What is Bankruptcy?

Bankruptcy is a legal proceeding afforded to people who are unable to handle a financial crisis. Bankruptcy is available so that you can have a fresh start.

Filing for Bankruptcy can have the following impact:

• Relieves you of unsecured debt that you are unable to pay such as medical bills, credit cards, bank loans, business debts, overdraft charges, utility bills, and more. Not all unsecured debt is dischargeable. See Chapter 7 Basics

• Stops creditor harassment. After you file a bankruptcy petition, the "Automatic Stay" protection immediately works to prohibit creditors from calling, billing, threatening, suing or taking any measures to collect from you. After you file a Bankruptcy Petition, even secured creditors must get court permission to repossess your car, or foreclose on your home. 

• Gives you the opportunity to catch up on your car and/or mortgage payments.

Understanding the Bankruptcy Code

Title 11 of the bankruptcy code offers various forms or “chapters” of relief.  The chapters most commonly used by consumers are the Bankruptcy Reform Act (usually referred to as a Chapter 7) and Chapter 13.  Chapter 7 is for persons wishing to be free from debt who cannot afford to pay back a significant portion of their unsecured debt. Chapter 13 is for those who wish to pay a portion of their unsecured debt back and can afford to do so. 

Although Second Start has provided some basic information on Chapter 7 and Chapter 13 Bankruptcy on this site, there is still plenty more information to understand and go over. Please call for a free initial consultation to discuss whether Chapter 7 or 13 are the best options for you.  Click here to fill out our FREE Debt Evaluation Form.

This is a DEBT-RELIEF AGENCY. Second Start attorneys are here to help people file for relief under title 11 of the United States Bankruptcy Code.