Chapter 7 – Get a Fresh Start by filing for Chapter 7 bankruptcy. If you qualify, most of your unsecured debt will be discharged (other than student loans and taxes), and you may be able to keep your house and car. The process usually takes about 90 days from the date of filing. You will stop lawsuits, garnishments and harassing creditor phone calls.
Chapter 13 – If you don’t qualify for a Chapter 7 bankruptcy because of your income or you have too many assets, or your house is in foreclosure and you want to keep it, a Chapter 13 bankruptcy is an option. With a Chapter 13, the arrears on the house payment is put into a payment plan, and your creditors are paid off a certain percentage over a period of time, usually 3 – 5 years.
Additional reasons to consider bankruptcy:
You are considering using a 401K loan to pay creditors. 401K accounts are protected in bankruptcy. Why take money a creditor cannot reach to pay off a debt that could be discharged in a bankruptcy if bankruptcy may be an option?
You owe way more on your car than it is worth, and/or your monthly payments are very high, a Chapter 7 may offer you an opportunity to start fresh with a more affordable car.
Your business did not succeed, but you personally guaranteed debt (such as a lease or a loan) - your personal liability can be discharged.
If there are liens on your home that far exceed its value, you may be able to have the liens removed.
Your wages are being garnished. A Chapter 7 or 13 will stop the garnishment, and you may be able to get some of the money returned.
You are being sued. The automatic stay will stop the lawsuits, often permanently.
Bankruptcy – Free Consultation
Everyone’s situation is unique. There are many reasons why people find themselves in the position of considering to file bankruptcy. It could be that your business did not succeed, you had a health crisis and you now have a large medical debt, you or your partner lost your job now you can no longer pay your bills or its just years and years of struggle and you just can’t find a way out. We will work with you to determine whether bankruptcy is a good option for you.