Noyes Law Office offers you the option of paying attorney fees over a flexible plan.  When you retain Noyes Law Office we will take all of your creditor calls and you will generally be advised to discontinue all payments on debts you plan to discharge. This will alleviate some of your financial pressure, giving you some disposable income to slowly pay off the attorney fees.

We are unable to file a bankruptcy case before all fees are paid because otherwise they would just be discharged with the bankruptcy.

If your home is presently in foreclosure, a Chapter 13 bankruptcy filing will stop the foreclosure any time prior to the sale, and allow you to repay your mortgage arrears through your Chapter 13 plan. You will still be obligated to make all future mortgage payments directly to the mortgage company, but they may not foreclose to collect any outstanding mortgage payments.

Chapter 13 Bankruptcy is an interest-free debt repayment plan through which you consolidate your debts and make a payment on your debt over a 3 to 5 year period. In a Chapter 13 debt repayment plan the creditors cannot collect from you and the creditors are required by Federal Court order to adhere to the terms of the plan.

This allows you do include your arreareage in your Chapter 13 plan and repay it over the duration of the plan. It can be very difficult to catch up when behind on your mortgage, especially when you may have other debts or a fixed income. A Chapter 13 allows you to consolidate your late mortgage payments and pay them back over time.

Many people overwhelmed by debt attempt to handle that debt load by working with a variety of “debt consolidators” or “debt resolution centers.” If one reviews newspapers like USA today you can find ads everywhere offering this type of service. They nearly all proclaim “don’t file bankruptcy” or “settle your debts for pennies on the dollar,”  etc.

My experience as an attorney has been to repeatedly have clients come to me AFTER they have attempted to work with these programs. I have learned from my clients how these programs uniformly offer no real relief to the consumers. What happens is that debtors agree to pay so much money each month to the agency and the agency promises to “negotiate” with creditors and settle their debts for less. After they are contacted by the agencies the creditors may agree to wait a little while before taking action. Inevitably, they give up on the agencies and start filing lawsuits.

This is when the debtors come to me and ask for help. At that point they have paid hundreds, if not thousands of dollars to the agency. The agencies obviously take a fee from the debtors, which is almost never returned. Some agencies have the audacity to say that the first year of payments will ALL go to “attorney fees.” The agency may possibly have settled with one or more creditors, but the others get impatient and start collection activities again. I can honestly say that not one client has reported positive results with these type of “debt relief agencies.”

I would recommend that anyone considering working with any such agencies to first contact an attorney to discuss bankruptcy options, or the possibility that the attorney could negotiate with the creditors directly. Usually, if the debtor is unable to pay their bills, and cannot realistically project being able to pay off their debts in the relatively nearly future, they should seriously consider bankruptcy. Filing bankruptcy may in fact be the best way to be honest about the financial realities they face, be responsible, and get a “fresh start.”

One of the most common reasons individuals seek debt relief is when they are faced with a garnishment. Often, the 25% that is taken out of their paycheck puts them over the top as they are unable to pay their other monthly bills and debts. Filing a bankruptcy petition will certainly stop that garnishment. In addition, if the bankruptcy petition is filed BEFORE the garnished funds have been released to the creditor, my office has a way to have the garnished funds RETURNED to you. On the other hand, if you wait too long before filing then the garnished funds cannot be returned to you. If you receive a notice that you are going to be garnished, (or are in the middle of a garnishment) then we encourage you to give our office a call (641) 472-3236 to discuss whether we can either stop the garnishment, or seek the return of the garnished funds AFTER we file a bankruptcy for you.

If all or most of the debts are in your name only, your spouse may not have to file. Creditors generally cannot pursue a non-filing spouse, unless he or she is a legal co-debtor on the debt. Additionally, the bankruptcy should not be reflected on the non-filing spouse’s credit report. Your spouse’s credit score is shown separately than yours.

If you find that all or most of your debts are in your name and your spouse is not associated with those debts, your spouse generally has no reason file bankruptcy along with you. Many clients are concerned that they won’t be able to function with a poor credit rating. The truth is that you can easily get credit cards right after you file bankruptcy. There are also tons of books out there that explain how to raise your credit score quickly after a bankruptcy.

Your non-filing spouse can always put new loans on her name and you will be able to get interest rates that are appropriate to her credit score. In summary, filing bankruptcy does not affect your non-filing spouse when it comes to financial history or credit rating.

One of the biggest mistakes consumers make is to obtain a second mortgage to pay off credit card debt. This is because the equity in one’s home is “exempt” while credit card debt is unsecured and dischargeable. Once the dischargeable credit card debt is paid off with the equity in your home, the debt that is now on your home is NON- dischargeable. I have many clients come to me AFTER they took out a second mortgage and ask if they can somehow get out of the second mortgaqe. They cannot, without losing their home. I strongly advise anyone considering a second mortgage to pay off other debt or to call for a free consultation BEFORE they take out the second mortgage.