There are two kinds of Bankruptcy that consumers (non business) Debtors are┬ánormally interested in. That is a Chapter 7 (known as a straight Bankruptcy) and a┬áChapter 13.
Both in a Chapter 7 and Chapter 13 the petitions are filed electronically over the┬áinternet using Bankruptcy Filing Software. The decision which Chapter to file is made┬áon the basis of assets, your cash flow and what financial outcome you are trying to┬áachieve. Elder has been practicing BR law since 1976 and is well known to the local┬áBench and Bar. In fact, when complex litigation ensues out of a Bankruptcy, many local┬álawyers refer those matters to Elder, both for debtors and creditors.
In a Chapter 7 when the case is filed the servers at BR Court issue you a case┬ánumber upon filing. Elder will give you a case number and a copy of the petition when┬áthe case is filed. Typically the creditors will be notified of the filing by BR Court within a┬áfew days of filing. However, once you have the case number, if a creditor contacts you┬áand you give them the case number, they know that all activity on the matter is stayed.┬á(called the automatic stay). If you give the creditor the case number and they continue┬ácollection activity they can be held in contempt of Court by the BR Judge. You must┬áobtain credit counseling before filing (Elder will show you how) and pay the agreed┬áupon fee in full prior to filing. In a typical BR case there will be one hearing with a judge┬ánot present. This is called a Section 341 hearing or meeting of creditors. The Court┬áappoints a Trustee to marshal your non-exempt assets and distribute them to your┬ácreditors. Due to the generous nature of the Federal Exemption Laws most cases are┬áno asset cases and the one hearing is all you will have to go to. To obtain a discharge┬á(which is a Federal Court Order absolving you of your debts), you must take a financial┬ámanagement course before you obtain the discharge.
Elder has a sliding fee scale depending on the complexity of the case. Elder will┬ádiscount to the disabled, senior citizens, and member of the armed forces, 25% from┬áhis normal fee. The fee will be decided upon at the first interview. An experienced BR┬álawyer will immediately recognize a problem Chapter 7. Certain debts are not┬ádischarged in a Chapter 7 for public policy reasons for example: child support and┬áalimony, some fraud matters and student loans among others. Elder will usually know if┬áthere is an issue. These are called non dischargeablity cases and must be filed in most┬ácases by the creditor within a time period set by the Court. lf Elder sees a issue like this┬áhe will typically contract for an hourly rate to defend these.
As said above many local lawyers refer non dischargeablity cases to him to┬álitigate as he has done many over the years and is well known to the Bench and Bar.
The second kind of Bankruptcy is a Chapter 13. The decision to file a Chapter┬á13 is predicated on many things. Usually it is because the debtor either has too much┬áassets, which they donÔÇÖt want to lose or make too much money and are statutorily┬árequired to file a Chapter 13. One of the most prevalent reasons to file a Chapter 13 is┬áto stop a foreclosure. If your house is in foreclosure and your can present to the Court┬áand Chapter 13 Trustee a plan to pay back your arrearage while maintaining your┬ácurrent mortgage payment and being sure your taxes are paid and the house is insured┬áyou can ÔÇťcureÔÇŁ the arrearage and save your home. YOU MUST FILE YOUR CHAPTER┬á13 BEFORE THE COMMISSIONER OF CIRCUIT COURT DROPS THE HAMMER AT THE AUCTION AT THE COURTHOUSE DOOR. YOU LOSE YOUR RIGHT TO CURE┬áAT THAT POINT.
DonÔÇÖt delay. If you are in a foreclosure call IMMEDIATELY for a free┬áconsultation, Elder may be able to save your home. ln a Chapter 13 your will make a┬ámonthly payment to the Court. ElderÔÇÖs fee will be set by the Court and paid by the┬áChapter 13 Trustee monthly.