Bankruptcy (Chapter 7 and Chapter 13)
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.
A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.7
Mortgage Foreclosure Defense
Foreclosure is when your Lender or the Servicer for your Lender takes steps to repossess your home because you have not paid your monthly mortgage. New Hampshire is a non-judicial foreclosure state which means your Lender does not have to go to court to get permission to foreclose on your house. It is beholden upon the homeowner to file a complaint or petition with the New Hampshire Superior Court before the foreclosure happens to stop the foreclosure if you believe there are reasons that the Lender should not foreclose. The foreclosure process in New Hampshire is very fast. You should never ignore a foreclosure notice. Seek help immediately to learn your rights and options if you want to try to keep your home.
Debt Collection Defense
Just because you cannot pay your bills does not give a person the right to harass or belittle you. Bill collectors, which is anyone other than your original creditor, are regulated by state and federal laws. If a bill collector is calling you repeatedly, will not listen to you, yells at you or makes any sort of threat, they are violating the law. We can help you stop the calls and understand your rights.