Bankruptcy
In the current economy, countless individuals find themselves overwhelmed by debt that they simply are not in a position to repay. If the monthly bills are piling-up and creditors are constantly calling, or your home is in danger of foreclosure, make an appointment with Mr. Titcomb and he will explain how you can take control of your finances with either a Chapter 7 or Chapter 13 bankruptcy filing.
It’s not uncommon for people to fall behind on their bills, expenses, and financial obligations. All it takes is one unpredicted job loss, one unexpected illness, or one sudden family emergency for a person in an otherwise stable financial position to suddenly find themselves over their head with too much debt. For people with this type of mounting, inescapable amount of debt, bankruptcy provides the relief they need to get a handle on their finances and become financially stable once again. The Law Offices of Christopher B. Titcomb, LLC can help protect your home, personal property, pension, and IRA, using state and federal exemptions.
Types of Bankruptcy
Bankruptcy is the legal process of alleviating individuals and businesses of their debt, either through liquidation or reorganization. For individuals and families, there are two main types of bankruptcy: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy is what most people mean when they say, "I'm filing for bankruptcy." This is a liquidation bankruptcy, which means that the trustee sells off all non-exempt assets held by the debtor so that the debts can be repaid to the fullest extent possible. Individuals, corporations and partnerships are all eligible for Chapter 7 bankruptcies. The portion of the debt that can't be repaid through liquidation is discharged. Income generated after the bankruptcy filing is not a part of the bankruptcy -- the debtor can keep it. It should be noted that Chapter 7 bankruptcy does not erase all of your debt. Certain debt cannot be eliminated in Chapter 7 bankruptcy, such as child support, alimony/spousal support, student loans, damages for personal injury accidents, tax debt, etc.
Chapter 13 Bankruptcy is also referred to as reorganization. Chapter 13 bankruptcy consolidates a debtor’s debt and restructures it into an affordable monthly payment plan. Unlike Chapter 7 bankruptcy, Chapter 13 does not completely eliminate a debtor’s unsecured debt. Under Chapter 13 bankruptcy, you will still be required to repay a portion of or all of your debt. However, you pay off your debt in affordable monthly payments over a period of three to five years. The amount you pay every month will be determined by the court and in relation to your monthly income, current monthly expenses, and non exempt assets, this way you are not required to pay back more than you can afford each month. Furthermore, you will most likely get to keep all of your assets and property throughout the bankruptcy process.
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