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At a certain point, the burden of debt will lead almost anyone to their breaking
point. Whether it comes as a result of job loss, medical bills, declining wages,
rising costs or just human misfortune, the drafters of the Bankruptcy Code
understood that there comes a point where enough is enough. If you cannot pay
your debts, are dealing with a law suit, or are receiving telephone calls from
collectors demanding payment, Chapter 7 may help you.
One of the major aims of bankruptcy law is to help a financially distressed
person by providing the opportunity to make a new financial start. Filing a
Chapter 7 Bankruptcy generally results in the discharge of your debts or at
least of many of them, so that no further collections action can ever be taken
against you.
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Do I qualify?
When you do not have a sufficiently high or steady income to enable you to pay
off debts, you may choose a straight liquidation bankruptcy under Chapter 7.
Chapter 7 does provide you the opportunity to avoid almost all of your debts
without making any payments on those debts. It also prevents further collection
efforts by your creditors. Thus, Chapter 7 provides you with a means to take
affirmative action so that you can start living your life again.
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How does it work?
First, your attorney will prepare detailed paperwork including descriptions of
what you owe, what you own, your current income and expenses, a statement
concerning your financial affairs and a statement of intent regarding whether
you want to hold onto property you used as collateral. These must be prepared on
forms that have been approved by the court.
Once the case is filed, the bankruptcy court will file an automatic stay order,
barring any of your creditors from taking any further collections or legal
action against you without the permission of the court. The Court will also set
a date, time and place for a hearing that is called the Section 341 (a) 'meeting
of creditors.' You must attend this meeting with your attorney and answer
questions under oath by the trustee and any creditors who appear. The questions
asked at the meeting are about your financial affairs, including your property,
past earnings, and the schedules you have filed.
Much if not all of your property may be exempt from the claims of your
creditors. Household goods and furnishings, working tools, some life insurance,
radio, one television, musical instruments, some bank accounts, your car, and
your home may all be exempt, if the value of each is within certain limits, and
if your attorney has taken proper steps to claim the exemption. Be sure to
consult carefully with an attorney: Some property can only be exempt if you have
taken certain steps both to claim your exemptions and to arrange your affairs
prior to filing the bankruptcy petition
If all of your assets are exempt, and no one objects to your discharge, you will
receive your discharge from the debts about 90 days after the meeting of
creditors. You can then start living your life again.
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What will Chapter 7 do for me?
Perhaps more than anything, the greatest benefit a Chapter 7 Bankruptcy can
bestow is peace of mind. Once the Petition is filed, the collections calls and
bills cease for once and for all. Any lawsuit, repossession or garnishment
pending against you is stopped in its tracks. After the discharge is entered,
you have a real fresh start in a very real sense: zero balances on all your
credit cards, medical bills, paycheck and personal loans.
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How do I get started?
The first step in the process is finding an experienced bankruptcy attorney.
Considering the very real complications raised by the upcoming changes in the
bankruptcy code, you may want to find someone who specializes only in
bankruptcy. Because the exemptions in the Bankruptcy Code are largely a creation
of state law, you may want to find an attorney who specializes in bankruptcy in
your state.
Pacific Bankruptcy is based only in Oregon and Washington and we do nothing but
bankruptcy. When you call our offices, you will not reach a call center in
Chicago or a legal assistant in Philadelphia. You will reach the firm that is
actually going to do your case and, likely as not, the attorney who is going to
draft your petition or represent you at your hearing.
We welcome the opportunity to provide superior service by obtaining your credit
report for you and by providing office hours at times and dates that work for
you. We understand that for many clients, Saturdays are the only days they have
off, so we make ourselves available. We welcome the opportunity to meet with you
to talk to you about your situation at no charge. At the same time, we know that
many of our clients simply cannot come in for an appointment. As a result, we
have taken great care to set up systems and train our attorneys to accommodate
clients that can’t come in to see us.
More than anything, we look forward to helping our clients get a fresh start so
that they can start living their lives again. Please feel free to call us toll
free at 1-800-493-1590. Alternatively, you can get started by completing our
free case evaluation form.
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