If you are here, then you are probably struggling with debt, or are facing foreclosure, and are looking to learn all about bankruptcy. Bankruptcy could be the answer to your problems, or at least some of them. Don't be afraid to explore your options. You can discharge your debt and stop creditor harassment and be on your way to getting a fresh start. Over the years, I have helped many Western New Your residents, keep their homes, keep their cars, stop lawsuits, stop garnishments, stop harassment, unfreeze bank accounts, and discharge debt by filing for bankruptcy. Filing for bankruptcy allows you discharge and get rid of your credit card debt, medical bills, personal loans, payday loans, and sometimes even income tax debt. Generally individuals file either a Chapter 7 or Chapter 13 Bankruptcy, however, sometimes Chapter 11 is necessary.
Chapter 7 bankruptcy is a liquidation proceeding designed for those experiencing financial difficulty that do not have the ability to pay their existing debts. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. In the vast majority of cases the debtor keeps all of his property because the debtor has no non-exempt assets for the trustee to distribute. This is called a "no asset case". In about four months the debtor receives a "discharge" of all dischargeable debts, providing the debtor with a "fresh start". Although there have been predictions of gloom and doom regarding the new law, Chapter 7 remains a viable option for most individuals that seek it.
Chapter 13 bankruptcy is a wage earner's plan. Chapter 13 allows individuals with regular income to propose a plan to repay all or part of their debts. The plan sets forth an agreement to make installment payments to creditors over a three to five year period. After the plan is confirmed by the Court, the law forbids creditors from starting or continuing collection efforts. After the plan is paid in full the debtor(s) will be granted a "discharge" from all debts that are eligible to be discharged.
Chapter 11 is a reorganization proceeding usually for businesses, but also available to individuals. Individuals generally do not file Chapter 11 unless their assets or debts exceed the limits of Chapter 13, or they are unable to to complete a plan within 3 to 5 years. In Chapter 11, the debtor usually remains in possession of the assets and continues to operate any business, subject to the oversight of the court and the creditors committee. The debtor proposes a plan of reorganization, that upon acceptance by a majority of the creditors, is confirmed by the Bankruptcy Court and binds both the debtor and the creditors.
There is no easy answer to that question, however it would be in your best interest to call and see if you qualify. You will be asked a series of questions about your financial situation to determine whether bankruptcy could solve your financial problems. If not, perhaps there is another solution that can be explored. At the very least, this is a traumatic and stressful time for you, and surely you have many questions. You may be wondering if unpaid credit card bills are ruining your credit? Perhaps you are afraid that your medical bills, will cause you to lose your home? The solution is probably not as bad as you fear.