If you are thinking about filing for bankruptcy, please call the office for a FREE consultation.

IF YOU:

• Are paying only the minimum amount due on your credit cards;
• Can't budget yourself out of debt within five years;
• Are getting notices that your mortgage or loans are being foreclosed;
• Have had a severe financial setback, such as losing your job;

YOU MIGHT WANT TO CONSIDER BANKRUPTCY.  IN OUR CONSULTATIONS, WE EVALUATE YOUR ENTIRE FINANCIAL PICTURE TO HELP  DETERMINE IF THERE ARE OTHER ALTERNATIVES

Defining Debts

Secured debt is a debt on which a creditor has a lien.  The creditor can institute a foreclosure or repossession to take the property identified by the lien to satisfy the debt if you default.   

Whereas, an unsecured debt is not tied to any item of property.  A creditor has no right to grab property to satisfy the debt if you default.  The creditor must sue you and obtain a judgment by the court.

A purchase money debt is a debt on which the creditor keeps a security interest in the property given to the debtor so that the debtor may acquire rights in or use the collateral. 

What is Bankruptcy and How Does It Work?

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy allows the Court to eliminate debts that you have no ability to pay.  It applies when the monthly payment on all personal overhead such as rent, utilites, and groceries exceeds your take-home income.  The debtor's assets are liquidated and the proceeds are distributed to creditors.  An individual's home, care, and many other property items can be kept by the individual pursuant to the law.   

Chapter 13 Bankruptcy

Chapter 13 provides a reorganization of your debt allowing you to pay off all or part of your debts over time.  It applies when your income exceeds your monthly personal overhead to some extent such that you are able to repay some portion of the debt back.  This forces creditors to negotiate with you subject to a bankruptcy trustee's approval. 

Please fill out the following questionnaire before your scheduled appointment:

Client Questionnaire

Before you file bankruptcy, the court requires you to take a counseling course.  The following is a list of the approved credit counseling agencies:

Approved Credit Counseling Agencies

If you are still wanting to know more about bankruptcy, please feel free to download this information handout:

Bankruptcy Handout