Bankruptcy

401-274-3331

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986 Hartford Avenue
Johnston, RI 02919

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RHODE ISLAND BANKRUPTCY LAWYER – BENJAMIN A. MESITI, ESQ.

STOP:

  • Foreclosure
  • Creditor Harassment
  • Lawsuits
  • Garnishments

Get your life back on track with our FREE, no hassle, case evaluation. (401) 274-3331.

 

WHAT IS THE DIFFERENCE BETWEEN CHAPTER 7 AND CHAPTER 13?

Chapter 7 Liquidation

Chapter 7 is designed for people who do not have the ability to pay their existing debts. Consumer debts are subject to a “means test” designed to determine whether the case should be permitted to proceed under chapter 7. If you do not pass this test, then Chapter 13 may be more suitable to your situation.

Under chapter 7, you may claim certain property as exempt under governing law. In most consumer bankruptcy cases, nearly all of the debtor’s assets are exempt. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. Typically, you will be discharged from the legal obligation to pay unsecured debts such as credit card debts, medical bills and utility arrearages. Even if you receive a general discharge, some particular debts are not discharged under the law. These include some student loans, alimony, child support, criminal fines, and some taxes. We can sit down with you and determine which of your debts are dischargeable before you decide to file.

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

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. A chapter 13 case may be advantageous in that the debtor is allowed to get caught up on mortgages or car loans without the threat of foreclosure or repossession. 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. We can help you set up a plan that works for you.

WHAT ARE CHAPTER 11 AND CHAPTER 12 BANKRUPTCIES?

Chapter 11

Chapter 11 is a type of bankruptcy reserved for large corporate reorganizations but is also available to consumer debtors. Its provisions are quite complicated, and any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.

Chapter 12

Chapter 12 of the Bankruptcy Code was enacted by Congress specifically to meet the needs of financially distressed family farmers. The primary purpose of the legislation was to give family farmers facing bankruptcy a chance to reorganize their debts and keep their farms.

WHAT BANKRUPTCY CAN AND CANNOT DO FOR YOU:

Bankruptcy CAN:

  • Discharge liability for most or all debts to get a fresh start.
  • Stop foreclosure actions on their home.
  • Prevent repossession of a car or other property.
  • Stop wage garnishment and other debt collection harassment.
  • Restore or prevent termination of certain types of utility service.
  • Allow debtors an opportunity to challenge the claims of certain creditors who have committed fraud or who are otherwise seeking to collect more than they are legally entitled to.

Bankruptcy CANNOT:

  • Eliminate certain rights of secured creditors. Although a debtor can force secured creditors to take payments over time in the bankruptcy process, a debtor generally cannot keep the collateral unless the debtor continues to pay the debt.
  • Discharge types of debts singled out by the federal bankruptcy statutes for special treatment, such as child support, alimony, student loans, criminal fines, and some taxes.
  • Discharge debts that are incurred after bankruptcy has been filed.

341 MEETING OF CREDITORS:

This is typically the one and only time you will have to appear in “court”. Everyone who files for bankruptcy, regardless of the chapter, must go to this meeting. There is no judge present and the proceeding is rather informal. The primary purpose of this meeting is to answer questions about your debts under oath. We prepare you for every part of this meeting, so that everything goes perfectly.

HOW WILL BANKRUPTCY AFFECT MY CREDIT?

By Federal law, a bankruptcy can remain part of a debtor’s credit history for 10 years. Whether or not the debtor will be granted credit in the future is unpredictable, and probably depends more on what good things the debtor does in the nature of keeping a job, saving money, making timely payments on secured debt, etc., than the fact that the debtor filed bankruptcy. We can discuss those unique factors with you before you decide to file.

ALTERNATIVES TO BANKRUPTCY:

Sometimes bankruptcy is not the best solution for you. Some other ways we can help are with:

LOAN MODIFICATIONS

This is a process in which we re-negotiate the terms of your loans to make them more affordable. A loan modification will typically result in the change to the loan's monthly payment, interest rate, term or outstanding principal.

CREDIT COUNSELING

This option involves establishing a plan with your creditors to repay your debts in a manner that is affordable to you. We can help get your payments and interest reduced, and get you back on a healthy path to a stable financial situation.

IF YOU ARE INTERESTED IN FINDING OUT IF BANKRUPTCY IS RIGHT FOR YOU, CALL MESITI LAW AT (401) 274-3331. WE ARE AVAILABLE 24 HOURS A DAY!

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Learn About Mesiti Law

  Our Address:
986 Hartford Ave.
Johnston, RI USA 02919
  Hours of Operation:
Mon. to Fri. 9am to 7pm
Weekends / After Hours by Appointment Only

At Mesiti Law, we represent clients throughout all of Rhode Island and Southeastern Massachusetts, including the Rhode Island cities and towns of Providence, Central Falls, Coventry, Cranston, East Providence, Johnston, North Providence, Pawtucket, Warwick, W. Warwick, Foster, Scituate, Cumberland, Bristol, Barrington, Smithfield, Lincoln and Woonsocket; and Massachusetts cities and towns of Attleboro, N. Attleboro, Fall River, Seekonk, Milford, Wrentham, Swansea, New Bedford and Taunton, as well as all of Providence County, Bristol County, Kent County and Washington County in RI and Bristol County in MA. Free Initial Consultation.

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