BANKRUPTCY UPDATES

• Minnesota Distillery of Fine Vodkas Files Chapter 7 Bankruptcy (February 10, 2012)
• Court Approves Newspaper Magnate Lee Enterprises’ Bankruptcy Plan (February 07, 2012)
• Suspected Felon Filed for Bankruptcy Shortly Before Untimely Death (February 09, 2012)
• Ireland Overhauls Bankruptcy Laws (February 06, 2012)
• IL State Representative Files for Chapter 13 Bankruptcy (February 08, 2012)

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Temporary Job Loss Help

In recent years, record numbers of skilled, qualified workers have suddenly and unexpectedly found themselves unemployed.

The good news is, many of these people have been able to get back on their feet relatively quickly. Still, even a short period of unemployment can leave behind a heavy load of debt.

During your unemployment, your debt could quickly build up because of:

• Relying on credit cards to make up for lost income
• Delaying bill payments until work resumes
• Fees and interest rate hikes incurred because of late payments
• Personal loans taken out to cover expenses

Your new job may provide enough income to keep you current on this month’s bills, but will it cover your past debts? If your debts aren’t addressed, they can quickly spiral out of control thanks to fees and increasing interest rates.

High interest rates can be more than your minimum monthly payment. So even if you make that payment, your debt could still increase.

One safe, legally sound solution can be Chapter 13 bankruptcy. Chapter 13 bankruptcy was designed to provide debt relief and strong protections for people that suffered a short-term set back, but are now on back on their feet.

As soon as you file bankruptcy, you should enter under the protections of the Automatic Stay. This court order puts an immediate halt to all forms of collection. This includes phone calls from creditors, letters, lawsuits and even attempts at foreclosure and repossession. You should be under this protection for the duration of your case.

Then, all of your debts are ordered and secured. In many cases, your debts will be reduced as well. Then, the court will create a repayment plan for you, typically lasting 3-5 years. During this time, you will make a single monthly payment to a court-appointed trustee. This trustee will handle all of your creditors.

As long as you make this payment, which you should be able to do now that you’ve got another job, all of your possessions should be fully protected from repossession – this includes your home and cars. What’s more, you won’t have to worry about harassing phone calls or juggling multiple bills or creditors.

Work toward financial independence today

If you are struggling with debts due to a temporary setback, then filing bankruptcy may speed your financial recovery and help you get back on your feet quickly.

To see how Chapter 13 can help, speak with a local bankruptcy attorney. We can put you in touch with a bankruptcy lawyer near you right away when you complete the free case review form on this page.

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