Get out of debt and move on with your life.
Today, more and more families are struggling under the weight of medical bills, high-interest credit cards, payday loans, and other debts. Sometimes, you lose the ability to manage that debt, the bills pile up, you find yourself cringing when the phone rings, and you lose sleep wondering how you will make ends meet.
Bankruptcy provides a way out.
There are two types of bankruptcies available to consumers and married persons:
- Chapter 7: Often referred to as a “straight bankruptcy” or “liquidation.” Chapter 7 completely relieves you of the obligation to pay most debts, with three notable exclusions being student loan debt, domestic support obligations (child support and spousal maintenance), and recent IRS tax debt. If you are making payments on a car or your home, it is possible to file Chapter 7 and make arrangements with your creditors to keep the car or home while continuing to make payments.
- Chapter 13: You repay all or part of your debts over a three to five year period. Filing bankruptcy under Chapter 13 can stop foreclosures, automobile repossessions, and garnishments. Chapter 13 is useful to strip wholly unsecured liens and mortgages from your home, to reduce the amount of liens on your vehicle to the current fair market value of the vehicle, and to stop foreclosure and enable you to get your mortgage current again.
Consumers can also file Chapter 11 bankruptcies (which is a reorganization Chapter similar to Chapter 13 for individuals with very high income or debt) and Chapter 12 bankruptcies (a special type of bankruptcy available to family farmers and fishermen).
Stop foreclosure and judicial sale immediately upon filing.
When you file bankruptcy, a special provision of the Bankruptcy Code known as the “automatic stay” comes into effect. It provides you instant protection from:
- Foreclosure: If your home is scheduled to be sold at auction, a timely bankruptcy filing will cause the auction to be cancelled. Although the bankruptcy filing may not ultimately save your home, bankruptcy can eliminate the immediate emergency posed by a pending foreclosure sale.
- Eviction: Your landlord cannot proceed with a lawsuit to evict you until it obtains approval from the Bankruptcy Court. It is important to note that if your landlord already has an order from the court authorizing your eviction, the automatic stay will not prevent your landlord from proceeding with the eviction under most circumstances. If you have been served with the summons to an eviction lawsuit, time is of the essence to obtain bankruptcy protection!
- Utility disconnections: Bankruptcy will prevent your telephone, gas, and electric service from being shut off for at least 20 days. In the coldest days of winter, utility disconnection is an emergency.
- Wage garnishments: Filing bankruptcy stops wage garnishments in their tracks.
- Harassing phone calls: The phone calls will end as soon as you file bankruptcy.
Choose an experienced bankruptcy attorney.
We have worked for creditors and debtors, filing bankruptcy petitions for individuals and married couples, and attempting to get around bankruptcy protection on behalf of creditors. We know the tricks creditors use to evade bankruptcy protection and use that experience to help you file bankruptcy as effectively as possible.
Even if bankruptcy is not something you intend to do immediately, call us to arrange a risk free one-hour consultation to discuss solutions to your debts. Proactively approaching your debts will enable you to maximize the protections afforded by bankruptcy that are guaranteed to you under federal law.