What is bankruptcy?
How can bankruptcy help me?
- Bankruptcy may enable you to discharge most or all of your debts, eliminating your legal obligation to pay them. After you file for bankruptcy, collectors cannot legally attempt to collect on debts that have been discharged.
- Bankruptcy may also stop foreclosure proceedings on your home and provide a window for you to catch up on missed payments. However, bankruptcy cannot eliminate mortgages and other property liens.
- Bankruptcy can also prevent the repossession of your car or other valuable property. It can force a creditor to return property that has been repossessed prior to bankruptcy.
- Filing for bankruptcy may prevent wage garnishment, debt collection harassment, and other creditor actions to collect on your debt.
- Previously terminated utility services may also be restored.
- Bankruptcy can help you challenge the claims of creditors who have committed fraud in attempts to collect your debt.
When should I consider bankruptcy?
What are some debts bankruptcy cannot resolve?
- Child support and alimony obligations
- Student loan debt
- Tax debt
- Other nondischargeable debts, such as fines and penalties imposed for violating the law, like traffic tickets and criminal restitution
- Debts for personal injury or death caused by your intoxicated driving
- Cosigner debt. A bankruptcy cannot eliminate the debt of cosigners. If someone you know cosigned a loan, that person may still have an obligation to repay the loan partially or in full
- Debts incurred after the bankruptcy has been filed
What type of bankruptcy is right for me?
- Chapter 7 Bankruptcy: This is a liquidation bankruptcy that requires debtors to give up property so that it can be sold to pay off creditors.
- Chapter 11 Bankruptcy: This is a “reorganization” bankruptcy used by businesses with substantial debts.
- Chapter 12 Bankruptcy: This type of bankruptcy is restricted for family farmers.
- Chapter 13 Bankruptcy: This is a debt adjustment plan that allows debtors to repay part of their debts using their income. You can pay off child support arrears, tax debts, and get your driver’s license back when you file for Chapter 13. It also stops foreclosures and repossession of property, along with debt collection calls and harassment. Most debtors are eligible for Chapter 13 bankruptcy.
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Filing for bankruptcy is a financial decision that carries significant weight. Many individuals choose to file for bankruptcy because they have overextended their credit or are unable to pay the debts they have accumulated.
Those who file for bankruptcy easily find themselves stressed about the details involved in making sure their claim is filed appropriately. Both Chapter 13 and Chapter 7 bankruptcy have specific exemptions and allowances that dictate what a person can and cannot claim. Likewise, in both types of bankruptcy cases, creditors can challenge and attempt to overrule your filing.
Understanding the difference between Chapter 7 and Chapter 13 is the first step in educating yourseIf; however, there’s an abundance of other details about bankruptcy you will need to know before you can consider yourself well-informed. If you don’t happen to find the answers to your questions regarding bankruptcy here, contacting a trusted attorney is always the best way to ensure you have all the information you need to create your case.
Highly Trusted Bankruptcy Attorneys In Northeast Louisiana
For more than 35 years, the Attorneys at E. Orum Young have been successfully helping individuals and families navigate their way through bankruptcy. With more than 20,000 cases filed, they are the most accomplished and successful bankruptcy attorneys in Northeast Louisiana.
If you want to be sure your case is in the right hands and you are working with attorneys that care about you and your family, call our offices or fill out our convenient online form today. The lawyers at E. Orum Young also offer a free consultation regarding your case so you can be sure you’re making the best financial decision for you and your family. Once you’re ready to file, at E. Orum Young we promise to do whatever it takes to help you make your way back to a life free of debt and financial stress.