Key Points of a Chapter 7 Bankruptcy:
- Hold off home foreclosure until you can reorganize
- Retain your car and house if you can maintain monthly payments
- Protect you from being sued or harassed
- Stop any wage garnishments and bank attachments
- Retain your personal property such as household goods, motor vehicles, and equity in your home up to $500,000
- Require utility companies to turn on your water, lights, heat and phone
- Discharge any dischargeable unsecured debts
Chapter 7 Success Story:
Jose and Lucia M. are involved in difficult divorce. Jose had his own construction company. Lucia was handling the family finances and spent the money Jose gave her for the mortgage on luxury items. He has over $300,000 in credit card debt and in mortgage arrearage on the house that she lost to foreclosure. Attorney Goldman pursued protection for Jose under Chapter 7. She succeeded in getting rid of all of the $300,000 debt.
Key Points of a Chapter 13 Bankruptcy:
- Avoid foreclosure
- Stop annoying creditor actions
- Spread your home mortgage arrearage over three to five years
- Devise a plan that will reduce your overall payments by spreading them over three to five years
- Reduce your interest rate on unsecured debts to 0%
- Cancel all remaining unsecured debt by completing your Chapter 13 plan
Chapter 13 Success Story:
Vincent M. has a home in East Providence, RI. His wife died of cancer a year ago, leaving him to raise their 16-old son. Without her income, he fell behind on the mortgage payments. He only owed $5,000 on the mortgage, but the bank refused to give him any time to get his mortgage straightened out. Attorney Goldman filed for Chapter 13 protection to stop the bank’s foreclosure. As a result, Attorney Goldman developed a plan to allow Vincent to cure his mortgage debt over 5 years and keep his house.
“Janet Goldman is a great bankruptcy attorney. She helped me through the most difficult time of my life with an understanding and in a truly caring way. Her knowledge of what to do and [her] guidance was incredible. She made the experience much better than I ever anticipated. (I would highly recommend that she be the attorney you turn to for help. There is nobody better in the state.)”
Is Chapter 7 Bankruptcy or Chapter 13 Bankruptcy Better for You?
Helping Rhode Island Residents Make Bankruptcy Decisions
The goal of filing for bankruptcy is to protect your assets, rid yourself of debt, and get a fresh start on your financial life. People who have done a bit of research on the personal bankruptcy process usually know that there are two types of individual bankruptcies: Chapter 7 and Chapter 13. Is a Chapter 7 or Chapter 13 right for you? There are many issues to consider and there is no rule of thumb to determine which is right for you in the abstract. In order to determine whether to file for Chapter 7 or to file for Chapter 13, I need to learn the exact particulars of your situation. Do you own your home? Are you current with your mortgage payments? Do you have an auto loan and are you current on your car payments? Are your utilities current? Are you current with your Rhode Island taxes? Are you current with your Federal taxes? Are you current with property or municipal taxes? Are you facing loss of your driver’s license? Are you dealing with bank attachments, wage attachments, tax sales, or similar urgent financial problems? Are you facing eviction from your apartment? Are you getting a divorce? Do you meet the income eligibility requirements for Chapter 7? This quick list of questions I’ve asked barely scratches the surface of the potential complexity of your financial situation. I can usually provide you guidance on whether you’re able to file a Chapter 13 or a Chapter 7 bankruptcy in our initial consultation, but sometimes I require more information than is available in my first meeting with clients. In this circumstance, I provide my clients with a simple checklist of information required in order to take the next steps. Help is closer than you think. If you live in Rhode Island and you are considering filing for either Chapter 7 bankruptcy or Chapter 13 bankruptcy. The sooner you act, the better chances you will have in rectifying your situation and returning to a normal life. Call Attorney Janet Goldman at 401-785-2300.