My current situation is, I have about $25,000 Credit card/ Personal loan debt. Four years of unfiled returns. I have been out of work 3.5 weeks due to a workplace injury. Workman's Comp has been filed. It is not a total disability. I am married with a grandchild living in the home. My wife has about $5,000 in debt. I have been the only source of income for the last 10 years or so. I have a current creditor seeking judgement in court against me for a debt. I have the preliminary papers from the court a week ago. The Law firm seeking the judgement against me is the same Firm who garnished my wages within the past 3 months for another creditor, which I paid off within that time frame. Just before my workplace accident I paid off 1 creditor for less than what was owed. All debts are over a year old. No credit cards or new debt/ loans have been opened in over a year
Would you like to find an experienced bankruptcy lawyer near me (you) quickly and for a good price? Generally, bankruptcy law can provide a timeline (arrangement) for the repayment of non-dischargeable personal (corporate) debts. The ability to repay secured debts is valid for both Individuals as well as organizations (governmental and private). Bankruptcy comes in five varieties where each offering different options "settling" with debts.
- Chapter 7: Cancelation of unsecured debts (credit cards and personal loans). Bankruptcy law in the United States has changed dramatically in 2005. Liquidation of personal debts under a Chapter 7 is the most common form of debt relief. Most of chapter 7 cases are classified as "no asset".
- Chapter 9: Reorganization of municipalities and related local entities sheet (not for Individuals and Corporations). A chapter 9 of bankruptcy law in U.S is very special. It is a form of debt reorganization (not disposal). Remember, it is only avaliable to Municipalities
- Chapter 11: This chapter Provides a lot of options to reorganize debt. There are options such as "debt cancellation", repaying some debts for Individuals, etc ...
- Chapter 12: Restructuring of debts for Family Farmers is done according to this chapter.
- Chapter 13: repayment of some debts over a period of three to five years + reduction on secured debts and their elimination.
Is it better to file for a bankruptcy under Chapter 11, Chapter 12 or Chapter 13? It depends on your case. Your first step should be finding and hiring the best and most affordable bankruptcy attorney near you. Bankruptcy proceedings in the United States are (should be) supervised by District and Bankruptcy Courts governed by the bankruptcy rules (promulgated by the Supreme Court - www.supremecourt.gov)
