How to File Bankruptcy

Deciding to declare bankruptcy may be one of the hardest things you’ll ever do

But if you’re facing an unmanageable financial situation, failing to take action will only prolong your misery.
A Bankruptcy Lawyer can help you determine if to declare bankruptcy is the right option for you. Bankruptcy may be able to put a stop to the collection calls and give you back your freedom. Just Click the simple Free Consultation Button on the right, and a Bankruptcy Attorney will contact you to schedule a free review of your case.

 

What Does it Mean to File Bankruptcy?

Filing bankruptcy is a legal process that allows an individual or business the opportunity to have their debts wiped clean-or to repay their creditors according to arrangements worked out under the protection of a federal bankruptcy court. Individuals may choose to file bankruptcy under either ofthe following chapters found in the United States Bankruptcy Code.

When most people use the word “bankruptcy,” they’re referring to a Chapter 7 Bankruptcy. If you declare bankruptcy under Chapter 7, most or all of your unsecured debt-such as personal loans and credit card balances-may be eliminated.

Chapter 13 Bankruptcy is often referred to as a re-organization bankruptcy. Also known as a “wage earner” bankruptcy, Chapter 13 may be the right choice for you if you have a regular income, because it provides a means to repay your debts over time. Chapter 13 is frequently the choice of homeowners who are seeking avoid foreclosure.

Complex rules and limitations apply to both types of personal bankruptcy. Contact Bankruptcy Attorney to learn how the regulations apply to you.

 

Common Myths About Filing Bankruptcy

Myth: Filing bankruptcy is dishonorable.

Fact: Most individuals who declare bankruptcy are honest, everyday people with honest intentions. But emergencies and unforeseen circumstances-such as unemployment or medical problems-can defeat even the best of intentions. Filing bankruptcy is not a dishonest act-it is a legal right that provides a second chance for people who have serious financial problems. Many well-known companies and respected individuals have sought the protection of U.S. bankruptcy laws, and so can you.

Myth: If I file bankruptcy, I’ll destroy my credit forever.

Fact: If you’re considering a decision to declare bankruptcy, your credit rating has already taken a big hit, and declaring bankruptcy won’t make it any worse. Although it can take time to re-establish your credit after a bankruptcy, being free of debt will put you in a better position to pay your bills. In fact, some lenders are more than willing to extend credit to individuals whose debts have been erased by bankruptcy.

Myth: If I declare bankruptcy, I’ll lose everything I own.

Fact: Certain property is exempt from bankruptcy proceedings under current bankruptcy laws. Typically, people who file bankruptcy are able to keep most of their property and personal possessions.

Myth: I can eliminate all my debts by declaring bankruptcy.

Fact: Certain debts-such as student loans, alimony and child support, for example–cannot be removed by bankruptcy. Under Chapter 13, however, you may be able to arrive at a reasonable repayment plan. Bankruptcy Attorney can explain which debts can and cannot be erased under the U.S. Bankruptcy Code.

Myth: Filing bankruptcy will jeopardize my employment.

Fact: The Bankruptcy Code specifically prohibits discrimination against employees who declare bankruptcy, though certain positions can be affected.

 

Thinking About Filing Bankruptcy? Call Us at 1-877-248-3986 for Free Legal Advice!