Effective Legal Counsel for Bankruptcy Law

Bankruptcy is a legal process that allows people and businesses to reorganize their financial situation in a fair and equitable manner. Most people don’t even consider filing bankruptcy until they have been struggling with unmanageable debt for years, but when you have done your best and there is still no end in sight, you have the right to put the burden down. The ability to deal fairly with your creditors and move on with your life is so important that the Founding Fathers included it in the constitution. Article I, Section 8, of the United States Constitution authorizes Congress to enact "uniform laws on the subject of bankruptcies." You don’t have to live forever the fear and uncertainty; the fundamental goal of the bankruptcy process is to give the “honest but unfortunate debtor a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt." Call the Law Office of Sharon T. Sperling to learn more.

Filing Bankruptcy

People filing bankruptcy (called “petitioners” or “debtors”) are required to undergo credit counseling within six months before filing, and take a financial management class before getting their debts discharged. Income and expenses are analyzed using a formula we refer to as the “means test” which starts by comparing a debtor’s household income to the state median income, deducting allowed expenses (some are fixed by statute, others are the debtor’s true expenses) and determining whether the debtor has the ability to repay creditors in a Chapter 13 plan.

People whose household incomes are below the state median, or who are above median but have higher fixed expenses, will still qualify for Chapter 7 bankruptcy. People with higher incomes who can afford to pay a portion of their debts but can’t meet the demands of every single creditor can set up payment plans that will get the creditors off their backs and allow them to see the light at the end of the tunnel. 

What kind of bankruptcy is best?

When you make an appointment to meet with me, I’ll send you some simple forms to fill out and bring with you to your appointment. On these forms, you’ll list everyone you owe (yes, everyone, including secured debts like mortgages and other debts you want to keep paying, or loans from friends or family that you will pay back) and your current income and regular expenses. With this information, I can analyze your personal financial situation and tell you which form of bankruptcy can help you. If bankruptcy isn’t the right option for you, I’ll tell you that, too. What we discuss in our meeting is confidential, and the consultation is free.