BANKRUPTCY & DEBT

Many people are scared of the very thought of bankruptcy. Some people feel that filing a bankruptcy is a flaw in their character. People worry their friends and neighbors might find out. However, it is important to consider that the Bankruptcy code was written by congress to help people in financial distress to start over. The decision is a business decision. Can you afford more harassment from creditors? Do you have enough money for rent, to buy food and drive a car?

 

There is nothing to be ashamed of. At Legal Muscle USA, we don’t judge our clients. Our clients are treated like the human beings they are. You are not a number. You will not meet with secretaries or paralegals, rather you will meet with a qualified and experienced attorney. Legal Muscle USA is here to serve you. To hold your hand throughout the process, from filing to discharge we are there.

 

We believe that everyone has the right to live without drowning in debt. At Legal Muscle USA, we leverage our vast experience and network of qualified lawyers to help give you the bottom line. Not everyone should file for bankruptcy and we will let you know immediately if you have other possible financial solutions. At Legal Muscle USA we don’t try to fit you in a box. Rather, we analyze your specific case and facts.

 

Here are a few questions to help you assess your financial standing:

  • Do you only make minimum payments on your credit cards?

  • Are bill collectors calling you?

  • Does the thought of sorting out your finances make you feel scared or out of control?

  • Do you use credit cards to pay for necessities?

  • Are you considering debt consolidation?

  • Are you unsure how much you actually owe?

 

If you answered yes to one or more of the questions above, you at least want to give your financial situation a little more thought. Simply put, bankruptcy is when you owe more than you can afford to pay. Consider a consultation with Legal Muscle USA.

 

 

 

 

 

TYPES OF BANKRUPTCY

 

There are two types of bankruptcy for an individual, Chapter 7 and Chapter 13. Chapter 7 Bankruptcy: - Is the complete discharge of all debts, excluding certain student loans, child support and some tax obligations. 

 

Chapter 7 of the Bankruptcy Code:

 

  • Is for the discharge of debts, otherwise known as the traditional bankruptcy  

  • You keep all of your exempt property and are forever released from repaying any dischargeable debt.  

  • Chapter 7 bankruptcy is more favorable than debt consolidation, since the bankruptcy combines both secured debt for example your house or car lease together with unsecured debt like credit cards.

  • Upon the filing of a bankruptcy, your creditors are no longer allowed to contact you. 

 

Chapter 13 of the Bankruptcy Code:

  • You are seeking to lower or restructure your debts so they are more manageable and better correlated to your current income. 

  • Chapter 13 helps get rid of part of your debts so that you can manage future payments. 

  • This can be done by spreading your payments over a longer period of time or by paying only a part of the loan. Either way, your monthly or weekly payment will be reduced. 

  • The payment plan can last up to five years. During this time, your finances will be administered by a trustee. 

  • When considering whether to approve your payment plan, the trustee and judge monitor whether the creditors will receive as much as if you had gone with the traditional Chapter 7 bankruptcy. 

  • The judge and trustee are the ones to approve your payment plan. They may do so even the creditors do not need to agree with your plan. 

  • Chapter 13 is more favorable than debt consolidation, since the bankruptcy combines both your secured debt for example your house or car lease together with unsecured debt like credit cards.

Once a bankruptcy has been filed with the court, creditors must stop contacting the debtor.

 

Bankrupt individuals may continue working, paying off their debts and still keep certain property and possessions.

 

With a good lawyer and the right information, filing bankruptcy could give you the financial footing you need to get a fresh start.

If you're considering bankruptcy or are facing mounting debt, understand all your options. Receive a FREE debt consultation from a bankruptcy attorney through Legal Muscle USA and take a beginning step toward a financial fresh start.

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