Individuals and married couples whose debts are beyond their means are entitled to relief under the federal bankruptcy laws of the United States. If you are unable to pay your debts as they come due, if you owe more than you can pay, you may be entitled to file a bankruptcy case and obtain the assistance and protection (the legal term is "relief") from the Bankruptcy Court.
In addition, if you are being threatened with foreclosure of your home, repossession of your vehicle or with a lawsuit filed against you, you can stop (or "stay") the creditors from taking that action against you by the filing of a bankruptcy petition.
Whether your circumstances have arisen because of a decrease in income, a loss of job, illness or hospitalization, the stagnating economy, or some other situation beyond your control — or even simply bad judgment in making credit and financial decisions — the bankruptcy law can provide a fresh start for you, a chance to catch up your house or car payments, and eliminate (or "discharge") your credit card debts.
The bankruptcy law allows protection from creditors and relief in many difference circumstances. For example:
If you are over-your-head in credit card debt, you may be eligible to file a Chapter 7 bankruptcy. A Chapter 7 Discharge eliminates all your credit card balances in three to four months without requiring you to make any further payments towards those debts.
If you are facing foreclosure or repossession, you may be eligible to file a Chapter 13 bankruptcy. A Chapter 13 bankruptcy stops creditors from foreclosing or repossessing and allows you to catch-up your mortgage or car loan arrears by an affordable payment over three to five years. You may also be able to discharge credit card debt in a Chapter 13 bankruptcy.
During your bankruptcy filing, there is a court-ordered stay in effect which prevents creditors from contacting you, continuing foreclosure or repossession attempts, pursuing legal action, or taking any steps to collect the debt.
Get in touch
Everyone's circumstances are different and the bankruptcy laws can be used in a variety of ways to provide different types of protection to debtors. In order to learn your rights and how the law can work for you, call Sosna Law Offices to schedule a free consultation with attorney Michael B. Sosna or Palmer E. Huffstetler.