Personal bankruptcy is an opportunity to legally erase or restructure what you owe to make it more affordable. It’s a path to a clean slate—getting you back on track financially if you’re struggling with an overwhelming amount of debt.
Bankruptcy can help relieve a wide range of debts, including:
- Credit card debts
- Individual bank loans
- Personal loans
- Mortgage foreclosure
- Car loans
- Medical debts
Although bankruptcy can help in a number of cases, there are some types of obligations that cannot be dismissed such as:
- Child support
- Student loans
- IRS debt and fines
If you’re considering personal bankruptcy, give us a call. Our attorneys will work with you to identify the ways that filing for bankruptcy may help you and get your life back on track.
Types of Personal Bankruptcy
One of the first decisions you’ll need to make in a bankruptcy case is whether to file for Chapter 7, straight bankruptcy, or Chapter 13, which allows for a repayment plan. In either type of case, you’ll be required to provide detailed financial information—from your income and expenses to property and various financial transactions. Creditors are also often involved, leaving you to deal with the details of legal agreements and other stipulations. That’s why it’s best to have an experienced bankruptcy lawyer on your side. Our team will walk you through every option available and determine the best course of action for you.
Chapter 7 Bankruptcy
This type of bankruptcy case discharges, or forgives, most of your unsecured debts—from credit cards to personal loans to medical debts. With Chapter 7 bankruptcy, you may be required to sell off certain assets, like an expensive car or jewelry. By eliminating a large amount of your unsecured debt, you have a chance to get back on your feet for a fresh financial start.
You’ll need to first qualify for Chapter 7 bankruptcy, which generally involves various calculations. This is where a qualified bankruptcy attorney, like those on our team, can guide you in ensuring the proper documentation is filed and give you the best chances of being approved. Once you receive approval, it’s often a fast and efficient process—making it one of the most common types of bankruptcy.
Benefits of Chapter 7 Bankruptcy:
- Keep personal assets: In many cases, you’ll get to keep your home and other big-ticket items like computers and phones.
- Reduce financial stress: If your debt is higher than 50% of your annual income, this type of bankruptcy can help you work toward being debt free—protecting your credit rating and keeping interest rates lower.
- Ward off debt collectors: Protect yourself from the letters, phone calls and emails from collections agencies, as you begin to move your life forward.
Chapter 13 Bankruptcy
With Chapter 13 bankruptcy, you’ll be able to develop a plan to repay past due debts over time. It’s often used if you’re facing foreclosure on your home or other important possessions—stopping the foreclosure or repossession process and allowing you to keep your home and other belongings as you work to deal with creditors.
Since this type of bankruptcy case often comes with a variety requirements and rules, it can prove beneficial to hire a bankruptcy attorney to handle your case and ensure you receive the relief you need. Our team has first-hand experience in working with individuals like you in developing a plan to repay creditors over a specific timeframe, generally three to five years. We’ll take various factors into consideration, including your income and other living expenses, when determining this plan—setting you on track for the greatest chance of success and financial freedom.
Benefits of Chapter 13 Bankruptcy:
- Avoid foreclosure or repossession of important valuables: Keep your home and the things that matter most to you—giving you an opportunity to catch up on your payments.
- Restructure secured debts: Sometimes larger loans, like a car loan, can be extended—making your monthly payments lower and easing your financial burden.
- Eliminate contact with creditors: Since creditors are not allowed to have any direct contact with you through Chapter 13 bankruptcy, they’ll have to go through your trustee instead.