Bankruptcy is a financial tool and part of the social safety net created by Congress. It is available to people who have run into financial problems that are so daunting that, given their income, repayment is not likely. Many factors can create this situation such as loss of a job, reduction in wages or hours, the death of a spouse, divorce, a failed business, significant medical problems leading to unpaid medical bills and others. Our office will help you to analyze your financial picture to determine if bankruptcy is the right tool for you.
Chapter 7 Bankruptcy Allows For a Fresh Start
Personal bankruptcy through Chapter 7 eliminates most unsecured debts:
- Credit card balances
- Charge accounts
- Most judgments
- Certain tax debt
- Gambling debt
- Medical bills
- Wage garnishment
You do not have to pay those creditors back and they must stop calling your home, your relatives and your work as soon as you file. Certain debts such as recent taxes, student loans and child support are not erased, but by wiping out your other debts you will have more money to meet those obligations.
Chapter 13 Allows You To Consolidate Debt And Repay Over Time
Chapter 13 bankruptcy provides debt relief for:
- People with severe arrears on a mortgage who wish to avoid foreclosure
- People whose income is too high to qualify for Chapter 7 bankruptcy
- People with child support arrears
- People with spousal support arrears
- People with non-exempt assets
By filing a Chapter 13, your attorney and the bankruptcy trustee will negotiate a repayment plan to repay a portion of your debts over a period of years. Based on your disposable income and the type of debt owed, after household expenses, you will make monthly payments for three to five years. After that, any remaining debts are discharged and you are in the clear.
Bankruptcy As A Means Of Foreclosure Prevention
Are you several months (or years) behind on your mortgage? Do banks constantly call you demanding payment? Is foreclosure in your future? Having large amounts of debt is nothing to be ashamed of. Filing for bankruptcy can help you avoid foreclosure and stay in your home. It can also help you
and your family achieve financial stability. I offer compassionate guidance throughout the entire bankruptcy process. I am cognizant of the financial, emotional and psychological strain you are enduring. Initially I will help you determine whether filing for Chapter 7 bankruptcy (liquidation) or Chapter 13 bankruptcy (debt reorganization) is appropriate for your financial situation. If we conclude that bankruptcy is a viable option, we will help you file the necessary paperwork and begin the process of obtaining much-needed debt relief.