[COLUMN] How Bankruptcy Debt Relief Can Eliminate Your Financial Stress
Having trouble paying your debts? Do creditors call you day and night and threaten you with garnishment, garnishment or foreclosure? Do you feel hopeless and depressed about your situation and don’t know who to turn to for help?
We live in difficult economic times. Economists predict a recession just around the corner. Soaring gas prices, businesses still struggling with pandemic shutdowns, many people resorting to credit cards to stay afloat during the pandemic while out of work — these are just a few of the causes of the financial hardship that many people experience. Or maybe you’ve suffered a job loss, foreclosure, litigation, or divorce. or some other unexpected disaster and you are now saddled with debt. You realize that your debt problems won’t just go away unless you do something about it, but just don’t know where to start.
You have the right under federal law to file for bankruptcy and receive 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 if it’s appropriate for your situation, it may be the only way for you to get out of the mess you’re in right now.
Though Congress has passed tougher bankruptcy laws over the years, debt relief is still available — whether they’re paying off Chapter 7 debt or reorganizing under Chapter 13. Depending on your circumstances, your debt may only be paid off after Chapter 7 months in a few cases, or the court may ask you to repay your creditors with lower monthly debt payments over a period of 3 to 5 years. Either way, the goal is to help you recover financially and help you start a new life free from the burden of excessive debt.
In short, Chapter 7 allows you to forgive or pay off your debts, but in exchange you must give up any non-exempt assets you have. The good news is that most people don’t have much, and whatever they have, they are often protected by bankruptcy exemption laws. So it’s a misconception that “if you file for bankruptcy, you automatically lose everything.” The truth is that most people keep everything they have (homes, cars, bank accounts, retirement savings, etc.) and lose nothing at all. An experienced and knowledgeable attorney can evaluate your case and help you plan so you can maximize your exemptions and claim all of the benefits permitted by law.
Chapter 13, on the other hand, is a debt restructuring or debt consolidation plan. The court will require you to provide all of your income information and a monthly budget to assess your ability to pay. Your payments under the Chapter 13 plan are based on excess income determined by the court. Chapter 13 allows you to keep valuable property like your home or car (even though you were in arrears on your mortgage and car at the time you applied) and stops foreclosure and foreclosure immediately on the day of application. Credit card debt is included in your monthly Chapter 13 payment and, in most cases, can be significantly reduced or even eliminated entirely.
The only way to know if bankruptcy is right for your situation is to consult with a professional who has the knowledge and experience to advise you on your bankruptcy law options. When you need debt relief, there is no need to continue suffering under the enormous 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 office consultation, please call toll-free 1-866-477-7772.
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NOTE: Due to pandemic safety concerns, I am offering free phone consultations to anyone who needs help managing their debt issues.
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None of the information contained herein is intended as legal advice for any particular situation. atty Ray J. Bulaon has successfully helped over 6,000 clients get out of debt. For a free legal evaluation of your situation, please call RJB Law Offices at 1-866-477-7772 TOLL FREE.