Bankruptcy Overview for Consumers
In 1934, the Supreme Court explained the purpose of a fresh start through bankruptcy law:
[I]t gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.
-Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934).
Are you experiencing anguish over you consumer debt? A discharge of your personal debt through bankruptcy may grant you relief from your consumer debt and keep creditors from taking any action against you to collect the discharged debts. On this website you will find a list of experienced consumer bankruptcy law firms that can help you navigate the complexities of the bankruptcy process and set you on the path toward financial rehabilitation.
In addition to filing a Bankruptcy Petition, find out how a law firm specializing in consumer bankruptcy could assist you with the following:
- Protection from harassing phone calls
- Credit Repair
- Modification of your Loan
- Negotiation of your Consumer Debts
A Few Basics of Bankruptcy Law:
How do I know if I qualify to file a Bankruptcy Petition?
The filing process for bankruptcy is primarily administrative and sets eligibility guidelines. For example, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 added a “means test” requirement for Chapter 7 debtors. If you are considering Chapter 7, the means test sets out certain income benchmarks that you may not exceed. An experienced consumer bankruptcy law firm like one of those listed in this website can walk you through the eligibility guidelines to see if you qualify for a Chapter 7 individual debt relief.
Chapter 13, on the other hand, has a less stringent income eligibility requirement than Chapter 7 consumer debt relief. Chapter 13 enables you to propose a repayment plan in which you may repay your creditors over a period of time. Discharge under Chapter 13 does not occur until the payment plan has been fulfilled.
To find out more about your bankruptcy options, click here to find a consumer bankruptcy law firm in your area.
From which personal consumer debts may I become financially free?
Consumer debts generally include:
- Credit cards
- Personal Loans
And do NOT include:
- Debts to the IRS (Back Taxes)
- Student Loans
- Spousal Maintenance and/or Child Support Payments
- Criminal Fines or Restitution
The bankruptcy law firms listed in this website can help you determine which specific debts you may be discharged from personal liability and help you get on your way to filing a bankruptcy petition.
Will I have to go to Court?
Typically, a person filing for Chapter 7 consumer debt relief will not have to appear in court. A person filing for Chapter 13 debt relief will likely only have to go to court to have the bankruptcy judge “confirm” the Chapter 13 plan. To find out more about Chapter 7 and Chapter 13 debt consumer bankruptcy debt relief please contact one of the experienced consumer bankruptcy law firms in our database.