Bankruptcy can be a scary, oppressive word. It invites feelings of dread, failure, guilt and remorse. Our clients frequently speak of the “b” word in hushed tones and hope to find another, any other, solution. There is too much misleading information, inaccurate mythology and just plain nonsense floating around about bankruptcy law.
Bankruptcy is very simply a legal, upfront method to comprehensively and fairly address an overwhelming debt scenario. One does not have to apologize, justify or defend the path that led them to our firm. We are here to fix things, not judge them. There are no debtors’ prisons. You are not cast out into a wilderness where you can’t get a loan to buy a car or a house or get a credit card for years and years.
The damage to your credit report usually happened long before you met with an attorney. Bankruptcy is a means to recover and heal. The fresh start is real.
Bankruptcy can be defined as one of two basic strategies: reorganization and liquidation.
Reorganization under Chapter 13 or Chapter 11 is a mechanism to make payments through a court-approved payment plan to protect your assets and reduce the debts to a more manageable level. You must have the means to fund the payment structure to protect the assets within the plan. The budget is often the key component of a reorganization. Clients use reorganization to save a house in foreclosure, prevent repossession of a vehicle, address tax liens or continue to operate a business in distress.
Liquidation under Chapter 7 is a way to eliminate debts that do not have collateral such as credit cards, medical bills and bank loans. Liquidation requires no payments to the court or your creditors, but you must qualify for Chapter 7 by showing a budget with very little remaining income even without any debt payments and be prepared to surrender any property that you own that is more valuable than the amounts your are permitted to protect. This usually means that your common household items are protected, but expensive jewelry, valuable artwork or collections or paid off vehicles may be taken by the court and sold to provide some payment to your creditors.
Remember, these are very basic descriptions of bankruptcy law. Each circumstance is different based on your unique situation and we will explain your options during our free initial consultation and give you the knowledge and understanding to make an educated decision to address your specific concerns. Please understand this is not legal advice and may not directly apply in your specific situation.
Don’t let misinformation, myths, anxiety, or embarrassment prevent you from taking advantage of the benefits available through the Federal Bankruptcy laws.
Please remember that this is a very basic description of bankruptcy law and not legal advice. We can discuss your situation in detail during a free, confidential consultation with an attorney who will explain how bankruptcy law fits your specific situation. Contact us today at www.meredithlawfirm.com to schedule an appointment at your convenience. We are a debt relief agency.