BANKRUPTCY

 Bankruptcy is a legal proceeding under federal law that allows you to eliminate all or part your debt. There a number of different "chapters" in bankruptcy, but most people file Chapter 7 or Chapter 13. 

 Chapter 7 is the most common bankruptcy chapter. Filing Chapter 7 will immediately stop foreclosure, lawsuits, garnishments and creditor harassment, and eliminates your credit card and other unsecured debt. Contrary to popular belief, you will not have to give up all your assets and possessions when you file Chapter 7. In fact, you can usually keep your home, cars and personal belongings. If you have significant equity in your home or other asset, you may have to file a Chapter 13 to protect your equity from the creditors. 

 Chapter 13 is when you make 1 monthly payment toward your debt for 3 or 5 years. This is called a bankruptcy "plan." After you complete your bankruptcy plan, the remaining unpaid unsecured debt will be discharged. In a chapter 13, you only pay as much as you can afford after paying for all your reasonable living expenses.

In a Chapter 13, you can stop the bank from foreclosing and force them to allow you to pay back your arrears over time. Sometimes, you can even "avoid" your second mortgage, so that it will also be discharged after the completion of your bankruptcy plan 

 Most people worry about how bankruptcy will affect their credit. They wonder if bankruptcy means they will not be able to get credit again for 8 to 10 years. The fact is, it is not nearly as bad as most people think. Within a few years of bankruptcy, many people can get credit cards, vehicle loans, or even home mortgages. It may even help your credit to file bankruptcy, because you can start rebuilding your credit with no debt to weigh you down. For tips on rebuilding your credit after bankruptcy, you can read Jennifer Water's article "Eight credit-repair tips after bankruptcy" in Wall Street Journal's Market Watch.  http://www.marketwatch.com/story/eight-credit-repair-tips-after-bankruptcy-2010-08-26
 

 If you are worried about how you can pay for your bankruptcy, I am happy to set up affordable monthly payment plans for the payment of your attorney's fees. I will also accept payments from friends or relatives on your behalf. However, all fees must be paid prior to filing your bankruptcy case. 

   The content of this website is not legal advice, nor does it create an attorney client relationship.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code*