WAGNON LAW GROUP, PLLC helps individuals, families and businesses with their financial problems. We specialize in Chapter 7, 11 & 13 Bankruptcies.
We can analyze your financial situation and help determine which Chapter is best for you. We have helped hundreds of Texans get rid of debt, reduce debt, & reorganize their debt through bankruptcy.
Call us today for a FREE face-to-face consultation.
FEDERAL LAW MAY ALLOW YOU TO STOP:
- Foreclosures – Car Repossessions – Creditor Call & Harrassment
- Wage Garnishment – Lawsuits – Overdrafts
FEDERAL LAW MAY ALLOW YOU TO ELIMINATE:
- Credit Card Debt – Medical Bills – Signature Loans
- IRS Taxes – Judgments – Payday Loans
FEDERAL LAW MAY ALLOW YOU TO LOWER:
- Car Loans – Furniture Loans – Appliance Loans
FEDERAL LAW MAY ALLOW YOU TO KEEP:
- Your Home – Your Car – Your Retirement
Chapter 7 Bankruptcy
A Chapter 7 case is known as a liquidation Chapter. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts.
The purpose of filing a Chapter 7 is to obtain a discharge of your existing debts. A discharge means you no longer have a legal obligation to pay the debt. The debt in essence is “wiped-out.” The creditor cannot contact you or sue you after you receive your discharge. A discharge can include the following types of debts: credit cards, medical bills, signature loans, payday loans, collection agency, overdrafts, and repossession of vehicles and homes.
There are certain debts that you will not receive a Chapter 7 discharge: secured debts that the debtor wants to keep (including your house and car), some taxes, student loans, domestic support and property settlement obligations, most fines, penalties, forfeitures, and criminal restitution obligations. Debts that are not listed in your Chapter 7 case, debts for death or personal injury caused while intoxicated from alcohol or drugs are also not discharged. The bankruptcy court can determine that a debt is not discharged if a creditor can prove fraud, breach of fiduciary duty, or theft, or willful and malicious injury. The attorney will review your list of debts to determine the eligibility of discharge.
Under Chapter 7, consumers have exemptions. The exemption laws typically allow you to keep your home, car, personal belongings, and retirement. The majority of cases that we see are known as a non-asset case which means that you will not lose any of your property. The attorney will review your list of property to determine the exemption laws.
Chapter 13 Bankruptcy
A Chapter 13 is also known as a bill consolidation chapter.
Chapter 13 is designed for individuals with regular income who would like to pay some debts in installments over a period of time. The period of time may be three to five years depending on numerous factors. Under a Chapter 13, you must file a plan with the Court of how you are going to repay your creditors. The plan must be approved by the Court. The attorney will develop a plan for you.
Chapter 13 plans can include the amounts you are behind on your mortgage or car. The plan may allow you to pay certain federal and state taxes over a period of time. The plan can also allow you to pay back child support. The plan may also lower your interest rate on certain secured debts down to the prime rate of interest.
In a Chapter 13, you may be able to “cram-down” certain secured debts. A “cram-down” means you can pay the lesser of the value of your collateral or the secured debt. If you have had your vehicle debt for two and half years, you can pay just the value of the vehicle and not the entire debt. For example, if you have owned your vehicle for 910 days and your vehicle is only worth $8,000.00 and you owe $15,000.00, you can pay your creditor $8,000.00 over a period of time. This may allow you to lower your vehicle note. You can also cram-down other debts if you have had the debt for over a year. For example, you may be able to “cram-down” your mobile home, furniture notes, and appliances.
All of your debts can be included in your Chapter 13 plan, including credit cards, medical bills, signature loans, payday loans, collection agency, overdrafts, and repossessions. The amount these creditors get paid back depends on your income and reasonable monthly living expenses. After completing the payments under your plan, your debts are generally discharged. In most instances, the unsecured creditors only receive “pennies on the dollar.” This means you may owe $30,000.00 to your unsecured creditors; however, depending on your income, you may only have to pay them a few hundred dollars.
The debts that are not discharged include domestic support obligations, most student loans, certain taxes, most criminal fines and restitution obligations, certain debts which are not properly listed in your paperwork, certain debts for acts that caused death or personal injury and certain long term secured obligations. The attorney will review your debts and determine their eligibility.