You are exhausted just from trying to make ends meet. Chapter 7 bankruptcy may be the best option for you because in one moment all your unsecured debt simply goes away. Don't feel badly; you have probably paid back the credit cards ten times over.
Is Bankruptcy Right for You?
If you have no other option left for climbing out of a deep financial hole, there is relief through Chapter 7 bankruptcy. The law was created for people who have gradually been buried alive by debt - people who are on a fixed income or who never caught up after an illness, job layoff, divorce or other setback. If you qualify for Chapter 7 bankruptcy, all of your "unsecured debt" (the debt not secured by your home or car) is gone. And of course, you keep your home and car as long as you stay current.
If you qualify under an income "means test," Chapter 7 bankruptcy helps eliminate unsecured debts - credit cards, retail charge cards, medical bills and certain judgments. After you file, creditors must stop collection efforts immediately.
What if I don't qualify? - If your income is too high, you can still get creditor relief and pay back a portion of your debts over time through Chapter 13.
What if I'm behind on my house payments? - Filing bankruptcy will stop foreclosure proceedings immediately. We will discuss all the different mortgage relief options, but a Chapter 13 bankruptcy is the most powerful way to get current and it allows you to re-pay your mortgage arrears over the next 3 to 5 years.
Will bankruptcy ruin my credit? - Chances are your credit score is already bad if you're deep in debt and paying bills late. A credit score is good to have so that you can buy more stuff, but right now what you need is financial relief, not more stuff. Bankruptcy is a great way to start over and you will be able to rebuild your credit within a few short years.
As your attorney, my job is to eliminate your unsecured debts and make the most of your exemptions so that you can keep what you own.
You will have to complete credit counseling and financial management courses from your home computer, and appear for a brief meeting with a bankruptcy trustee, but I will be there with you every step of the way. Most people never have to go to court. The whole process takes about 90 days and then those debts are gone forever.