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Filing for bankruptcy can be a difficult and very stressful process! Often, we are embarrassed that our finances have unwound out of control. Bankruptcy affects your credit, your reputation, and your self-image. But before you hammer yourself, ask the question: What got me here?

Was it an illness, job loss, income decrease, divorce, taxes owed, judgment, or an honest learning experience on budgeting and finances?

These are the many real reasons consumers seek relief under bankruptcy. And “catching up” can be a nearly impossible task to accomplish. But you can get a fresh start!

Understand that there are some prerequisites to consider before filing. For instance, you must be a taxpayer or be exempt from filing annual tax returns.

We certainly don’t advocate bankruptcy as an ongoing solution but understand that you have the right to file if you meet the required criteria. So, let go of the shame, accept that you need the help, and let’s get you on the path to debt solvency.

Know the Difference

Chapter 7 relates to the liquidation of debts; “liquidation” means the sale of a debtor’s assets and the distribution of the proceeds to creditors. Most of your assets can be exempted (protected) so that they remain yours. Chapter 7 will stifle your ability to make purchases on credit or to qualify for a loan, but that limitation is not for a very long time. You will be creditworthy again!

Get a Fresh Start by eliminating:

  • Credit Cards
  • Contractual Obligations (Loans)
  • Medical Bills
  • 2nd Mortgages
  • Repossessions
  • Liens & Levies

Chapter 13 allows debtors to “reorganize” their debts by establishing a plan to pay creditors either in full or in part within a 3 to 5-year period.

Your Repayment Plan will:

  • Save your home or vehicle…or both
  • Pay 0 to 100% of the debt owed
  • Pay any back taxes
  • Pay child support arrears

And often, the interest rate is reduced throughout the commitment period.

The Rainford Law Firm will assist you in understanding your options and we will guide you in choosing the best type of bankruptcy to accomplish your goal. Our bankruptcy attorneys and staff will be with you from the very start to the very end.

Call us today for a free consultation regarding your legal bankruptcy concerns!