Bankruptcy

Bankruptcy is a legal proceeding under federal law that allows you to eliminate all or part of your debt. To navigate this complex process, many individuals seek the assistance of a bankruptcy attorney. There are several different 'chapters' in bankruptcy, with Chapter 7 bankruptcy and Chapter 13 bankruptcy being the most commonly filed.

Chapter 7 bankruptcy is the most common type of bankruptcy filing. When you file Chapter 7, it will immediately halt foreclosure, lawsuits, garnishments, and creditor harassment, while also eliminating your credit card and other unsecured debts. Contrary to popular belief, you won't have to surrender all your assets and possessions when you file for Chapter 7 bankruptcy. In fact, with the help of a skilled bankruptcy attorney, you can typically retain your home, vehicles, and personal belongings. However, if you possess significant equity in your home or other assets, you might need to consider filing for Chapter 13 bankruptcy to safeguard your equity from creditors.

Chapter 13 bankruptcy is when you commit to making one monthly payment toward your debt for 3 to 5 years as part of a bankruptcy 'plan.' After completing your Chapter 13 bankruptcy plan, any remaining unpaid unsecured debt will be discharged. This process allows you to pay only what you can afford after covering all of your reasonable living expenses. 

In a Chapter 13 bankruptcy, you can halt a bank’s foreclosure proceedings and arrange to pay back your arrears over time. Additionally, with the help of a bankruptcy attorney, you may even be able to 'avoid' your second mortgage, ensuring it will also be discharged after the completion of your bankruptcy plan. Unlike Chapter 7 bankruptcy, which involves liquidating assets, Chapter 13 provides a structured way to repay debt while protecting your assets.

Most people worry about how bankruptcy, whether through Chapter 7 bankruptcy or Chapter 13 bankruptcy, will affect their credit. They wonder if filing for 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 many believe. Within a few years of filing for bankruptcy, numerous individuals can obtain credit cards, vehicle loans, or even home mortgages. In fact, it may even help your credit to file for bankruptcy, as you can begin rebuilding your credit without the burden of existing debt. For valuable tips on rebuilding your credit after bankruptcy, be sure to check out 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 concerned about how to pay for your bankruptcy attorney, I am happy to set up affordable monthly payment plans for your attorney's fees. I will also accept payments from friends or relatives on your behalf. However, please note that all fees must be paid prior to filing your Chapter 7 bankruptcy or Chapter 13 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.*