Los Angeles, CA (PRWEB) October 25, 2012
People considering chapter 7, 11, 13 or other types of bankruptcy can have licensed bankruptcy attorneys contact them for a free no-obligation consultation by completing a short form on MyBankruptcyLawAdvisor.com.
MyBankruptcyLawAdvisor.com’s short form asks basic questions like a person’s zip code that will help match the consumer with local bankruptcy attorneys.
Some of the reasons why people file for bankruptcy include:
- Unexpected medical bills.
- Lost job or loss of income.
- Late mortgage payments or pending disclosure.
- Divorce or split separation resulting in financial obligations that cannot be managed alone.
- Credit card debt is out of control, with high interest rates and late payment penalties, making it impossible to keep up.
- Grocery, gasoline and other necessities at record high prices.
- Business is struggling to stay afloat in a bad economy.
When people file for bankruptcy protection, creditors must immediately stop harassing them for payments under the “automatic stay”. Foreclosure proceedings are put on hold. Repossession activities must be suspended. Some creditors with security interests eventually may be allowed to take possession of the security (typically a house or automobiles), but the “automatic stay” can buy the consumer valuable time to prepare for what’s ahead.
If they qualify for a Chapter 7 bankruptcy, they may be able to eliminate some or all of their debts. Child support and alimony probably will not be discharged, and tax debts and student loans typically are not eliminated, but these debts are usually more manageable without medical expenses, credit card payments and high mortgage payments getting in the way. They may have to give up certain property to help pay their creditors but they are allowed to keep “exempt” property. Each state has its own rules on what is exempt, which is why it’s a good idea to talk to a local bankruptcy lawyer.
If they don’t qualify for a Chapter 7 bankruptcy (sometimes referred to as a “fresh start” bankruptcy), they may be able to file a “reorganization” bankruptcy under Chapter 13 where they may be allowed to keep most or all of their property while cutting their debt levels down with 3-5 year repayment plans.
While there are benefits to using a bankruptcy attorney, people can file for bankruptcy protection on their own. Forms are available online through the US Bankruptcy Court. The bankruptcy code is large and complicated and attorneys are authorized by law to give consumer’s specific legal advice. The right professional advice can help consumers protect their rights and avoid costly mistakes.
Visit MyBankruptcyLawAdvisor.com to learn more.