Bankruptcy

What is Bankruptcy?
Bankruptcy is your statutory right to protection from unaffordable debt. Its impact is wide-ranging, and a bankruptcy filing may be a great option to achieve a number of different goals – discharging debt, preventing a foreclosure, stopping a wage garnishment, or simply consolidating debts to be repaid in order of priority.

What can bankruptcy do for me?
There are two main types of bankruptcy cases that a person like you might file: Chapter 7 and Chapter 13.

A Chapter 7 case offers you the ability to obtain a discharge of debts without any payment plan. It is a quick process, and typically takes about 100 days from start to finish. It is considered a “liquidation” of assets, but thanks to state and federal statutes, most cases are considered “no asset” cases in which no property is lost. You must qualify for a Chapter 7 based on your household income. If you don’t qualify, you will need to consider a Chapter 13 instead.

A Chapter 13 case offers you the ability to obtain a similar discharge of debts after a repayment plan of 3-5 years. This payment plan and time can be used as an effective tool to catch up on mortgage payments to prevent a foreclosure, or pay nondischargeable debts like some taxes. There is no loss of property in a Chapter 13.

In all cases, collection activity against you is immediately prohibited after your case is filed. This means that any foreclosure efforts must stop. It also prohibits continued collection calls, letters, etc. There are few exceptions to this.

BCL’s Bankruptcy Process
From start to finish, BCL’s bankruptcy process is designed to be as simple as possible. Once you have provided the necessary information, our goal will be to file your case within the next 14 days. Emergency cases can be filed sooner, if necessary.

Once your case is filed, there will be a trustee appointed in the case, who represents the interests of your creditors. We will have a short meeting with that trustee about a month after the case is filed. After that, in a Chapter 7, your discharge would be issued about 60 days later. Otherwise, In a Chapter 13, your payment plan will begin.

For more information on the bankruptcy process generally, the Federal Judiciary has nine-part video series on their YouTube channel, available here.

Schedule Your Consultation Today
While bankruptcy can be a great option in the right circumstances, it may not necessarily be the best option for you. In order to review your options and develop a clear strategy moving forward, please contact Brine Consumer Law today for a free consultation.

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