Reasons to file for bankruptcy...
There are a number of reasons any honest, hard working person can find themselves in the nightmarish situation of not being able to pay their debts. In a none too bright economy, you could lose your job, or have a small business fail. Serious health issues, or a death, can cripple a family's finances. Regardless of the reason, if you find yourself in the nightmarish situation in which creditors continuously call you at work demanding that you pay them - you should speak with an attorney. Simultaneously if you are behind on the mortgage or the power bill and are constantly robbing Peter to pay Paul in order to put food on the table, you need a bankruptcy lawyer.
Being constantly worried about how you are going to pay the bills is an extremely stressful situation and, if you simply cannot discharge the debts you owe and see no way out, the law not only provides relief, but gives you the opportunity to make a fresh start. Bankruptcy is a legal proceeding that allows a person or other entity to be declared bankrupt i.e.. they cannot repay the debt that they owe to creditors. Declaring bankruptcy is not a bad thing. In fact, it may be a very good option because it enables you to continue living your life, free of the crushing burden of debts you cannot repay. You retirement plans can stay intact and, gradually, over the space of a few years, you can rebuild your credit.
Why you need a bankruptcy lawyer...
New bankruptcy laws were approved by the Senate, Congress and the President in 2005, and were passed in order to protect families from often desperate situations. At the same time, they protect the interests of your creditors, making it important to have an attorney help you to navigate through the process. Since the bankruptcy proceedings and laws are very likely to overwhelm a lay person, you should work with a lawyer. Typically, we will first go into details of your particular situation to see if you qualify, then make recommendations for what steps you should take. After which, the decision has to be made as to what type of bankruptcy filing you want to proceed with.
Types of Bankruptcy Filings
Chapter 7 Bankruptcy
There are essentially two types of bankruptcy cases filed in the US, Chapter 7 being the most common. With few exceptions, this type of bankruptcy wipes out most debts. However, you have to be prepared to give up any assets that are not exempt in your particular state. The usual protected assets include Social Security payments, unemployment compensation and, the limited value of equity in your home, vehicle, household appliances and furniture, tools of your trade, etc.
Chapter 13 Bankruptcy
If you do not qualify for a Chapter 7 bankruptcy, a Chapter 13 filing allows you pay off your debts in monthly payments over a court-approved period of time. This type of bankruptcy reduces the payments you make on unsecured debt, thus providing substantial relief.
We Can Help
As a bankruptcy lawyer, we fully understand how traumatic and distressing financial hardship can be. Not only will we treat you with dignity and respect, but let us use our knowledge of, and experience with, bankruptcy law to help you get back on track.
