Bankruptcy Lawyer
in South Kingstown, RI

South Kingstown, RI  Bankruptcy Lawyer

If you are considering bankruptcy, get the support you need. Goldman & Goldman has been representing South Kingstown, RI area clients since 1991, and our legal team has over 35 years of combined experience. We'll use all our resources to help you with your bankruptcy case.

We know the process can seem overwhelming, but we'll take the time to help you understand every step. We'll meet on your schedule with flexible same-day, after-hours, and Saturday appointments. When you call us, we'll answer. We handle all our cases personally without foisting off issues to paralegals.

If you're worried about the cost, that's understandable. We offer affordable, straightforward fees for our South Kingstown, RI area bankruptcy clients. We'll go over your costs with you from the start.

Bankruptcy can be a great option to start over. See if we can help you.  Contact us to schedule a free consultation to discuss your situation. Keep reading to learn more about Chapter 7 and Chapter 13 bankruptcy claims.

Chapter 7 Bankruptcy for Overwhelming Debt

Chapter 7 protects you from being unduly harassed by creditors. By filing for Chapter 7, you can eliminate your legal obligation to pay certain over-burdensome debts such as credit cards, unsecured loans, medical expenses, and, in some cases, business debt. Moreover, Chapter 7 bankruptcy does not require any debt minimum for eligibility.

However, debt categories such as child support, criminal obligations, parking tickets, most taxes, car loans, mortgages, and, in most instances, student loans cannot be discharged through Chapter 7 bankruptcy.

To see if all your property can be protected from confiscation by Chapter 7, you are required to disclose all your assets. You are permitted to retain basic household items, pensions, hobby equipment, retirement accounts, and most life insurance policies.

To be considered eligible for a Chapter 7, you first must pass the means test, which calculates your gross monthly income based on an average of the past six months plus all other income from every member of your immediate household.

Note that in some cases, debtors who pass the means test may still not qualify for Chapter 7 protection because their income and monthly expenses may not permit it.

Even if you do not pass the means test or are ineligible for Chapter 7 for other reasons, you may still be able to seek debt relief under Chapter 13 bankruptcy law.

Bankruptcy has a lot of negative connotations. However, it is not uncommon for people to find themselves in insurmountable debt through no fault of their own. Chapter 7 bankruptcy can resolve these debt problems and protect individuals and families from overbearing financial strain and oppressive debt collection methods.

Benefits of Filing for Chapter 7 Bankruptcy

• All actions by your creditors must cease
• Wage garnishments must stop, and bank attachments must be released (no money can be taken from your bank account except by you)
• Harassing phone calls and threatening mailings from creditors end
• Your unsecured dischargeable debt, such as credit cards, medical bills, and unsecured loans, will be wiped out
• If the utilities in your home have been shut down, they must be turned on again
• You will be able to keep your motor vehicle(s) and other secured property if you keep up your payments
  

A Chapter 7 Bankruptcy Success Story

Emily and Steven H. own a home in Pawtucket, RI and are current on their home mortgage and two cars. However, they have $40,000 worth of credit card debt, which is mostly related to Steven’s health care. They fell behind because Steven was injured on the job and hasn’t gotten approved for disability coverage.

Emily works as a customer service representative for a Rhode Island technology company, but her salary isn’t enough to cover their mortgage, car loan, and credit card debt while they're waiting for Steven’s disability to come through. Citibank sued to attach her wages. The couple knew they needed help.

Goldman & Goldman filed for Chapter 7 protection. As soon as the petition was filed, the court issued a stay, and our office notified Citibank and the other creditors to stop all their collection activities. As a result of this diligent work, Emily and Steven's $40,000 credit card debt was erased.

Pay Off Your Mortgage Debt With Chapter 13

If you have a steady income but are being overwhelmed by creditors, filing for Chapter 13 bankruptcy is a way to reorganize your debts and repay all or part of them over a longer period. This period is usually between three and five years.

In order to qualify for Chapter 13, you must have enough regular income to cover all your monthly household expenses. You must also have enough income to cover an agreed-upon monthly payment to reduce your debts.

Chapter 13 bankruptcy might be the right option for you if:

• You are facing foreclosure and you want to save your home
• You have too much income to qualify for a Chapter 7 bankruptcy plan
• You have fallen behind in your mortgage payments
• You have fallen behind in your car payments
• You owe more on your first mortgage than the market value of the home and you have a second mortgage that you want to eliminate
• You have property that is not exempt from the Rhode Island bankruptcy code
• You have filed for a Chapter 7 plan within the past eight years and are not eligible to file another Chapter 7

When you file for Chapter 13, a payment plan that addresses your specific needs is created. This plan will allow you to reorganize your finances, retain your property, and repay part or all of your debt over a specified period of time, which can be anywhere from three to five years. Debts that are determined to be non-dischargeable must be paid in full.

Chapter 13 is not a viable option for everyone. In order for a Chapter 13 bankruptcy plan to be approved, you must have enough income to cover all your monthly household expenses plus your Chapter 13 plan payments, which will be determined by your specific financial condition.

Chapter 13 to Avoid Foreclosure With Loan Modification

Home foreclosures are far too common. Unmanageable debt and mortgage arrears can spiral out of control, and the fear of losing your home often leads to paralysis instead of taking concrete steps to avoid foreclosure and stay in your home. Preventing foreclosure and maintaining homeownership is frequently the primary objective of clients.

In the state of Rhode Island, once foreclosure occurs, it cannot be reversed. Delaying action can have serious consequences. If you’re ready to take action and do everything you can to prevent an imminent foreclosure and stay in your home, it is time to get legal help.

Each individual’s circumstances are different, but there are several possible options to avoid foreclosure. With Chapter 7 filings, you can stop the foreclosure process for a short time, but this is not usually the most effective way to save your home. You may have more options with a Chapter 13 bankruptcy.

Just like with a Chapter 7 bankruptcy, a stay goes into effect as soon as a Chapter 13 bankruptcy filing is made with the court, and a lender or creditor has to stop all collection activity until the court indicates otherwise. For those Rhode Island homeowners seeking to avoid foreclosure, particularly those with mortgage arrears and/or high-interest rates, the best path is usually loss mitigation.

Rhode Island is one of the few states that has a loss mitigation program. Through this program, homeowners can pursue a loan modification. While you’re in the loss mitigation program, the foreclosure process is stopped. If you pursue a loan modification outside of this process, you don’t have the same protection that the Rhode Island bankruptcy court offers.

Each situation varies, but with a loan modification via Rhode Island’s loss mitigation program, you may be able to reduce your interest rate and reduce your monthly payment to the mortgage company. Your mortgage might be able to be rewritten with any past due amounts placed at the end of your mortgage note.

While filing for bankruptcy is perhaps the most well-known method of stopping foreclosure on a home, loan modifications are frequently a viable alternative to filing for bankruptcy. The Law Office of Janet J. Goldman has the experience and the knowledge to help you decide whether some type of loan modification is the best way for you to avoid foreclosure on your home.

With our help, you may be able to restructure your debt and create a repayment scenario that will work for you and for your creditors. Because there are so many legal options, it's important for you to get experienced legal advice as soon as possible. We'll look at your situation and make the best recommendations.

A Chapter 13 Bankruptcy Success Story

Susan left Jack and moved to Massachusetts. Jack thought Susan had been paying the mortgage from their joint account, but apparently, she had been using the money for other purposes and had built up a mortgage debt of $60,000. The bank moved to foreclose on the house, and Jack was prepared to let the house go because he believed he had no other options.

Then, he talked to the Goldman & Goldman. He learned that he was eligible for Chapter 13 protection. With our help, Jack worked with the bank to reduce his monthly payments and the interest rate. He was also able to capitalize the arrearage. Jack gets to stay in his home, and his debt will be cleared when he sells his home sometime in the future.

After Bankruptcy, Then What?

More people than you might expect have been through the bankruptcy process, and while it can be taxing, there is life afterward. According to Rhode Island law, certain properties are exempt from repossession if you have filed for Chapter 7 bankruptcy. These include your household possessions, your jewelry and other personal items, the equity in your home up to $500,000, and your car if you keep up monthly payments.

If you are having trouble with paying your bills and are under stress from nagging collectors and creditors, act now. With swift action, you have a better chance of rectifying your situation and returning to a normal life. Take action today.