What Should You Know About Bankruptcy?

Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy IMMEDIATELY stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. We are a debt relief agency. We help people file for relief under the Bankruptcy Code. If you still have questions after reading through this web site, please feel free to contact David T. Lumerman at (314) 421-3313.

Which Type of Bankruptcy Should I File? Most people filing bankruptcy will want to file under Chapter 7 or Chapter 13. Either type of case may be filed individually or by a married couple filing jointly. Your spouse is not required to file but may want to because he or she may be the co-signer on your debts.

• Chapter 7 is known as “straight” bankruptcy or “liquidation. All your debts are wiped out. It requires a debtor to give up property which exceeds certain limits called “exemptions”, so the property can be sold to pay creditors. Most of the time, you will not lose any of your property.

• Chapter 13 is called “debt adjustment or wage earner’s plan”. It requires you to file a plan to pay debts from current income. You decide your monthly payment based on your budget.

Fees and Payment Plans
• Filing fee for a Chapter 7: $299
• Filing fee for a Chapter 13: $274

Attorney’s fee:
(My Chapter 7 fees are among the lowest inthe area. Please call for a free telephone consultation and price quote. You will be pleasantly surprised.)
• Chapter 7 – Paid in advance
• Chapter 13 – Most of the fee is paid through the Chapter 13 Plan.

• Payment Options: You can pay all fees at once or you can arrange an affordable payment plan. Minimum down payment you should have at time of consultation: $200.00 for an individual and $250.00 for a joint case – However, you will probably want to pay more than the minimum so your case will be filed faster.

You will also be required to complete Debt Counseling and a Financial Management Course. Costs range between $70.00 to $125.00 for both parts, depending on whether it is a joint or individual filing, and whether you complete it over the internet or on the telephone.