June 30, 2021
Hiring a lawyer can be a stressful process. To begin with, how can you be sure you even need a lawyer? There are a lot of reasons that you need a lawyer before you end up in a courtroom. Once you know you need a lawyer, how do you find a good one? Should you hire one for just this job or keep a lawyer on retainer?
How to know if you need a Chapter 7 Bankruptcy Lawyer
The simple answer is, if you’re not sure, you need a lawyer. Consulting a lawyer and finding out you are in the clear is preferable to not contacting a lawyer and facing down lawsuits or fines. Lawyers are essential at every step of the business process like a chapter 7 bankruptcy lawyer from a firm like Carolyn Secor, P.A., can explain. They can make sure you start off on solid ground by advising on a sound business structure and helping you with the paperwork and licenses you need. You will also need a lawyer if you are working with any intellectual property and when going through a bankruptcy. They can draft solid agreements and contracts to help keep business running smoothly. They can even help you get paid with a letter on your behalf. If you wait until an emergency comes up to hire a lawyer, you have waited too long.
How to Find a Good Chapter 7 Bankruptcy Lawyer
One of the best ways is to ask around. Put your personal and professional networks to work for recommendations. Make sure to look around online and do some research. There are sites that offer directory services for lawyers, and they may even include complaints lodged against the lawyer.
Once you have some recommendations, set up meetings with the potential lawyers. Make sure that you come ready to ask questions. Think of it as interviewing an employee. How much do they need to be paid? How much experience do they have?
What is a Retainer
A retainer is a prepayment into an account that is used to pay the lawyer’s fees later. By setting up a retainer with a lawyer, you can avoid worrying about legal issues and focus on running your business. The retained lawyer can review and form contracts and agreements and advise in all sorts of legal matters. They can even make recommendations if you need someone more specialized. The exact amount needed depends on the lawyer, so make sure you ask during the interview process.
If you have questions about any chapter 7 bankruptcy legal issues relating to your business, contact a Chapter 7 Bankruptcy Lawyer and discuss your options.
June 11, 2021
Filing for bankruptcy is never an easy decision. There are many things to consider when deciding if it is right for you. There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. This blog will focus on Chapter 7.
Chapter 7 bankruptcy, or liquidation bankruptcy, is the kind of bankruptcy that is often portrayed in media. It allows individuals who are unable to pay their debt to discharge most of it. Once you file, an automatic stay takes place and your creditors must cease all actions pertaining to the collection of your debt. You will likely have to sell some of your assets to pay down some of the debt, however some things may be considered exempt. If you decide to file for bankruptcy a lawyer can help you decide if this is the correct option for you. If you go forward with filing Chapter 7 bankruptcy here are six ways it may affect your everyday life.
You may have difficulties obtaining a good credit card.
When you file for bankruptcy your credit score will likely drop by 100 or more points. The negative mark bankruptcy leaves on your credit score can last for up to 10 years. Most “good” credit cards, with benefits and low interest rates, will require you to have a credit score of 700 or above. While you are building your credit back up, you may still be able to get a credit card, but it will likely be one with a higher interest rate and fees.
You may have a hard time getting a mortgage.
Once you file for bankruptcy you will have a waiting period before you can apply for most types of mortgages. For example, FHA loans are the most flexible allowing you to apply for a loan as soon as 1 year if you can prove extenuating circumstances, or 2 years without. Other types of loans have their own waiting periods. Once you have completed the waiting period you will probably need to meet a credit score minimum and other requirements. Securing a mortgage after bankruptcy is by no means impossible, but there will be hurdles.
You may have high interest rates if you choose to finance a new car.
Sometimes during a bankruptcy proceeding you will be forced to sell your car to pay down your debt. If this occurs and you need to buy a new car but cannot pay cash, car dealerships may take advantage of the situation and charge you extremely high interest rates, occasionally up to 29%.
You will no longer receive collection calls.
Once you file, collection agencies will not contact you anymore. Not having to deal with harsh creditors may significantly improve your daily life.
You may feel relieved.
Once your bankruptcy proceeding is finished you may feel immediately relieved. Now that you have been discharged of your debts, you can move forward without the constant stress of large amounts of debt hanging over your head. You may even find you look at the world in a more positive light and other aspects of your life may improve as well.
You may notice a decrease in the amount of fights you are having at home.
If you have a partner, you might find that your relationship improves almost overnight. Financial strain is one of the biggest stressors on any relationship. With your debt being eliminated you can focus more on your improving your relationship rather than your financial situation and you may fight less frequently.
These are just a few of the ways filing Chapter 7 bankruptcy could affect your daily life. Deciding to file for bankruptcy is a very personal decision, everyone’s situation is different. Like with everything in life, there are pros and cons to filing and only you and your lawyer can decide what those will be for you.
March 4, 2021
One of the basic and most important protections available when you file a bankruptcy of any type, anywhere, is the Automatic Stay.
Essentially, the moment you file your bankruptcy case, the Bankruptcy Automatic Stay stops any company or person whom you owe money (a “creditor”) from taking any steps to collect money from you. The provision that creates this Automatic Stay is Section 362 of the United States Bankruptcy Code. The Automatic Stay blocks credit card companies, personal loan companies, banks, car loan companies, mortgage companies, the IRS, and almost anyone else to whom you owe money.
What does this mean for you? Here are a few examples: If your home is to be sold tomorrow in a foreclosure sale, we can file a bankruptcy petition today and stop the sale. If your bank account has been frozen (restrained), we can file a bankruptcy petition, and the Automatic Stay requires your bank to release the freeze and allow you access to your money. If your salary is being garnished (also called an “income execution”), filing a bankruptcy petition will invoke the Automatic Stay and stop any garnishment so you once again receive your full paycheck. Are you being sued? Filing a bankruptcy petition will invoke the Automatic Stay which, in turn, will temporarily halt any proceedings against you.
The Automatic Stay begins at the moment the bankruptcy petition is filed (usually electronically); not the day it is filed, but the actual moment it is filed. Therefore, we can theoretically stop a foreclosure sale scheduled for 3pm by filing the bankruptcy ten minutes earlier.
However, it is not unlimited relief; there are some circumstances in which the Automatic Stay will not block legal action against you, as the lawyers at Baram Kaiser Law can explain. For example, criminal proceedings do not violate the Automatic Stay. Likewise, actions to collect previously Court-ordered child support obligations are not stopped by the Automatic Stay. The Automatic Stay can be limited in duration in certain circumstances, for example, if you have filed bankruptcy previously in the recent past. In certain circumstances, a creditor may have legal grounds to ask the Bankruptcy Court Judge to remove or modify the Automatic Stay, for example, if you do not resume mortgage payments after you file your bankruptcy. These nuances in the Bankruptcy law require the advice and counsel of a knowledgeable, experienced attorney to help plan the best course of action to protect you and your family’s finances.