Bankruptcy Attorney Springfield OR
If you’re being harassed by creditors, find yourself buried in mounting debt, or have endured a sudden change in your life caused by loss of work, medical injury, or divorce, chances are, you’ve thought about bankruptcy. Bankruptcy affords every American with the right to start fresh. This includes discharging unsecured debts and being given the opportunity to make payments on secured debt that you’ve gotten behind on.
In this article, we’ll discuss your debt-relief options, how they work, and how they can help you out of what is undoubtedly one of the most difficult times in your life.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a type of bankruptcy available to individuals and couples that allows for the discharging of unsecured debt. Unsecured debt includes things like creditor card debt, medical debt, and personal loans.
Chapter 7 allows you to discharge these debts against your assets. Valuable assets are liquidated to repay your creditors, but in most cases, creditors find nothing of value to liquidate. If they could, why would you be filing for bankruptcy? Additionally, you are allowed to protect some of your assets up to a certain value from liquidation.
When your Chapter 7 bankruptcy is completed, all of your unsecured debts are discharged. You can begin again with a clean slate without thousands of dollars of debt hanging over your head.
While your credit will take a temporary hit, chances are, your credit wasn’t in a very good place to begin with. Otherwise, why would you file for bankruptcy? After ten years, a Chapter 7 is removed from your credit report and in the meantime, you can begin rebuilding positive credit.
If you think Chapter 7 is right for you, call Butcher Law Office, LLC and we can discuss your options.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows you to organize your debts into one lump-sum payment executed monthly over the course of three to five years. In other words, it gives you a chance to repay arrearages on secured debts. Secured debts include mortgage payments, car payments, or any type of debt that is secured against the purchase item.
In Chapter 13, debts are given a priority ranking. Back taxes and child or spousal support arrearages get the highest priority. Secured debts come next and then finally, unsecured debts. In Chapter 13, you will probably have to pay off some of your unsecured debt, but the rest is discharged at the end of your three- to five-year repayment period.
Chapter 13 incurs less of a credit penalty than Chapter 7, especially for those who qualify under Chapter 7 and still choose to file under Chapter 13. A Chapter 13 bankruptcy stays on your credit report for 7 years instead of 10, and will likely cause less of a hit to your credit score.
Creditors can file lawsuits against debtors and, once they gain a judgment against the debtor, they can use extremely aggressive tactics to collect the debt. These include wage garnishments, real estate liens, and bank levies. The best way to deal with this, is to settle the debt before that happens or, if you can’t settle the debt, file for bankruptcy.
If the creditor has secured a wage garnishment against you, they will contact your employer and notify them of an outstanding debt. They will demand that a certain amount of your check be set aside each pay period until the debt is repaid in full. Your employer must comply with this request.
Most people don’t want their employer knowing about their outstanding debt. Not only does it place a burden on your employer’s payroll department, but it’s also embarrassing. In this case, you’re better off filing for bankruptcy before the creditor has gained a judgment against you.
Those who are behind on their mortgage are likely due to receive notice that the bank will foreclose on their home. However, filing for bankruptcy immediately stops all creditor actions against you, even foreclosure. This is a temporary measure that will buy you some time. Chapter 13 bankruptcy, however, provides a means of saving your home.
Chapter 13 provides a means of repaying the arrearages while continuing to make payments on your monthly mortgage. Your other debts will also be rolled into your Chapter 13 repayment plan. You might have to pay some (but generally not all) of your unsecured debts.
If you’ve taken out a second mortgage, you may be able to strip that off in Chapter 13.
For more information on how to save your home, call Butcher Law Office, LLC.
Auto loans are considered secured debts. If you’ve fallen behind in your monthly payments, the lender can file a notice of repossession immediately. If you file for bankruptcy, however, all creditor actions against you must immediately stop. If you want to keep the car, you file for bankruptcy under Chapter 13. You will have an opportunity to repay the arrearages and get current on your monthly payments.
If you’re worried that your car will be repossessed, call Butcher Law Office, LLC today. Tom can help.
Debt Collector Harassment
While it’s true that debt collectors can do a lot of nasty things to you, they must obey the laws governing fair debt collection practices. Some debt collection agencies purchase expired debt for pennies on the dollar. This debt is time-barred from collection after the statute of limitations has lapsed. If you’re not sure whether or not a debt is valid, you should talk to Butcher Law Office, LLC before paying on debt that cannot be collected.
Talk to a Bankruptcy Attorney Today
If you’re struggling to make ends meet, bankruptcy can help. While it won’t help everybody, it will help those whose current circumstances are dire. For more information on how bankruptcy can help, call Butcher Law Office, LLC today and schedule a free hour-long consultation.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship.
I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.