If you’re feeling overwhelmed by your debts, filing for bankruptcy can help you obtain a fresh financial start. Families, businesses, and individual clients come to the Dantzman & Dantzman Law office for relief from their serious financial problems. Our goal is to help you achieve a fresh financial start so you can begin moving forward with a realistic plan to help you become debt and worry-free.
We Help You Determine Which Type of Bankruptcy is Right for You
Let us help you, by putting our years of legal experience to work for you. We can help determine which is the best plan to get protection from your creditors while getting your debt under control or if possible eliminated altogether. Each of the following options has its own advantages and can offer different types of relief depending on your financial situation. Here’s what you should know:
- Chapter 7: Eliminates most forms of debt, a legal process that only takes from start to finish 3-4 months. In the vast majority of cases, the person filing is allowed to keep all of their property including their home, retirement plans, vehicle, and other assets. However, if you have assets that are non-exempt (not legally protected), then you will likely want to proceed under a Chapter 13 bankruptcy, where assets cannot be sold.
- Chapter 13: Chapter 13 is a type of reorganization bankruptcy in which a debtor restructures his or her debts. It is a good option for individuals seeking to stop foreclosure on their homes or real estate, and it also stops vehicle repossession. Chapter 13 also allows individuals to consolidate all their debt, from credit cards to medical bills to delinquent income taxes and student loans. It is also used when individuals have non-exempt assets, or if they earn too much and may be required to repay at least some of their debt
A Credit Counseling and Debtor Education Course is Required
Credit counseling and debtor education courses are now part of the process. The purpose of debtor education courses is to provide you with the knowledge and skills you need to take control of your financial future. In addition to providing advice on budgeting and money management, the courses are required to receive a successful discharge of your debts.
An Automatic Stay Will Stop Debt Collection
Declaring bankruptcy creates what’s called an automatic stay, which is one of the main protections given to someone who files for bankruptcy protection. This is essentially a legal time-out or block on your creditors from trying to collect certain debts. This gives you the breathing room and time to restructure your debt. This protection will give you time to work with the court and your creditors to determine the next appropriate steps.
When the bankruptcy process ends your debt is discharged, which means your creditors are permanently prohibited from ever contacting you or attempting to collect the debt in any way. This is so you have peace of mind knowing that the debts are truly forgiven.
While an automatic stay does have its advantages, there are a few things that it does not prevent. The automatic stay does NOT stop criminal prosecutions against debtors who have violated the criminal or motor vehicle laws. The stay also does not affect proceedings that require or enforce the payment of child support, alimony, or other certain types of divorce proceedings, except those proceedings to determine how to divide up property acquired during a marriage (equitable distribution) may require the permission of the bankruptcy court.
Preparing for Life After Bankruptcy
While it is true that some aspects of your financial life may take a hit after filing for bankruptcy, there are certain steps that you can take to immediately improve your financial situation and repair the damage that has been done by effectively rebuilding your credit after bankruptcy.
Be sure to check your credit score and credit report about 3 months after the completion of the bankruptcy. Not only will this show the progress you’re making, but it will allow you to be proactive should any potential issues arrive. It will also be important to pay all future bills on time. Especially on cars or houses or other real estate that you may have kept in the bankruptcy. Try making a note of when your bills are due and if possible, make payments in advance to avoid making late payments.
Finally, establish a budget and stick to it. This will give you better control over your expenses and help you save more money. It’s important to note that you should only put your money toward things that are of utmost importance.
Dantzman & Dantzman Provide Efficient and Effective Legal Relief from Your Debts
Dantzman & Dantzman Law Office provides quality, competent, personal bankruptcy attorney representation to clients in the Hudson Valley area. We can help you all the way through the petition and filing process. Contact Dantzman & Dantzman if you are struggling with debt and need help and advice on getting a fresh financial start.