The U.S. Bankruptcy code offers protection to people who find themselves in
financial jeopardy, suffering under mountains of debt. The bankruptcy laws were
enacted to provide relief for people who have been victimized by divorce, job loss,
identity theft, medical bills, or disability. A combination of unfortunate events can
contribute to financial woes. Credit card debt can seem insurmountable with spiraling
interest rates. Filing for bankruptcy protection is a sound business decision. Many
creditors often wonder why it is taking you so long to file for bankruptcy protection.
The provisions of the Bankruptcy Code can provide you with a safe harbor and a new
beginning just when you thought all was lost.
When you file for Bankruptcy Protection, you can choose the kind of
bankruptcy that best suites your needs:
Chapter 7: A trustee is appointed to take over your property. Any property of
value may be sold or turned into money to pay your creditors. The truth of the
matter is however, that vast majority of chapter 7 debtors do not have any exempt
assets, and thus, there is no property to take over or liquidate to pay creditors.
Chapter 7 cases move quickly through the court system and are usually wrapped up
withing a few months when you receive a discharge. A discharge means that you have
been forgiven your debt - you do not owe the creditor anything. A discharge will
wipe away all of your unsecured debts like credit card debt, medical bills, most
personal loans, judgments resulting for car accidents, repossession, some taxes,
payday loans, garnishments, etc.
Certain debts are not dischargable. These include child support,
most student loans, traffic tickets, and some taxes.
If you find yourself in one of the categories listed below,
you should contact the lawyers at The Law Firm of Grant & Associates immediately
for a consultation and case evaluation:
-
You have no income or you have low income
-
You have little or no money left over after paying your living expenses
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You have few assets or no assets at all outside of your furniture and clothing
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You are being garnished
- You are being harassed by creditors day and night
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You are unable to pay your bills
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You are being sued by a creditor
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You are sick and tired of your mountains of debt
Chapter 13: You can usually keep your property, but you
must earn wages or have some other source of regular income and you must agree to
pay part of your income to your creditors. The court must approve your repayment
plan and your budget. A trustee is appointed and will collect the payments from
you, pay your creditors, and make sure you live up the terms of your repayment plan.
If you have a job or regular income, but are still overwhelmed by your debt, Chapter
13 may be right for you in order to get a fresh new start.
If you find yourself in any of the categories listed below, contact the lawyers
at The Law Firm of Grant & Associates immediately for a consultation
and case evaluation:
- You own a home and are behind on your mortgage payments
- You are in foreclosure
- You are being sued by one or more of your creditors
- You are unable to pay your bills
- You are being garnished
- You are being harassed by your creditors
- You are sick and tired of your mountains of debt
Notice:
The information on this web site cannot replace the careful consideration of personal
factors and changes in the law, which may apply to your case. While this information
may assist you, do not rely on it as an answer to a specific legal question. Contact
the Bankruptcy lawyers at The Law Firm of Grant & Associates
for more information and for a case evaluation.