One of the scariest, confusing and overwhelming moments in anyone’s life is when a person can’t pay back their debts. If you find yourself in this situation you should call us to set up a free consultation. We can do it in person or over the phone. Knowledge is power. Learn about bankruptcy and your alternatives.
A Chapter 7 bankruptcy allows you to obtain a fresh start in your financial life and eliminate most debts by a court order called a discharge. In most cases, you will be alleviated of personal liability for certain debt, and will receive a court discharge in about three months. In most instances you can keep your home and car if you keep making payments. Taxes and student loans are generally not eliminated in a Chapter 7 bankruptcy.
A Chapter 13 bankruptcy allows you to pay your debts over a period of 3 to 5 years depending on your income and assets. Payments are made to creditors through a court trustee and your creditors may not contact you. One of the advantages of a Chapter 13 bankruptcy is that you might be able to eliminate the second mortgage on your home, and/or lower what you owe on your automobile loan.
Alternatives to Bankruptcy
Yes, there are alternatives to bankruptcy. Beside paying back the debt or hiring a debt settlement company other alternatives exist. They may not be right for you, but ask us about those alternatives.
Reconsider Hiring a Debt Settlement Company
A debt settlement company will tell you not to pay your creditors and to instead pay them each month. The problem is your creditors will continue to charge you interest and late fees and they have no obligation to settle with the company you hired. Your creditor may decide to sue you and the debt settlement can’t stop them. Finally, even if the creditor decides to settle your debt your credit can still be damaged. To learn more about the pitfalls of hiring a debt settlement company go to the Consumer Financial Protection Bureau website and search under “debt settlement company.”
What Information We’ll Ask About at Your First Appointment
• Monthly income for you and your spouse.
• The approximate values of property you own.
• A description and amount of debt you owe.
• Total credit card debt, mortgage debt, tax debt, student loan debt, child support or spousal support, medical debt and any other debt you can think of.
Initial Intake Questionnaire
If you want to know more about the questions we’ll ask, click here to take a look.