Many people have financial concerns at one time or another. If your financial stress is only getting worse with no end in sight, you might be a good candidate for a bankruptcy case. Bankruptcy exists to provide relief for people and businesses facing overwhelming debts, and the process benefits hundreds of thousands of people each year across the United States. Do not hesitate to speak with an Auburn Hills bankruptcy lawyer about whether bankruptcy might be right for you. Contact the law office of Karen E. Evangelista, P.C., to set up an appointment today.
The bankruptcy process can benefit you and your family in many ways. The following are only a few of the common benefits that our clients experience:
The automatic stay – When you file your bankruptcy petition, a court order will immediately go into effect called the automatic stay. This halts all debt collection methods, including calls, letters, lawsuits, wage garnishments, foreclosures, repossessions, and more. This can provide instant relief as your creditors stop contacting you relentlessly, reminding you of your debts that are behind.
Discharge of your debts – At the end of a successful bankruptcy case, you should receive a discharge of certain debts, which means you no longer have to pay these debts. A discharge generally involves unsecured debts, which can include:
Once this debt is discharged, it should leave you with extra funds to pay the remainder of your secured debts.
The first step is for you to discuss with an attorney whether bankruptcy is the right choice for you. The next step is to determine which type of bankruptcy case will best suit your situation. There are two primary types of consumer bankruptcy, each with its own pros and cons. You r main options are as follows:
Chapter 7 – This is a faster type of bankruptcy case that usually only takes six months or less. The bankruptcy court will be able to take property that is not protected (nonexempt) and sell it to pay your creditors before you receive a discharge. However, the right lawyer can work to protect as much of your property as possible – if not all.
Chapter 13 – Some people do not qualify for Chapter 7, or they have too much property, so they will enter into a Chapter 13 repayment plan for three to five years. After the payment plan is over, they can receive a discharge.
If you are a business owner, your options are Chapter 7 (generally, if you plan to liquidate your entire company and close your doors) or Chapter 11 (if you wish to try to remain in operations).
At the law office of Karen E. Evangelista, P.C., our Auburn Hills bankruptcy lawyer has helped many people start fresh with a clean financial slate. Contact us to schedule an appointment to learn if bankruptcy is right for you.