CONSUMER BANKRUPTCY
Filing for bankruptcy does not mean you are going to lose your home, your car, or your belongings, or that you will never be able to have credit again. The purpose of bankruptcy is to give you a fresh start by eliminating certain debts, reorganizing your financial situation, allowing you to rehabilitate and rebuild your credit standing.
A husband and wife can file a bankruptcy together. If only one has debts, if might be better of only one spouse files. However, if both are named on a loan or credit card, the creditor can continue collection attempt against the spouse that does not file. Nonetheless, when the bankruptcy is filed, collection agencies and other bill collectors must immediately stop phone calls and other collection efforts.
After a free consultation and evaluation of your circumstances, it can be determined if a bankruptcy is a good option for you.
Chapter 7 Bankruptcy
A “Chapter 7” is a bankruptcy designed to eliminate most or all of a Debtor's unsecured debt, such as credit cards, medical expenses, past due utility balances, etc. You are not required to give up your home or vehicle in a Chapter 7 bankruptcy; you simply continue making the payment at the time it is due. However, if you decide you no longer want to keep your home or car, this debt will be included as part of your bankruptcy, essentially eliminating this debt as well. There are income parameters which will help determine if you qualify for a Chapter 7 bankruptcy.
If you decide to file a Chapter 7, once all of our office and court requirements are met, the bankruptcy petition is able to be filed. Usually within a month of the date of filing, the Meeting of the Creditors will be held, and approximately sixty days after that, a discharge order will be entered with the Bankruptcy Court.
Chapter 13 Bankruptcy
A “Chapter 13” is another type of bankruptcy most commonly filed by a person or couple who are facing a foreclosure or repossession. A Chapter 13 Bankruptcy typically lasts for three to five years, allowing for your debt repayment to be reorganized to make your monthly obligations more affordable. Often your unsecured debts can be eliminated or reduced, and your mortgage and car payment may be modified and brought current. All lawsuits, including a pending mortgage foreclosure, sheriff sale or vehicle repossession, will be stopped.
If you have been struggling with repaying your mortgage or car loan, a Chapter 13 bankruptcy may be an option to give you much needed relief.
and find out which Chapter is right for you.