Bankruptcy can provide a “fresh start” to a person who is buried and/or feeling overwhelmed with debt. Making ends meet financially can be challenging when the amount of bills exceeds a stable income. This could be due to illness, medical bills, job loss, being in an under paid job, only finding part time work, or your company has changed your position from full time to part time, and many other reasons.
It’s not significant how a person ends up in a distressed financial position. What is important is taking some action to resolve it. Ignoring debt will inevitably result in additional stress and possibly more debt. One can only juggle payments by borrowing more money to cover previous debts for so long. At some point it can become an endless circle which usually results in more problems with higher debt amounts and more stress.
Sometimes this pattern becomes so perpetual, that a person may no longer be able to recognize the seven signs that you are in over your head.
Filing Bankruptcy may reduce or eliminate your debts. Most individuals have two forms of bankruptcy options. Â
One option is filing a Chapter 7 under the Bankruptcy Code.
A Chapter 7 allows for you to gain a fresh start by “erasing your debts.” While often called a liquidation bankruptcy, in fact there are usually no “assets” to liquidate. There is a “means” test which in most cases is used to determine if an individual qualifies for chapter 7. Certain debts might not be dischargeable.
Please see our Chapter 7 Bankruptcy page for more details….
The other option is filing under Chapter 13 of the Bankruptcy Code.
Under Chapter 13, the individual submits a “plan” through their attorney to the bankruptcy trustee and pays a portion or all of their debts. However, in contrast to chapter 7, the individual will be able to keep most of their non-exempt property. A payment plan usually lasts 3 to 5 years. Each plan is based on the individual’s financial circumstances.
Please see our Chapter 13 Bankruptcy page for more details….
Whether you choose to file under Chapter 7 or Chapter 13, bankruptcy is a legal debt relief tool which may help you to:
- Eliminate credit card debt
- Stop creditors’ harassing telephone calls
- Stop a foreclosure or trustee sale
- Strip some second mortgages in a chapter 13
- Halt a civil lawsuit
- Prevent or stop wage garnishments
- Enable a “Fresh Start”
- Begin to rebuild your financial future
Seeking the advice of an experienced bankruptcy lawyer will help you determine what options are best for you.
If you are unsure as to whether it’s time to consider filing bankruptcy, some questions to ask yourself are:
Are your credit card debts out-of-control? Have you taken payday loans? Do you have mounting medical debt? Is your house scheduled for a foreclosure sale? Have your bank accounts been levied because of your debts? Have your wages been
garnished? Have your creditors filed a lawsuit or obtained a judgment against you? Do you want to get out of debt so you can enjoy financial freedom? Do you have IRS debts? Are your student loans in default?
We promise prompt relief from creditor harassment.
Take your first step towards financial freedom and contact us today by using the contact form on the right or call 415-504-2006.
For Bankruptcy filings, we work in the United States Bankruptcy Court, Northern District of California. We file cases in the following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, San Francisco, and Sonoma.