Bankruptcy is the legal method for a debtor to discharge or relieve debt. Bankruptcy is a way for people, who owe more money than they can pay, to either work out a plan to repay the money over time or to have their debt wiped out. While no debtor is guaranteed a total discharge, most debtors who file for bankruptcy are given such relief. One of the primary purposes of the bankruptcy act is to relieve the honest debtor from the weight of oppressive indebtedness and to provide the debtor with a fresh start. Title 11 of the United States Code regulates the filing of a bankruptcy. The Bankruptcy Code regulates what chapter you must file under, what bills can be eliminated, how long payments may be extended, what possessions you may keep, and all other details concerning the bankruptcy.
Chapter 7 bankruptcy is sometimes referred to as "total bankruptcy". If you qualify, it wipes your slate clean of unsecured debts while maintaining your secured debts that are current and fall under the exemption amounts.
Everyone who files for bankruptcy is allowed to keep and maintain a certain amount of property. Attorney Leon will analyze your financial situation and personally assist you in choosing the best solution for you. The vast majority of people who file bankruptcy do not lose any property…. Just their debt!
Chapter 13 is a federally protected repayment plan that allows individuals to protect their homes from foreclosure, cars from repossession, wages from garnishment and stops all collection activity. You pay only a percentage of what is owed to your unsecured creditors (i.e. credit cards and medical bills) depending on income level. Most situations you will feel IMMEDIATE relief.