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Filing bankruptcy is not as uncommon as you may think. Every day, people just like you decide to file for bankruptcy. With this economy, bankruptcy just doesn’t hold that old stigma it may have had a decade ago. Most of us are struggling with debt–and many of us have lost income thanks to the economy.
Bankruptcy laws have helped millions of Americans get out of debt. They’ve also helped people stop creditor harassment through the bankruptcy automatic stay. f you’re tired of creditors calling at all hours and you’re looking for relief, ask a local bankruptcy attorney whether filing bankruptcy could help you.
Chapter 7, the U.S.’s most common form of bankruptcy, is typically filed in a federal court when an individual facing a great deal of debt is unable to pay it. A successful Chapter 7 bankruptcy results in the Chapter 7 debt discharge, which eliminates the filer’s unsecured debt, such as:
• credit card debt
• payday loans
• personal loans
• utility and medical bills
Chapter 13 bankruptcy, also known as the wage earner’s plan, is often an option suitable for those facing foreclosure or looking to reorganize finances within the confines of a court-approved, debt repayment plan. Supervised by a federal court, Chapter 13 bankruptcy gives some income-receiving debtors the ability to:
• stop foreclosure
• silence creditors
• get on a more realistic, interest-free debt repayment plan
• possibly receive a discharge from unsecured debts
At the beginning of the Chapter 13 repayment period, which normally lasts three to five years, a court-appointed trustee is assigned to an individual case and thereupon acts as the go-between for the debtor and creditors. The trustee receives a set monthly payment from the debtor to give back to creditors regularly or as specified in the court-ordered plan. Exceptions to these payment types are current mortgage payments and some leases. At the completion of the plan, debts are usually discharged, or legally forgiven.
With every year that passes after filing bankruptcy, its record on a credit report is typically viewed with less scrutiny.
Serving the greater Albuquerque area, the Law Office of Jonathan M. Peake focuses its practice on Criminal Defense and Bankruptcy. The firm has been designated as a debt relief agency that helps people file for bankruptcy under the bankruptcy code.
For a free initial consultation to see if bankruptcy may be the best option for you, contact the Law Office of Jonathan M. Peake at 505-750-0755 or by email at firstname.lastname@example.org