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Are you facing serious financial problems? Bankruptcy can be a useful and efficient tool to help alleviate your financial problems. At Modesitt Law, we are here to offer common sense approaches to bankruptcy. Every financial situation is unique and requires a detailed evaluation. Schedule a consultation today for assistance in choosing the right path for you.

What Can Bankruptcy Do for You?

  • • Stop Harassing Creditors
  • • Eliminate Credit Card Bills
  • • Eliminate Medical Bills
  • • Eliminate Unsecured Personal Loans
  • • Stop Mortgage Foreclosure
  • • Stop Repossession Of Your Vehicle
  • • Halt Wage Garnishments

Will I lose my house if I file bankruptcy?

Many people believe that filing Bankruptcy means that you have to give up many or all of your belongings. However, each state allows a certain number of exemptions that apply in bankruptcy. Bankruptcy exemptions determine what property you are authorized to keep. (Depending on the circumstances can include: your pension, car, home, personal belongings, and collectibles). Property that is non-exempt may be sold by the bankruptcy trustee for the benefit of you creditors.

How will bankruptcy affect my credit?

A bankruptcy filing will stay on your credit report for up to ten years. However, bankruptcy will wipe out all or most of your debts which allows you to pay all your future bills in a timely manner, thus improving your credit score.

Will I have to go to Court?

Most bankruptcies only require a person to attend one “meeting of the creditors.” This meeting usually lasts approximately 20 minutes and covers the basic information that is in the bankruptcy petition that you filled out. Creditors are authorized to attend these meetings but rarely do so.

What is Chapter 7?

This is "liquidation" or "straight bankruptcy," which discharges most of your debt. Based on the equity in the property you own, it usually takes four to six months to complete.

What is Chapter 13?

This type of filing is a "reorganization" bankruptcy. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

What is Chapter 11 Bankruptcy?

This is a reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

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