Many people feel embarrassed about their financial situation. They had their income reduced because of an unforeseen hardship in their lives. Some of these hardships include divorce, death, or illness. It is also possible that due to the economy, one spouse has either lost their job or had work hours reduced substantially. Credit card bills and other obligations start accumulating.

Some people will borrow from relatives or friends without a solid plan on how to pay them back. Some may decide to borrow from their retirement account, hoping to pay it back “some day.” Others try to make the monthly minimum payments– which result in zero reduction of the total credit card debt. Making matters worse, they take cash advances from other credit cards and the interest makes it impossible to keep up.

Their credit is now ruined because they could not keep up with the payments. The only solution to get a fresh start is to file bankruptcy. Most of our clients did anything they could not to talk to a bankruptcy attorney, so they put off calling for months– often years. The one thing almost all our clients have in common is that they are good people who would pay their debts if they could.
By waiting years to get legal advice, the situation only grows worse.

People often feel embarrassed and helpless when they find themselves in financial distress. They may know that bankruptcy exists but are scared by it. Bankruptcy is not something to take lightly, but it might not be as scary as you may think. The bankruptcy laws should be viewed as an opportunity to take voluntary action to regain control of your financial situation. Bankruptcy
is sometimes the best way out of a bad situation and on to a better future.

Since bankruptcy wipes out your old debts, you are likely to be in a better position to pay your obligations going forward, and many people report that they are surprised by the easy availability of credit after bankruptcy. Filing for bankruptcy shows that you are taking hold of your financial future rather than allowing creditors to control you.

There are several Bankruptcy Chapters that may help your particular situation. Here is a list of some of them:

Chapter 7 (Discharge of personal debts):

Most people fall into a Chapter 7 bankruptcy category. These people have high credit card bills and/or medical bills, coupled with a low income that does not allow them to come out of this
financial hardship.

In a Chapter 7, the consumer can get rid of unsecured debts (credit cards, medical bills). People usually feel like a huge burden has been lifted from their shoulders. They will no longer have to deal with out-of-control debt on a daily basis nor getting harassing phone calls from creditors.

Chapter 13 (reorganization of personal debts):

This type of bankruptcy is designed for people who are behind on their mortgage, are in foreclosure, and have substantial assets–but not enough cash flow to pay all of their monthly bills. Or, some people earn more money than is allowed to file a Chapter 7. Chapter 13 allows you to keep your home and assets while paying all or part of your debt through the court over a
three- to five-year period of time.

Call us at Davis Law Center, LLC to make an appointment with our attorneys today for a free consultation at 973-315-7566