bankruptcy

Bankruptcy law is a federal law designed to assist individual consumers and businesses facing financial difficulties. With respect to consumer debtors, the goal of bankruptcy is to help individuals get beyond their financial turmoil and obtain a fresh start. Despite the recent changes to the bankruptcy laws, bankruptcy is still a option for consumers facing financial difficulties. Under the new Bankruptcy law, you can do almost everything that you could do under the old law, but it is much more complicated and therefore, it is now more important than ever to have an experienced bankruptcy lawyer on your side.

Chapter 7 bankruptcy, sometimes called a straight bankruptcy, is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all dischargeable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively quick “fresh start.”

One of the main purposes of Chapter 7 is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her unsecured debts. Chapter 13 bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. Chapter 13 also gives the debtor the ability stop foreclosure actions by allowing mortgage arrears to be part of the plan. This chapter is also only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts.

Results

♦ You can stop harassing phone calls at home and work

♦ You can keep most or all of your property and possessions under state or federal exemption statutes, while erasing debt from credit cards, medical bills, unsecured loans, and most other obligations.

♦ While an individual’s bankruptcy filing will be reflected on your credit report for up to ten years,this does not mean that you will not obtain credit again. Many lenders in the credit card and mortgage industry do not automatically disqualify an applicant because they previously filed bankruptcy.

♦ If you are married, it is not required that your spouse file for Bankruptcy with you. Each case will be evaluated by a licensed attorney to see whether individual or joint Bankruptcy is most beneficial in your case.