discharged by your bankruptcy proceedings.KEEPING YOUR PROPERTY
• Your lawyer will advise you about the protection available for your property with a bankruptcy proceeding. For example, in a liquidation proceeding, the bankruptcy laws allow you to keep your exempt property. Prior to beginning bankruptcy proceedings, your lawyer may advise that you sell some of your nonexempt property and use the cash to purchase exempt property. Although you may convert your nonexempt property into exempt property, you will be subject to severe penalties if you try to hide your property. In a liquidation proceeding, you may be able to keep mortgaged property like a home or car if you “reaffirm” your loan with your lender. Reaffirming the loan means that you agree to pay it in full. The “reaffirmed” loan will not be affected by the discharge that you receive at the completion of the bankruptcy proceedings. Any property that you receive after 180 days from the start of the bankruptcy proceedings is yours to keep, including inheritances, gifts and life insurance. Your lawyer may recommend that you speed up your bankruptcy filing if you expect to receive a substantial amount of property in the near future.EFFECTS OF THE BANKRUPTCY
• The end of your bankruptcy proceedings can provide you with a “fresh start.” The court order will end your responsibility for dischargeable debts. The order will not affect nondischargeable debts such as alimony, child support, educational loans, taxes or debts that you incurred by deliberately injuring someone. After the bankruptcy, your creditors may no longer try to collect the discharged debts. Your bankruptcy proceedings will be noted on credit records for up to 10 years after your bankruptcy filing. During that time, lenders, stores and finance companies may consider your bankruptcy among the many factors they review when you apply for a loan or credit card. Surprisingly, since you cannot file again for Chapter 7 for 6 years, it may be easier for you to obtain a mortgage loan or installment credit for an auto or home appliance. An application for such credit is easier if you wait at least a year before applying for credit and show a history of paying bills on time after the bankruptcy.
This document was created by Hendricks & Watkins P.L.C. to help you gain an understanding of the law. The information contained in this web site is not intended to be specific, or all inclusive. Please be aware that each situation is different and the law may be applied differently. Therefore, it is highly recommended that you consult with a knowledgeable attorney to evaluate your situation.
Contact Hendricks & Watkins P.L.C. at (616) 956-1900 or Toll Free at (877) 956-1900