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Bankruptcy Lawyers Guidance for Debt Relief Options

At Recovery law Group, we help you deal with in-excessive debt which you may have accumulated over the years. If you are a victim to insurmountable debt, do not worry, as we have experienced lawyers who will be at your service to bring you out of your misery. We will study your case, and support with you with the best available solution as per your case and scenario. Not only will we guide you in coming out of this debt, but also provide alternatives and options to help your overcome your dire days and take a fresh start towards a stable and a better financial future. We provide services in Los Angeles, Dallas, and TX. You can easily get in touch with our lawyers at 888-297-6203.

Recovery law Firm – The name that is always Trusted

Our Motto is – “Clients First” and hence we go out of our way, to help you get a positive solution. Our lawyers are experienced and have solved multiple such cases on Debt Relief and will do the same for you. Each case is unique and so is the solution for it. We, at Recovery Law Group, therefore take out time to understand our client’s situation before recommending any proceeding or step based on previous cases.

Why should you choose recovery law Group over Other Firms?

Apart from many obvious reasons why should you choose us to handle your case, here are some reasons which prove we are your Right choice-

  1. We are one of the most reputed along with being the largest Bankruptcy cases handling firm.
  2. We have solved more than thousands of cases with a positive outcome in Dallas, Las Angles as well as TX.
  3. We are all ears to understand your case before moving to guidance. Meaning, each case is unique and so are the solutions, so we give you only those solutions which are best suited for your case and beneficial for you and not as per older cases on the same

Benefits associated with Filing for bankruptcy

Though filing for bankruptcy should be the last resort, filing for bankruptcy under chapter 7 and chapter 13 can be highly beneficial for people who are in dire need of a solution from their debts. Filing for the above can help you overcome your debt issues. The best option is to consult a Recovery Law Group lawyer, who can guide you about the proceeding and steps involved while filing for the same.

  1. Once you file for bankruptcy, the automatic stay will prevent all the future debt collection efforts.
  2. It will help you discharge the majority of your unsecured debts
  3. It will also help in preventing foreclosure of your home
  4. It will also put an end to auto repossession and wage garnishment
  5. Most importantly, it will clear your bad debts and help you start afresh with a good background.

Chapter 7 Bankruptcy Explained

To fall under the category of Chapter 7 and to be able to file for bankruptcy under this chapter, you need to fulfill certain criterion to prove that you actually are in dire debt and unable to repay your debts. A Means Test will be conducted to confirm whether your income falls under the guidelines of Chapter 7. If you are fortunate enough to file for bankruptcy under this criterion, be informed that the majority of the people who have filed for bankruptcy under Chapter 7, often get their debt discharged. This chapter is generally recommended by lawyers when your income is very less and you have no resorts left to repay your debts. This chapter is often termed as the “Liquidation Bankruptcy” since if you qualify under this chapter, it is quite likely that your debts will be discharged, of course at the price of surrendering/selling part of your property to repay the creditors.

Chapter 13 Bankruptcy

This is the next resort when you do not qualify to file for bankruptcy under chapter 7. Often termed as “reorganization bankruptcy”, under Chapter 13 you get the opportunity to repay your debts over a period of time viz – 3 to 5 years. Here the bank helps to grant you time when you are not able to pay back your debt immediately. This option is generally selected by people who have adequate income to pay back their debts but cannot do so immediately.

Step by Step guideline to file for bankruptcy

Filing for Bankruptcy is not a cake-walk, as it involves complex proceedings. Hiring a professional bankruptcy attorney can make the entire proceedings quite simple for you which involve submitting a plethora of forms, providing all detailed information to the bankruptcy court, attending court hearings, attending legal procedures amongst many others.

Step by step process includes-

  1. Completion of a credit counseling course

You need to complete a Credit counseling course approved by the U.S Trustee’s Office. This course generally costs around $25 to $35 and needs to be completed 180 days before you file for bankruptcy. If the above course is out of budget or cannot be afforded by you, you can ask for a free course or discounts.

  1. File for Bankruptcy petition with the Federal court

The next step after completing the credit counseling course is to file a petition with the Federal court in your jurisdiction. Along with the petition, you must submit all the relevant information regarding your income, debts, and assets owned by you. Filing for bankruptcy petitions at the Federal Court has a lot of advantages. Once done, you will stop receiving calls, mails, and texts from the creditors, as your bankruptcy attorney will be directly handling that. If you going through foreclosure or repossession, filing for bankruptcy will put a stay on them! Not only this, but all your debt collection efforts via creditors will also stop once the court issues stay order on them. Please note, the above will only be valid if you have not already filed for bankruptcy in the last 12 months.

  1. Attending the Meeting for Creditors

You also need to attend a “meeting with the creditors”, 60 days from the day you file for the bankruptcy petition. This meeting is generally conducted in a “meeting room” and not the court, between your attorney, bankruptcy trustee and the creditors. This meeting is generally conducted to evaluate the information submitted by you along with your bankruptcy petition along with other questions which the bankruptcy trustee may have for you. The creditors may or may not attend this meeting.

  1. A debt Counseling Course

Post the meeting of creditors, you need to retake the debt counseling course, to help you understand your budget better along will planning on how to move ahead to manage the debts.

  1. Confirmation by the court regarding your Eligibility to file for bankruptcy

After you have re-taken the debt counseling course and understood on how to proceed with managing your debt, the court will now review the information submitted by you at the creditors meeting. If you have filed for bankruptcy under chapter 7, the court will ascertain the Means Test score and judge your eligibility. In case you have applied for bankruptcy under chapter 13, your secured and unsecured debts will be reviewed to confirm your qualification.

  1. Debt management by the Court

If in the above step, the court has accepted your plea for bankruptcy, the court will now handle your debts as per the guidelines of the Chapter you are filing under. If qualified under Chapter 7, you will have to liquidate part of your assets/property to repay your creditors. If qualified under chapter 13, you will have to submit a detailed plan for repayment as per the 3 years or 5 years scheme.

The court will finally award you a discharge of eligible debts, once you have completed the above steps and paid off the necessary debts as stipulated by the court.

What types of debts can be discharged?

There are generally 2 types of debts – Dischargeable and Non-Dischargeable.

Dischargeable debts are those which can be completely wiped out by the bankruptcy court. Which means, that once the bankruptcy court approves dischargeable debts, you are no longer liable to pay these back and nor can the creditors follow up or harass you regarding them. These include – Medical Bills, Utility Bills, Personal Loans, Credit Card Debt, etc.

Non- Dischargeable debts cannot be completely waived off, though you can get an extension to repay these via Chapter 13. These commonly include – Student loan, alimony, child support, and tax debt.

A good and professional attorney like at Recovery law Group can help you review and understand the type of your debt to help you deal with the situation better.

Alternatives to bankruptcy

Consulting a good and professional attorney is the best choice while planning to file for bankruptcy. If you will not be getting any benefit via filing for bankruptcy, your attorney can guide you through other alternatives and options like – debt consolidation, restructuring the loans, negotiation for decreasing debt amount, etc.