Get Legal Help For Bankruptcy
If you are feeling the strain of financial pressures, it may be more than you can bear. You do have the option of bankruptcy to help eliminate some of the debt you have incurred and alleviate the stress you are feeling. This can reduce your financial burden and put an end to harassing calls about money owed.
With the help of a bankruptcy attorney, you can file Chapter 7 or 11, depending on the financial relief you are seeking. Both offer a solution to mounting debt and can you regain your life back.
How Can Bankruptcy Help?
Filing either Chapter 7 or Chapter 11 can afford you financial freedom. You will be able to eliminate some debts entirely and create payment plans for others that can make them more affordable to you.
When filing Chapter 7, you can:
• By filing bankruptcy, you will be able to eliminate any unsecured loans that you have. This includes credit card debt that has been assumed in the past. While this can only occur with unsecured credit cards, this is the most common form of debt that individuals are looking to eliminate with bankruptcy.
• You can also reduce liens on your personal property which without filing bankruptcy would be removed from your possession for failure to make payment.
When filing Chapter 11, you can:
• If your home is in foreclosure, filing Chapter 11 can help stop the process and allow you to repay the owed mortgage payment. You will have to show that you have the income to cover the payments, but this may be all your need to get back on your feet and take ownership of your home again.
• Any property that you own will remain in your possession as you are not required to relinquish property under Chapter 11 for repayment of owed monies. You will be able to keep your assets and use your current income to repay loan balances through a payment plan.
• Loan cram downs may also be possible allowing you to pay only what your car is worth not the full value of the loan. This can help to significantly reduce your debt and allow you to hold on to valuables without being strapped for cash.
What Does Bankruptcy Not Cover?
While bankruptcy can provide for some breathing room in your current financial state, it can’t eliminate all monies that you owe. In some instances, the law stands and requires repayment even if you have filed Chapter 7 or 11.
Bankruptcy doesn’t include:
• Property liens: Your property can be repossessed if a lien has been placed against it by a creditor. While the debt to the creditor can be erased, the lien will remain, allowing the repossession of your property even after filing bankruptcy.
• Child support: You will be responsible for paying all owed child support in full regardless of filing bankruptcy. This will have to be included in your repayment plan, and a portion of your income must be dedicated to making these payments and getting current.
• Alimony: Just like with child support, alimony must be paid in full in lieu of filing bankruptcy. This will be included in your repayment plan as well.
• Student loans: Only in cases where you can prove that paying your student loan would cause severe hardship can student loan debt be eliminated. In most instances, student loan debt will remain and will have to be repaid in full regardless of your bankruptcy filing.
• Taxes: If you have outstanding tax debt that needs to be repaid, you can count on this amount being repaid in full. Only extenuating circumstances is tax debt ever eliminated in bankruptcy filings.
Working With A Bankruptcy Attorney
When filing bankruptcy, it is imperative that you make sure to list every creditor owed. Leaving off or forgetting a creditor during your bankruptcy proceedings will cause you to still owe the debt to them. A bankruptcy attorney can help you process the necessary paperwork to file bankruptcy and help you determine if Chapter 7 or 11 is right for you.
A bankruptcy attorney will be able to walk you through the entire legal process of filing bankruptcy and make sure you understand your responsibilities regarding repayment and continued debt. You’ll have the experience of a professional on your side and will be able to determine if bankruptcy can help solve your financial woes.
If you are having a financial crisis, now is the time to speak to an experienced bankruptcy attorney. They can help you understand your rights and how the bankruptcy can help you. Contact a Puerto Rican bankruptcy lawyer today!