In the wake of unemployment, medical bills and the overall downturn in the economy, many families have experienced the overwhelming burden of debt and foreclosure. As a result, at The Bach Law Firm, LLC, we have expanded our services in the area of bankruptcy law to help our clients eliminate debt, stop foreclosures, repossessions, and wage garnishments in both Chapter 7 and Chapter 13 bankruptcies.
Chapter 7
This type of bankruptcy is known as a "Fresh Start" or a "Liquidation" bankruptcy. The debtor is allowed to eliminate certain debts including credit cards, personal loans, business debts, leases, mortgage deficiencies, medical bills, judgments, and certain tax obligations. The debtor may keep exempt assets including but not limited to the debtor's homestead, vehicle, household goods, business equipment and inventory, IRA and 401k, and pensions. All non-exempt assets must be turned over to the Chapter 7 trustee for liquidation and distribution to creditors. Some debts, including recent tax obligations, student loans, child support and alimony generally cannot be discharged.
Chapter 13
A Chapter 13 bankruptcy is known as a "wage earner " or "reorganization" bankruptcy. This proceeding is available only to individuals with regular income. It requires that the debtor file a plan providing for payment to creditors over a period of up to five years. The benefits of a Chapter 13 include the ability to reinstate a home mortgage that is in default, strip a second or third mortgage, cram down certain secured debts, stop debtor collection efforts while payments are made, and the ability to retain non-exempt real estate and personal assets.
Having a bankruptcy attorney on your side may help you learn how filing bankruptcy may specifically help you, what type of personal bankruptcy may make more sense to your situation and what you need to do if you decide to file bankruptcy. By simply visiting our website you've already taken a step I the right direction. Now, keep the momentum going. Contact us today for a free consultation with an experienced attorney who will discuss your options with you.