We will always consider all other alternatives before advising for the filing of bankruptcy. However, in those cases where bankruptcy is the appropriate solution, we will carefully advise and guide our clients through the bankruptcy process.

Bankruptcy is a legal proceeding for persons who can no longer afford to pay their bills and is intended to give the individuals a “fresh” financial start. The right to file bankruptcy is provided by federal law, and accordingly all bankruptcy cases are handled in federal court. Filing bankruptcy will immediately freeze a foreclosure action and temporarily stop all creditors from seeking to collect debts, at least until debts are sorted out according to the law.

Why Bankruptcy might be an alternative?

Bankruptcy may make it possible for you to:

• Eliminate the legal obligation to pay most or all of your debts. This is called a discharge of debts. It is designed to give you a fresh financial start.
• Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment).
• Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
• Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
• Restore or prevent termination of utility service.
• Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

What Bankruptcy is not

Bankruptcy cannot, however, cure all financial problems. Nor is it the right option for all persons. In bankruptcy, it is usually not possible to:

• Eliminate certain rights of secured creditors.
• Discharge types of debts singled out by the bankruptcy law.
• Protect co-signers on your debts.

What Types of Bankruptcy Should I Consider?

There are four types of bankruptcy cases provided under the law: Chapter 7, 11, 12 & 13. Most people filing bankruptcy will want to file under either Chapter 7 or Chapter 13. Either type of case may be filed individually or by a married couple filing jointly.