If you are buried so deeply in debt you feel you can never fight your way out from under, you need the services of an experienced bankruptcy attorney. Depending on the type of debts you owe and your income, there may be solution for you. Whether you file for bankruptcy under Chapter 7 or Chapter 13, on the day you file your petition, all collection action from all creditors must stop.
Chapter 7 Bankruptcy
Chapter 7 is designed to give debtors a fresh start in their financial life. If you qualify, you file a petition with the court listing all of your assets and liabilities. The court appoints a trustee who oversees the process. Your bankruptcy attorney will know what assets you have that the trustee may sell to pay your creditors and which assets are exempt from the hands of the trustee.
At the end of the process, the type of debts that are discharged include, but are not limited to:
- Credit card debt.
- Medical bills.
- Past due rent and utilities.
- Deficiency judgments from repossessions.
You will still owe back child and spousal support, any court imposed fines due to your illegal conduct and a few other types of debt.
If you have fallen behind on your debts, but have enough income to pay them if you can just have time to catch up, you file a bankruptcy petition with the court along with a plan for repaying your debts over a three to five period of time. If the court accepts your plan, you will make one monthly payment to the trustee who will disperse the money to your creditors. At the end of the repayment period, if you have complied with all the terms of the plan, the remaining debts will be discharged.
At Jonathan Olson & Associates in Green Bay, WI, we offer a free consultation to review your financial situation and advise you on the best approach for you to obtain debt relief.