Bankruptcy offers people a fresh start.

There is a lot of misinformation out there about the new bankruptcy laws. For example,  many people believe they are no longer eligible to file for bankruptcy.  The truth is most people with serious debt problems can still file bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code.

If you are ready to  put an end to harassing phone calls, letters from creditors, and the stress of watching your financial situation spin out of control, you have come to the right place.  We can help you stop creditor actions against you, including foreclosure, repossession, lawsuits, and wage  garnishment.

But most important, we can help you get your finances back on track and manageable.

Filing Chapter 7  bankruptcy allows you to discharge (eliminate) debts such as credit  cards, payday loans, medical bills, and certain judgments, and under  certain circumstances, your home loan.

While wanting to  explain the bare mechanics of bankruptcy, the real goal here is to  alleviate some of the emotional stress involved if you are in a position  that you have no other choice but to file.

Let's suppose for a  moment that you are in a position that you need help.  You are in over  your head, and things are not looking any better no matter what you do.   You know that bankruptcy is your only option, but the idea of filing  makes you stressed out and sick to your stomach. You feel like you've  failed and maybe even like you've let down your family.

Here’s what I want to say to you:  Just stop! 


If  this is the worst thing to happen to you, you are in pretty good shape!   Honestly, people do recover from bankruptcy; this is not going to ruin your life.  If you are in a position that you simply have no alternative, bankruptcy is going to improve your life and let you put a  great deal of stress behind you once and for all.

Bankruptcy is not a cop out; it is an entire category of law designed as a legitimate way  for people that have no other choice due to their financial situation to  receive help.

It will take a while for you to get your credit back on track again but it will happen.  You  may have to endure higher interest rates and credit denials in the  immediate short term, but you will recover.  You really will.  Again, this  is a last resort not an easy way out.

Now the facts:

There are basically two types of personal bankruptcy, Chapter 7 and Chapter 13.  Chapter 7  Bankruptcy and Chapter 13 are legal proceedings that are available to a  person to cope with a financial crisis.  Personal bankruptcy must be  filed in a federal bankruptcy court. You will have to pay the bankruptcy  filing fees.  The attorney’s fees are separate.

Chapter 7 bankruptcy involves the liquidation of all your assets except those that are not  exempt from the bankruptcy settlement.  Exempt property usually includes cars, some household furnishings, and property that you use for work  such as the “tools of your trade” that you use to perform your work  would be exempt from the bankruptcy settlement. Exemption amounts vary  from state to state.

Under this plan the  court appoints a trustee to handle the process of satisfying your  creditors, and in the end, most of your unsecured debts are discharged.  A Chapter 13  bankruptcy allows you to keep some property by restructuring your debt.  For instance, you can keep your home or a car, as long as you are  employed.  Here, your creditors are paid based on your financial  ability, not what they have dictated in the past.  

A Chapter 13  bankruptcy is a court-ordered and approved repayment plan to your  creditors. This plan allows you to use your future income to pay back  your debts over a 3-to-5 year period without surrendering any property.   Once you make all of your payments according to the terms of the plan,  your remaining unsecured debts are discharged by the court.

Both types of  bankruptcy take care of unsecured debts and stop repossessions,  foreclosures, garnishments, collections activities and utility  shut-offs. Both allow people to keep certain assets, although exemption  amounts vary. However, a bankruptcy will not erase child support, taxes,  student loans, or alimony.

In life after filing  bankruptcy you will be able to get credit.  There are lenders who will  extend new credit to you for credit cards, cars and even homes but  because of the bankruptcy you will initially pay higher interest rates.   This will get better over time as you re-establish your credit  standing.

These are some of the  facts about personal bankruptcy.  And if you want to stop worrying and  fix the problem, call me to set up a free consultation; and find out for  yourself if you can benefit from filing bankruptcy.

Don Gervase