Millions of Americans are unable to pay their debts as they become due. People and businesses find themselves in this situation for a wide variety of reasons. Some common causes of insolvency are loss of employment, medical hardship, death in the family, weak economic conditions, and theft.
Credit counseling will help you gain an understanding of what you can do differently in the future to enjoy financial success. The attorneys at The Hurwitz Law Firm can help you obtain a fresh start and resolve disputes with creditors.
Chapter 7 bankruptcy can absolve a debtor of liability for a significant portion of their debts, including those incurred for household purposes. However, taxes, student loans, and child support obligations are not eligible for discharge. The Bankruptcy Court will administer a “means test” to determine a debtor’s eligibility for Chapter 7 relief based on their income and expenses. The Chapter 7 process will involve liquidation of the debtor’s assets, with the exception of some household and personal items and retirement savings.
A debtor not qualifying for a Chapter 7 filing can still obtain relief under Chapter 13 of the Bankruptcy Code, and can retain ownership of certain household property and significant home equity. Chapter 13 bankruptcy involves a debtor proposing a plan to repay debts in an orderly manner, usually at a substantial discount and interest free, over up to 60 months.
A Chapter 11 bankruptcy filing provides a business the opportunity to propose a reorganization plan to its creditors. The plan must be timely submitted in order to protect the debtor’s rights.
Failure to properly and strategically draft your Bankruptcy Court filings can result in dismissal of the bankruptcy case, and impair a debtor’s ability to obtain relief from the Bankruptcy Court in the future. The Hurwitz Law Firm employees attorneys experienced in preparing the necessary paperwork in a manner to protect our clients and start their new beginning the right way.
We are also experienced in representing Creditor’s in need of relief from an Automatic Stay, and parties seeking an Adversary Proceeding to protect their rights and interests. The Bankruptcy Code is a complex piece of federal legislation. We are here to help put it to work for our clients.
State and Federal law impose heavy restrictions on the actions of collection agencies and debt collection law firms. Unfair & Deceptive Practices Act legislation and the federal Fair Debt Collection Practices Act regulate the time of day, frequency, manner and method by which collection agencies can contact you and seek to collect overdue debts, as well as what they can, must, and may not, say to you on the telephone or in written correspondence.
These laws and others, including the federal Truth In Lending Act (TILA) and Fair Credit Reporting Act (FCRA) require collection agencies and creditors to provide proof of the validity of a debt, or portion thereof, upon proper and timely invocation of a client’s right to those documents and information.
The credit and collection industry is rampant with the sale and re-sale of debt obligations amongst banks, investors and collection agencies. Banks and lenders have been proven to charge excessive finance fees and interest, and to engage in a variety of other unscrupulous conduct. The Hurwitz Law Firm is well versed in auditing assignments of debts between creditors. We are also experienced in credit math, and identifying miscalculations frequently appearing in credit card and loan billing statements.
If you receive a collection letter or lawsuit, contact us without delay to protect your rights and avoid any worsening of your legal troubles. We will act quickly to protect you, and to seek penalties against collection agencies and creditors for violation of the law.