Bankruptcy
Our experienced and aggressive lawyers at Farragut Law Firm PLLC know the federal bankruptcy code and that it is divided into several different chapters. Having one of our experienced and aggressive bankruptcy lawyers is key to getting debt free or being able to afford all of your monthly bills and keep your car and house.
What will happen once one of our experienced and aggressive bankruptcy lawyers file your bankruptcy petition in federal court?
Once a bankruptcy petition is filed, the bankruptcy court will issue an “automatic stay or stay of proceedings” stopping any and all lawsuits, repossessions, foreclosures, evictions, garnishments, attachments, utility shut-offs and debt collection harassment tactics (no more pesky creditor phone calls).
Generally, creditors cannot take any further action against you or your property without permission from the bankruptcy court. But not all debts are dischargeable or protected in bankruptcy. For example: student loans, certain taxes and domestic support obligations are non-dischargeable.
Chapter 7
Chapter 7 is designed for people who are having financial problems and cannot repay their debts. Knowing the difference between secured debts and unsecured debts is key to bringing a successful Ch. 7 Bankruptcy.
Chapter 13
Chapter 13 is designed to help individuals who are behind on their mortgage or car payments, taxes and/or domestic support obligations. It allows individuals to consolidate all of their creditor bills into one affordable payment based on their income to debt ratio. This payment is paid directly to the Trustee and the Trustee pays the debtor’s creditors from the proceeds. Typically a debtor will stay under Ch. 13 protection for 5 years unless terminated or discharged earlier
Chapter 11
Chapter 11 is designed primarily for business reorganization, but is also available to consumer debtors. Its provisions are quite complex. In the vast majority of cases, chapter 11 is unnecessary and too expensive for most consumer debtors.
BOTTOM LINE: Your creditors do not care about you and your family financial security; they only want their money and they will use every sleazy and unethical tacit to try to recover their money. It is up to you and your family to recognize whether or not your struggling financially and need the help of a Farragut Law Firm PLLC.