Chapter 7 Bankruptcy Lawyer
Many people who file for bankruptcy are able to get credit after they emerge from bankruptcy. Creditors look at income, debt, and ability to repay when offering credit to people. Bankruptcy doesn’t have to be the end. In fact, it’s really the beginning. The start of a new life for you.
What happens when a bankruptcy is filed?
When bankruptcy is filed, an automatic stay goes into effect. This means creditors are prohibited from contacting you or trying to collect their debt. What stops?
- Harassing phone calls
All legal action against you stop. Everything halts so you can catch your breath. You have options when it comes to bankruptcy.
Chapter 7 bankruptcy
Chapter 7 bankruptcy allows you to eliminate all of your debt. Chapter 7 bankruptcy provides you the ability to have your credit card debt erased. Credit card debt can be debilitating. Sometimes you need a fresh start and Chapter 7 bankruptcy might be your solution.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is different from Chapter 7 in that not all of your debt is eliminated. Under Chapter 13 bankruptcy, you get a payment plan to repay your debt. Generally, this payment plan takes place over the course of three to five years. This allows you to keep your possessions while also repaying the debt. The debt is forgiven at the end of your payment plan.
The best part of this is that you determine how much money you pay each month to your creditors. Skilled bankruptcy attorneys can help you determine your recurring monthly costs to see what you can include in your payment plan.
Do I qualify for bankruptcy?
A concern of many clients is getting future credit. We help our clients discharge their debts and set them up for success to obtain future credit. Creditors look at many things when determining whether to issue credit:
- Amount of debt
- Earning potential
- Ability to repay
The new bankruptcy law requires certificates of credit counseling completion to be filed. This shows the court that you have completed these requirements. Without completing these courses, many clients are shocked to find their case has been dismissed. This is why it’s so important to get qualified legal representation.
What debt doesn’t bankruptcy cover?
While bankruptcy is a great option for clients who need a fresh start, it does not eliminate all debts. Bankruptcy does not discharge:
- Child support
- Criminal restitution
- Student loans
This is why it is so important to speak with a knowledgeable and experienced team who can walk you through your options.
What do I do now?
You call a lawyer today. They have the experience you need to help you get back on your feet.
A bankruptcy filing will stay on your credit report for up to ten years. For this reason, it is important to make certain that bankruptcy is the right option for you. Their goal is to help you get a fresh start. The best approach is to tackle these issues head on. Ignoring the problem only make matters worse.