Debt Collection, Bankruptcy and Foreclosure

You may be faced with devastating problems including financial binds that may make you eligible for filing bankruptcy. Some of these problems may include:

  • Serious problems with debt
  • The foreclosure of your home
  • Your wages being garnished
  • Harassment by creditors

Bankruptcy can seem like the end of the world and may be very frightening. However, bankruptcy may be a lifesaving act that helps you get back on your feet. You will learn what actions you can take in filing for bankruptcy protection by contacting an experienced bankruptcy lawyer.

The US Bankruptcy Act

Congress passed the US Bankruptcy Act to help individuals get back on their feet. Filing for bankruptcy will help you:

  • Reorganize your finances
  • Stop your home from being foreclosed
  • Give creditors the payments you can afford
  • Discharge some or all of your debts

If your home is facing foreclosure, an attorney can stop the foreclosure process by helping you file for bankruptcy. Bankruptcy also helps get creditors to stop harassing and contacting you for money that you owe. You have rights and are entitled to protection under the Bankruptcy Act.

There are many types of bankruptcy. The bankruptcy options for individuals are:

  • Chapter 7
  • Chapter 13

Chapter 7 Bankruptcy

Chapter 7 bankruptcy allows individuals to discharge any debt that is non-secured and to resolve any secured debts that are outstanding. The resolving of secured debts is usually accomplished through the sale of the individual’s assets. The debts that may not be discharged and are required to be resolved include:

  • All secured debts
  • Criminal fines
  • Tax obligations

The selling of assets to resolve outstanding debts in a bankruptcy can be very upsetting. A bankruptcy attorney will walk you through this process and inform you of the assets that are exempt from this process. These assets usually include:

  • Retirement funds
  • Homes
  • Automobiles

Chapter 7 bankruptcy may not be your best option or it might be just what you need to get back on your feet. The type of bankruptcy you file will ultimately depend on your personal situation.

Chapter 13 Bankruptcy

Chapter 7 bankruptcy and Chapter 13 bankruptcy are completely different from each other. Chapter 13 bankruptcy does not require the selling of assets to pay for outstanding debt. Under Chapter 13 bankruptcy, the individual can restructure his or her finances with the intention of paying the money owed to creditors.

With the help of an attorney, filing Chapter 13 bankruptcy will stop the creditors from calling and harassing you. The restructuring plan of your finances will have a certain period in which your debts must be repaid. The court will appoint a Trustee to be in charge of your debts and will work with your attorney to make sure the financial obligations are met.

Getting Help with Your Bankruptcy

The laws governing bankruptcy claims are many and may change. To help you understand your rights and the entire bankruptcy process, you will want to contact an attorney right away.

Please contact the experienced bankruptcy attorneys at Jacoby & Meyers, LLC to help you form a plan of action for your bankruptcy. It is important that you do not attempt to file a bankruptcy yourself. An experienced bankruptcy attorney can help you decide which bankruptcy type to file so you can have a fresh start. We serve clients nationwide.