BANKRUPTCY AS A SOLUTION

Mounting credit card debt, personal loans, medical bills and other debt can stress anyone. Between constant phone calls from persistent creditors and the threat of losing your home or car, you may feel trapped. The burden of debt can take a tremendous toll on your life. When your home or business is at stake, you need strong legal representation to help you protect your assets. Comfort Law Office can assist you in clearing a path toward financial relief by helping you resolve your debt issues.

Through Chapters 7 & 13 Bankruptcy we can help prevent or stop foreclosure on your home and repossession of your car. If you have lawsuits, Chapter 7 or Chapter 13 will stop those actions and will prevent or stop bank levies and wage garnishments.

A FRESH START THROUGH CHAPTER 7

Chapter 7, also known as liquidation bankruptcy, allows you to eliminate unsecure debt such as:

• Credit card debt (including lawsuit Judgments)
• Medical bills
• Unsecured loans
• Some Personal Income Tax Debt (which is older and meets the Discharge guidelines).

Chapter 7 will not, however, discharge debts such as child support, student loans or recent tax obligations.

We can help you determine your eligibility for Chapter 7 based on a means test. If you do not qualify or you have significant assets that would not be protected under Chapter 7, we can help you file for Chapter 13 bankruptcy.

We will thoroughly evaluate your case based on your marital status, whether you have filed for bankruptcy before, what property you own, your recent financial activity, your outstanding debts, and what your objectives are. We will then work with you on a strategy to eliminate as much debt as possible.

REORGANIZING DEBT THROUGH CHAPTER 13

If your income is too high to qualify for Chapter 7 bankruptcy or you have assets that would not be protected under it, you may still have the opportunity to get debt relief through Chapter 13. As with a Chapter 7, we can prevent or stop foreclosure of your home, car repossession, wage garnishment and help you eliminate or minimize your credit card debt. We can also help you keep your property and end creditor harassment.

If you have filed for bankruptcy within the past eight years or a significant portion of your debt is tax or secured debt, Chapter 13 may be a better option for you than Chapter 7. In a Chapter 13 case we can help you lower your monthly payments on your debt and stop interest and penalties on tax debt. We will work with you to create a debt repayment plan spread over three to five years. Once a Chapter 13 case and Plan is filed with the Court, you make a monthly payment to the Chapter 13 Trustee who then disburses those funds to your creditors.

The main advantage to Chapter 13 over other ‘repayment’ plans offered by consolidation companies is that you have the protection of the Federal Bankruptcy laws while your creditors are compelled to file claims with the Court. We have seen many clients over the years come to us for help after receiving lawsuits from creditors who did not choose to participate in these programs.

Many people are uncomfortable in filing a bankruptcy and want to repay their debt. Chapter 13 offers a viable solution to those who feel this obligation but balances this dilemma in a way that is fiscally responsible to your family.

SPECIAL INFORMATION ABOUT YOUR BUSINESS OPERATION

Depending on the business entity of your company (sole proprietor or corporation) Chapter 7 and Chapter 13 are available in certain situations. Be aware that even if your business is a corporation, you may be personally liable for the business debts.

In general terms, Chapter 7 for a business entity is usually advisable if you are planning on shutting the business down. This will allow you to liquidate the business so that you can move ahead with your life. It may also be possible to continue a modest home-based business without the burden of debt repayment.

Also, if you want to keep a sole proprietorship business open, then Chapter 13 may be the solution. Corporations or limited liability companies do not qualify for Chapter 13.

In many cases our business clients have hired our firm to negotiate with their creditors to effect a substantial reduction in both their personal and business debt.

Due to the complexity involved you are strongly urged to consult with experienced counsel to effectively analyze your unique situation.