In every financial interaction, there is a level of risk. No matter how good a person you are, or how honest or hardworking, there is always the possibility of a financial accident. While these accidents are sometimes avoidable, often times they are not. When you find yourself in a difficult debt situation, it is important to know your legal rights and responsibilities. The Mathews Group, LC is here to help.
Chapter 7
Under a Chapter 7 bankruptcy, an individual or couple is allowed to modify their debt situation with the assistance of the United States Bankruptcy Court. The Chapter 7 is sometimes referred to as a liquidation, because the Bankruptcy Trustee has the power to liquidate certain assets in order to cover debts. Most Chapter 7 bankruptcies, however, are considered “Non-Asset Liquidations,” in that there are no assets to liquidate. That’s because many of your assets are protected and exempt from liquidation. The exemption rules are different for each state, but you are generally allowed to keep some amount of equity in a vehicle, a home, home furnishings, tools, clothing, furniture and other household goods.
Non-exempt assets may not be subject to liquidation because they don’t have liquidation equity. In other words, if you own a second car with a wholesale value of $10,000, but you owe $10,000 on it, there is no equity in the vehicle, and therefore the Trustee would have no reason to liquidate it.
Chapter 7 is a complicated process. You must meet certain income criteria that vary from state to state, and you must be able to demonstrate that the Chapter 7 would actually relieve your financial crisis. Additionally, if you have enough income to continue paying some or all of your debts then you may be required to file under Chapter 13, or not to file at all.
The benefit of a Chapter 7 bankruptcy is that it changes your debt load. You may be able to discharge all of your unsecured debts, and you may have the option of “waking away” from secured debts like home mortgages and auto loans, if you are willing to give up the property.
The Mathews Group, LC is a debt relief agency. We help people file for relief under the Bankruptcy Code. We can assist you in determining whether you qualify for bankruptcy relief, and what the ramifications of that decision would be.
Call us today at 913-660-0664 to arrange a No-Cost Consultation to discuss your options.
Foreclosure/Loan Modification
Across America, foreclosures have reached epidemic proportions. Families find themselves unable to continue paying mortgages due to lost income or adjustments in their interest rates. The Mathews Group, LC is here to help.
We assist parties who are facing foreclosure by helping them navigate the process, or by keeping banks at bay while loan modifications or refinance options are pursued. The Mathews Group, LC can explain government regulated programs like the Homeowners Affordability Modification Program, to help you determine if you may qualify, and work with the bank on your behalf to assist you in modifying a loan.
Call us today at 913-660-0664 to arrange a No-Cost Consultation to discuss your options.