Bankruptcy

Have you had gotten to the point where you can no longer pay your bills and no longer make ends meet? Bankruptcy may be the answer.

Bankruptcy is a process used to protect consumers who have suffered a hardship or simply can no longer afford to make ends meet due to overwhelming liabilities including unexpected medical bills, unsecured debt, possible judgments and other financial obligations. In the current economic crisis, more and more people are turning to bankruptcy to protect them from their creditors and to preserve their assets.

We can help you overcome your financial difficulties. There are two types of Bankruptcy for consumers. The first one is Chapter 7 Bankruptcy and the second one is Chapter 13 Bankruptcy.

Chapter 7 Bankruptcy is known as “liquidation”; where a consumer can surrender their property and be relieved of their unsecured and/or secured debt giving the consumer a “clean slate” to rebuild their credit begin their financial life. You do not necessarily have to surrender your home or your automobile under this type of bankruptcy if you fit within certain exceptions. In fact, many people are able to keep their home and their automobiles after filing a Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy involves the repayment of unsecured debt and is known as a “restructuring” Bankruptcy where consumers repay their debts over a period of either 3 years or 5 years, often at pennies on the dollar. This type of bankruptcy allows people to keep their real property and to discriminate as to what debts will be included in the Bankruptcy. Certain threshold criteria must be met in order to qualify for a Chapter 13 Bankruptcy, the most important of which is proving that you can afford to pay your debts excluded from the bankruptcy as well as the repayment plan amount.

Although the Bankruptcy law allows debtors to file Bankruptcy petitions without an attorney, Bankruptcy is a complicated and often misunderstood area of the law that requires some expertise to obtain the best possible results.