Chapter 7 & Chapter 13
We know that filing for bankruptcy isn't necessarily something that you had originally considered. However, your financial circumstances may have reached a point where you are having a hard time seeing any other realistic or affordable options. The important thing is to try not to dwell on the past or obsess over what got you into this situation. Instead, you should focus on how to start over, move forward, and work toward getting yourself back to a better financial life.
The bankruptcy laws exist so that people can have the opportunity to get relief from what could otherwise be an impossible financial situation. Filing a bankruptcy may allow you to:
- Get immediate relief from creditor harassment, lawsuits, and judgments
- Eliminate most or all of your unsecured debts
- Protect your home, vehicles, personal property, wages, and other sources of income
- Save your home from foreclosure and your vehicles from repossession
- Resolve and potentially eliminate your IRS tax debt
- Cure delinquencies owed on domestic support obligations, such as child support and alimony;
Unfortunately, your problems aren't likely to go away by themselves. Contact us today to see how we can help get you started on the road to financial recovery.
People who are having trouble paying their debts may file for bankruptcy as a solution to their situation. In the most general terms, a bankruptcy is a legal proceeding where a person (known as a “debtor”) seeks to get a “discharge”, which will typically eliminate most or all of their debts, and, at the same time, potentially protect their home, vehicle(s), personal property, bank accounts, retirement accounts and wages. The two most common types of bankruptcies are referred to as Chapter 7 and Chapter 13.
A discharge is a court order which releases a debtor from liability for paying their unsecured debts (that is, those debts that are not specifically attached to a home, vehicle or furniture) and their secured debts (that is, those debts that are specifically attached to a debtor's home, vehicle or furniture), by surrendering the property to which the specific secured debt is attached. The discharge is typically granted once the bankruptcy case has been completed.
Creditors cannot attempt to collect on any debts that have been discharged by a bankruptcy. This means that they cannot contact the debtor, harass them, sue them, get a judgment against them or try to take any of their property (including wages) once a debt has been discharged. In fact, if a creditor attempts to do any of these things after being notified of a debtor's bankruptcy, they may be punished by the bankruptcy court.
Although most unsecured debts can be discharged through bankruptcy, some can't. Examples of debts that can't be discharged are: recent taxes; child support and alimony; most student loans; court‑ordered fines and criminal restitution penalties; debts obtained through fraud or deception; and intentional personal injury debts.