(We are a debt relief agency. We help people file for Bankruptcy relief under the bankruptcy code)
PLEASE NOTE: EFFECTIVE OCTOBER 17, 2005, THE BANKRUPTCY LAWS WILL CHANGE AND AS A RESULT IT WILL BE MORE DIFFICULT TO OBTAIN BANKRUPTCY RELIEF AND ELIMINATE DEBTS FOR SOME INDIVIDUALS
The U.S. bankruptcy laws were enacted to protect individuals who have accumulated debts they are no longer able to pay. The main purpose is to provide such persons with a "fresh start", and allow him or her to get on with their life. During tough times, bankruptcy is often the only real and viable solution for persons who, despite their honest and hard efforts, are in debt and are unable to pay back all that they owe.
For individuals, there are two different types of bankruptcy proceedings, either Chapter 7 of Chapter 13. In a Chapter 7 case, a person who is unable to pay any of his bills is entitled to a full discharge of his debts. In a Chapter 13 case, a person who is able to pay back a least a portion of his bills may do so through a bankruptcy plan that might pay his creditors as little as 10%, depending mainly on income and expenses.
Many debts can be eliminated completely in bankruptcy. This is called a bankruptcy discharge, which is an order from the bankruptcy court stating that the person in bankruptcy no longer is required to pay back his or her debts. The type of debts that can be eliminated include credit cards, medical bills, personal loans, utility bills, some taxes, and deficiency claims (moneys owed after a car or property has been taken by a creditor). In a Chapter 7 case, these bills can be eliminated completely; in a Chapter 13 case, up to 90% of these debts can be eliminated.
The bankruptcy laws protect an individual's property and personal belongings. This is called an exemption which allows a person to keep their possessions and property despite being in bankruptcy. As a result, many individuals are able to obtain bankruptcy relief without losing any of their property or belongings. Exemptions protect a person's home, furniture, bank accounts, motor vehicle, personal belongings, and retirement accounts. A person filing for bankruptcy may choose the federal exemptions which generously protect his or her personal belongings. Another option is the state exemption, which under the homestead law allows a person to protect up to $500,000 of the value of their home.
Another advantage in filing for bankruptcy is the automatic stay. This is an order that prevents all creditors, including lawyers and collection agencies, from attempting to collect a person's debts and provides him or her with peace of mind. The automatic stay will stop creditor law suits, foreclosures, repossessions, arrest warrants, and even phone calls and letters. Once a bankruptcy case is filed, the automatic stay goes into effect, and thereafter all creditors are legally required to stop their collection activities.
If you have any other questions about your rights in bankruptcy, please feel free to contact
me anytime at (617) 477-3645 or firstname.lastname@example.org.