Bankruptcy

Welcome to the Affinity Law Group's Section on Bankruptcy Practice.  Over the years we have helped hundreds of people just like you who were behind on their bills, suffocated by debts, harassed by collectors, or facing foreclosure.  Use this page to learn basic information about bankruptcy law, your rights as a debtor, and other debt reduction services we provide.  We enjoy what we do and appreciate the opportunity to share our knowledge with all who are interested. 

Please visit our Steps for Filing Bankruptcy Page.  Once you have educated yourself, feel free to contact us for an in-person, no-obligation consultation with one of our attorneys who focuses on bankruptcy and debt reduction strategies.  We hope that you will take this opportunity to restore your financing security and give yourself the peace of mind that you deserve.   

We offer representation in the following bankruptcy-related matters:

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is a type of bankruptcy case that allows a debtor to eliminate unwanted and harmful types of debt such as credit card balances, personal loans, and unpaid medical bills.  Most people who are facing severe financial hardship use a Chapter 7 bankruptcy to get their fresh start.      

Seeking the advice of an experienced bankruptcy attorney before filing a Chapter 7 case is prudent for several reasons.  Recent changes to the bankruptcy laws may prevent you from filing under Chapter 7 if your income is higher than the average person's or if you filed a Chapter 7 case in the previous eight years.  A Chapter 7 bankruptcy may also not be feasible if the value of your assets exceeds certain dollar amounts.  Finally, some types of debt, such as student loans or unpaid child support, cannot generally be eliminated in a Chapter 7 case.  Our law firm will review your financial situation in detail before determining whether a Chapter 7 bankruptcy is right for you.  

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy requires a debtor to agree to a repayment plan (called a "Chapter 13 plan") that will allow creditors to be repaid at least a portion of the amounts owed them over a period of time (generally three and not longer than five years).  This is in contrast to a Chapter 7 bankruptcy in which one's debts are generally eliminated without any repayment.

Most of our clients who file for Chapter 13 bankruptcy are homeowners who have fallen behind on their mortgage payments due to temporary financial hardship and are facing imminent foreclosure.  A Chapter 13 filing prevents a debtor's home from being foreclosed if the debtor resumes making monthly mortgage payments after their bankruptcy case begins and commits to repaying the total amount of prior missed payments in equal monthly installments over a three to five year period.    

A Chapter 13 bankruptcy may also be preferable if the value of a debtor's assets is significant.  Finally, some debtors are required to file under Chapter 13 if their incomes are higher than average.  Our law firm will review your financial situation in detail before determining whether a Chapter 13 bankruptcy is right for you.

Creditor Harassment and Collections Defense

Our law firm defends consumers who are the victims of unfair harassment by bill collectors.  We litigate violations of the Fair Debt Collection Practices Act and state consumer protection laws to stop abusive and illegal debt collection practices.

Wage Garnishments

Filing for bankruptcy stops your wages from being garnished.  In certain cases, you may also be able to force your creditors to return wages that were garnished prior to your bankruptcy filing.  Our law firm routinely litigates these types of "avoidable preference" actions against creditors. 

Eliminating Second Mortgages

Many people who purchased homes in recent years did so by taking out first and second mortgages.  Now that real estate prices are decreasing dramatically in many parts of the State, it is not uncommon for a home to be worth much less than what you paid for it.  If the current value of your property has dropped below the loan balance on even your first mortgage, bankruptcy may allow you to eliminate your second mortgage altogether.  Our law firm can determine whether this bankruptcy option is available to you. 

Lowering Car Payments

If the loan on your car or truck is more than two and a half years old, bankruptcy may allow you to reduce your monthly loan payments by lowering your loan balance to the current value of your vehicle and trimming your interest rate to a percentage that is set by the bankruptcy court.  Pursuing this option requires that you repay the modified loan balance in monthly installments over a three to five year period.  Our law firm can assess whether you qualify to take advantage of this important right in bankruptcy.