Bankruptcy

Sometimes bankruptcy is your best option for dealing with your debts. At MINKA, PLC we will consider and review your entire financial situation and the circumstances giving rise to your debts. When appropriate, we will recommend a bankruptcy filing and assist you in determining if federal or state exemptions should be used to protect your assets.

A new bankruptcy law went into effect in October of 2005. This new law makes the filing of a bankruptcy more complicated than before. There are two basic types of bankruptcy available for individuals struggling under debt, commonly referred to as Chapter 7 & 13. At your initial consultation, attorney Minka will discuss with you your options and the advisability of chapter selection. Filing bankruptcy results in the issuance of a bankruptcy stay, which requires all creditors to stop their phone calls, the sending of letters and any effort to collect your money or your property.

Any individual with consumer debt seeking bankruptcy relief must obtain, prior to a bankruptcy filing, a certificate from a court-approved credit counseling agency indicating completion of mandatory credit counseling. Additionally, you must have filed all of your federal tax returns.

Each individual’s financial circumstances are unique and require personal attention. Bankruptcy law is complicated and all facts are important and need to be shared with your attorney. A very general overview of the consumer bankruptcy chapters follows.

Chapter 7 Bankruptcy

If you qualify for a Chapter 7 bankruptcy, you will obtain a discharge or the elimination of unsecured debt such as credit card bills, medical bills, most judgments, personal loans or deficiencies resulting from a foreclosure or repossession of a vehicle. However, certain types of debts are not discharged.

Chapter 7 relief is typically the best alternative for individuals who:

• Have lots of unsecured debt such as credit card bills, medical bills, utility bills, personal loans, and payday loans.
• Have a limited amount of equity in their home or simply cannot afford their home.
• Have a limited amount of income. Important to the analysis of your financial situation is the amount of income received in the past 6 months within your household. Household size is also a very important consideration for the determination of your eligibility for Chapter 7.

Chapter 13 Bankruptcy

If you do not qualify for a Chapter 7 bankruptcy and you have a regular source of income, you may qualify or be required to file a Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, you must have a regular source of income with sufficient income left over each month which can be used to pay your creditors pursuant to a court approved Chapter 13 plan. Usually, your Chapter 13 plan will result in an automatic payroll deduction each pay period which will be distributed by the Chapter 13 Trustee to your creditors. The length of a plan varies, but may extend up to 60 months. Upon completion of your plan, remaining unsecured debts even though not paid in full are discharged.

Chapter 13 relief is typically the best alternative for individuals who:

• Have a lot of equity in their home or the keeping of their home makes economic sense given the totality of circumstances.
• Are behind on their home mortgage payments and face foreclosure.
• Have a home equity loan or a 2nd or 3rd mortgage on their home and whose home is worth less than what is owed their lenders.
• Seek the return of a repossessed car or other property.
• Protect co-signors while debts are repaid.
• Require time to repay debts and desire to keep all of their assets.

In order to start the evaluation process, simply fill out the bankruptcy case evaluation form. Please take the time to make sure the information provided is accurate. Upon receiving your information, we will contact you as soon as is possible. If you face imminent action by your creditors please also call and advise staff of your situation and the submission of your evaluation form. In such a case, time is of the essence.

We are a Debt Relief Agency. We help people file for bankruptcy relief under the bankruptcy code.