Also serving Prince George’s County
Job loss, severe injury requiring hospitalization, and divorce can catch anyone by surprise. To make matters worse, they can also cause unexpected devastated to your finances. Even if you have carefully planned your income and expenses for years, you could feasibly fall into heavy debt. What is the right solution to repair your finances and get back on track to a stable future?
Our Washington, D.C. bankruptcy lawyer provides comprehensive and compassionate service. While bankruptcy is not always the right choice for everyone, depending on their needs and expectations, it is always worth considering. When done correctly, bankruptcy can be advantageous, steering you out of debt sooner than you may realize.
Is Chapter 7 Bankruptcy Right for You?
The purpose of Chapter 7 bankruptcy is to discharge as much of your unsecured debt as possible, hopefully leaving you with no debt at all. How much can be discharged varies from case to case, and it might be difficult to initially know how much will be left when your Chapter 7 bankruptcy filing ends.
Unsecured debt often comes in the forms of:
- Medical bills
- Credit card obligations
- Unsecured loans
- Some court judgements
- Back rent in some states
- Certain student loans
When using Chapter 7 bankruptcy, some of your assets might be collected by banks or creditors as your debt is discharged. For this reason, Chapter 7 bankruptcy is often only recommended if you do not have many assets to lose and your debt is so high, you simply cannot foresee a way to repay it.
Is Chapter 13 Bankruptcy Right for You?
Chapter 13 bankruptcy is often more agreeable for both debtors and creditors. Instead of attempting to discharge your debts, Chapter 13 bankruptcy will try to reduce the amount you owe and create a new repayment plan that your income and finances can handle. If your debt is not entirely overwhelming or you have assets you do not want to risk, like your home or business, then Chapter 13 is likely the choice you want to use.
Automatic Stays from Bankruptcy Filings
Whether you use Chapter 7 or Chapter 13 bankruptcy, you will gain the protection of an automatic stay as soon as you file. In simple terms, an automatic stay prevents creditors from using their typical methods to pursue a debt, like calling your home, sending you letters, garnishing your wages, etc. The automatic stay will only be removed once a court concludes your bankruptcy, but at that point, we hope our Washington, D.C. bankruptcy attorney has helped you eliminate as much of your debt as possible.
Answering All Your Bankruptcy Questions
If you think bankruptcy might be the right option for you, then you should connect with Capital Justice. We can address any and all of your concerns, including whether you qualify for Chapter 7, and how to receive mandatory credit counseling as designated by the U.S. Trustee’s office.