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Bankruptcy

The concept of bankruptcy in our society has evolved, and the stigma has that attached to bankruptcy is a perception of the past. When precipitating events, such as: job loss, plundering of retirement/savings accounts, medical bills, catastrophic illness, and recession occurs, bankruptcy provides a legal avenue for businesses and individuals alike to start fresh. Bankruptcy operates as a legal means to allow a viable alternative to living under insurmountable debt and financial burden that causes high stress and a strain on long-term financial success.

Bankruptcy also protects your valuable assets and avoids foreclosure. Bankruptcy restructures debt and allows the debtor to pay some percent of the entire amount owed to the creditor. Depending on the circumstances of each case, Chapter 7, 11, or 13 are options under the Bankruptcy law.
 
Each Chapter provides a different type of relief. Pursuant to Chapter 13 and 7 laws, you may be eligible to pay a fixed legal cost. Bankruptcy consists of a complex protocol requiring detailed analysis of client’s issues. Our negotiation team fosters a relationship with lenders and attempts to form a plan that is best suited for our client. We attempt to facilitate a win-win situation when possible in order to effectuate a goal-oriented bankruptcy plan.
 
Sometimes, bankruptcy is not a good alternative if creditors are willing to accept out-of-court settlements or if the debtor is able to find new avenues to reduce payments. There are credit counseling companies that provide such an alternative, but if the debtor is unable to make even a minimum payment on a high debt level, it is best suited to start fresh. Credit counseling is now required in order to commence a bankruptcy case by a consumer debtor, and to complete the bankruptcy, a financial management program is required as a precondition to the discharge of debts.
 
According to the Treasury data, as reported by Washington Post on September 10, 2009, only 12 percent of the nearly 3 million delinquent homeowners have been helped. When homeowners are not being helped by the lenders, and their homes face foreclosures, a debtor's only option is to file for bankruptcy to safeguard the property.   The reality is that when the foreclosure is scheduled, attorney fees, and other late charges and interest rates continue to accrue further eliminating any equity in the property. The homeowner’s option is to file for bankruptcy and benefits from stripping any liens that exceed the value of the property.
 
There are three types of bankruptcy options available to consumers:
  1. Chapter 7: If you are in debt of thousands of dollars in credit card balances and medical bills and are seeking a fresh start in life, bankruptcy is a solution to your credit problem. We work with your creditors either to settle on lower amounts or threaten and file for bankruptcy to eliminate your debt.
  2. Chapter 11: Commonly referred to as a “reorganization” bankruptcy for a corporation or individuals owing over a million dollars. In the reorganization plan, you are able to safeguard your assets and force a lender to accept lower payments that are approved pursuant to a bankruptcy plan.
  3. Chapter 13: A temporary solution to avoid foreclosure of your assets. Under Chapter 13 you will get 60 months to pay your past balances. We negotiate with the lender to reduce your past balances to make a successful plan pursuant to the bankruptcy code.