Are you facing the loss of your home or car because of foreclosure or repossession? Do you fear falling further behind on what you owe even when you make regular monthly payments? Have you been making minimum payments on credit cards, but the balance grows each month with no end in sight? Are you overwhelmed by medical bills that can never be paid in full? Does your financial situation look so bleak that you have lost hope of ever solving your difficulties?
These are just some of the signs that people face as they struggle with debt. If any of the questions above sound familiar, you may be a candidate for either Chapter 7 or Chapter 13 Bankruptcy. The experienced attorneys at Evans & Mullinix P.A. have helped thousands of people resolve their financial problems for over 50 years. As attorneys serving the Missouri and Kansas area, we have worked with many of the creditors making daily demands on you and have seen every type of financial mess you can imagine.
What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
While both options can help solve your financial problems, selecting a bankruptcy course of action depends on which approach is best for your situation or which you are qualified to use.
Chapter 7 Bankruptcy
Chapter 7 is essentially a liquidation of your assets, the proceeds of which are used to satisfy creditors. This process can be accomplished in as little as 2-3 months and as a result, it is generally considered a more fiscally conservative option. After the liquidation of assets, you are released from all qualified debt and get a fresh start with a discharge. You will need to take a “means” test to see if you are eligible for Chapter 7. This test takes into consideration all forms of income and the extent of your obligations to determine if you meet the respective qualifications.
Chapter 13 Bankruptcy
In some cases, Chapter 13 is a better alternative. This option is sometimes referred to as a “wage earner plan” because it involves the process of making monthly payments to satisfy outstanding obligations. It typically does not result in the loss of assets like a house or car. It considers your income situation, evaluates expenses, and establishes a payment plan that consolidates all your obligations into one monthly payment.
Because it is a negotiated plan, it must be approved by the court and creditors. Chapter 13 can last around 3-5 years through the payment program and has its qualification standards or “means” criteria. After the payment schedule, like in a Chapter 7 Bankruptcy, you are discharged and the old unpaid balance on debts is forgiven. The administrative expenses and time involved are also financial considerations when choosing your path.
What Does Filing Chapter 7 or Chapter 13 Bankruptcy Mean?
Both bankruptcy filings mean that immediate action will be taken by your attorney at Evans & Mullinix P.A. to stop the pressure, threats, and creditor actions you have been dogging your steps. This is an important first step to restoring your financial future and providing the light at the end of a dark tunnel.
Any lawsuit against you is put on hold. Eviction or foreclosure actions are also paused pending further steps by the court to determine what solution is required for your situation. Creditors are notified to stop making payment demands or contacting you. From that point forward, your attorney will handle all communications between you and any creditor or lawyer representing them. Filing for bankruptcy allows you time to create a plan moving forward without fear of some of the most extreme actions a creditor can take.
What if I Don’t Need Either Chapter 7 or Chapter 13 Bankruptcy?
When you work with one of the Evans & Mullinix P.A. attorneys, we will first learn what your debts, assets, and income are to determine the best legal path for you to follow. This is a thorough evaluation that takes into consideration factors beyond merely legal like what you believe is the best course for you and your family. Because of the Federal qualification standards that determine which filing is appropriate, you may find that bankruptcy is not needed.
Some clients may only have a limited number of creditors creating their entire problem. Properly approached, a compromise payment plan outside of bankruptcy may work. In that situation, it may be beneficial both from a time and personal standpoint to work out some form of debt compromise. Over the years countless individuals have benefited from the skilled negotiation talents of our attorneys.
We Also File Chapter 11 and Subchapter V Bankruptcies
Evans & Mullinix also files complex Chapter 11 personal and business bankruptcy cases. Subchapter V of Chapter 11 is a new form that can assist businesses and owners.
Call Evans & Mullinix, P.A. Today Because These Problems Won’t Solve Themselves
When you hire the bankruptcy attorneys at Evans & Mullinix, P.A., it means lifting financial problems off your shoulders and working with a team with your best interests at heart. Put the phone calls, letters, and threats behind you and start fresh. Restore your sanity!
Call us today at 913-962-8700 and change the course of your life!
