Bankruptcy & Debt Relief

CHAPTER 7 AND CHAPTER 13

If you have a large amount of unsecured debt, bankruptcy may be a good option for you. The purpose of bankruptcy is to give people a clean slate going forward. If you are buried under an insurmountable amount of debt, bankruptcy can give you a way to clear all of your debt and move on with your life. An added bonus is that filing for bankruptcy means that debt collectors have to stop calling you. If you're at your wits end with collection calls, bankruptcy can give you much-needed relief.

If you have cold feet regarding filing for bankruptcy, consider this - if your creditors (banks, credit cards, etc.) owed more money than they could ever pay and would benefit financially from a bankruptcy filing, do you think they would hesitate to file for bankruptcy? The system exists for a reason - to help you get a fresh start.

If you think bankruptcy can help you, or are curious whether you should file, I can help you consider your options.

Adversary Proceedings

Adversary proceedings in bankruptcy court are generally litigated cases that are attached to an already existing bankruptcy filing. A creditor can file an adversary proceeding by paying the required fee and filing a Petition. A debtor can file an adversary proceeding without paying a fee. There are a number of reasons why you might consider an adversary proceeding, including:

  • Determining whether liens are valid;
  • Recovering property from the bankruptcy estate;
  • Contest the debtors bankruptcy or attempt to revoke a discharge;
  • Revoke a confirmed Chapter 13 plan;
  • Attempt to have student loans discharged in a bankruptcy proceeding;
  • Determine generally the dischargeability of a debt.

Adversary proceedings are very similar to standard litigation. There will be discovery, depositions, motions, and potentially a trial.

Contested Matters within a bankruptcy

There are also a variety of contested matters that can come up during a regular bankruptcy that do not involve any outside litigation. These types of contested matters are typically handled with motions and hearings. A few instances where a contested matter might arise are:

  • Motions to dismiss a Chapter 7 case;
  • Motions to dismiss a Chapter 13 case;
  • Relief from stay motions, specifically where a creditor wants to foreclose on a home that is secured by a mortgage;
  • Motions used for recovering or protecting certain property.

WHAT ABOUT STUDENT LOANS?

STUDENT LOAN DEBT IS A BIG PROBLEM

More money is owed for student loans than credit card debt. Student loan debt is a big, scary deal. It might be holding you back from your true potential. I can help you manage it and move on.

The amount of student loan debt currently owed is over one trillion dollars. That’s $1,000,000,000,000.00.

Think of it this way—you would have one trillion dollars if you made one million dollars every day for the next 2,737 years.

Student loans are a little different than credit card debt. They are much more difficult to discharge in bankruptcy, but there are a number of repayment options available that are not otherwise available for credit cards.

STUDENT LOAN REPAYMENT PLANS

The most important factor in determining how to pay back student loans is the type of loan that you have. There are a number of loan repayment options available for government loans that are not available for private loans. Each private loan company may have its own loan repayment programs. You may also be eligible for a forbearance, deferment, discharge, or forgiveness. Each of these options has possible tax and legal consequences, so it is usually a good idea to talk to a lawyer or tax professional who understands the ramifications of various types of student loan repayment options.