James H MaGee
Attorney at Law
We emphasize helping you through bankruptcy
Frequently Asked Questions About Bankruptcy
With the exception of a home mortgage, if you cannot pay your debts off completely within the next three years, you may want to consider filing for bankruptcy. If you file for bankruptcy, you may free up income so that you can begin to save for retirement.
Should you feel bad about filing for bankruptcy?
You should not feel guilty or embarrassed for having filed bankruptcy. Popular folklore holds that Henry Ford filed for bankruptcy five times ! Psychologists say families, relationships and marriages fail most often because of financial pressures. If financial strain is damaging your health and personal relationships, you should consider bankruptcy.
Are Creditors losing money because of bankruptcy filings ?
Are you aware of any large credit card issuing banks that are having financial troubles because of bankruptcy filings? By the time you file for bankruptcy, chances are you have already paid the debt back several times over because of the exorbitant interest rates and late fees that have been charged to your account.
Why should you hire this firm?
• Experience. We file many Chapter 7 and Chapter 13 cases every month for people with problems like yours. We have the experience and training required to meet you needs. We have been representing debtors and creditors since 1994.
• Fees are reasonable and competitive. We do keep tabs on what our competent and qualified competitors charge. If a competitor attorney charges substantially less than the rate we estimate for you, we caution you to examine the quality of their service and work product.
• We are polite and friendly. We are respectful, empathetic and polite concerning your schedule and your problems. We will meet with you at a time that is convenient to you. We welcome you to bring your children to appointments if it is not possible or too expensive to arrange for childcare.
• We are not dangerous "high volume/low fee" lawyers nor a paralegal business:
What are paralegals ? Why do some lawyers charge less ?
• CAUTION ! We advise caution with respect to competing non-lawyer paralegals and "high volume/low fee" lawyers who make claims of the following nature: "No Money Down", "Thousands of Cases Filed", "Low Fixed Fees", or "Pay Only a Low Fixed Fee"
• Paralegals, sometimes called "Petition preparers", are very dangerous. They ARE NOT lawyers and are not allowed (nor qualified) by law to give you advice on how to fill out bankruptcy documents. If non-lawyer paralegals screw up your case, you have no recourse, because by law, a non-lawyer paralegal cannot obtain malpractice insurance.
• "High Volume/Low Fee" lawyers can be almost as dangerous as non-lawyer paralegal businesses. "High volume/low fee" lawyers may not closely review your case for traps and problems that could cost you assets or result in your bankruptcy being denied or dismissed !
• The risk to you is that the cheapest lawyers charge so little money that they cannot afford to take the time to properly interview you and analyze your case.
• We generally only charge $50 more than the dangerously cheap lawyers, but we do a much better job at providing you with full explanations and careful attention to detail.
• Also, with "high volume/low fee" attorneys, you may be shuffled off to a very junior or inexperienced attorney - or worse yet, never be allowed to meet the attorney whose picture appears in the telephone book !
• "High volume/low fee" attorneys and non-lawyer paralegals may be operating on the fringe of what is lawful and/or proper - just because they exist in business does not mean they are handling your case correctly!
Q-How do I find the best lawyer for my case ?
A- We think you found an extremely competent and aggressive lawyer and firm when you found this web site. Unfortunately, there is no publication or ratings source that can help you identify the "best" lawyer to represent you in bankruptcy matters. We encourage you to call us and ask us questions; by interviewing us you can increase your comfort level that we are the best firm for your representation.
Q-My house payment and car payment are three months behind, I owe thousands on credit cards and I have to keep the house and the car; what should I do ?
A- Chapter 13 might be the best avenue for you. You can make up the missed payments over 60 months, and you can probably discharge all of your credit card debts, too.
Q-How much do I have to owe to file bankruptcy ?
A- There is really no minimum amount one has to owe. The real issue is whether at your current income level, you have any hope of repaying the debts you owe in a reasonable amount of time.
Q-If I file Chapter 7, do I have to give up my house, car and furniture ?
A- Generally, no. If you continue to make the house and car payments, you can keep them. You can almost always keep your furniture because bankruptcy law protects it from seizure by creditors.
Q-The IRS Filed a Federal Tax Lien on my property. I have little equity. However, the interest on the tax debt makes it impossible to repay the taxes. What can I do?
A- You may wish to consider a Chapter 13. You can pay most of the taxes back interest free, and you may even be able to avoid paying some of the penalties. In some cases, you may even be able to discharge some of the tax debt.
Q-I embezzled $50,000.00 from my employer. My employer knows about it and fired me. He is demanding back the money right now. What can I do ?
A- If you file Chapter 7 and your employer does not pursue his claim in bankruptcy, you may be able to discharge the $50,000.00 debt. If he does pursue it, you could file a Chapter 13 after the Chapter 7 and then possibly pay him only a portion of the $50,000.00, discharging the balance.
Q-I was a general partner in a business that failed. I owe over $1,000,000.00 to suppliers, landlords and former employees. I also owe about $100,000.00 to the IRS for unpaid payroll taxes, and I owe the Washington Department of revenue over $50,000.00. Should I file Chapter 11 ?
A- Maybe. You are in a very complex situation, and if you have substantial personal assets, you may be forced to file Chapter 11. However, if you have depleted your personal assets, a Chapter 7 may be appropriate.
Q-Will I lose all of the money in my 401k if I file Bankruptcy ?
A- Generally, no.
Q-Will I lose my cash value in the whole life insurance policy I have obtained ?
A- Probably not. There is a bankruptcy exemption available for much of the cash value.
Q-Will I ever be able to obtain credit again ?
A- Generally, yes. Many people are able to purchase homes and cars shortly after, or even during, bankruptcy. Ironically, after completing a Chapter 7, you may receive many credit card offers; the reason is that you cannot file Chapter 7 again for a number of years, so if you charge things on the credit cards, the creditors have many years to pursue you for payment.
Q-How many people filed bankruptcy in Washington last year ?
A- There were 26,987 bankruptcy filings in 2001. Nationally, there were over 1.5 million bankruptcies filed. Many families and singles are in economic distress, and the law provides for you an escape from the hopelessness and stress of being in debt.
Q-Isn't the law going to change to make it harder to file bankruptcy?
A- Not immediately. The law has almost changed twice, but Congress cannot seem to put together a coherent bill.
Q-How do I get my driver's license back?
A- I can file a Chapter 13 for you and obtain immediate reinstatement of your license, if it was suspended for failing to pay court fines or being responsible for an accident in which you had no insurance.
Q-Can I file bankruptcy alone or does my spouse need to file also?
A- One spouse alone can file, but usually spouses file together to "clean out" any and all debts.
Q-How often can I file bankruptcy?
A- You generally do not have to wait seven years between bankruptcies. Call us to find out about your eligibility.
Q-How long does the process take?
A- Your Chapter 7 or Chapter 13 can usually be filed with the Court in less than one week after your initial appointment with this office.
With the exception of a home mortgage, if you cannot pay your debts off completely within the next three years, you may want to consider filing for bankruptcy. If you file for bankruptcy, you may free up income so that you can begin to save for retirement.
Should you feel bad about filing for bankruptcy?
You should not feel guilty or embarrassed for having filed bankruptcy. Popular folklore holds that Henry Ford filed for bankruptcy five times ! Psychologists say families, relationships and marriages fail most often because of financial pressures. If financial strain is damaging your health and personal relationships, you should consider bankruptcy.
Are Creditors losing money because of bankruptcy filings ?
Are you aware of any large credit card issuing banks that are having financial troubles because of bankruptcy filings? By the time you file for bankruptcy, chances are you have already paid the debt back several times over because of the exorbitant interest rates and late fees that have been charged to your account.
Why should you hire this firm?
• Experience. We file many Chapter 7 and Chapter 13 cases every month for people with problems like yours. We have the experience and training required to meet you needs. We have been representing debtors and creditors since 1994.
• Fees are reasonable and competitive. We do keep tabs on what our competent and qualified competitors charge. If a competitor attorney charges substantially less than the rate we estimate for you, we caution you to examine the quality of their service and work product.
• We are polite and friendly. We are respectful, empathetic and polite concerning your schedule and your problems. We will meet with you at a time that is convenient to you. We welcome you to bring your children to appointments if it is not possible or too expensive to arrange for childcare.
• We are not dangerous "high volume/low fee" lawyers nor a paralegal business:
What are paralegals ? Why do some lawyers charge less ?
• CAUTION ! We advise caution with respect to competing non-lawyer paralegals and "high volume/low fee" lawyers who make claims of the following nature: "No Money Down", "Thousands of Cases Filed", "Low Fixed Fees", or "Pay Only a Low Fixed Fee"
• Paralegals, sometimes called "Petition preparers", are very dangerous. They ARE NOT lawyers and are not allowed (nor qualified) by law to give you advice on how to fill out bankruptcy documents. If non-lawyer paralegals screw up your case, you have no recourse, because by law, a non-lawyer paralegal cannot obtain malpractice insurance.
• "High Volume/Low Fee" lawyers can be almost as dangerous as non-lawyer paralegal businesses. "High volume/low fee" lawyers may not closely review your case for traps and problems that could cost you assets or result in your bankruptcy being denied or dismissed !
• The risk to you is that the cheapest lawyers charge so little money that they cannot afford to take the time to properly interview you and analyze your case.
• We generally only charge $50 more than the dangerously cheap lawyers, but we do a much better job at providing you with full explanations and careful attention to detail.
• Also, with "high volume/low fee" attorneys, you may be shuffled off to a very junior or inexperienced attorney - or worse yet, never be allowed to meet the attorney whose picture appears in the telephone book !
• "High volume/low fee" attorneys and non-lawyer paralegals may be operating on the fringe of what is lawful and/or proper - just because they exist in business does not mean they are handling your case correctly!
Q-How do I find the best lawyer for my case ?
A- We think you found an extremely competent and aggressive lawyer and firm when you found this web site. Unfortunately, there is no publication or ratings source that can help you identify the "best" lawyer to represent you in bankruptcy matters. We encourage you to call us and ask us questions; by interviewing us you can increase your comfort level that we are the best firm for your representation.
Q-My house payment and car payment are three months behind, I owe thousands on credit cards and I have to keep the house and the car; what should I do ?
A- Chapter 13 might be the best avenue for you. You can make up the missed payments over 60 months, and you can probably discharge all of your credit card debts, too.
Q-How much do I have to owe to file bankruptcy ?
A- There is really no minimum amount one has to owe. The real issue is whether at your current income level, you have any hope of repaying the debts you owe in a reasonable amount of time.
Q-If I file Chapter 7, do I have to give up my house, car and furniture ?
A- Generally, no. If you continue to make the house and car payments, you can keep them. You can almost always keep your furniture because bankruptcy law protects it from seizure by creditors.
Q-The IRS Filed a Federal Tax Lien on my property. I have little equity. However, the interest on the tax debt makes it impossible to repay the taxes. What can I do?
A- You may wish to consider a Chapter 13. You can pay most of the taxes back interest free, and you may even be able to avoid paying some of the penalties. In some cases, you may even be able to discharge some of the tax debt.
Q-I embezzled $50,000.00 from my employer. My employer knows about it and fired me. He is demanding back the money right now. What can I do ?
A- If you file Chapter 7 and your employer does not pursue his claim in bankruptcy, you may be able to discharge the $50,000.00 debt. If he does pursue it, you could file a Chapter 13 after the Chapter 7 and then possibly pay him only a portion of the $50,000.00, discharging the balance.
Q-I was a general partner in a business that failed. I owe over $1,000,000.00 to suppliers, landlords and former employees. I also owe about $100,000.00 to the IRS for unpaid payroll taxes, and I owe the Washington Department of revenue over $50,000.00. Should I file Chapter 11 ?
A- Maybe. You are in a very complex situation, and if you have substantial personal assets, you may be forced to file Chapter 11. However, if you have depleted your personal assets, a Chapter 7 may be appropriate.
Q-Will I lose all of the money in my 401k if I file Bankruptcy ?
A- Generally, no.
Q-Will I lose my cash value in the whole life insurance policy I have obtained ?
A- Probably not. There is a bankruptcy exemption available for much of the cash value.
Q-Will I ever be able to obtain credit again ?
A- Generally, yes. Many people are able to purchase homes and cars shortly after, or even during, bankruptcy. Ironically, after completing a Chapter 7, you may receive many credit card offers; the reason is that you cannot file Chapter 7 again for a number of years, so if you charge things on the credit cards, the creditors have many years to pursue you for payment.
Q-How many people filed bankruptcy in Washington last year ?
A- There were 26,987 bankruptcy filings in 2001. Nationally, there were over 1.5 million bankruptcies filed. Many families and singles are in economic distress, and the law provides for you an escape from the hopelessness and stress of being in debt.
Q-Isn't the law going to change to make it harder to file bankruptcy?
A- Not immediately. The law has almost changed twice, but Congress cannot seem to put together a coherent bill.
Q-How do I get my driver's license back?
A- I can file a Chapter 13 for you and obtain immediate reinstatement of your license, if it was suspended for failing to pay court fines or being responsible for an accident in which you had no insurance.
Q-Can I file bankruptcy alone or does my spouse need to file also?
A- One spouse alone can file, but usually spouses file together to "clean out" any and all debts.
Q-How often can I file bankruptcy?
A- You generally do not have to wait seven years between bankruptcies. Call us to find out about your eligibility.
Q-How long does the process take?
A- Your Chapter 7 or Chapter 13 can usually be filed with the Court in less than one week after your initial appointment with this office.