How Did I Get to Bankruptcy and How Do I Get Out?

There are many ways to get to the point where bankruptcy becomes a necessary option.  No particular reason is more important than the other.  However, it is important to understand the causes.  Perhaps if we have an understanding of how we get there, it will help us prevent future debt problems.

Mortgage Problems

One of the many causes of debt problems large enough to file for bankruptcy is the mortgage on a home.  Recently, given the economy, home mortgages have been a huge financial burden.  Due to the sudden change of the economy, many people have found themselves in troublesome debt.  The question is how can you avoid losing your home to foreclosure?

Credit Card Debt

In addition to mortgages, credit card debt has been a leading problem as well.  Many persons have been lured into getting credit cards at a great initial interest rate only to have that rate grow ridiculously large.  Now, those persons can barely afford to pay the interest every month on their debt.  The question is how can you escape this endless cycle?

Medical Bills

Lastly, many people are experiencing debt problems because of medical bills.  Unfortunately, health issues are unavoidable in many cases.  Medical costs spiraling out of control is many of our greatest fears.  It is sad for families to risk losing homes and taking on enormous stress because of health issues.  The question is how can you improve this enormous stress?

Chapter 7

We know how you got there, now how do we fix it?  Chapter 7 and 13 bankruptcies are the remedies for excessive personal debt.  By employing a means test, an attorney can discover which bankruptcy process should be utilized.  In a Chapter 7 bankruptcy, the trustee, to satisfy debt, sells the debtor’s nonexempt assets.  It is important to hire an attorney to handle the exemption process.  Further, the Chapter 7 discharge releases the debtor of most personal liability from any debt left unpaid.

Chapter 13 and Foreclosure

In the alternative, Chapter 13 bankruptcy is available.  Chapter 13 bankruptcy is often used to help save homes from foreclosure.  Chapter 13 not only stops foreclosure, but also can be used to create a plan that allows the debtor to fix his delinquent mortgage debt over time.  Chapter 13 even protects third parties or “co-signers” who are liable with the debtor on consumer debts.  Most importantly, after filing, the debtor has no further direct contact with the creditors if the plan is approved.

The Law Office of Harry R. Brown, Jr. can help.  We would like to take on the challenge of helping you get through bankruptcy with ease.  We understand the frustration that comes with managing serious financial troubles.  Let us work out a plan to help you get rid of your debt.  Let us deal with all the legal issues for you.  Let us help you with your financial struggles because your problem is our problem.