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Overwhelming debt is the unfortunate reality many people face. From medical bills to credit card debt, the weight of these financial obligations can overwhelm many families. The good news is that the bankruptcy system could offer a fresh financial start with the help of a compassionate attorney.

If you are thinking about filing because you cannot repay your debts, it is important that you understand your options before you begin. Filing for bankruptcy protection could be beneficial in both the short and long-term, but there are requirements that must be met in many cases. Let a Park Hills bankruptcy lawyer help you get back on the right financial path.

The Effect of Financial Difficulties on Families

For some people, their financial hardships become an overwhelming experience. If a creditor calls disrupt someone’s life and bills pile up, the stress can be impossible to bear. At Maynard & Joyce, LLC, a diligent Park Hills attorney can help someone get a fresh start with their finances and gain peace of mind for them and their family.

Types of Bankruptcy Cases in Park Hills

There are different options available to individuals who are unable to repay their debts under federal laws. Although there are multiple chapters under which someone could file for protection, two of these options are used in most cases. A Park Hills attorney could help a debtor pursue either Chapter 7 or Chapter 13 bankruptcy.

Chapter 7

Chapter 7 bankruptcy, typically known as liquidation, is the shortest of the two options. This is designed for individuals with few assets and is possible to complete it in under a year. The bankruptcy trustee is empowered to liquidate some of the debtor’s assets and pay a portion to the creditors. The remainder of the debt is wiped out through a discharge, giving the debtor a new start.

In a Chapter 7 bankruptcy, many debts are 100 percent dischargeable. We help people determine if filing under Chapter 7 is right for them. Our bankruptcy attorneys will help someone understand which debts can be removed through Chapter 7 (like credit card debt and medical bills), as well as what assets can be kept. In fact, in Chapter 7 Bankruptcy cases, debtors who qualify can reaffirm, keep making their monthly payments, and keep their homes and vehicles while discharging other debts.

Chapter 13

For those who do not qualify for Chapter 7 Bankruptcy, we often recommend Chapter 13 Bankruptcy. Unlike Chapter 7, there is no means testing for Chapter 13 bankruptcy. The downside for this type of bankruptcy is that it could last five years or more. Throughout this process, a debtor must make regular payments to their creditors. The court discharges some of the debts at the end of the process, which often leaves the debtor in a position to meet their financial obligations going forward.

As experienced bankruptcy lawyers, we know how to manage Chapter 13 and make sure a debtor receives favorable repayment terms. Chapter 13 Bankruptcy can help debtors continue living in their homes and substantially reduce debt.

How Does the Automatic Stay Protects Debtors?

The automatic bankruptcy stay is one of the primary benefits of the bankruptcy system. If a person files their petition, the automatic stay goes into effect immediately. As soon as creditors have notice of the filing, there are required to cease all collection efforts immediately. Failure to comply with the automatic stay could lead to significant consequences for the creditor.

The automatic stay impacts a debtor in many different ways. It requires creditors to bring any pending litigation to an immediate halt and prevents them from filing additional legal action while the bankruptcy is ongoing. The stay could halt foreclosure sales, wage garnishments, and collections lawsuits.

The impact of the automatic stay goes beyond legal actions. Creditors are prohibited from making any effort to collect on the debt while the stay is in place. This includes making collection calls or sending demand letters.

The automatic stay is a powerful tool, especially in the hands of the right legal team. A bankruptcy attorney serving Park Hills could ensure creditors are notified immediately upon the filing of a petition.

Call a Park Hills Bankruptcy Attorney as Soon as Possible

You do not have to struggle under the weight of overwhelming debt on your own. With the help of an attorney, you could pursue the protection offered by the bankruptcy system.

Let a Park Hills bankruptcy lawyer help you with the fresh financial start you deserve. Call right away for a private consultation.

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