If you’re considering filing for bankruptcy, you’re not alone. As the economic hardship continues, many Americans are turning to the bankruptcy system to get out from under credit card debt, medical bills, car loans, underwater mortgages and more. Some may have been counting on their retirement or home equity to bail them out, only to find that they owe more on their mortgage than their home is worth or their retirement is gone. Others have been derailed by one of the major life changes that can lead to bankruptcy: job loss, health problems (and the resulting medical expenses), and divorce.
There are two basic types of bankruptcy available for individuals struggling under debt, commonly referred to as Chapter 7 & 13. Chapter 7 bankruptcies are most often used to discharge unsecured debt such as credit cards and medical bills. If the debtor owns a house or car that has money owed on it, then the debtor may be able to decide to re-affirm the debt or surrender the item in bankruptcy. There are many actions that may help or prevent you from qualifying for Chapter 7 or 13 bankruptcies. At your initial consultation, Attorney Metzger will discuss with you the bankruptcy chapters and also alternatives to bankruptcy.
There are a few pre-filing requirements when you are filing bankruptcy. Any individual with debt seeking bankruptcy relief must obtain, prior to a bankruptcy filing, a certificate from a court-approved credit counseling agency indicating completion of mandatory credit counseling. Additionally, you must have filed all of your federal tax returns. Filing bankruptcy results in the issuance of a bankruptcy stay, which requires all creditors to stop their phone calls, the sending of letters and any effort to collect your money or your property. All of these things plus more will be discussed with you at the initial free bankruptcy consultation.
Each individual’s financial circumstances are unique and require personal attention. Bankruptcy law is complicated and all facts are important and need to be shared with your attorney and failure to do so may signficantly impact your bankruptcy filing.
We are a Debt Relief Agency. We help people file for bankruptcy relief under the bankruptcy code.