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At Freeman Law Firm, we help our clients navigate tough financial situations by helping them gain a fresh new start through the bankruptcy process.

Types of Bankruptcy

It is a difficult decision to make but, sometimes declaring bankruptcy is the best way to move forward. The primary purpose of bankruptcy is to discharge debt and give the debtor a fresh financial start. Filing bankruptcy puts an immediate stop to all creditor collection efforts. It stops the harassing creditor phone calls and any foreclosure proceedings or debt collection lawsuits filed against you. Chapter 7 and Chapter 13 are the two most common bankruptcy filings.

About Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed to wipe out your debts and give you a fresh financial start. However, debts such as alimony, child support, certain taxes, student loans, etc. can’t be discharged in a Chapter 7 bankruptcy. Chapter 7 is a liquidation proceeding where the bankruptcy trustee collects all of your assets, sells any that are not exempt, and distributes the proceeds to your creditors.

In a Chapter 7 bankruptcy, you have the option to keep certain secured debts, such as your car loan or house mortgage, by reaffirming those debts. If you reaffirm a debt, you will still owe that debt and must continue to pay it just as you did before filing for bankruptcy. If the debt isn’t current, then you must make any back payments due in order to reaffirm the debt.

About Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is different from a Chapter 7 bankruptcy in that it’s not a liquidation process. Instead, a Chapter 13 bankruptcy allows debtors who have regular monthly incomes to hold onto their non-exempt property by restructuring their debt and creating a repayment plan that lasts anywhere from three to five years.

Chapter 13 allows a debtor to consolidate their debt and make one monthly payment based on their income and expenses. The debtor and their bankruptcy attorney work together to restructure a repayment plan that is suitable for the debtor’s particular circumstances.

How Can Freeman Law Firm Help

We understand the pressures of potentially losing your home or your vehicles. We work with you to identify and evaluate your options, including whether a bankruptcy filing is really the best option for you and your family. Our office will guide you through this complex financial process.

We know that every financial situation is unique and our firm takes the time to learn about your goals so that we can work toward the best possible outcome and get you the debt relief you deserve. If you’re overwhelmed by debt and unsure of your options for relief, contact Freeman Law Firm for a free consultation.