After months of inertia, a lame duck session of Congress passed a bill through the Senate and the House to avert our country from falling over the “Fiscal Cliff.” Similarly, consumer debtors often wait until after the holidays to address their credit card, medical and other unsecured debt obligations. In many cases, the consequences for individuals can feel every bit as drastic as perils posed by the so-called fiscal cliff. Law suits, judgement liens, repossessions and foreclosures are serious business. An experienced bankruptcy lawyer can help.
Chapter 7 bankruptcy can provide many people suffering under the weight of their debt obligations. Often called “liquidation,” or “straight” bankruptcy, it is the simplest form of bankruptcy protection provided for under the United States Bankruptcy Code. For many individuals, the process results in a discharge of most or all of their debts without having to enter into any difficult repayment plan.
Chapter 13 bankruptcy is available to individuals with a regular source of income who wish to repay some or all of their debts over a three to five year period. For people attempting to stave off the foreclosure of their homes, this individual reorganization bankruptcy offers a way to repay significant arrearages over the life of a Chapter 13 plan. As long as a Chapter 13 debtor continues to pay under a confirmed plan of reorganization, creditors must accept the payments provided for in that plan and cannot resort to foreclosure or repossession. Chapter 13 is a powerful and important tool for consumer debtors.
With the holiday season behind us, it is imperative to face the new year with a clear vision for your financial future. If a fresh start through bankruptcy makes sense, seek out a free initial consultation with an experienced bankruptcy professional.
Call (412) 925-8194 now.