Debt Relief Information -Winterbotham Parham Teeple, a PC

Debt Relief

Debt relief is a federal remedy that helps people out of debt when debts become unmanageable. See the below information for debt relief alternatives that may suit your needs.

With limited exceptions, § 109(h) of the Bankruptcy Code requires that all individual debtors who file for bankruptcy relief on or after October 17, 2005, receive a briefing that outlines the available opportunities for credit counseling and provides assistance in performing a budget analysis. The briefing must be given within 180 days before the bankruptcy filing. The briefing may be provided individually or in a group (including briefings conducted by telephone or on the internet) and must be provided by a nonprofit budget and credit counseling agency approved by the United States trustee or bankruptcy administrator. Winterbotham Parham Teeple, will provide you a list the you may consult of the approved budget and credit counseling agencies

Which Chapter Is For You

Scales We may advise Chapter 7 - Bankruptcy when debts are large in relation to income and living expenses, making it difficult to make full or partial payments under Chapter 13.

We may advise Chapter 13 - Debt Adjustment when:

· You have a strong desire and ability to pay all or a portion of you debts.

· The purpose is to cure arrears on real estate, stop foreclosure and save your home.

· You want to protect non-exempt assets.

· You owe taxes or student loans that do not meet the requirements for discharge.

· The purpose is to bring current child or spousal support payments.

· You want to protect a consumer co-signor.

· Judgments were incurred by reason of drunk driving or fraud.

· You filed a Chapter 7 in the past 8 years.

· The formula set forth in the U.S. Bankruptcy Code, the "Means Test" requires it..

Chapter 20 - Combination: If Chapter 13 is the best solution but you are unable to make Chapter 13 plan payments, we may file Chapter 7 to delete dischargeable debts; then, after your Chapter 7 is discharged, we file a Chapter 13 to cure your non-dischargeable debts.

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Chapter 13 Debt Adjustment

Stretch your dollars

Chapter 13: Repayment of All or Part of the Debts of an Individual with Regular Income

1. Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.

2. Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. the court must approve your plan before it can take effect

3. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations.

Keep you home, auto, furniture, business, cash, all assets you choose under Chapter 13, because debts and arrears are paid "as if in full".

We determine your Chapter 13 plan payment by taking net monthly income less normal living expenses. The amount left over is paid to a trustee, who in turn pays creditors monthly.

Chapter 13 is not a loan. It is a federal plan that requires creditors take less each month from you, for a longer period of time. It is available to individuals with:

1. regular income from any source and,

2. unsecured debts not exceeding $307,675.00 or

3. secured debts not exceeding $922,975.00.

If the amount left over cannot repay creditors in full over 3 to 5 years, we reduce the balance owed to unsecured creditors and sometimes secured creditors. You pay creditors 0% to 100% of the balance owing depending on: 1) your budget and 2) your county's court.

We eliminate all interest on most unsecured debts and certain types of secured debt. This reduction of interest, balance owing, and extended time to pay, makes the payment affordable. At Winterbotham Parham Teeple, a PC you receive the lowest payment plan allowed by law. Chapter 13 immediately stops foreclosure. Delinquent house payments are included in the payment plan and brought current over 60 months. After filing, regular house payments are paid outside the plan.

You can payoff your Chapter 13 plan anytime prior to completion without interest or penalty. However, if your plan pays creditors less than 100% of the amount due, you must pay creditors 100% to obtain an early discharge.

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Chapter 7 Bankruptcy

Unweilding

Chapter 7: Liquidation

1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a "means test" designed to determine whether the case should be permitted to proceed under chapter 7. If your income is greater than the median income for the state of residence and family size, in some cases, creditors have the right to file a motion requesting that the court dismiss your case under § 707(b) of the Code. It is up to the court to decide whether the case should be dismissed.

2. Under chapter 7 you may claim certain of your property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors.

3. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. if, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated.

4. Even if you receive a general discharge, some particular debts are not discharged under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay nondischargable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can provide that a debt arose from fraud, breech of fiduciary, or theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.

Winterbotham Parham Teeple, a PC provide pre-petition planning to assure the highest protection available. Over 90% of our clients keep everything and lose nothing. We achieve this by careful planning and taking special exemptions allowed by law.

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