1. How Much Does Bankruptcy Cost and Do You Accept Payments?
2. What is the Difference Between a Chapter 7 and a Chapter 13 Bankruptcy and What Kind of Case Should I File?
3. Am I Eligible to File a Bankruptcy Case?
4. Will I Lose Any of My Assets/Property If I File a Bankruptcy?
5. Will Bankruptcy Stop Garnishments, Lawsuits, and Harassing Phone Calls?
6. What Are the Advantages and Disadvantages of Each Kind of Bankruptcy Case?
7. Will Bankruptcy "Ruin" My Future Credit and if So, For How Long?
8. Do I Have to Include ALL of My Debts in my Bankruptcy?
9. Will All of My Debts be Forgiven (Discharged) After I File Bankruptcy?
10. Will I Have to Go to Court and If So, How Often?
11. How Long Will it Take to File and Complete My Bankruptcy Case?
12. How Do I Choose an Attorney to File a Bankruptcy for Me?
13. What Should I Bring With Me to Your Office When I Come to See You?
14. Can You Tell Me How I Find Out Who I Owe Money to, and How Much I Owe Them?
1. How Much Does Bankruptcy Cost and Do You Accept Payments?
Presently my office charges, (fees are subject to change without notice) $1,300.00 For Chapter 7 ($1,001.00 attorney's fees and $299.00 filing fees). It presently costs $774.00 to file a Chapter 13 case, but there are additional attorney's fees in Chapter 13 that are payable in the case over a 3 to 5 year period of time. YES we do accept payments. Inquire further with us regarding payment options.
2. What is the Difference Between a Chapter 7 and a Chapter 13 Bankruptcy and What Kind of Case Should I File?
In a Chapter 7 case, the Debtor (that's you), receives a discharge (debts wiped out) of all of their debts, unless they choose to reaffirm certain debts (this is explained below) or certain debts are declared non-dischargeable by the Court (this rarely occurs and is explained below). Chapter 7 normally takes approximately 4 months to complete. In a Chapter 13 case, the Debtor is required to make payments on their debts over 3 to 5 years in one convenient monthly payment.
Generally speaking, Debtors who do not have too much equity in their assets and who are current with their payments owed to secured creditors, choose to file Chapter 7, if they are eligible, so they can receive a "fresh start" in 4 months. Generally speaking, those Debtors who have too much equity in their assets or who are seriously delinquent in the payments they owe to secured creditors, choose to file Chapter 13 instead of Chapter 7. We will of course, analyze carefully your given situation and give you a recommendation for which kind of case we believe you should file when you come to see us.
3. Am I Eligible to File a Bankruptcy Case?
Generally speaking, everyone is eligible to file a Chapter 7 bankruptcy once every 8 years. However, Bankruptcy laws were changed significantly in October of 2005. Your eligibility to file a Chapter 7 Case is determined primarily by what is referred to as the means test. The means test is a test of your income and expenses. If you make too much money, based on your family size, Bankruptcy Law requires you to file Chapter 13 instead of Chapter 7. We will explain this in detail when you come in to my office. Many Debtors get into financial trouble within 8 years after filing a Chapter 7 bankruptcy and even though they are ineligible to file another Chapter 7 bankruptcy, they are nonetheless eligible to file a Chapter 13 bankruptcy. So, if you are one of those people who are struggling financially within 8 years after filing Chapter 7, I will help you relieve your financial difficulties by filing a Chapter 13 case for you.
4. Will I Lose Any of My Assets/Property if I File a Bankruptcy?
Generally speaking, most Debtors who file Chapter 7 bankruptcy are permitted to keep their house, their cars, and all of their household goods and personal belongings. The law permits you to claim certain maximum dollar amounts "exempt" for your assets so that you can keep them. If the equity you have in any given asset exceeds the maximum allowed for any particular kind of asset, then you would lose that asset if you have filed a Chapter 7 case. Most Debtors do not exceed the maximums. For those Debtors that do exceed the maximums, they should carefully consider the option of filing a Chapter 13 instead of a Chapter 7. Generally speaking Chapter 13 will protect the non-exempt assets that you have so that you can keep them. Chapter 13 allows you to pay to your creditors the amount they would have received in a Chapter 7 liquidation case, over 3 to 5 years, so in most cases you can still keep your assets, even though you would have lost those same assets in Chapter 7.
5. Will Bankruptcy Stop Garnishments, Lawsuits, and Harassing Phone Calls? Yes. As soon as your bankruptcy case is on file with the Court, the law immediately prevents creditors from doing anything as a means to attempt to collect the money that you owe them. After your case is filed, all of your creditors must ask the Court's permission, before they can take any action against you. This protection continues throughout the time your case is on file with the Court.
6. What are the Advantages and Disadvantages of Each Kind of Bankruptcy Case?
Chapter 7 allows you to start over with a "fresh clean slate" in approximately 4 months time. Chapter 13 takes 3 to 5 years to complete. Therefore, Chapter 7 is much quicker then Chapter 13. The only debts you must repay in Chapter 7 are those debts you choose to pay (reaffirm) and non-dischargeable debts. However if you have too much equity in some of your assets in Chapter 7, your Trustee will sell (liquidate) such assets and pay the money from the sale of such assets to your creditors. Chapter 13 permits you to keep assets you would have lost in a Chapter 7 case. In Chapter 13 you can stop a mortgage foreclosure case filed against your house, catch up delinquent mortgage payments inside your case and save your house. Chapter 7 does not permit you to do this, unless your mortgage company cooperates with you. Non-exempt assets can be protected in Chapter 13. Chapter 13 will permit you to discharge certain debts which are non-dischargeable in Chapter 7. However, Chapter 13 takes longer than Chapter 7 (3 to 5 years instead of 4 months).
7. Will Bankruptcy "Ruin" My Future Credit and if so, For How Long?
No. Bankruptcy will not "ruin" your future credit, but in some cases it will "damage" your future credit. However, many Debtors experience that their credit has actually improved after their bankruptcy case is over. This is true, because all of your old debts were forgiven in your bankruptcy case, thereby reducing your debt-to-income ratio and potentially improving your ability to borrow money in the future. However, not all of my clients find this to be true. Your given circumstances will determine what you experience. You can begin to re-establish your credit immediately after your bankruptcy case is over. Be careful though, if you find yourself in trouble again within 8 years of filing your Chapter 7 case, you will nonetheless still be eligible to file a Chapter 13 case, if necessary. Note: Debtors are only eligible to file Chapter 7 once every 8 years, but debtors may file Chapter 13 within 8 years of the date of filing of a previous Chapter 7.
8. Do I Have to Include ALL of My Debts in My Bankruptcy?
Yes, but you may choose to reaffirm (re-sign) certain secured debts you wish to keep if you file a Chapter 7 case. You may not leave any debts off of your bankruptcy petition.
9. Will All of My Debts be Forgiven (Discharged) After I File Bankruptcy?
Yes, but you may choose to reaffirm (re-sign) some of your debts. You must also repay non-dischargeable debts. Otherwise, all of your debts will be forgiven after you file a Chapter 7 bankruptcy. In Chapter 13, with the exception of long term debts (those not paid in full inside your case), you will receive a discharge of everything not paid inside of your case at the end of your case.
10. Will I Have to Go to Court and if so, How Often?
Yes. Hearings for all bankruptcy cases filed in this area are held in East St. Louis, Illinois. You will be required to go to Court, on at least one occasion, but hopefully no more than that. We will be more than happy to supply you with a map and directions, if necessary, for where these hearings take place. You will, of course, be notified by us of all hearings held in your case.
11. How Long Will It Take to File and Complete My Bankruptcy Case?
Normally, it takes my office approximately one to two weeks to file your case for you after you have given us all of the information required to file your case and paid all of your fees necessary to do so. Chapter 7 takes approximately 4 months to complete and Chapter 13 takes 3 to 5 years to complete.
12. How Do I Choose an Attorney to File a Bankruptcy Case for Me?
When considering filing a bankruptcy, you want to be advised by someone who is familiar and experienced with all of the advantages and disadvantages of not only Chapter 7 bankruptcy but also Chapter 13 bankruptcy. After all, you should ask yourself, am I receiving the best possible advice if my attorney is only familiar with Chapter 7 bankruptcy and is not familiar with the possible advantages that Chapter 13 has to offer to me? At our office we take great pride in the experience level we offer to clients and the ability to help them choose wisely. When you own your home, your car or have other assets that you are trying to protect, you do not want advice from an attorney who cannot adequately explain to you the advantages and disadvantages of Chapter 7 and Chapter 13 bankruptcy laws. Our firm can give you the help you need at competitively priced rates. Educate yourself about your options, but be educated by someone who is qualified. For as little as $300.00 down, we will take all phone calls from your creditors and stop creditor harassment.
13. What Should I Bring With Me to Your Office When I Come to See You?
Please call my office (or send us an email) and give one of my secretaries your name and address so we can mail to you an information packet which will assist you and explain to you everything that is needed from you to file a case. In the information packet there will be a letter of instruction which you should read thoroughly and carefully. On the back of the letter of instruction, is a list of documents that you need to bring into my office in conjunction with filing a case for you. You do not need to bring in everything the first time you come in to see me, but we will need everything before the case is filed. That is all that is required. Unlike other law firms, we do not require you to fill out a "mountain" of paper work, before coming to our office.
14. Can you tell me how I find out who I owe money to and how much I owe them?
We can try to help you, but ultimately it is your responsibility to provide us with information regarding who you owe and how much you owe them. One way we would suggest you try to obtain information is through internet websites for credit reports. We recommend www.annualcreditreport.com. or www.creditexpert.com
Let us know if you need our help in this regard. We will do everything we can to assist you.
David A. Virgin
24 N. Lincoln Avenue
Cottage Hills, IL 62018
Phone: 618-258-0070
Fax: 618-258-0083
Map and Directions
ABC Bankruptcy
2900 Homer Adams Parkway
Alton, IL 62002
Phone: 618-463-0700
Fax: 618-258-0083
Map and Directions
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