Hall & Hall

Attorneys At Law, P.C.




WE ARE A FEDERAL DEBT RELIEF AGENT. WE HELP PEOPLE FILE FOR BANKRUPTCY Bankruptcy is the legal process through which individuals and businesses who end up in financial trouble are able to work out their debts by paying them out in the bankruptcy court. There are two types of Bankruptcy typically available to individuals: Chapter 7 and Chapter 13. There are numerous factors which would determine which would be the best type of bankruptcy for you to file. Your circumstances would need to be discussed with an attorney to determine what is best for you.

One of the biggest advantages of filing bankruptcy is that once bankruptcy is filed, then an “automatic stay” goes into effect. This means that your creditors have to stop trying to collect from you. They may be allowed later to ask the court to allow them to collect a debt from you, but until that time, they have to leave you alone. In bankruptcy it may also be possible to save your home from foreclosure.

Not all debts are going to be discharged or disposed of in a bankruptcy. Typically tax debt and child support and spousal support debts are not allowed to be discharged in a bankruptcy.

Bankruptcy allows for debtor relief and equity among creditors. A debtor is given relief in that they can be relieved of financial obligations even if they are not paid in full. Creditors are treated iwth a degree of equality as far as distribution goes. Bankruptcy allows people who find themselves in financial distress to be able to make a fresh start. CHAPTER 7: This chapter is sometimes called the liquidation. In this chapter of bankruptcy your are allowed to keep a certain amount of property by law. Any amount of your property above the legal limit is subject to being sold off and the proceeds given to your creditors.

CHAPTER 13: This chapter is sometimes called the reorganization. With this type of bankruptcy you are allowed three to five years to pay back a percentage of your debt. The aim of the debtor is to have the opportunity to repay some or all of their debts on better terms. Chapter 13 can be a good option for people who have a steady income stream, and particularly those facing foreclosure.

In a Chapter 13 bankruptcy, the court approves a plan which sets out the payemtns to the creditors. The debtor generally makes payments to the Bankruptcy Trustee who then in turn distributes money to the creditors as specified in the plan. Debtors must continue to make their regular payments to their secured creditors such as their mortgage company and their car loan company.

Deciding to file bankrtupcy can be difficult decision. The advice of an attorney can help you make the right decision. Bankruptcy, of course, has a negative impact on your credit. On the positive side, however, it does allow people who have made past mistakes to have a fresh start.