Bankruptcy
Not every individual in financial distress needs to file for bankruptcy. However, when suitable – bankruptcy can provide a fresh start. Bankruptcy claims are filed in the Federal Court System. There are various types of bankruptcy, and reviewing your finances, assets, and delinquencies with a qualified and experienced attorney can help you determine the best course of action to resolve your financial issues.
Types of Bankruptcy
Several of the most well known types of bankruptcies are Chapter 7 and Chapter 13.
An individual files a Chapter 7 bankruptcy, and a trustee is appointed by the court to assist in determining which assets will be liquidated and which are exempt in paying off debts and creditors. Although the laws have become stricter, we protect your retirement accounts, IRA’s, pensions, equity in homes, vehicles, and other assets, which are exempt.
In a Chapter 13 bankruptcy, the individual expects to have future income allowing a repayment of the debt within a 3 to 5 year time period. Under the supervision of the court, finances are re-organized and a payment schedule is devised.
Reasons to File Bankruptcy
Bankruptcy is a legal way to get back on your feet. Regardless of what contributed to your financial problems, you may have found yourself in the following situations:
- Hospital and medical bills
- Layoffs
- Receiving unemployment benefits
- A court judgment or wage garnishment
- Balances owed after a repossession or being under-insured
- Credit card debt with high interest rates
- Small business failure
- Divorce
- Foreclosure or drop in home values
Bankruptcy is not a one-size-fits-all type of solution. In addition to explaining your chapter options, we can help you explore other alternatives, ways of avoiding foreclosure of your home, improving your credit score, how to buy you some time to make a practical and realistic decision.
The Process
Whether filing for Chapter 7 or Chapter 13 bankruptcy, the initial steps you need to take are the same. To begin the process, either by telephone or in person, we can determine whether you qualify for bankruptcy, and explore your options with you. Once you are ready to file, you fill out an intake sheet to identify your income, expenses, assets and debts. That is it. We prepare your case and court documents, and depending on the urgency of your situation, we also can provide same day filing to gain instant protection.
At the court hearing, our attorney will represent you, and within a few months, you will be debt free.
Life After Bankruptcy
It used to be that people who filed for bankruptcy were left with a social and psychological stigma. This is no longer true. We will explain to you that most people who file for bankruptcy are hard-working individuals, who are experiencing the shocks of our economy, through no fault of their own. Whether its job loss, illness, or divorce, we will get you back on your desired path. We will show you how to rebuild your finances and credit score after bankruptcy, and explain to you that your credit can’t get worse after a bankruptcy. In fact, you will understand that your debt to income ratio has now dramatically changed, and you will be attractive to creditors after bankruptcy, whether you intend on obtaining new credit cards, purchasing a new car, or considering a home in the future.
Filing for Bankruptcy and Divorce
Financial problems go hand in hand with family law issues. Bankruptcy is a common theme in family law matters. If your facing bankruptcy and divorce, our office is experienced in explaining the law, and the issues related to your specific case. Whether you are consider filing jointly in bankruptcy, separating debts in a divorce, facing home foreclosure, or have questions about child and spousal support, we can meet with you and explain your options.
