REPRESENTATION AND GUIDANCE THROUGH BANKRUPTCY
The founding fathers of this country constitutionally mandated bankruptcy and Congress eventually exercised this mandate as early as 1801. There should be relief for those who are fleeing insurmountable debt.
If you are dealing with bill collectors with no foreseeable way to pay your debts, talk to an Acton consumer bankruptcy attorney at the law firm of Scheier Katin & Epstein, P.C. We are here to help you through a difficult time.
CHAPTER 7 BANKRUPTCY OR CHAPTER 13 BANKRUPTCY?
Consumer bankruptcy laws have changed in recent years, but Chapter 7 and Chapter 13 remain the two basic choices for most consumers.
Chapter 7 bankruptcy liquidates most debts, which means most, if not all, credit card debt and other unsecured loans simply will not have to be repaid. Even some tax debts and secured loans may be discharged, but your lawyer can advise you about your specific situation. Chapter 7 is often called the “fresh start” bankruptcy, because it allows you to begin to rebuild your life and your credit right away.
You have to pass a “means test” to qualify for Chapter 7. That means your income has to be below the median for where you live or, in the alternative, your expenses have to be extraordinarily high to meet federal standards that show debt liquidation as not “abusive.” If you need the debt relief of Chapter 7, an experienced bankruptcy attorney can help you determine your eligibility.
Chapter 13 bankruptcy requires that all or some portion of one’s debts be paid off over a certain span of time, set between three (3) and five (5) years. Debts can be negotiated downward so there is less to pay; interest rates are often lowered and the payments should fit within your income. Creditors are required to cease all debt collection activities while your debts are being reorganized in a Chapter 13 proceeding.
Do not let a mountain of debt take over your life. If you cannot pay your debts, bankruptcy may provide a solution. Contact us and ask us about bankruptcy.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.