Bankruptcy

Many people today are struggling with insurmountable debt. Often the obligations become worse through consolidation and depleting equity in the family home. You do have legal alternatives if your financial burdens can not be met.

1. Potential Chapter 7 and Chapter 13 bankruptcy clients, including those with low-incomes, are required to obtain pre-bankruptcy credit counseling as a condition to filing.
2. People that file bankruptcy are required to complete a personal financial management course before they can even get their debt discharged.
3. The new bankruptcy laws impose a rigid formula to determine whether people are eligible for a Chapter 7.

Chapter 13 bankruptcies are a type of debt consolidation allowing you to reorganize your finances by consolidating your debts into one monthly payment. When you file a Chapter 13 bankruptcy, you receive immediate protection by an automatic stay, a Bankruptcy Court injunction that prevents almost all collection activity against you. The stay has the power to stop foreclosures, repossessions, garnishments, license suspensions, and creditor harassment. A Chapter 13 bankruptcy will allow you to pay a percentage of the unsecured debt back and eliminate the balance. Your reduction in principal owed allows you to pay your debts off more quickly that you could through other consolidation plans.

Chapter 7 may eliminate most kinds of unsecured debt. Some examples of unsecured debts are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles. In addition to getting rid of your debt, you typically can keep all of your property, as long as your car and mortgage payments are current, and there is no significant equity in your property.

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