Bankruptcy
What is Bankruptcy?
Bankruptcy is a process administered through the Federal Bankruptcy Court that allows Consumers or businesses to eliminate 9discharge) their debts or repay their debts under the protectionc of the bankruptcy court. for consumers there are two tyopes of bankrluptcy, Chapter &, most commonly know as Straight Out Cankruptcy, whereby all debts are essentially eliminated and Chapter 13 bankruptcy (the Wage Earner Plan), whereby most of a consumers debts are paid back over a 3-5 year period.
When a consumer files a chapter 7 bankruptcy, he or she is essentially asking the court to wipe out (discharge0 the debts that are owed. Under a Chapter 13 bankruptcy, the consumer files a plan with the court which details how the dbts will be repaid out of current earnings over a period of time. Depending upon a consumer's income, creditors will be either partially or fully paid back. For more information see XXXX
Will creditors and collection agencies stop harassing me?
In a nutshell, YES! All creditors and that includes bill collectors, must cease any type of collection action against a consumer once a bankruptcy has been filed. Creditors cannot initiate or continue any lawsuits, wage garnishments, or even telephone calls demanding payments. Secured creditors such as banks or mortgage companies holding for example, a lien on a car or your house, will most likely get the stay lifted if you cannot make the payments.
The bankruptcy attorneys at XYZ Law Firm will be able to assist you, contact us for a free consultation (xxx) 123-4567
Why do people file for bankruptcy?
Some of the most common reasons that consumers file for bankruptcy are:
- Unemployment
- Large medical bills
- Seriously over extended credit cards or personal loans
- Marital problems and
- Other large unexpected expenses
A Harvard University Study reported on MSNBC said that half of the US bankruptcies were caused by Medical Bills. Although in recent years many more consumers are filing bankruptcy due to the mortgage crisis and adjustable rate mortgages.
The bankruptcy attorneys at XYZ Law Firm will be able to assist you, contact us for a free consultation (xxx) 123-4567
Can I keep any of my credit cards?
Whether or not a consumer can keep any particular credit card is all up to the credit card company. If you have included a particular credit card in your list of creditors to be discharged, then the credit card issues will most certainly cancel the credit card unless you reaffirm the debt. Even if you have a zero balance, the credit card company might cancel the card anyway.
The bankruptcy attorneys at XYZ Law Firm will be able to assist you, contact us for a free consultation (xxx) 123-4567
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