WE ARE PROUD TO BE A DEBT RELIEF AGENCY THAT CAN HELP OUR CONSUMER BANKRUPTCY CLIENTS:
- Prevent foreclosure on your home
- Deal with delinquent income taxes
- Eliminate crushing medical bills
- Eliminate the burden of debt
- Stop Collections Actions and harassing phone calls
- Clear Judgments from your record
WHAT IS A "PERSONAL BANKRUPTCY"?
A personal bankruptcy is a bankruptcy filing that is designed to assist an individual. Most of the time personal bankruptcies are discussed in the terms of "consumer" debtors. However, if your debt is primarily corporate debt, you may also file a personal bankruptcy to avoid your personal responsibility for corporate debts.
A consumer debtor is one that has primarily consumer debts; that means your debts arise from the purchase of goods for personal use. So if you have overwhelming debts on personal credit cards, medical bills, your home mortgage, personal loans, judgments, or the like, you may be a candidate for a consumer bankruptcy filing.
If your debts arise prmarily from personal guarantees on business loans, you amay also benefit from a personal bankruptcy.
WHAT ARE YOUR OPTIONS?
An individual has three possible bankruptcy options. Depending on your circumstances, you may qualify for a Chapter 7 straight liquidation, a Chapter 13 restructuring bankruptcy, or a Chapter 11 restructuring.
By filing a Chapter 7 case, a debtor can discharge all of their unsecured debt. This means, if you qualify for relief under Chapter 7 of the Bankruptcy Code, you can eliminate debt that is not secured by collateral. Collateral is property that a creditor can sell to repay your debt if you default on the loan. For example, credit card companies generally do not require collateral for the extension of credit; however, your home mortgage is secured by your home. Chapter 7 is designed to give debtors a "fresh start". In addition, if a Chapter 7 case is handled properly, you will be able to retain your assets, including your savings, your home and your car.
If you have equity in your home, you may want to consider filing a Chapter 13 case and reorganizing your debt. In order to qualify for a chapter 13 filing, you must have regular income from employment and have no more than $1,010, 650 in secured debt and $336,900 in unsecured debt.
If you do not qualify for a Chapter 13 filing because you have more than $1,010, 650 in secured debt and $336,900 in unsecured debt, you may want to consider filing an individual Chapter 11 case. Individual Chapter 11 cases are more uncommon because the cost of restructuring in a Chapter 11 case are high and because, in today's distressed economy, most people find that they qualify for the more streamlined relief offered through Chapter 7 and Chapter 13. However, the Chapter 11 process is far more flexible than Chapter 13 and thus lends itself to more creative restructuring solutions.
WE SUGGEST COMING INTO OUR OFFICE FOR A FREE CONSULTATION TO DISCUSS YOUR PERSONAL CIRCUMSTANCES AND ALLOW AN ATTORNEY TO HELP YOU MAKE THE DECISION THAT WILL BEST SERVE YOUR NEEDS.
CALL KARINA PIA LUCID, ESQ., AT (908) 350-7505 FOR AN APPOINTMENT TODAY!