What is Bankruptcy?

Bankruptcy is governed by Title 11 of the United States Code, which means it is governed by federal law.  Bankruptcy is a process that is designed to grant debt relief to individuals (to those who qualifies).  However, not everyone is eligible for bankruptcy relief.  Bankruptcy law is designed to grant the honest but unfortunate debtor a financial fresh start by relieving them from their debts (please that not all debts qualify for discharge).

How do I know if Bankruptcy is right for me?

It is no doubt that our economy is going through a rough time. Individuals and families are in need of a fresh start due to a family member getting sick, injured, losing a job, or any other reason beyond their control.  If you are in a position in which repaying your debts have become unfeasible, then bankruptcy may provide you with relief. 

Signs that you may need to file Bankruptcy:

You have already defaulted on your credit cards and mortgage. 

You are subject to collection actions. 

Your wages are being garnished.

You are receiving daily collection calls. 

You are struggling to pay your bills. 

No savings and the inability to save due to paying bills.

Constantly thinking and worrying about bills and your next paycheck.

Waiting for your next paycheck to pay a past due bill.

Calling family members for small advances to make it through the next week.

Credit cards constantly maxed out.

Having large credit balances for years without the balance getting reduced.

Your home is in foreclosure.

Repossession of your vehicle.

How many types of Bankruptcy are there?

There are six (6) different types of bankruptcies, but only two (2) are commonly used for to consumers: Chapter 7 and Chapter 13.

Chapter 7 is a short and effective process that eliminates most of your debts without requiring to pay any creditors back.  However, there are certain criteria that you have to meet to qualify for relief under Chapter 7.   Please note that not all debts are dischargeable, and a consultation is needed to discuss this exception to discharge. 

Chapter 13 generally is a court approved repayment plan.  Chapter 13 allows you to achieve goals that cannot be achieved in a Chapter 7; for example, reinstating your mortgage. Chapter 13 is typically used for individuals that are subject to foreclosure action or under an imminent threat of the same.

Just like the Chapter 7, you must also qualify for relief under Chapter 13.

A details consultation is needed to determine if you qualify for a chapter 13 bankruptcy. 

Are there alternatives to Bankruptcy?

Considering filing bankruptcy is an important choice to make.  But please note that researching about bankruptcy is the first step in considering filing bankruptcy. 

Filing bankruptcy may not be the appropriate option for everyone; each person or family has their own situation that may or may not warrant a bankruptcy.  In deciding in filing, a consultation can help you determine if bankruptcy is right for you. 

Are Creditors calling and harassing you?

There are consumer protection laws that prohibit abusive debt collection practices, including:

a) Harassment (e.g. excessive phone calls, calls after 8 p.m. or before 8 a.m., etc.). 

b) Threats of imprisonment.

c) Disclosure of your debt to employers, relatives, friends, etc. 

d) Collection calls after a bankruptcy case is filed. 

e) Charging unauthorized fees. 

Firas is an aggressive advocate for consumers and their rights and will take legal action against abusive debt collectors. Notably, consumer protection statutes are fee shifting, meaning it costs you nothing up front and the attorney’s fees will be paid through the settlement proceeds. 

Life after Bankruptcy.

The hardest part of filing bankruptcy is coming to realization that you need to file.  After accepting the fact that you need to file, the path to financial freedom becomes much smoother. Most clients leave the consultation feeling better about themselves and their situation.

Once the bankruptcy is filed and the discharged is obtained in the future, you will feel so much better about yourself.  Your confidence and your self-esteem will increase because you now have a fresh start with your finances.  You no longer worry about how to make the next credit card payment or how to pay rent this month.  Now, you can start thinking about how to save your money.