Are you having difficulty paying your debts? Are creditors calling you day and night threatening you with wage garnishment, repossession or foreclosure? Are you starting to feel hopeless and depressed about your situation and not sure where to turn for help?
We are living in difficult financial times. Economists predict a recession just around the corner. Soaring gas prices, businesses still struggling with pandemic shutdowns, many people who have resorted to credit cards to stay afloat while unemployed during the pandemic – these are just a few -one of the causes of financial difficulties that many people are experiencing. Or maybe you have suffered a job loss, foreclosure, lawsuit, divorce. or other unexpected calamity and you now find yourself burdened with debt. You realize your debt problems aren’t just going to go away unless you do something about them, but you don’t know where to start.
Under federal law, you have the right to file for bankruptcy and get immediate debt relief. Bankruptcy is nothing more than a legal remedy that allows you to regain control of your finances in order to get back on your feet as quickly as possible. Of course, it’s not the answer to all financial problems, but when it suits your situation, it may be the only way for you to get out of the mess you’re in right now.
Although Congress has passed tougher bankruptcy laws over the years, debt relief is still available, whether it’s erasing debts under Chapter 7 or reorganizing under chapter 13. Depending on your situation, your debts can be erased under chapter 7 in just a few months, or the court can ask you to repay your creditors with lower monthly payments over a period of 3 to 5 years. Either way, the goal is to help you recover financially and start a new life without the burden of excessive debt.
In short, Chapter 7 allows you to cancel or discharge your debts, but in return you must give up any non-exempt assets you may have. The good news is that most people don’t have much and whatever little they have is often protected by bankruptcy exemption laws. So it is a misconception that “once you declare bankruptcy, you will automatically lose everything”. The truth is that most people keep everything they have (houses, cars, bank accounts, pension plans, etc.) and they don’t lose anything. An experienced and knowledgeable attorney can assess your case and help you plan so you can maximize your exemptions and claim all benefits allowed by law.
Chapter 13, on the other hand, is a debt reorganization or consolidation plan. The court asks you to submit all of your income information and a monthly budget to assess your ability to pay. Your Chapter 13 plan payments will be based on excess income as determined by the court. Chapter 13 allows you to keep valuable assets such as your home or car (even if you were behind on your mortgage and car payments when you filed) and will stop seizure and repossession immediately the day your file is submitted. Credit card debt is included in your monthly payment under Chapter 13, and in most cases can be significantly reduced or even eliminated entirely.
The only way to know if bankruptcy is right for you is to consult a professional who has the knowledge and experience to advise you on your options under bankruptcy law. If you need debt relief, there is no need for you to continue to suffer under the huge burden of debt when the solution you need may be right under your nose. If anything, at least find out if bankruptcy is for you. Do it for yourself and your family. For a free in-office consultation, please call toll-free 1-866-477-7772.
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NOTE: Due to pandemic-related safety concerns, I am offering free consultations OVER THE PHONE to anyone who needs help dealing with their debt issues.
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None of the information contained herein is intended to provide legal advice for any specific situation. Atti. Ray J. Bulaon has successfully helped over 6,000 clients get out of debt. For a free evaluation of your situation by an attorney, please call RJB Law Firms toll-free at 1-866-477-7772.