Bankruptcy Clinics
by: Montana Legal Services Association (MLSA)
Bankruptcy Education Clinics
Montana Legal Services Association now offers bankruptcy clinics. These clinics serve low-income households around the state of Montana.
MLSA has volunteer attorneys to help you handle your debt. These clinics focus on education. They also provide step-by-step information on how to file paperwork.
Bankruptcy
is a court process that can help you with overwhelming debt. This process can help get rid of debts or set up a plan to repay them.
Bankruptcy offers a way to erase many debts and start fresh. Chapter 7 Bankruptcy is the most common type. Most,
but not all, debts are discharged in a Chapter 7. "Discharged" means that you no longer have to pay the debt.
Bankruptcy is not for everyone. If you have social security or disability, you can protect your income from creditors. This might be better than declaring bankruptcy.
Some Bankruptcy Facts
You must have consumer credit counseling. You must do this less than 180 days before you file for bankruptcy.
Bankruptcy can affect your credit history for ten years. It is not the best solution for everyone.
In a Chapter 7 bankruptcy, you can keep most of your property. You can keep:
$250,000 of the value in your home
$2,500 of the value in your vehicle
If you are married and your debts arose during the marriage, both spouses need to file. If you don't, then all the debts will go to the other spouse.
Keep in mind there are certain debts that you cannot erase, including:
back child support
alimony
certain kinds of tax debts
Student loans are also very difficult to get rid of.
You must pay a filing fee for Chapter 7. The 2008 fee is $299. Are you low-income? You may be able to get the filing fee waived. If you earn less than 150% of the federal poverty income level, you can ask that your fees be waived. This chart shows what income is 150% of the federal poverty income level.
Household Members
150% of Federal Poverty Level
1
$15,315.00
2
$20,535.00
3
$25,755.00
4
$30,975.00
Clinic Description
The clinic covers many topics and can help with:
A walk-through on filling out bankruptcy forms
How to file your forms and notify creditors
Recordkeeping
Credit and Credit Reports
Questions to think about and ask before you declare bankruptcy:
Are you eligible?
Will you be able to protect your home?
Can you keep your car and other property?
Are your pension and IRA accounts protected?
Do you have cosigners that may be in trouble because of your bankruptcy?
Are you are dealing with overwhelming debts? Do you want to know more about bankruptcy? Would you like to attend the clinic?
Call 1-800-666-6899!
Last Reviewed On: 07/23/08
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