Consumer Bankruptcy
Bankruptcy is the most powerful weapon for the American consumer in financial trouble. Filing bankruptcy can keep a family in their home, stop creditor harassment and allow anyone to get back on track and get a fresh start. The American consumer has a constitutional right to file bankruptcy and enjoy the protection of the automatic stay and ultimately, the comfort of a discharge of most, if not all, of their debt. We invite you to learn more about bankruptcy and to make an appointment for a free consultation.
In a bankruptcy petition filed under Chapter 7, a consumer seeks a discharge of outstanding debt. The discharge is a court order which absolves the debtor from having to pay debt classified by the bankruptcy law as "dischargeable." The discharge serves as a permanent injunction against otherwise potential collection action for debt incurred prior to the bankruptcy. A Chapter 7 bankruptcy discharge allows a debtor to proceed forward without financial turmoil, thereby providing the debtor with an opportunity for a fresh start.
Chapter 13 of the U.S. Bankruptcy is often compared to a consolidation loan under which you make payments to a trustee who then distributes payments to creditors. Chapter 13 bankruptcy allows you to keep your home even if you have considerable equity in it. Chapter 13 provides a way for you to pay back your creditors, in whole or in part, in a certain amount of time — usually over five years.
