Bankruptcy Experts Serving Columbus, Georgia
No one wants to file for bankruptcy. Unfortunately, many financial and personal issues may arise which may lead an individual, family or business to contemplate filing for bankruptcy as a financial necessity.
Fortunately, just as the original bankruptcy laws were first intended, filing for bankruptcy is now seen as a way to repair your credit, rather than destroying it. The fact is, a judgment by a credit card company, repossession or foreclosure can actually be worse for your credit than filing bankruptcy. Many of those who file for personal bankruptcy report being offered new credit soon after filing bankruptcy.
Contrary to popular belief, in a successful bankruptcy, you may be able to keep your car, home or other property. Once you have filed for personal bankruptcy, any pending lawsuits, garnishments, repossessions and foreclosures against you by creditors will be immediately halted. This also stops the harassing and threatening phone calls which creditors and collection agencies often rain down upon you. After you have filed for bankruptcy, creditors and collection agencies can no longer attempt to contact you.
Chapter 7 Personal Bankruptcy
If successful, a Chapter 7 bankruptcy is designed to wipe out your debts, allowing you to get a "fresh start." Typically, an individual who files for Chapter 7 bankruptcy has a large amount of unsecured debt which may include multiple credit cards, various unsecured loans, taxes and medical bills which may or may not be delinquent. A Chapter 7 takes approximately three and a half to five months to complete; however, your relief from creditors starts once your case has been officially filed.
Chapter 13 Personal Bankruptcy
A Chapter 13 bankruptcy is designed to reorganize the debt in a manner which is manageable to repay the debt. Those who are more likely to file for Chapter 13 bankruptcy are individuals who seek to hold on to possessions such as a home, vehicles, other property or assets. A Chapter 13 bankruptcy involves a payment plan that ranges from 36 to 60 months.