Bankruptcy Lawyers in West Warwick RI and West Warwick Foreclosure Attorneys
West Warwick RI Bankruptcy Lawyers
Allocation of Debt Attorneys in West Warwick RI.
Common types of bankruptcy in West Warwick Rhode Island.
The common types of bankruptcy actions most heard about include Chapter 7, Chapter 11, and Chapter 13. These bankruptcy proceedings may help individuals, but it is wise to contact a bankruptcy attorney in West Warwick RI to see if there are other ways to resolve overwhelming debt, as it will negatively reflect on a person’s credit report for 10 years from the date of filing the petition.
The most common advantage to filing a bankruptcy petition in West Warwick Rhode Island is that debt collectors will have to stop harassing debtors with phone calls, letters, and potential lawsuits. Once an individual has filed a bankruptcy petition with the courts, all attempts to collect a debt by the creditors must stop. This action is an automatic stay, and creditors must cease actions for:
2) Wage garnishments,
4) Bank levies,
5) The constant never-ending harassing phone calls and mailings.
A means test must be done to decide if an individual is eligible for Chapter 7 whereby debts will be forgiven, or Chapter 13 whereby debts are paid off monthly for a period of up to five years, if individuals fall under the median income for certain family sizes, and are not abusing the bankruptcy system. If individual income is higher than the state mandated median, a person may have to file a Chapter 13 bankruptcy action, because there is an ability to pay off incurred debt.
Chapter 7 bankruptcy Attorneys in West Warwick RI.
1) Credit card balances,
2) Personal loan balances, and
3) Medical bills for example.
There are certain cases that allow for IRS back taxes, and state taxes to be discharged.
2) Student loan debt,
3) Debts related to personal injury, or death caused by drunk driving,
4) Penalties related to violations of law,
5) Tax debts unless individuals meet exception criteria and any debt people do not list in petitions for bankruptcy filing.
Chapter 11 Bankruptcy Lawyers in West Warwick RI.
Businesses often file Chapter 11 bankruptcy, so they can reorganize, while remaining in business. Filing Chapter 11 bankruptcy in West Warwick Rhode Island allows a company to create plans for profitability, cut costs, and find additional avenues to increase revenue. If a company has preferred stockholders they may still receive payments, but common stockholders will not. Repayment plans are often set up under the court’s supervision. In rare cases, individuals can also file Chapter 11 bankruptcy. Visit the Rhode Island page to find a West Warwick RI bankruptcy attorney.
Chapter 13 Bankruptcy Lawyers in West Warwick RI.
Individuals who make too much money to qualify for Chapter 7 bankruptcy in West Warwick Rhode Island may file under Chapter 13, also known as a wage earner’s plan. It allows individuals and businesses with consistent income to create workable debt repayment plans. The repayment plans are commonly done in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow debtors to keep all of their property, including nonexempt property.
The steps debtors should take as they prepare for bankruptcy include:
• avoiding application for additional lines of credit or maximized spending on current open cards, or personal loans close to the filing of a bankruptcy petition.
• do not pull money from retirement accounts because they are often untouched during the settlement discharge and individuals may need that funding later as they may be protected; and
• do not transfer assets close to the time of filing a petition because the court may discern this as a way to hide them.
Find a Bankruptcy Attorney in West Warwick RI.
Individuals should find a bankruptcy lawyer in West Warwick Rhode Island who specializes in bankruptcy law to make certain they understand bankruptcy law protections for: 1) homestead; 2) insurances; 3) pensions; 4) public benefits such as disability; and 5) tools of the trade items.
Also read our Foreclusure article: https://foreclosure.usattorneys.com/rhode-island/west-warwick/