Chapter 7 bankruptcy basics


Chapter 7 bankruptcy is a process provided for under United States federal bankruptcy law by which you are entitled to a fresh start.



Chapter 7 bankruptcy may eliminate most kinds of unsecured debt. Some examples of unsecured debts Chapter 7 may eliminate are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.


In addition to getting rid of your debt, Chapter 7 allows you to typically keep all of your property. As long as your car and mortgage payments are current, and there is no significant equity in your property, we should have no problem making the arrangements for you to reaffirm the debt. Keep your home, keep your car, keep your personal belongings, but eliminate your debt; that is our goal with Chapter 7. Lanphier & Associates may be able to use Chapter 7 to provide you with many benefits. Read about those benefits below and about other subjects related to Chapter 7 and other forms of bankruptcy. First, read the below alert that contains important information that you need to know!




Stop Creditor Harassment


If creditors are bothering you at work, harassing your family, friends and neighbors, or calling at all hours, you can put an end to it immediately simply by hiring Lanphier & Associates to represent you. Upon retaining our services, we provide you with a special telephone number so that you can refer your creditors to us. We will keep the creditors off your back, and you can stop paying your creditors immediately.




Eliminate Repossession Debts


After a vehicle finance company repossesses your car they auction it to reduce their loss. You are still responsible for the balance on the car, called a 'deficiency balance'. Lanphier & Associates can eliminate your liability for the entire deficiency balance. Remove the risk of lawsuits and garnishments by filing a Chapter 7.




End Lawsuit/License Suspensions


Many states have imposed laws that allow the state to suspend your license if you failed to maintain liability insurance at the time of the accident. Lanphier & Associates can help you get your license reinstated if it is suspended due to an uninsured car accident or unpaid parking tickets. Our attorneys can also stop lawsuits related to those car accidents.


If you are being sued, and you own a home, we strongly urge you to speak with a Lanphier & Associates representative immediately about filing bankruptcy. Chapter 7 or another form of bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your hard-earned wages.




Lower Your Car Payment


The bankruptcy attorneys at Lanphier & Associates offer two courses of action to lower your car payment. First, in some areas of the country, Lanphier & Associates can use a Chapter 7 redemption to lower your payment. Many people are forced into bankruptcy because a loan company has over-financed a vehicle. A high car payment can make it impossible for you to afford to pay even your month to month expenses. Using the Chapter 7 redemption process, Lanphier & Associates can force a creditor to accept a payoff on your vehicle for only the value of the vehicle. We will even arrange for you to obtain new financing for the Chapter 7 redemption on your vehicle.


For instance, if you owe $25,000 on a vehicle that is only worth $10,000, with Chapter 7, we will force the existing finance company to accept a redemption of $10,000 as a payoff on the vehicle and arrange the financing for you on the $10,000 balance. Many attorneys do not offer this valuable service. Lanphier & Associates can reduce your vehicle payment, save you thousands of dollars on the vehicle and eliminate your other debts along the way. This is just another way that the bankruptcy attorneys at Lanphier & Associates use the most aggressive means possible to improve your financial situation and work to get you the fresh start you need.


Instead of Chapter 7, Lanphier & Associates can also use Chapter 13 to reduce your car payment and consolidate other debts that you cannot afford to pay. In a Chapter 13 bankruptcy, Lanphier & Associates will reduce the total amount you pay the finance company so that you only pay the value of the vehicle plus interest. Any money owed to the finance company above that amount can be paid, in most circumstances, at a percentage on the dollar. Even if the car has already been repossessed, we may be able to force the finance company to return the vehicle and then reduce your car payment. Time is of the essence, however, so act now. We can also consolidate any other outstanding bills so that you can pay those debts at a percentage on the dollar as well.




Rebuild Your Credit


One of the most common concerns that we hear from clients has to do with the stigma related to bankruptcy. A basic characteristic of human nature is that people are afraid of things with which they are not familiar. Do not count out Chapter 7 or 13 bankruptcy as an option until you have taken a short time to get educated on the subject. The stigma against debtors has greatly diminished over the last 20 years, and there is no indication that debtors will be treated less favorably in the future. In fact, the ability to reestablish your credit after Chapter 7 or 13 bankruptcy is better than it has ever been before. Chapter 7 or 13 Bankruptcy can remain on your credit report for up to 10 years, but you can start reestablishing your credit immediately.


First, let us define credit. Credit is your ability to borrow money. Many lenders determine whether or not to lend you money by examining your debt to income ratio; how much outstanding debt you have compared to your income. Remember that the reason that your credit is poor right now is because you have so much outstanding debt. Ask yourself, who would you rather loan money to; the person who has $20,000 in credit cards and could file Chapter 7 or 13 bankruptcy at any time, or the person who has already filed Chapter 7 or 13 bankruptcy, has no remaining debt, and could not file another Chapter 7 or 13 bankruptcy for another eight years.


Many of our clients are able to purchase a vehicle on financing the day they receive their bankruptcy discharge. Often times you will pay a percentage point or two higher than a person with unblemished credit, but ask yourself how low of an interest rate would you be able to get in your present situation. You should be able to finance a home within two years after receiving a bankruptcy discharge, as long as you can provide a minimum down payment and show the ability to make the monthly mortgage payment. Many consumer debtors receive credit card solicitations within months of receiving a bankruptcy discharge. Once you are a Lanphier & Associates client, you are a client for life. We will not abandon our clients once they have received their discharge from the court. This is part of our commitment to you to provide quality legal representation for a fair fee.


We caution you against rumors of the Chapter 7 or 13 bankruptcy stigma that you may hear from friends or family, who may not possess the knowledge of bankruptcy law necessary to give legal advice. They may have your best interests in mind, but a little knowledge is a dangerous thing. Speak with one of Lanphier & Associates experienced bankruptcy attorneys to make sure what you are hearing is the truth.




Keep Your House, Car and Personal Belongings- Reaffirming


Mortgage lenders and automobile finance companies are usually more than happy to keep accepting your current monthly payments both before and after a Chapter 7 bankruptcy. This is called reaffirming your debt. They are in the finance business to make money, not to repossess your property. When the finance company reaffirms the debt, they have the comfort of knowing that you have no other outstanding debts, you cannot file Chapter 7 or 13 bankruptcy for another eight years, and they can continue to collect the principal plus interest under the original loan agreements. Lanphier & Associates will make all of the arrangements for you to reaffirm your debts on your home, car or other household goods that you are financing. Many credit card companies are also willing to reaffirm your debt with them and reinstate your line of credit after Chapter 7 or 13 bankruptcy. Although we are happy to arrange reaffirmation agreements on these debts as well, we also caution our clients to avoid getting back into the credit card trap.



Low Fees


Once you have found an experienced bankruptcy attorney with whom you are comfortable, be sure his or her fee is fair. Lanphier & Associates provides you with very fair fees and gives you the client, a choice of several different payment plans to fit your individual needs. If you need your case filed quickly due to a garnishment, foreclosure or threat of repossession we may be able to file your case almost immediately and offer you a payment plan tailored to your situation.


We offer a very low flat fee that can be paid off in installments over several months. Lanphier & Associates will provide you with a range of fair fees right over the phone. We guarantee not to exceed the fee range you are quoted. And remember there are no hidden attorneys fees in that price. Under this payment plan you can hire us with as little as $100 and any balance will be spread out in a flexible payment plan.

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