BANKRUPTCY

A decision to file for bankruptcy is an important one, Roger Stark is an attorney familiar with bankruptcy and will be able to guide you throughout the entire process. The most common questions are:


What Can Stark Law Do for Me?
Roger Stark and the team at Stark Law can make it possible for you to:

• Eliminate the legal obligation to pay most or all of your debts. This is called a discharge of debts. It is designed to give you a fresh financial start.

• Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments.

• Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.

• Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.

• Restore or prevent termination of utility service.

• Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

What Different Types of Bankruptcy Cases can Stark Law help with?

Chapter Choice is Vitally Important. The choice of filing under Chapter 7 or 13 is the most important initial decision in a consumer or small business bankruptcy filing. Certain goals can be achieved under Chapter 7 which cannot be done in a Chapter 13 case, and vice versa. The choice of whether to file under Chapter 7 or 13 should be made only after consulting with a Roger Stark.

• Chapter 7 is known as straight bankruptcy or liquidation.

• Chapter 11, known as reorganization, is used by businesses and a few individual debtors whose debts are very large.

• Chapter 13 is called debt adjustment. It requires a debtor to file a plan to pay debts (or parts of debts) from current income.

Chapter 7 (Straight Bankruptcy)
In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts.

It is important to remember that bankruptcy law allows you to keep exempt property. In most cases, all of your property will be exempt.

Property which is not exempt is sold, with the money distributed to creditors. If you want to keep property like a home or a car and are behind on the payments on a mortgage or car loan, a chapter 7 case may not be the right choice for you. That is why it is vitally important to discuss this with a qualified bankruptcy attorney like Roger Stark

Chapter 13
In a chapter 13 case you file a plan showing how you will pay off some of your debts over three to five years (most of the time without interest). The most important thing about a chapter 13 case is that it will allow you to keep valuable property especially your home and car, which might otherwise be lost.

You should consider filing a chapter 13 plan if you:
(1) own your home and are in danger of losing it because of money problems;

(2) are behind on debt payments, but can catch up if given some time;

(3) have valuable property which is not exempt, but you can afford to pay creditors from your income over time.

What Does It Cost to File for Bankruptcy?

Costs of Filing bankruptcy with Stark Law varies depending on the case. Prices begin at $750 with reasonable payment plans available for a chapter 7. For a Chapter 13 the costs begin at $1,200 to $1,500 with most of that being paid through the repayment plan over three to five years.

What Will Happen to My Home and Car If I File Bankruptcy?

In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13. However, some of your creditors may have a security interest in your home, automobile or other personal property. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt. If you don’t make your payments on that debt, the creditor may be able to take and sell the home or the property, during or after the bankruptcy case. There are several ways that you can keep mortgaged property after you file bankruptcy. Roger Stark has assisted many people in keeping their property even after filing for bankruptcy.

Will Bankruptcy Wipe Out All My Debts?

Yes, with some exceptions. Bankruptcy will not normally wipe out:
(1) money owed for child support or alimony, fines, and some taxes;

(2) debts not listed on your bankruptcy petition;

(3) loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan;

(4) debts resulting from willful and malicious harm;

(5) most student loans, except if the court decides that payment would be an undue hardship;

(6) mortgages and other liens which are not paid in the bankruptcy case (but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor).

Will I Have to Go to Court?

In most bankruptcy cases, you only have to go to a proceeding called the meeting of creditors to meet with the bankruptcy trustee and any creditor who chooses to come. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.

Roger Stark has helped consumers, business owners, and family farmers navigate the tough course through bankruptcy. The stress of a weakened financial situation takes its toll on a Person’s health, family, and general sense of well being. Roger Stark understands this stress and suffering. In most cases this stress is needless, and you could be on your way to financial recovery with a simple phone call.

TIPS TO RECOVER AFTER YOU FILE FOR BANKRUPTCY

More than one million Americans filed for personal bankruptcy last year

—an increase of more than 30% over 2007. Unexpected medical bills are a top cause of personal bankruptcy. Other reasons include losing a job, struggling through divorce, getting stuck with an unmanageable mortgage, or simply going on a $30,000 credit-card spree. While a bankruptcy will remain on your credit record for up to 10 years, you can still bounce back and reestablish a good credit rating. So if bad circumstances—or tough decisions—have led you to file, don’t despair. In a best-case scenario, after having your debts discharged by a court, you could qualify for a car loan with good rates in a year and a mortgage in two to four years. According to attorneys and consumer advocates, the path back usually involves careful steps to reestablish creditworthiness.

Here’s what to do:

1. Start with one credit card. Get a card with the lowest possible fees and accept a spending limit as low as $250. Some lenders hawk cards with 29% rates and $49 application fees; you don’t need these cards or the problems that go with them. Make sure that the card issuer will report your new payment history to the three main credit-rating agencies so you can establish a record of paying back debts reliably. Even after you file for bankruptcy, card issuers will be jockeying for your business because You’re a good credit risk, and You have no debt, and the banks know you can’t file again for bankruptcy protection for as much as eight years.”

2. Make prompt payments 100% of the time. “A single late payment can set you back by six months to a year,” says Evan Hendricks, author of Credit Scores & Credit Reports. “It can undo all your hard work and drop your credit rating by 40 to 90 points.” In contrast, paying off debt quickly not only rebuilds your creditworthiness, it also helps you avoid steep interest charges.

3. Ask for lower rates, especially as your credit improves. It’s going to take about a year of good payment history, but gradually the rates will come down. Some lenders make these adjustments automatically. Even so, it never hurts to treat credit terms as negotiable and to shop around when necessary.

4. Avoid “credit-repair” schemes. Some services assert that they can fix bad credit in two weeks or less, for a fee. These outfits bombard credit-scoring agencies with claims that various defaults and late payments didn’t happen. That can cause your delinquencies to be delisted temporarily, but they can ultimately be added back to your credit report.

5. View a car loan as the next big step. While car dealers typically want to see at least a year of good payment history before financing a post-bankruptcy buyer, some dealers aren’t picky these days. Initial rates can be as high as 22%, but reliable payers can refinance at better terms later on. Opting for a used car can keep costs down.

6. Keep balances under control. Post-bankruptcy borrowers who seem to be handling new debt well will find that their credit limits increase rapidly. That’s gratifying but dangerous: Keep low limits on your cards and live within your means is my best advice.

7. Plan for a mortgage. Some of the biggest home-loan programs won’t consider borrowers who have filed for bankruptcy in the previous four years. Loans guaranteed by the Federal Housing Administration often provide the fastest path back to home ownership, usually with a two-year wait after bankruptcy. Banks trying to sell foreclosed properties may also be more flexible.