Even hardworking, honest, and conscientious individuals can find themselves buried in debt. Our years of experience helping people who find themselves in financial difficulty show us that most people want to pay their bills, and try their best to do so. At LIN LAW GROUP, we have observed that there are several basic reasons people have financial difficulties:
- Not paying attention to total debt and making only minimum payments on multiple credit cards and other revolving credit accounts
- A significant change in family situation because of death, illness, layoff, divorce, or the need for a family member to stop work to care for children or for sick or elderly relatives — all of which can lead to a reduction in household income
- An increase in household expenses caused by things such as funeral expenses, unexpected expenses incurred after buying a new home, emergency home repairs, college expenses, or uninsured medical expenses
- Personal problems such as gambling or alcohol/drug addiction
- Business cash flow problems that force business owners to use their personal credit cards for everyday business or personal expenses
With the high foreclosure rates, increased unemployment, and consumer debts on the rise, many people have had a very difficult time staying on top of their finances and paying all of their monthly bills and expenses. As a result, millions of people throughout Las Vegas, Phoenix, and the United States are suffering from mounting debt with no end in sight.
Bankruptcy was designed to help people who have become so inundated with debt that they have fallen behind on their finances and can no longer pay their bills or other financial obligations. The goal of bankruptcy is to provide individuals and families with the financial relief they need to reclaim their finances so they can have a second chance to start fresh in life.
Types of Bankruptcy
Bankruptcy refers to the federal court process of eliminating or restructuring a person’s debt. In the United States, the two most common forms of bankruptcy available to individuals and families are Chapter 13 bankruptcy and Chapter 7 bankruptcy.
Chapter 7 bankruptcy, also known as liquidation, is the most common and most favored form of bankruptcy as it eliminates most of a debtor’s unsecured debt. However, Chapter 7 does not discharge all of a person’s debt. Certain debts cannot be discharged under Chapter 7, such as:
- Student Loans (unless extreme hardship can be proven)
- Personal injury damages or restitution
Chapter 13 bankruptcy is slightly different from Chapter 7 bankruptcy, as it does not discharge debt completely. Rather, Chapter 13 consolidates a person’s debt and restructures it into a feasible monthly payment plan. Under Chapter 13 bankruptcy, you will have a set amount of time, usually three to five years, to pay off a portion of your debt each month. Although this type of bankruptcy does completely eliminate your debt, it does restructure it in a way that is manageable.
Bankruptcy for Businesses
Chapter 11 bankruptcy is available to businesses that are experiencing financial troubles. Under Chapter 11, a business can continue to operate while it restructures or reorganizes its debts and finances. Many businesses favor this form as bankruptcy as it awards them protection from creditors during the reorganization and restructuring period. Furthermore, businesses can also repay their creditor while continuing to operate.
If you are suffering from inescapable amounts of debt and are considering filing for bankruptcy, the first step you should take is to consult a knowledgeable and experienced bankruptcy attorney. At LIN LAW GROUP, we have experience handling bankruptcy cases on behalf of individuals, families, and businesses. When you come to our office, we will review your financial situation, and help you determine whether or not bankruptcy is right for you. If it is, we help you file all of the appropriate legal documents, and represent you at every meeting and court appearance. Our number one priority has always been to help our clients overcome their financial troubles, so they are free enjoy a fresh start in life without stress, worry, and anxiety weighing them down. CALL TODAY!!!
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