Bankruptcy Help: Free Evaluation by a Bankruptcy Lawyer

Bankruptcy is designed to eliminate debt and stop collections. Federal bankruptcy laws were enacted by Congress to give consumers and business owners a fresh start when burdened by excess debt. Chapter 7 and Chapter 13 are two possible paths to debt-relief. Could filing bankruptcy be the right solution for you?

A local bankruptcy lawyer can review your finances and inform you of your legal rights.

Put the bankruptcy laws to work for you. Learn about your right to discharge overwhelming debt. Receive a free consultation by connecting with a bankruptcy lawyer near you today.

Will Filing a Bankruptcy Petition Help Get Me Out of Debt?

If you're thinking about filing for bankruptcy, you likely have questions about whether you qualify, what the process involves, and how filing bankruptcy will impact your life.

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Chapter 7 vs. Chapter 13 Bankruptcy

Bankruptcy laws provide two main forms of bankruptcy for individuals: Chapter 7 bankruptcy to eliminate credit card and unsecured debts, and Chapter 13 bankruptcy to reorganize debts into an affordable repayment plan.

Each type of bankruptcy involves a different process and may produce different results, based on your unique financial situation. Here's a breakdown:

Filing for Bankruptcy Under Chapter 7 of the U.S. Code

Also called "straight" bankruptcy because of the quick relief it offers, this form of bankruptcy is frequently known as "Chapter 7" for the section of the bankruptcy code that outlines how it works.

If you want to eliminate unsecured debt like credit cards, payday loans, utility bills, medical debt and some personal loans, filing bankruptcy under Chapter 7 may be an option.

Chapter 7 bankruptcy is usually a viable option for people with lots of unsecured debt and little income, such as an unemployed person who's been using credit cards or payday loans to make ends meet.

If you want to file Chapter 7, you'll have to take the Chapter 7 means test to see if you qualify. But don't worry, most people who want to file Chapter 7 are able to. It's a myth that the "new" bankruptcy law made it so no one can file for bankruptcy.

The means test determines whether your income is low enough to get your debts discharged. There are two steps to the means test:

Step One: Compare your income to the median income in your state. Generally, if you "pass" the first step, you don't have to do the second step.

Step Two: Compares your disposable income and your unsecured debt.

See how your income stacks up. Find out your state median income, then talk to a lawyer about your legal right to file bankruptcy.

Keep in mind, if you don't "pass" the means test, you may still be able to file Chapter 13 bankruptcy and work to repay your debt (interest-free) over time.

The Repayment Option through Chapter 13 of the Bankruptcy Code

If you're facing foreclosure or looking for an interest-free repayment plan, Chapter 13 bankruptcy might help you out.

Under Chapter 13 bankruptcy, the court places you on an interest-free payment plan that usually lasts three to five years. During that time, you make one lower monthly payment directly to the bankruptcy court (no more dealing with creditors). They, in turn, make payments to your creditors according to a priority set by the court.

At the end of your repayment period, you may even qualify to discharge your remaining unsecured debt (such as credit card bills, medical debt, utility back payments, etc.).

Chapter 13 bankruptcy is typically an option for people who have steady income but have fallen behind on their bills.

In many cases, Chapter 13 bankruptcy can stop foreclosures thanks to the protection of the automatic stay and the chance to repay mortgage debts at a reasonable rate.

Speak With a Nearby Bankruptcy Lawyer Today

Not sure which category seems like the right fit for you? Curious if filing bankruptcy is a good option for you? Want to learn more about Chapter 7 and 13 bankruptcy?

A bankruptcy lawyer may help you make a better-informed decision. Learn how to file and what to expect if you do.

You can receive a free, no-obligation case evaluation. Simply fill out the quick case review form below to get started now. It's free.

Popular Bankruptcy Help Pages on TotalBankruptcy.com

Millions of people visit TotalBankruptcy.com each year to learn about their debt options and to ask a local attorney if the U.S. Bankruptcy Code could help them.

Get the information you're looking for from these popular bankruptcy pages:

Chapter 7 Bankruptcy	Chapter 13 Bankruptcy
Filing Bankruptcy	Chapter 7 Means Test

 

The Truth About Filing for Bankruptcy Protection

Many Americans never thought they would have to consider bankruptcy as a way to get out of debt. But the truth is that many of us can't get out of the hole we're in. On top of the original debt, creditors pile on late fees and high interest rates, making it seem impossible to get any traction.

Once people learn the truth about the legal process of bankruptcy, they realize it can be a tool that helps them dig out of that dark debt hole.

More and more Americans are filing for bankruptcy to not only get out of debt, but to also save their homes from foreclosure and their cars from repossession.

Some creditors want to trick people into thinking bankruptcy will ruin their life, but that's just not the case.

Bankruptcy wasn't created to ruin lives--it was created to help people resolve their debts in a legal manner.

It's true that a bankruptcy can stay on your credit report for up to ten years; however, it's also true that most people improve their credit after they file for bankruptcy. It makes sense--once people are resolved of their debt and they don't have that hanging over their heads any longer, they can start to rebuild their credit.

Talk to a lawyer to find out how bankruptcy could really help you and what would likely happen after you file for Chapter 7 or 13 bankruptcy.

The Truth: Bankruptcy Helps Millions Each Year

The stigma of filing bankruptcy and fear that it will ruin your life are common, but completely untrue.

Every day, people just like you decide to file for bankruptcy, and each year more than 1 million individuals, families and small business owners turn to bankruptcy to wipe the slate clean.

Bankruptcy just doesn't hold that old stigma it may have had decades ago. Most of us are struggling with debt--and many of us have lost income due to medical issues, layoffs, lack of available work, and reductions in work hours/pay.

If you're tired of creditors calling and you're looking for relief, ask a local bankruptcy attorney whether filing bankruptcy could help you.

Unless you're a celebrity, filing for bankruptcy isn't a headline news event. In most cases, not even your employer has to know. Bankruptcy is designed to give you peace of mind and the opportunity to break free from the chains of debt.

What Happens After Filing for Bankruptcy?

It's true that bankruptcy stays on a credit report for up to 10 years (maybe less depending on which type of bankruptcy is filed), but the impact of bankruptcy may not be that severe compared to your current situation.

If you're considering filing bankruptcy, you probably have several "negative" marks on your credit report: past-due accounts, accounts in collection, and a high credit-usage ratio (like credit cards that are close to being maxed out).

When you file bankruptcy, all or most of those accounts can be wiped clean. Instead of a high or late balance, your credit report should show zero balance and that the debt was "discharged" or forgiven in bankruptcy.

And with bankruptcy's fresh start, you'll have the opportunity to rebuild your credit from scratch. Many bankruptcy filers find that they quickly start receiving offers for secured credit cards, which, used responsibly, can be a great tool to rebuild credit after bankruptcy.

Bankruptcy isn't a cure for bad credit, but it can be an important step in the right direction.

Could the U.S. Bankruptcy Code Work for You?

If you have questions about bankruptcy laws or you have general questions about eliminating debt, a bankruptcy lawyer may be able to help you.

Connect to a local bankruptcy attorney — for free — by filling out the below free bankruptcy evaluation form.

The bankruptcy court doesn't have to be a scary place--in fact, many people find it's helped them through one of the most difficult times in their lives. See if it could help you.

Connect with a local bankruptcy lawyer for free. Enter your ZIP code below for a free bankruptcy evaluation by a sponsoring bankruptcy attorney:

Bankruptcy Filings & Laws in the News:

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Local Bankruptcy Help When You Need It

Total Bankruptcy is sponsored by a network of participating bankruptcy attorneys around the country. We've helped thousands of concerned people just like you find an attorney in their area to find out how bankruptcy can help them.

Bankruptcy laws are different in each state, and many states have multiple districts that apply their own rules. That's why speaking with a local bankruptcy attorney is considered an important step in the process.

And while major metropolises tend to have many bankruptcy filers, dealing with debt isn't just a "big city" concern. People from all walks of life find themselves struggling with unemployment, medical bills and other financial burdens.

If your ready to get help, simply fill out the free case review form on this page to find an attorney in your area.

When you meet with an attorney, you can discuss your financial situation and learn about your options to take control of your debt. Bankruptcy isn't right for everyone, and your attorney can help you determine if it's the best solution for your needs.

A bankruptcy lawyer can also help you explore other options, such as debt consolidation, debt settlement, or credit counseling. Get help today and take action against your debt.