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Bankruptcy Attorney

bankruptcyAre you considering filing bankruptcy? Call us now to find out what you need to know before you file.

You have a legal right to file for bankruptcy to get relief from your creditors. Bankruptcy is a legal process to grant a person a fresh financial start. Bankruptcy can be beneficial and effective in relieiving financial stress in only some cases. However, it is not the right answer to all cases of financial issues so make sure it’s the right step for you. There are different factors to take into consideration, one is making sure it’s the right time to file. The best way to determine if bankruptcy is right for you is to call us today to discuss your sitation with an experienced bankruptcy lawyer. We’ll discuss your situation, and we’re aware of the ever-changing bankruptcy laws.

It’s possible you may not need to file for bankruptcy even though creditors are knocking down your door. Call us now so we can help you decide if it’s the best option for you. We will help you get out of the situation you’re in.

What types of bankruptcy are there?

Chapter 7, also known as “liquidation”, gives you a fresh start. In this case your debts are discharged, but you must give up any non-exempt assets to the trustee to sell. The proceeds then go to pay your creditors. You can keep secured property if you are current on the payments and continue to make the payments regularly.

Chapter 13, also known as “reorganization”, allows you to keep valuable property, such as your home or car as long as you repay the creditors within 3-5 years. In this case you make monthly payments to your bankruptcy trustee who divides the payments amongst the creditors. You can legally file Chapter 13 bankruptcy as long as your unsecured debts are less than $360,475 and secured debts are less than $1,081,400. Self-employed individuals can also file bankruptcy as long as their business is not incorporated.

How will bankruptcy effect your credit?

Filing bankruptcy will stay on your credit report for 10 years. However, if you are deep in doubt and are falling behind on it, then your credit probably isn’t very good anyway. Unpaid debts and late payments are reflected on your credit rating for 7 years so filing bankruptcy doesn’t necessarily mean you won’t be able to get credit during the 10 years afterward. You will find that many companies will still lend to people who have filed bankruptcy, but most likely you may have a higher interest rate than those that have not filed.