Drowning in bills from creditors? Bankruptcy may be an option for you. Speak to an Attorney today for free regarding your legal options. We can represent you in the legal process if you with to proceed.
Bankruptcy Law and Attorneys
A bankruptcy is a federal court case which helps a person get rid of debt and resolve financial problems. A person who files for bankruptcy is called a “debtor.” A “creditor” is another person or company that the debtor owes money to. A “trustee” is a person appointed to help administer the case. This paper explains how bankruptcy works for consumer debtors and for creditors.
If you have financial problems, think before you file bankruptcy. A bankruptcy stays on your credit report for ten years, and might make getting credit more expensive and harder to get. Contact your lender(s) if you are behind on your home mortgage(s) or your car loans. You might be able to avoid bankruptcy by making a deal with your home mortgage lenders or your other creditors to repay some or all of your debt over time. A lawyer or a consumer credit agency might be able to help you make a deal. If not, a bankruptcy might be very helpful.
If you are thinking about filing for bankruptcy, talk to a lawyer if at all possible. Many debtor’s lawyers offer a free initial consultation. A bankruptcy petition preparer is not a lawyer and cannot give you advice.
Debtors usually file a chapter 7 or chapter 13 bankruptcy case. These two types of cases, described below, are alike in many ways. Both cases require a debtor to file lists of ALL debts (even those the debtor intends to keep paying) and ALL property of any kind that the debtor owns. They both require the debtor to attend a meeting early in the case to answer questions under oath asked by the trustee and by creditors. In a chapter 7 case the trustee sells whatever property the debtor does not keep (see What the Debtor Can Keep below), distributes the sale proceeds to creditors, and then closes the case. In a chapter 13 the trustee does not usually sell any property; instead, the debtor proposes a plan to use her or his wages or other income to repay some or all the debts over a three- to five-year period. During the case, the debtor pays her or his basic day-to-day living expenses as if the debtor were not in bankruptcy.