Basic Information: Bankruptcy is known as a "fresh start" and was designed for the honest but unfortunate debtor who is no longer able to pay their bills. We can help you file a chapter 7 bankruptcy. Here is some information that you should know:
Automatic Stay: The minute you file for a chapter 7 bankruptcy, an "automatic stay" goes into effect. This means that your creditors, are not allowed to try and collect on your debts. That means they can't call you to ask you for payment, send you letters demanding payment, file a lawsuit against you to collect on the debt, or take any other collection action against you.
What happens to your future income? Most people who file for bankruptcy are discharged of their debts. That means that their future income is theirs to keep, and creditors can't seize it.
What kinds of debts can be discharged in Bankruptcy? The most typical kinds of debts, such as credit card debts and unsecured loans, can be discharged in bankruptcy. Debts secured by collateral such as real estate (i.e. mortgage debt) and car loans can't be discharged without the debtor losing the collateral. Student loans and tax debt are also generally not dischargeable.
What property can I keep if I file for bankruptcy?- Most debtors, after filing for a bankruptcy, get to keep the property that they owned before they filed. The kinds of property that someone is allowed to keep after their bankruptcy are called "exemptions". Exemptions vary from state to state, and federal law has its own exemptions. Prior to filing a bankruptcy, it's a good idea for a debtor to speak with an attorney about what exemptions they are entitled to, and about property they own which might not be exempt.
Credit Card Debt Settlement
If you are in credit card debt, and bankruptcy is not right for you, we can help you to negotiate a settlement with your credit card company to try and lower your balance. If a law suit has been filed against you, we will help you to answer the complaint so that you are not defaulted. We have helped many debtors over the years to either significantly lower their credit card balances, or to convert their credit cards debts from high interest to no interest repayment schedules.
Disclaimer: This page was meant solely to give a general idea about the law of chapter 7 bankruptcies, and should not be exclusively relied on in making decisions. The law varies from state to state, and every situation is different. This is not a substitute for personalized legal advice.