October 14, 2010

Bankruptcy Extreme Makeover

Posted in Bankruptcy tagged at 4:34 pm by demetriagraves

In these tough economic conditions, the word “Bankruptcy” has experienced an “extreme makeover.” For millions of people over the past couple of years, bankruptcy has become a saving grace, enabling people to make a fresh financial start in life. Bankruptcy filings have been on a steady increase. More than 1.4 million people filed Chapter 7 and 13 Bankruptcy in 2009, which is 300,000 people more than 2008 (1.1 million filings), and 600,000 more people than 2007 (880,000 filings). With unemployment in America slightly below 10 percent, and many people with mortgages on their homes that exceed the value of the home, millions of Americans are facing the prospect of being saddled with debt and no hope in sight. For those people experiencing financial problems, Bankruptcy may be a solution.
 
Being heavily in debt is frustrating and difficult. The creditor harassment can be constant, and it’s difficult to stop worrying about what will happen next. One solution is to file bankruptcy. Chapter 7 bankruptcy is the form of bankruptcy that most people use. Many people have questions about chapter 7 and what it will mean for them. This is an overview of the chapter 7 process and how it unfolds for most people. Most people file a chapter 7 because it is the fastest and easiest way to get out of debt, as well as the least expensive.
 
Chapter 7 is ideally suited for someone who has credit card debt, medical bills, deficiency judgments or garnishments. If you were to try to resolve your debts on your own or pay them back, it could take years and cost you thousands of dollars. Chapter 7 bankruptcy usually takes about three months. During those three months you are not making any payments but you are protected by an automatic stay. As soon as your bankruptcy attorney files your chapter 7 petition, you get the automatic stay. The automatic stay requires that all of your creditors stop calling you stop harassing you and stop trying to collect a debt from you. As soon as you file bankruptcy, any garnishments against you will stop immediately.
 
Chapter 7 Bankruptcy is designed to provide relief by discharging most types of debt, secured and unsecured. Some examples of unsecured debts Chapter 7 may eliminate are credit cards; deficiencies on repossessed vehicles; medical bills; and most loans. If you’d like more information on how bankruptcy may be right for you, please don’t hesitate to contact me for a free confidential intial consultation where you can get all your questions answered.
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