Federal Bankruptcy laws were written to enable individuals and businesses suffering from high debts to be legally protected from debt collectors while either dismissing the debts against them and allowing then to start fresh (Chapter 7) or giving them an extended amount of time to repay their debts interest free (Chapter 13). Speak to Peter Schaeffer at Avenue Law to learn more about how bankruptcy could help you.
What is Chapter 7 bankruptcy?
Chapter 7 is called the "debt elimination" bankruptcy. If you have little or no income and cannot pay your debts, chapter 7 will allow you to keep certain essential assets, sell off any non-exempt assets to pay your creditors and then discharge any of your remaining debt completely.
What is Chapter 13 bankruptcy?
If you do have a regular income but have fallen behind on your debts, car payments or mortgage, Chapter 13 bankruptcy is a "debt reorganization" program. It allows you to keep your property and other assets that would be sold under Chapter 7 and gives you a monthly payment that is within your budget to pay off your debts over a 3 to 5 year period, interest free. It is also known as the "wage earners bankruptcy."
What can I do about all the bill collector's calling me?
Under any form of bankruptcy, the moment you file, all your creditors will be issued a "stay" by the court. This legally prevents them from contacting or harassing you and from garnishing your wages or repossessing your property.
How will filing for bankruptcy affect my credit?
If you are currently unable to pay your bills your credit is already in bad shape. While a record of your bankruptcy does remain on your credit report for 10 years, the fact of the matter is you will have no more unpaid bills or delinquent debts on your record. There are steps you can take to both repair your credit record and it is common to get new offers of credit or qualifying for such things as a car loan within months of completing a bankruptcy.
Contact Avenue Law Creditor Harassment Lawyer today to learn how to end all the threatening bill collection calls and take effective action to handle your debts.