Bankruptcy is a legal process by which an individual can discharge some or all of his or her debts. This means that a person can essentially wipe out almost all debts. By filing for bankruptcy, a person can put an immediate stop to creditor harassment, lawsuits filed against you, avoid wage garnishment, and stop a foreclosure auction on your home or prevent vehicle repossession.
Depending on the type of bankruptcy, you may be able to discharge your debt while keeping most of your assets, or you can reorganize your debt to pay creditors while keeping most of your assets. The two most common types of bankruptcy are Chapter 7 and Chapter 13. Whether you qualify for one or the other will depend on MANY factors, including your debts, your income, and your assets. The best way to know if you qualify is by contacting us for a FREE consultation which can be done by telephone, by Zoom, FaceTime, Skype and or in person.
In a Chapter 7 Bankruptcy, a person’s non-exempt assets are liquidated. A trustee will collect and sell the non-exempt assets to pay off a person’s debts. Although there is usually little or no money to cover the debts, a person emerges from Chapter 7 with no further obligation to pay the remaining debts. In other words, the debts are discharged. To apply for Chapter 7, a person must pass what is called a means test. If they don’t pass (in other words, have too much income/disposable income), Chapter 13 remains an option. Again, the best way to know your options and what is best for your personal situation is by contacting us for a FREE consultation which can be done by Zoom, telephone or in person.
Filing for bankruptcy depends on MANY factors, which we will carefully review and discuss with you during your FREE consultation.