For individuals and couples or small businesses who are struggling with debt, tax liability, garnishments, car repos, and impending home foreclosures, bankruptcy is your best option.

Chapter 7 Bankruptcy: This is a liquidation bankruptcy, meaning it erases all consumer debt. Credit cards, all medical bills, personal loans and lines of credit, debts from repossessed vehicles, unemployment overpayment, small business loans and even tax debt is dischargeable.  The process is fast and should take one day to two weeks to file your petition. Once  your petition is filed, creditors can no longer  pursue you in any way.

Chapter 13 Bankruptcy:  Chapter 13 Bankruptcy is used to stop home foreclosures, to eliminate tax debt,  and to ultimately receive a discharge--the erasure of all debt. Sometimes referred to as a reorganization bankruptcy, you will work with the attorney to pay the minimal amount you can afford to the Bankruptcy Court: This amount you pay is generally a small fraction of what you owe your creditors. After the Chapter 13 proces, all your consumer debt is erased.

Chapter 7 Business Bankruptcy:  This is used when businesses fail and they cannot pay their debts back, but there are still assets in the company. The debts are wiped clean and the court then distributes the assets among the creditors. It's a simple way to walk away from a business that has failed, without incurring personal liability for those debts from one's company or business.

NOTE: Garnishments, Foreclosures, Bank Levies, Evictions and Car Repossessions all stop the minute your case is filed.

What kinds of debts can be discharged or erased in Bankruptcy?

The answer is all consumer debts, debts on cars that were repoed or that you no longer wish to keep, specific tax debts, overpayment of unemployment benefits, lawyers fees, medical bills and all personal lines of credit all disappear in bankruptcy.  

What debts cannot be erased in bankruptcy?

Domestic support obligations, student loans, and criminal restitution cannot be discharged in bankruptcy.

Can I keep  my house and cars  if I file bankruptcy?

Yes.

Will Bankruptcy help me increase my credit score?

Bankruptcy will generally increase your credit score.  You can finance a new car immediately after filing a bankruptcy, and in two years you are eligible to purchase a house.

Be sure to read our weekly blog about bankruptcy issues like stripping second mortgages, voiding liens on personal property, redemption of vehicles, and other important matters.