Do You Have A Bankruptcy Question?

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     Sometimes, no matter how hard you work; things do not work out right.  Things can get so tough financially that it appears there is no way out.  That is why there is bankruptcy protection available for both individuals and businesses.   There have been many changes to the bankruptcy laws in the recent years, so it is important to consult an experienced bankruptcy attorney, if you are considering bankruptcy.

     The federal bankruptcy code is complicated and anyone seeking relief under its terms truly needs the help and guidance of an experienced bankruptcy attorney to ensure the best possible chance of achieving discharge of their debts or at least reduction and restructure of the debts.  Personal bankruptcy for an individual is usually thought to be the last resort for dealing with bills and obligations that simply cannot be met.  It allows you a clean start and usually requires debtors to be treated even-handedly based on the type of obligation they hold.  Bankruptcy does not get rid of all debts.  Typically, alimony, taxes, child support and student loans cannot be discharged by filing bankruptcy.

     The decision to declare bankruptcy is not one that should or can be lightly made. It should be done only when there is no other practical alternative. The consequences to your credit are long lasting.  The fact you declare bankruptcy can remain on your credit report for up to ten years.  This may make it very difficult for you to obtain credit or financing.  If you are able to obtain credit or financing you will likely pay a higher rate than someone who has not declared bankruptcy.  This will make it harder for you to buy things.  It can even interfere with you ability to buy life insurance or, in some circumstances, get a job.  Of course, the positive of bankruptcy is that it can afford you a fresh start and allow you to use your income for things other than paying debt. 

     Therefore, the decision to declare or not declare bankruptcy is not an easy one to make.  You need to discuss the pros and cons of bankruptcy in detail and at length with an attorney skilled in such issues.

     How much relief you can obtain through bankruptcy will depend on a number of variables.  These include how much money you make versus how much you owe and how much “equity” you have in things that you own.  Bankruptcy can be a very powerful tool to assist you when you are faced with foreclosure, eviction or a lawsuit. It also depends on the type of bankruptcy you seek.

     Under the new bankruptcy law, debtors cannot usually seek bankruptcy protection until they have undergone credit counseling from an approved credit counseling agency.  Thereafter, there are two type of bankruptcy usually available to individuals:  debt reduction/restructure under Chapter 13 or complete discharge of your debts under Chapter 7.  If you have property you would like to keep and have a regular source of income, Chapter 13 may be the correct choice for you. Only a bankruptcy attorney can advise you on that, however.

     Whether you would be entitled to relief under either chapter would require a bankruptcy attorney to consult with you and obtain information about your assets, income and debts.

     By merely filing bankruptcy for the first time, you stop your creditors from attempting to collect on the debts you owe them.  There are alternatives, however, to bankruptcy that should be explored before this very serious decision is made and pursued.  A good bankruptcy attorney will provide you with such information to assist in this decision.

     Our lawyers at Merritt Flebotte are anxious to assist you in assuring that your assets are protected to the fullest extent of the law.  Simply call today to see if we can help you.

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