Bankruptcy And Debt Settlement
Sometimes bankruptcy isn’t an option even though you have more debts than you can pay. In those cases, some people opt for settlement arrangements with their creditors. Debt settlements are voluntary, which means that your creditors are not required to make any agreement with you, and they lack the federal law protections you would have in paying a Chapter 13 debtor’s plan. If you are facing crippling debts and are wondering whether you should negotiate settlements with your creditors or file for Chapter 7 or Chapter 13 bankruptcy, contact John V. Martine, Attorney at Law.
Chapter 7 And Chapter 13 Bankruptcy Options
A Chapter 7 bankruptcy case is also commonly called a “straight bankruptcy” case. It allows an individual or a married couple who is drowning in debt to discharge some or all of their debts completely in order to gain a “fresh start.” Some types of debts cannot be discharged and there are many requirements to be legally eligible for a Chapter 7 bankruptcy: You must be an “honest debtor” who is not guilty of fraudulent or misleading financial practices. You must attend bankruptcy debtor counseling. You must meet the Bankruptcy Court’s test to determine that you do not have enough income and assets to be able to repay your debts.
Chapter 13 bankruptcy is what people are talking about when they use the term “Debtor’s Court.” An individual or married couple who has some monthly income that would allow them to pay some of their debts over time applies to the Court to have a payment plan approved, interest free. You must appear in court with a Bankruptcy Judge, the Bankruptcy Trustee and the lawyers representing your creditors in order to have your plan approved. Monthly payments are made directly to the Bankruptcy Court and then the money is distributed to the creditors.
If you are suffering and overloaded with medical debts or credit card debts, call our firm for your initial appointment at no cost. We can review your case and determine what debt solution is right for you. Call 205-606-6788. Se habla español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.