callerIs Bankruptcy the Solution to your Financial Problems?



Why Declare Bankruptcy?

People declare personal bankruptcy for various reasons. Many people file for bankruptcy because of medical bills that pile up after an injury or illness. For others, it is the result of the loss of a job  that makes it impossible  to keep up with mortgage and car loan payments. The birth of a child or the death of a wage-earner can also affect the ability to pay your bills.

How Personal Bankruptcy Works



Bankruptcy and Dischargeable Debts

Declaring bankruptcy can help if you have what is known as dischargeable debts. These are debts like credit cards, medical bills, old taxes, personal loans, or court judgments. However, some types of debts don’t qualify. Past-due child support, alimony, recent taxes, and student loans are not dischargeable. The rules differ somewhat between Chapter 7 and Chapter 13 filings.

Bankruptcy Protection from Collectors

When you file under Chapter 7 or Chapter 13, the court immediately orders creditors to stop contacting you about your debts. This is called an automatic stay, and it means creditors cannot  contact you, repossess your car, foreclose on your house, shut off your utilities, or harass you. This automatic stay does not cancel the debts, but it gives you some relief from the stress of having creditors hound you for money.

A Personal Bankruptcy Lawyer Can Help

The law surrounding personal bankruptcy is complicated. Plus, the facts of each case are unique. For more detailed, specific information, please contact me to schedule an appointment.