BANKRUPTCY

Especially now, during these tough economic times, individuals as well as businesses, large and small, find it harder and harder to pay their bills from month to month. Soon they find themselves in debt, struggling to make minimum payments, and having to fend off creditors and debt collectors who can be ignorant, rude, and relentless.

While practicing law, particularly in the area of bankruptcy, our firm has come to realize that most people do want to pay their bills. However, due to the occurrence of an unfortunate event beyond their control, such a recent job loss, layoff, illness, or death of a spouse or loved one, many people are unable to meet the impossible demands of creditors and debt collectors. We also realize that people will try for months or even years to resolve their financial situations; however, in the end, they are unable to and only end up continuing to struggle.

Bankruptcy is a way to give a person or a family a “fresh start” and a new beginning. It is a way to put an end to harassing creditor and debt collector phone calls.

The two most common types of bankruptcies are Chapter 7 and Chapter 13, each of which must be filed in federal bankruptcy court. Bankruptcy is a very complicated process; however, we will do our best to provide a very basic understanding of the differences between each type of bankruptcy.

A Chapter 7 Bankruptcy provides for a “liquidation” of a debtor’s nonexempt property and the distribution of the proceeds to the creditors. This means that under a Chapter 7 Bankruptcy there is no filing of a plan of repayment.

On the other hand, a Chapter 13 Bankruptcy, if the court approves, results in a payment plan to repay all or part of a debtor’s debts over a period of three (3) to five (5) years, provided that you have a steady income. After you have made all payments required under the plan, your debts will be discharged.

Each case is difference and unique. However, under both types of bankruptcies there are exemptions, meaning you may be able to keep certain assets such as your home and your car depending on the facts and circumstance of your particular case. Both types of bankruptcy may provide you a way to get rid of unsecured debts, halt foreclosure, repossession, and harassing debt collector phone calls.

If you are in the type of situation discussed above and you are contemplating bankruptcy, contact the Law Office of Jason P. Provinzano, LLC for a free consultation, so that experienced attorneys can answer your questions, assess your situation, and determine whether or not bankruptcy is right for you.