What You Need to Know about Filing for Bankruptcy
Affordable bankruptcy options in accordance with federal bankruptcy rules
What is bankruptcy?
The U.S. Bankruptcy Code articulates the rules for personal bankruptcy. These rules spell out the legal procedures for obtaining debt relief. Options available for personal bankruptcy include Chapter 7 bankruptcy and Chapter 13 bankruptcy. Each has its distinct advantages. An experienced bankruptcy attorney can help you determine which option is right for you and your unique situation.
Get rid of certain types of debt permanently with Chapter 7 bankruptcy
Chapter 7 bankruptcy, or liquidation bankruptcy, can essentially wipe your financial slate clean and allow you to do more important things with your hard-earned money, such as paying your everyday monthly living expenses. With Chapter 7, you can get rid of some of the most common types of unsecured debt:
Keep and protect your property
Many people believe they will lose all their property when they file for bankruptcy, but this is a myth. Every state has exemptions, or lists of items a person can keep. However, filing bankruptcy does not mean you get to keep your property for free. Creditors holding liens against it must still be paid.
If you have property you have lost control of, no longer want or can no longer afford, Chapter 7 bankruptcy can help you get out from under that debt.
Protection from the moment you file
When you file Chapter 7 bankruptcy, the court orders an automatic stay that protects you against further harassment from creditors. By law, all creditors must stop their collection calls, letters and lawsuits. They must stop all garnishments, foreclosures and repossession. If one of your creditors wants to take action against you, it has to have the permission of the court to do so.
The automatic stay remains in effect until your debts are discharged, that is, permanently gone. You receive an order called the discharge injunction. Some debts are not dischargeable, such as alimony, child support, student loans and certain taxes. But by now, you should be in a better position to pay those.
Consolidate debt and get rid of stress under Chapter 13 bankruptcy
By declaring Chapter 13 bankruptcy, you can:
- Stop collection calls and creditor harassment, at home and at work
- Stop foreclosure, repossession, wage garnishment or debt lawsuits
- Significantly reduce or eliminate credit card debt
- Keep property you want to keep, including property not covered by Chapter 7 bankruptcy
To file for Chapter 13, all you need is:
- A commitment to repay past-due balances, typically within three to five years
- A regular source of income from which you can make scheduled payments
- Enough income above your necessary living expenses to make scheduled payments
- To fall between preset limits for secured and unsecured debt
Eliminate some debts and consolidate others
In some states, you can eliminate some of your "unsecured" debt for zero cents on the dollar. Even better, you can eliminate future interest payments entirely. Additional factors — including your asset-to-debt ratio and your income-to-expense ratio — may affect whether you are eligible for this particular Chapter 13 bonus.
Consolidate your remaining qualified debt into one easy monthly payment, paid to a Chapter 13 trustee. You don't have to deal directly with your creditors. The trustee takes care of everything.
Get answers to your bankruptcy questions. Contact experienced bankruptcy attorneys now for your free debt consultation.
At Jacoby & Meyers Bankruptcy Law, we understand the anxiety that often accompanies the desire for debt relief. Our attorneys are always ready to answer your bankruptcy questions and give you the bankruptcy information you need to see a brighter future. Call us at 855.536.9231 or simply use the contact form on this page. The right choice in bankruptcy help today can make a major difference in building a better tomorrow.
Jacoby & Meyers Bankruptcy Law, with convenient locations throughout the United States, has helped more than 75,000 clients eliminate more than $500 million in debt. We look forward to helping you.