Bankruptcy is TELLING creditors how you will handle your debts.
What is Bankruptcy?
Bankruptcy is a legal tool to handle debts.
If you:
Have filed your taxes for the last 4 years, or don’t make enough money to be legally required to file taxes and
Have lived in the same state for 180 days and
Are legally allowed to work in the United States then
Bankruptcy is a federally constituted tool that can allow you to eliminate your debts or consolidate and repay those debts over a period of time.
Many people think of bankruptcy as a last chance escape from debt, a cop out, or an avenue for those who have been irresponsible with their money. Others won’t consider it because they are trying to be responsible for the debt they have incurred.
It is neither of those things. It is simply a legal process that almost everyone has access to that can be used to handle debt.
If you:
Can’t pay all your bills
Have recently had an upsetting occurrence in your life such as a death in the family, a divorce, a period of incarceration, the loss of a job, or a crippling illness
Are stuck in a high interest loan on a car or furniture loan
Are behind on your mortgage
Have creditors suing you for monies owed
Are being garnished
Have unpaid back taxes, either on property or income
Are unable to support a property
Have a large amount of parking tickets that are threatening to suspend your license
Then bankruptcy may be just the legal tool that you need to reorganize your life and get back on the road to prosperity.
Each bankruptcy case is different and fact specific. Cases vary as much as the people who use this legal tool for help; from a high income couple with a large family and high credit related debt to a city worker who is worried about being suspended from work due to unpaid parking tickets in the city.
The biggest thing to remember about bankruptcy is that is has the force of federal law behind it. When using debt consolidation or trying to settle and negotiate debts, you are ASKING your creditors for help. Whether they help you is up to them. The ball is in their court and they can refuse or decline anytime.
Bankruptcy is TELLING your creditors how you will be handling your debt.
Initial information to consider when looking at bankruptcy as an option:
Family size
Annual household income
Assets of the household
Types of debt
Amount of debt
Consumer Bankruptcy Options
Chapter 7 – Chapter 7 bankruptcy is the “liquidation” bankruptcy. All your unsecured debts are cleared. Only a certain amount of equity in property or assets can be protected. And the administrator of the case, the Trustee, is looking to find property that he can sell to recover funds for the creditors.
Chapter 13 – Chapter 13 bankruptcy is about consolidation and repayment. As stated before, debt consolidation is asking your creditors to make a payment plan with you. Chapter 13 bankruptcy on the other hand, is telling your creditors what payment plan you will agree to. The payment plan has both a time limit and oversight from the Trustee, or case administrator. The plan needs to be approved by the Court. But once approved, it is set in stone and your creditors will be unable to get any more from you than is promised by your plan.
During our free half-hour consultation, we can work with you to decide the best way to handle your debts, and whether bankruptcy is the right option for you.
But the most important thing to remember is that it is an option. It is available. It is a legal tool that you, as a taxpayer and resident of the United States, can use to handle your debts.
Don’t let a false sense of responsibility or shame keep you from considering bankruptcy as an option.
Large bankruptcy firms will try to convince you that bankruptcy is the only way to go. It isn’t. There are several other options to consider when dealing with debts and creditors. But bankruptcy is a great tool for handling variety of situations and it has the force of federal law behind it. If it isn’t the best option our firm is fully capable of pointing you in the right direction and getting you there.
Not everyone needs to file bankruptcy.
But the only way to know if this legal tool is the right option for you is to consult an attorney and let them see the circumstances of the situation.
Let us advise you and see if we can help you to handle your debts.
To schedule your free consultation,
