Many people find themselves experiencing financial problems at some point in their lives. Whether these problems stem from overuse of credit cards, the loss of a job, or some other source, bankruptcy can often help. Below is some information about the different kinds of bankruptcy and the ways that it may benefit you. For more specific information regarding your case, call me to schedule a free consultation.
The automatic stay is an automatic injunction that takes place the moment a person files for bankruptcy that stops creditors from pursuing any form of collection activity. This means that if you have filed for bankruptcy, creditors are prohibited from calling you, sending you letters, filing a lawsuit to collect on a debt, or garnishing wages. In addition, the automatic stay can also stop other types of actions as well, including utility disconnections, foreclosures, repossessions, and evictions. As a result, filing for bankruptcy can provide many benefits to folks who are facing these kinds of actions.
Chapter 7 bankruptcy is the most common form of bankruptcy. This type of bankruptcy allows you to exempt (protect) your property in most cases while discharging most debts. Some of the kinds of debts that are often wiped out in Chapter 7 bankruptcy include medical bills, personal loans, credit card debt, utility bills, and certain tax debts.
Chapter 11 is a type of reorganization bankruptcy that is typically used by businesses that are seeking to continue operations through the bankruptcy process.
Chapter 13 bankruptcy is a reorganization bankruptcy available to individuals, rather than business entities. In this type of bankruptcy, a debtor’s debts are reorganized and a single payment is made each month under the terms of a court-approved repayment plan. As long as the debtor makes regular payments, his or her assets are safe from creditors during the period of the repayment plan.
While bankruptcy can help in many cases, it is not appropriate in every situation. We may advise you to forgo bankruptcy, and suggest you attempt to negotiate settlements or alternative payment arrangements with your creditors . We will always keep your best interest first.
People who are having difficulty keeping up with their financial obligations should consult with an experienced bankruptcy attorney in order to determine if bankruptcy could improve their situation. Rochester bankruptcy lawyer Karen E. Evangelista has over 31 years of experience practicing in bankruptcy law and is committed to helping people obtain a fresh start through the bankruptcy process. To schedule a free consultation with Ms. Evangelista, call our office today at 248-652-7990 or send us an email through our online contact form available below.
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