Bankruptcy

The intended purpose of federal bankruptcy law is to provide the honest debtor with a fresh start. A bankruptcy case starts with the filing of a petition and a statement of your assets and liabilities and a list of your creditors.

Before initiating a file for bankruptcy, you may want to explore bankruptcy alternatives. Bankruptcy should not be taken lightly, and should only be used as a last resort when other methods cannot help you get out of debt.

Chapter 7 and Chapter 13 are the two main chapters under which individuals can file personal bankruptcy. Chapter 7 bankruptcy involves a liquidation of assets; Chapter 13 bankruptcy involves reorganization wherein the debtor creates a three to five year payment plan.

Many reasons may lead you to file for personal bankruptcy. Among the most common are:

• excessive credit card debt
• loss of employment
• unforeseen medical expenses
• divorce

These events create both financial difficulties as well as considerable amounts of disruption and distress. It is thus especially important that you consider all available options and bankruptcy alternatives to ensure that whatever action you decide on is in your long term interest.

Bankruptcy is an important decision. Federal bankruptcy law and its application to your specific situation can be very complicated. We recommend that you consult with an attorney who has experience in the personal bankruptcy field. Should you feel comfortable in attempting the bankruptcy process without an attorney, online bankruptcy services exist that can assist you. It is also possible, but not recommended, to complete the bankruptcy forms on your own.

A local bankruptcy attorney can help you understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy, so that you can make an educated decision about the best next step for you. Fill out the form below for a free bankruptcy case evaluation by a local attorney.