What to Expect When Filing Chapter 7 Bankruptcy

What to Expect When Filing Chapter 7 Bankruptcy

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We are continuing our series of articles discussing what to expect when filing Chapter 7 bankruptcy. Our previous articles gave an overview of what Chapter 7 bankruptcy is and explored the actual filing process. We also covered how you and your bankruptcy lawyer will be required to meet with your creditors before receiving the final discharge order. Today, we will look at what else to expect when filing Chapter 7 bankruptcy.

Credit Rating

Unfortunately, filing Chapter 7 bankruptcy will significantly damage your credit for up to 10 years. You may still be able to obtain credit, but it will be more costly (i.e., higher interest rate) and limited (i.e., lower credit limit). Your bankruptcy lawyer can suggest some strategies to help you re-build your credit after filing Chapter 7 bankruptcy.

Hiring a Bankruptcy Attorney

Filing bankruptcy can be quite complicated, so if you are considering filing Chapter 7, you may wish to hire an experienced bankruptcy attorney to help navigate the process. A bankruptcy attorney can file the paperwork, attend creditor meetings, provide suggestions on how to re-build your credit, and deal with any associated red tape.

It is often stressful for individuals to consider filing bankruptcy. Charleston residents and those in surrounding areas engage Drose Law Firm because our bankruptcy lawyer only handles debt resolution. If you are considering bankruptcy, we welcome the opportunity to talk with you. Give us a call to schedule a consultation with our bankruptcy attorney today.

What Can I Expect When I File Chapter 7 Bankruptcy?

What Can I Expect When I File Chapter 7 Bankruptcy?

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One of the first questions clients ask our bankruptcy attorney is what can they expect when they file Chapter 7 bankruptcy. This series of articles covers some of the basics about Chapter 7 bankruptcy. Our previous article covered how bankruptcy lawyers should go over the different types of bankruptcy with their clients, including providing and overview of Chapter 7. They should also discuss what the process of filing Chapter 7 bankruptcy entails. Here are a few more things you can expect:

Meeting with Creditors

A trustee will be appointed by the court to supervise your bankruptcy. You will then need to meet with your trustee and creditors an answer questions about your debts and property. Your bankruptcy lawyer will be present at this meeting.

Discharge Order

After the bankruptcy has been filed and you’ve answered all questions from the trustee and your creditors, your case will continue to be reviewed. If there are additional questions or concerns, those will need to be addressed by your bankruptcy lawyer on your behalf. Once all the requirements have been met to the satisfaction of the court, you will receive a discharge order which relieves you from your unsecured debt.

When represented by a bankruptcy attorney, a discharge order in many cases can be granted in approximately three months. If you have a lot of property or extenuating circumstances, the process could take longer. Drose Law Firm has spent more than three decades handling cases involving bankruptcy. Charleston residents and those in surrounding areas turn to our bankruptcy lawyer for their debt resolution and debt settlement needs. Give us a call to schedule a consultation today.

What Happens in a Chapter 7 Bankruptcy?

What Happens in a Chapter 7 Bankruptcy?

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When someone comes to our office to meet with our bankruptcy attorney, many times they ask about what exactly happens during the Chapter 7 bankruptcy process. There are many myths about bankruptcy, and our bankruptcy lawyer takes time to help our clients understand all of the options available to them. Our next series of articles will discuss what happens in a Chapter 7 bankruptcy. Let’s get started:

Overview of Chapter 7

Chapter 7 bankruptcy is designed to provide a debtor relief from debts owed to creditors. It is different from Chapter 13 bankruptcy, which essentially re-organizes debt into a structured plan to pay. In the case of Chapter 7, all qualifying debts may be completely discharged.

Qualifying for and Filing Chapter 7

A debtor must meet a certain set of requirements to qualify for filing Chapter 7 bankruptcy. A bankruptcy attorney can help a debtor determine whether or not they are qualified. If they are qualified to file Chapter 7, then the bankruptcy lawyer will move towards preparing the actual filing. This is a petition to the court which includes a comprehensive and detailed list of all the debtors property, debt, and creditors.

Our next article will outline more details about filing Chapter 7 bankruptcy.

When considering bankruptcy, Charleston residents and those in surrounding areas who need a trusted bankruptcy attorney may choose to engage Drose Law Firm. Our bankruptcy lawyer handles all types of bankruptcies and debt resolution cases. We have been in business for more than three decades and will be here to serve you if you need us. Give us a call to learn more today.

What Items and Income Are Exempt from Bankruptcy?

What Items and Income Are Exempt from Bankruptcy?

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What Items and Income Are Exempt from Bankruptcy?

We are continuing our series of articles discussing the various types of items and income that may be exempt from bankruptcy in South Carolina. Our previous articles discussed equity in your home, personal property, retirement accounts, and equity in your automobile. While only an experienced bankruptcy attorney can advise you of what is exempt in your case, here are more types of items and income that may qualify for exemption.

Professional Tools and Equipment

If you have specific tools and/or equipment that you need and use to perform your work, then these may qualify for exemption. Examples include commercial tractors, lawn mowers, welding equipment, books, computers, telephones, and any other professional equipment you use to earn income. If you have any tools of the trade that you think may qualify, be sure to disclose these to your bankruptcy attorney.

Alimony and Child Support

If you are receiving any alimony or child support, this is exempt from your bankruptcy filings. Once again, be sure to disclose all alimony and/or child support payments you receive to your bankruptcy lawyer.

Many people think that filing bankruptcy means losing everything. That is simply not the case. A bankruptcy lawyer can help you navigate through the difficult process and advise you of what assets you may be able to retain. When it comes to filing bankruptcy, Charleston residents and those in surrounding areas have trusted Drose Law Firm for more than three decades. Our bankruptcy lawyer handles debt resolution, debt settlement, and foreclosure resolution cases, including IRS debt resolution. Give us a call to schedule a consultation with our bankruptcy attorney today.

What Can I Exempt from Bankruptcy in South Carolina?

What Can I Exempt from Bankruptcy in South Carolina?

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Many of the clients who come to us are fearful that they will “lose everything” when they file bankruptcy. This is simply untrue. While you may lose some assets, there are provisions for certain assets to either be partially or fully exempt. It is extremely important for you to disclose all of your assets, property, equity, retirement accounts, etc. to your bankruptcy attorney. Our next series of articles will discuss some of the different types of assets that may be protected during the bankruptcy process. Let’s get started:

Equity in Your Home

In most cases, you can protect a portion of the equity you have in the primary home that you declare as your residence. Your bankruptcy lawyer can tell you how much equity may qualify for exemption based on your marital status and the current amount allowable under South Carolina law.

Some Personal Property

Some personal property may qualify for exemption from bankruptcy. While you will need to discuss this in depth with your bankruptcy attorney, examples of personal property that may be exempt include books, clothing, household goods, appliances, jewelry, firearms, crops, burial plots, and animals.

Our next article will cover more types of assets that may be protected under South Carolina bankruptcy law.

When it comes to filing bankruptcy, Charleston residents and those in surrounding areas have trusted the Drose Law Firm for more than three decades. Our bankruptcy lawyer handles only debt resolution cases. Whether you have a simple bankruptcy or a complex filing, our bankruptcy attorney is happy to review your case. Give Drose Law Firm a call to schedule a consultation today.

How Can Filing Bankruptcy Help Ease the Stress of Debt?

How Can Filing Bankruptcy Help Ease the Stress of Debt?

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The thought of filing bankruptcy can be intimidating.  Our bankruptcy attorney has been working with clients to help them resolve debt issues for more than three decades.  We not only know the physical process of filing bankruptcy; we also understand the emotions that can occur as a result.  We sometimes meet with clients who are so overwhelmed, they feel there is no way out.  They often ask us if filing bankruptcy will really ease their stress.  While we cannot wave a magic want to make your stress go away, our bankruptcy lawyer can say with quite certainty that many clients report feeling much less stress after filing bankruptcy.

We are continuing our series of articles discussing some ways filing bankruptcy can ease the stress of being in debt.  Our previous article covered the fact that once your bankruptcy attorney files for you, an “automatic stay” takes effect and creditors will be required to stop contacting you. We also discussed the ways in which different types of bankruptcy can resolve debt issues. Today, we will look at two more ways filing bankruptcy can reduce stress of debt.

Prevents Foreclosure

Filing Chapter 13 bankruptcy can help prevent your home from going into foreclosure.  This is because when your bankruptcy attorney files Chapter 13 on your behalf, you are essentially asking for the ability to re-organize your debt, allowing you to catch up on your mortgage and/or finance your past due payments in accordance with the payment plan that has been established as part of your Chapter 13 bankruptcy.

Retain Assets

Filing bankruptcy can help protect your personal assets that you already own (i.e., jewelry, clothing, furniture, etc.) as well as help you retain some that you don’t.  For instance, if you have a car loan and are behind on payments, you may be able to keep the vehicle under your bankruptcy financial restructuring plan.  

When in need of an experienced lawyer to help them file bankruptcy, Charleston residents and those in surrounding areas trust the Drose Law Firm.  Give us a call to meet with our bankruptcy lawyer today.

Case Study

Nancy P. – Case Study

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Nancy P. survived the loss of a career and a bankruptcy. Now she has some words of advice for those going through the same things.

The economy was still crashing in 2010 when Nancy came to the realization that what she thought were sound business decisions turned into a series of massive mistakes and unfortunate timing. She couldn’t hold on to her restaurant and her three rental houses any longer. Her employees were out of work and she couldn’t pay her vendors.

“I felt so terrible about myself because I couldn’t fix it. It was an avalanche and I couldn’t do anything to stop it,” she wrote in an email to TFS. “Everyone knew I had to close my restaurant and what was once a dream turned into a total nightmare.”

It wasn’t until late January of 2015 that Nancy and her husband filed for Chapter 13 bankruptcy.

While at the time her personal bankruptcy felt like it was an “epic failure” and taking a handout she didn’t deserve, in retrospect Nancy said she should have filed sooner. It ended up being the best thing to do for herself, her family and her future.

She signed up with www.tfsbillpay.com for monthly payments in July of 2017. It wasn’t all smooth sailing. Early in the process, Nancy had a couple of failed payments but still persevered and made “catch up” payments. In all, she made 17 transactions totaling more than $10,000 through TFS.

“Money was tight but eventually I found the reward in making those payments,” she said “It was what I could do to get to the other side of this. It was a form of redemption.”

Now free from bankruptcy, Nancy feels like she was given a second chance.

Her credit is good, she is buying a house and she is even considering a new business opportunity – something she never expected to do.

“You will get out of this, too. Don’t beat yourself up,” Nancy said. “You will learn so much through this process and you will come out of it better and stronger.”

And, she has advice for others as they navigate through bankruptcy.

“Managing your mental state is probably one of the most important things you can do to get through bankruptcy,” Nancy wrote.

Here are Nancy’s best tips for going through a bankruptcy:

  1. You are not a failure if you file for bankruptcy. 
  2. Get a good bankruptcy attorney.
  3. Don’t wait too long to file. 
  4. Remember, it will eventually end. 
  5. Whether you are required to pay anything back or not, this is your chance to have a new life. It is a massive gift so just accept it graciously and get on with your life. 
  6. Be kind to yourself as you go through this. You are making the right decision for you and your future. 
  7. The world, your creditors and the government are not “out to get you.” Bankruptcy is your chance for a clean slate. 
  8. If you are a small business owner, get an accountant who can do your books and even better if they are savvy on market trends. Pay attention to the economy. 
  9. Learn about finances during bankruptcy. Buy books, take online courses or watch YouTube.  There are some excellent free resources online to help you manage your money. Your bank, investment firms and community centers also offer classes. Create a new relationship with money. 
  10. Did I mention that bankruptcy is not failure? You are not a failure. 
What Can I Expect After Filing Bankruptcy?

What Can I Expect After Filing Bankruptcy?

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Some people are apprehensive about filing bankruptcy because they do not know what to expect. There is little worse than hiring a bankruptcy lawyer that leaves you in the dark. As an experienced bankruptcy attorney, I take time to educate my clients on the process of filing bankruptcy. Charleston residents have come to trust me, which is why I am one of the most respected bankruptcy attorneys in the Lowcountry. Our next series of articles will discuss what you can expect to happen after you file Chapter 7 bankruptcy.

Automatic Stay

Once your bankruptcy attorney has filed Chapter 7, an automatic stay will go into effect.  This essentially keeps creditors from contacting you, garnishing your wages or bank accounts, or taking any legal action against you. Be sure to inform your bankruptcy lawyer if you receive harassing calls or correspondence from your creditors after the automatic stay goes into effect.

Trustee

A trustee will be assigned to you.  Your trustee will review your filings and be present along with your bankruptcy attorney during your creditor meeting.

Reaffirmation Agreements

Your creditors may choose to send you a reaffirmation agreement to not have their debt discharged. If you receive one of these give it to your bankruptcy attorney to review before signing.

Our next article will cover more of what you can expect to happen after your bankruptcy lawyer files Chapter 7.

The Drose Law firm has more than 30 years of experience handling bankruptcy.  Charleston bankruptcy lawyers are not all equal and many also practice other types of law.  Our bankruptcy attorney only handles bankruptcy and creditor debtor law. If you’ve tried everything else or are ready to consider bankruptcy, we will be here for you. Give us a call to schedule a consultation today. 

Help! I’ve Filed Bankruptcy But Creditors Keep Calling

Help! I’ve Filed Bankruptcy But Creditors Keep Calling

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Theoretically, when you file bankruptcy, your creditors should stop calling you.  You may still be contacted by creditors until your bankruptcy notice fully processes.  However, there are some debt collectors who may be relentless and still choose to contact you. If this happens, there are a few steps you can take.

Tell Them You Have Filed

The first step you should take if you are contacted by creditors after your bankruptcy attorney files for you is to let them know you have filed and ask them to stop calling you.

Make a Detailed List of Creditors Who Call

As you inform creditors who call you that your bankruptcy lawyer has filed for you, be sure to keep a log of each call.  Write down the name of the creditor, name of the person calling you (if you are able to get it), when they called (date and time), and a brief synopsis of the conversation. This could be useful if action needs to be taken against a persistent debt collector as discussed below.

Let Them Know You Are Prepared to Take Legal Action

Once you have informed your creditors that your bankruptcy attorney has filed on your behalf, they should stop calling you. If they do not, then you are well within your rights to inform them that you are prepared to take legal action if they continue to harass you.  Be sure to consult with your bankruptcy lawyer on your full rights and recommended verbiage to use in your particular situation.

When it comes to bankruptcy, Charleston residents and those in surrounding areas have trusted Drose Law Firm for more than 30 years. If you find yourself in need of an experienced and compassionate bankruptcy attorney, we are here. Give us a call to learn more today!

Scam Targets Bankruptcy Filers

Scam Targets Bankruptcy Filers

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Phone scammers are targeting bankruptcy filers in several states, using personal information from filings and posing as attorneys to get intended victims to immediately wire money to satisfy a debt.

The National Association of Consumer Bankruptcy Attorneys issued a warning that “Under no circumstances would a bankruptcy attorney or staff member telephone a client and ask for a wire transfer immediately to satisfy a debt. Nor would the bankruptcy attorney and staff ever threaten arrest if a debt isn’t paid.”

Bankruptcy filers in Vermont and Virginia reportedly have received calls. Vermont’s Attorney General says scammers use software to “spoof” the Caller ID system so the call appears to be originating from the phone line of the consumer’s bankruptcy attorney. Typically the calls come late in the evening or during non-business hours to make it difficult for intended victims to verify the call by contacting their attorney.

Consumers receiving this kind of call are advised to hang up and contact their bankruptcy attorney as soon as possible. Do not give any personal or financial account information to the caller.

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source:  uscourts.gov