Longabaugh Law Offices

Bankruptcy

Many people go through events in their lives which leave them less able to maintain their financial obligations. If this has happened to you, filing a Chapter 7 or a Chapter 13 bankruptcy may be a good way to stop creditors from harassing you, to protect your property, and to get a fresh start.

When a bankruptcy is filed you immediately receive bankruptcy protection from what is known in the legal field as the "automatic stay." When a bankruptcy attorney files a bankruptcy for you, the "automatic stay" goes into effect and prevents most repossessions and/or foreclosures against your property. The "automatic stay" also halts ALL future collection attempts related to debts you acquired prior to filing for bankruptcy. In fact, if the bankruptcy is filed soon enough after repossession, your bankruptcy attorney may even be able to get back your repossessed property.

In addition to protecting your property, filing bankruptcy may allow you to eliminate your unsecured debt, such as credit card, medical and utility bills, and possibly even IRS debts.

So, if you could use some relief in one or more of these areas, then don't hesitate to take the first step and contact one of Longabaugh Law Offices' attorneys. They can advise you on the advantages of filing Chapter 7 or Chapter 13 and let you know which one would better suit your needs.

Chapter 7

If you're drowning in debt with no end in sight, you may be entitled to relief under Chapter 7 of the U.S. Bankruptcy Code. Chapter 7, commonly referred to as a "liquidation" bankruptcy, is the most basic form of relief under the Bankruptcy Code. Not all people qualify for a Chapter 7 bankruptcy. However, depending on your circumstances, filing for Chapter 7 Bankruptcy may lead to a complete "discharge" of your current debt.

Chapter 13

Even if you don't qualify for relief under Chapter 7, it may be advisable for you to file for Chapter 13 Bankruptcy. Chapter 13 is also known as "debt adjustment." This is because under Chapter 13 a debtor typically pays back his or her debts through a "reorganization," or "repayment plan." The "repayment plan" in Chapter 13 is generally 3 - 5 years. The terms of the plan are based on your current and future circumstances, including your future income.

Chapter 13 may be your best option because Chapter 13 provides you an opportunity to keep that vehicle and/or house that might otherwise be subject to repossession and/or foreclosure. Additionally, at the end of the plan, if all payments have been made as scheduled, most, if not all of your remaining unsecured debt, may be discharged.

Foreclosure

When you enter into a mortgage agreement for the purpose of financing a home, the lender usually retains a security interest in that home. This means that if you ever default on your payments under the mortgage agreement, the lender may eventually take your home, sell it, and thereby extinguish your rights to the home. Such an act is called "foreclosure." And while the seriousness of foreclosure cannot be overstated, legal rights found in the U.S. Bankruptcy Code can often prevent a foreclosure from occurring.

In addition to bankruptcy protection, in some cases Longabaugh Law Offices' offers Foreclosure Mediation. Foreclosure Mediation may be another option for helping you keep your home.

Repossession

For most practical purposes, repossession is the same thing as foreclosure. However, the main difference is that with repossession we are generally referring to personal property (such as a car) instead of real property (such as a home). So if, for example, you have defaulted on your auto loan payments, your lender may eventually take your vehicle from you (i.e. "repossess" it), sell it, and thereby extinguish your rights to the vehicle. As in the case with foreclosure, the U.S. Bankruptcy Code affords you the legal rights that can often prevent repossession from occurring.

Contact us to set up your free consultation!