BANKRUPTCY UPDATES

• Las Vegas Tycoon Lists $500 Million in Debts in Bankruptcy Filing (May 15, 2012)
• Luxury Boat Builder Files for Bankruptcy in Wake of Rising Debts (May 16, 2012)
• Television Service Provider Capitol Infrastructure Files Bankruptcy (May 10, 2012)
• Potential ResCap Bankruptcy Filing Spells Trouble for Ally Financial (May 14, 2012)
• Dippin’ Dots Feeling Optimistic About its Life After Bankruptcy (May 11, 2012)

Federal Debt Relief System

If you're like millions of Americans currently struggling to make ends meet or worried about the bills each month, you may be wondering what kind of federal debt relief system exists, and whether it might be able to help you ease your financial burden.

While there are several debt relief options for consumers and business owners, the only one designed and maintained by the federal government is bankruptcy.

To speak with a bankruptcy lawyer about federal debt relief, please fill out the form on this page and arrange a free, no-obligation initial consultation.

Federal and State Bankruptcy Protections

Federal and state laws provide debt relief and certain protections through personal bankruptcy. Here’s how it generally works.

• You’re struggling with debt: Many bankruptcy filings begin with an ordinary person overwhelmed by some financial catastrophe (such as job loss, injury, illness, divorce, foreclosure, a death in the family, or something similar). After a while, your debts may become more than you can handle alone.
• You seek out help: Most insiders (including the federal government) recommend consulting with a bankruptcy lawyer before actually filing a bankruptcy petition. Speaking to an attorney can help you determine not only whether filing might help your situation, but also which type of bankruptcy is likely to work best for you, Chapter 7 or Chapter 13 bankruptcy.
• You file your case: When you or your attorney files your bankruptcy petition with the court, your case has officially begun and you can expect certain protections from the court. Among these protections is one called the automatic stay, which prevents creditors from taking any kind of collection action (including repossession, foreclosure, wage garnishment and more) during your bankruptcy case.
• Your case proceeds: The next phase of your experience with the federal debt relief system known as bankruptcy will depend on which type of bankruptcy protection you choose. If you file under Chapter 13, you will create a monthly payment plan with your bankruptcy trustee (who will distribute the money among your creditors) based on what you can afford over a period of three to five years. If you file under Chapter 7 and meet the necessary requirements, the court will discharge (that is, legally excuse you from paying) some or all of your eligible unsecured debt. You should receive your bankruptcy discharge in a relatively short period – often in as little as six months.
• You get a fresh financial start: In a way, the real benefit of bankruptcy comes once your case has ended. When you receive your discharge and exit the court's protection, you get to start with a clean financial slate and can hopefully take steps to help prevent yourself from needing to seek debt relief in the future.

Speak with a Lawyer for More Details

Bankruptcy lawyers can provide useful resources for people looking for more information about their financial options. If you're ready to speak with a lawyer about your debt and options for debt relief, take the first step today. Simply fill out the case review form to connect with a local attorney now.