Bankruptcy Law Firm
Many people plan responsibly to take on debt within their ability to pay. Because of unpredictable events affecting us individually or as a whole, honest borrowers find their diligently earned resources unequal to the cost of owning a home or running a business. Sadly, many accept financial inertia as inevitable instead of lawfully exercising their right to a financial reset.
Our goal is to introduce visitors to timely, useful information about their options, whether to help in making a decision or prepare ahead for contingencies. We organize and clarify topics related to the forms of relief under bankruptcy law, debt settlements especially for credit card and tax liabilities, and the process of foreclosure.
We point out and correct common misconceptions about these subjects, and present a balanced view of the benefits and risks involved in their place. We try to make the basics clearly understood while acting responsibly in emphasizing the need for specific legal advice from a bankruptcy lawyer.
Our site is an introductory resource, we are not a replacement for a qualified bankruptcy attorney who knows the facts of a case.
Finally, we hope that readers come away understanding how many ordinary Americans restarted their lives and achieved their original goals after taking action to claim their rights under the law.
The following is a summary of the main topics found on this site:
A. Bankruptcy – Individuals, married couples, and corporations and other business entities may initiate proceedings to completely discharge or erase debt through arrangements for partial or total repayment, approved by a court. The chief forms of bankruptcy are Chapter 7 and Chapter 13 from Title 11 of the United States Code.
Chapter 7, known as straight bankruptcy, stops creditors from collecting or repossessing on claims in exchange for the proceeds of selling non-exempt assets. A bankruptcy attorney in a Chapter 7 filing focuses on minimizing the risks of giving-up assets such as homes and cars. Since 2005, a debtor must pass a “means test” based on income to be eligible to file for Chapter 7.
Chapter 13 involves a debt management plan providing for payments taken from disposable income for a period of three to five years. Restructuring debt can be a better option for debtors with a higher risk of surrendering assets under Chapter 7.
B. Debt Settlement – Many creditors agree to directly negotiate with a debtor, especially those who stand to lose more in court from a bankruptcy proceeding.
Credit card companies have various arrangements for settling debts, such as a lump sum settlement, temporarily giving-up interest and fees or even payments to help a debtor get back on their feet enough to repay, or an arrangement brokered by an accredited agency.
Debtors who owe tax liabilities can consult the IRS for repayment options.
C. Foreclosure – Removing a debtor’s right to a property outright may require court approval. A bankruptcy lawyer is a valuable asset in a foreclosure proceeding.