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IN 1997,
THE TYPICAL FAMILY WHO FILED FOR BANKRUPTCY HAD A DEBT OF MORE
THAN 1 ˝ TIMES THEIR ANNUAL INCOME. A FAMILY EARNING $24,000
ANNUALLY HAD AN AVERAGE OF $36,000 IN DEBT.
There are many reasons for financial difficulties: the loss of a
job, divorce, death of the family breadwinner or too many credit card
purchases. Money problems can create emotional struggles and are
damaging to family relationships.
The thought of bankruptcy might initially seem like you’ve hit
“rock bottom,” but in fact, bankruptcy is a way to help you if you
are unable to pay your bills. Bankruptcy will allow you to start
over and get control of your financial future. You should not feel
embarrassed about deciding to file bankruptcy, because in today’s
economy people from all backgrounds are in the same situation.
Contact the Massachusetts Bankruptcy
Lawyers of
Klein & Miller to help you objectively review your situation,
and if need be prepare your bankruptcy forms, attend meetings with
your creditors and serve as your advocate with the judge, trustee
and creditors.
Call an experienced bankruptcy attorney now: (800) 313-5741
The biggest fear that people have when considering bankruptcy is
that they will never again be able to obtain credit. Bankruptcy
may
appear on your credit report for up to 10 years following the discharge,
but this does not mean that you can not get a credit card, buy a
home, or buy a car for 10 years. The fact is that you no longer
have outstanding debts; therefore you have the ability to repay a
loan. Also, you are legally prohibited from declaring bankruptcy
(Chapter 7) again for six years; this is considered a positive by
possible creditors.
There are 2 types of
consumer bankruptcy that you can file:
Chapter 7 and Chapter 13.
Chapter 7
Bankruptcy is the most frequently filed kind of bankruptcy. It
involves discharging all of your non-secured debts. Most file
Chapter 7 when their monthly payment on personal overhead expenses
(car, groceries, utilities, etc.) exceeds their take home pay. You
may keep your home and car under Chapter 7 laws.
The debtor receives a discharge of most unsecured debts within
three to four months of filing the case.
Chapter 13 Bankruptcy forces creditors to settle with you for less money than
you actually owe. Chapter 13 applies
when your income exceeds your monthly overhead expenses and you are still
able repay a portion of the debt back. To be eligible, you must
have a regular income. Chapter 13 is frequently a better choice than Chapter 7 if:
- you owe debts
not dischargeable in Chapter 7 (i.e. taxes or child support) ?
- you have liens
that are larger than the value of the assets securing the debt
- you have several
years of un-filed taxes ?
- you are behind
on car or house payments
- your assets are
worth more than the available exemptions
Which chapter is
best for you depends on the type of debt and the nature and
value of your assets. Every situation is different, but in
general:
- If your monthly
overhead exceeds your monthly income, then you will likely want
to file Chapter 7 Bankruptcy
- If your monthly
income exceeds your monthly overhead, then you will likely want
to file Chapter 13 Bankruptcy
Before filing for
bankruptcy, speak with an experienced attorney regarding the
possible options that are available to you. One alternative
bankruptcy
is to contact your creditors to request a discount or additional
time to pay. Another is to seek the help of a credit counseling
service. These organizations will help to manage your bills and
work out payment plans with your creditors. Lastly, you may be
able to borrow money to pay off your debts, and in turn have one
loan, with one monthly payment. This type of refinancing is
especially attractive when the interest rates are very low.
Bankruptcy
proceedings begin with the filing of forms at the federal
courthouse. The forms include detailed lists of your income
sources, property, debts and living expenses. About a month after
your forms have been filed, you will be required to attend a
meeting with your creditors. Creditors may question you about
your income, property and debts. The main purpose of this meeting
is to determine the accuracy of your bankruptcy forms.
During bankruptcy
proceedings, you will receive protection from bill collectors.
They will no longer be able to contact you at your home or place
of business. The court will order your
creditors to stop their collection activities, including lawsuits,
wage garnishments, repossessions and telephone calls demanding
payment.
Once your
bankruptcy proceeding is complete, you will be given a "fresh
financial start." The court order will end your responsibility for
dischargeable debts.
Contact the Massachusetts Bankruptcy
Lawyers of Klein & Miller to help you objectively review your situation,
and if need be prepare your bankruptcy forms, attend meetings with
your creditors and serve as your advocate with the judge, trustee
and creditors.
If you are unable to manage your bills, call an attorney
to learn more about your rights as a debtor.
Call an experienced bankruptcy attorney now:
(800) 313-5741
info@massachusetts-bankruptcy-lawyers.com
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