Bankruptcy

Most people who cannot pay their debt are victims of unfortunate circumstances such as:

• Loss of employment or downturn in business
• Family separation or divorce (loss of income or new expenses)
• Sickness or serious health problems
• Life disruption or income loss due to Covid-19

Some people get into trouble by merely spending beyond their means.

This often leads to endless telephone calls from creditors or debt collection agencies.  A bankruptcy filing puts an end to that – immediately.  Once a bankruptcy case is filed all creditors must immediately cease all collection actions – including phone calls – under the “Automatic Stay” provisions of the bankruptcy law.

We understand your situation and help you find the easiest path to get back on the right track. With bankruptcy, you can fix your spending mistakes and use our experience to rebuild a new financial future.

The Bankruptcy Code has build-in provisions to determine if you’re eligible to reduce or eliminate your debt. The law will dictate whether you qualify or not. But, it is ultimately your decision whether to file for bankruptcy or not. We will help you decide what is best for you and your family.

There are two types of bankruptcy protection.

Chapter 7

This is the “fresh start” bankruptcy and the most common form. Most Debtors without extensive assets, and only consumer debts can keep their personal assets while eliminating personal (credit card) debt. 

During the Chapter 7 case, debtors benefit from the bankruptcy automatic stay, which prevents creditors from taking any actions to collect a debt – like repossessing property, garnishing wages, or forcing a debtor to appear in state court to defend a lawsuit – without court permission. Once the bankruptcy is completed, a debtor will receive an order from the bankruptcy judge discharging all debts that can be eliminated. Typically, chapter 7 is over in 4 months.

Chapter 13

Chapter 13 is a reorganization under the federal law’s favorable terms. We help our clients prepare a 3-5 year payment plan to adjust debts and emerge in stronger financial shape. Using chapter 13, you can shift your income from general unsecured creditors (e.g., credit cards) to pay the essential things (e.g., mortgage, car loan, taxes, etc.) and be able to keep your real and personal property.

We understand that sometimes life doesn’t go your way, and you end up with financial debt over and above what you can manage. Don’t hesitate to call us and let up help you figure out the best path for a healthier financial future.