Most people face financial stress and struggle to pay their bills at one point or another. The unexpected happens, such as an illness or unemployment, and before you know it, you might be facing a mountain of debt. Credit card balances, medical bills, unpaid rent and utilities, and delinquent mortgages or car payments can add up quickly, and you might not see a way out. Rest assured, there are solutions for debt relief under the law – one of which is filing for bankruptcy.
If you need help addressing debts you believe you cannot pay, don’t wait to schedule a meeting with Rochester bankruptcy lawyer Karen Evangelista. Our office has helped many people in your same situation, and we can help identify the best way to relieve your financial stress.
Bankruptcy is not the best debt relief option for everyone. In some situations, you might be able to negotiate payment plans or settlements with your creditors that can help you get on the right path to paying off your debts. However, in some cases, bankruptcy might be the right choice. We will review your financial situation and advise you on what we believe will best achieve your financial goals.
If you decide to file for bankruptcy, you must decide which type of bankruptcy is most appropriate for your situation. There are three types of bankruptcy, and each one has its own pros and cons. The following is a brief guide of each type of bankruptcy case.
Chapter 7 bankruptcy is the most common type of bankruptcy filed in the U.S. This is a fairly quick process that can discharge most – if not all- of your debts, which means you no longer will have to pay these debts. In return, you might have to give up some property to the court, but your lawyer can help you protect as much property as possible with exemptions that are provided by the law. Chapter 7 is also common for small business owners to resolve their debts as they close up shop.
Chapter 11 bankruptcy is mostly used by larger companies that want to reorganize their debts but also want to try to continue to stay in business. Some wealthier individuals with unique situations might also use Chapter 11 bankruptcy, but this is not common.
This type of bankruptcy case also reorganizes debts, but it is used by consumers – not companies. Chapter 13 requires you to agree to a payment plan for a few years before the court will discharge your debts. This type of case is often best for people with too much income for Chapter 7 or too much property that exemptions can’t protect.
Do you wonder how you are going to pay your bills? Are you facing collections calls, lawsuits from creditors, wage garnishments, or other stressful matters? Rochester bankruptcy attorney Karen E. Evangelista, PC can help, so please contact us right away to learn more.