Bankruptcy Law and Collections
In our zeal of helping our communities to becoming financially self-sufficient, we have devoted part of our practice to helping clients obtain the maximum debt relief available in Bankruptcy proceedings.
For people struggling with debts or are unable to pay their debts, personal bankruptcy may be an option, although it carries some consequences because the bankruptcy information stays on a credit report for 10 years. Bankruptcy however is a legal procedure that offers a fresh start for people who have gotten into financial difficulty and can’t satisfy their debts. Bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, as well as debt collection activities. There are two main types of bankruptcy: Chapter 13 and Chapter 7.
Chapter 13 allows you, in case you have a steady income, to keep your property, like a mortgaged house or a car. In that type of bankruptcy, the court approves a repayment plan that allows you to use your future income to pay off your debts during three to five years, rather than surrender any property. You receive a discharge of your debts after you make all the payments under the plan.
Chapter 7 Bankruptcy eliminates all credit card debt, medical bills, work related tools, basic household furnishings, and unsecured loans, and can also be used in cases with some mortgages and car loans that the individual can no longer afford.
Personal bankruptcy however does not eliminate child support, alimony, fines, taxes, and some student loans obligations. At Breneville Law Offices, we can let you know whether bankruptcy is an option for you.