Simply put, bankruptcy is a legal process in which a person that is unable to pay their bills is provided the opportunity to get a new financial start. Federal law provides a person the right to file bankruptcy, thus all cases of bankruptcy are handled in a federal court. A new bankruptcy filing will quickly prevent your creditors from attempting to collect any debt from you..

With bankruptcy, you will find that it will become possible to

1) Eliminate your legal obligation to pay most if not all of your current debts which is referred to as “discharge” of your debt.

2) Avoid foreclosure on your home, and give you the opportunity to get caught up on back mortgage payments. Keep in mind, however, that bankruptcy will not automatically eliminate a mortgage or other liens on your property.

3)Avoid repossession of your vehicle and other possessions, and even possibly require that a creditor returns any property to you, even after it has already been repossessed. 4) Prevent garnishment of your wages, stop harassment from debt collectors. 4) Get utility service(s) restored and stop any pending termination. 5) Challenge creditor claims that are attempting to defraud you and pursue collections of an amount that is higher than what is really owed.

Absolutely! Something called an “automatic stay” will stop bill collectors from taking further action to collect the debt. When a creditor becomes aware of your filing for bankruptcy protection, they are required to terminate any collection efforts immediately. If a creditor does continue to attempt to make collection efforts after they have been informed of the bankruptcy, they can be held liable for their actions.

The law provides for 4 different types of bankruptcy cases.  Chapter 7 and Chapter 13 are the most common for individuals, and we will help you determine which option is right for you.

Chapter 7:  aka “liquidation” or “straight” bankruptcy.  Requires a debtor to give up property that exceeds limits known as exemptions, in order for the property to be sold and the proceeds used to pay creditors.

Chapter 11: aka “reorganization” – used mostly by business entities and some individuals with very large debt.

Chapter 12: Specifically for family farmers.

Chapter 13: aka “debt adjustment”. This form of bankruptcy requires the debtor to file a plan to pay their debts from their current income.

Currently, the cost for a Chapter 7 filing is $306, and the cost for Chapter 13 is $281. It’s possible that the court will allow you pay in installments for your filing fee if you are unable to fully pay in advance. Any attorney’s fees are in addition to this amount.