Bankruptcy is a complex, and often misunderstood area of law. Bankruptcy law in the united states serves two main purposes:

  • To give a debtor a fresh financial start.
  • To give equal treatment to the creditors.

 

At first blush it may seem that these two main purposes are at odds with each other, but in fact they are not. The U.S. Bankruptcy Code regulates who is eligible for bankruptcy relief and when they are eligible. The Bankruptcy Code also regulates the treatment of creditors by protecting certain creditor rights before and after a person files for bankruptcy. The law prohibits preferential treatment of one creditor over another. This means that debtors cannot pay back one creditor over another right before filing for bankruptcy. Also, in bankruptcy cases where all or some of the debts are paid back, the law mandates that each creditor be paid their fair share.

Bankruptcy is a legal remedy to get out of debt. Bankruptcy is not a courtroom battle.

Bankruptcy Can Give You A Fresh Financial Start

Bankruptcy is a powerful legal tool that can help you erase all or most of your debt. Bankruptcy can:

  • Erase credit card debt.
  • Erase medical debt.
  • Erase collection agency debts.
  • Stop collection action by your creditors, including putting an end to collection phone calls.
  • Eliminate most civil court judgments (unless based on fraud).
  • Eliminate certain tax debts (older income tax liabilities may be erased).

 

There are two chapters of bankruptcy that individuals can file: Chapter 7 and Chapter 13. Which chapter is best for you will depend on your specific situation. Chapter 7 is generally the quickest and simplest chapter of bankruptcy. Chapter 7 erases all of most  of your debts, without a repayment plan, and in general allows you to keep most or all  of your belongings. Chapter 13 bankruptcy creates a three to five-year repayment plan that allows you to repay some or all of your debts, and also allows you to keep most or all of your belongings.

Debts that are discharged (erased) in bankruptcy are erased forever and you are no longer obligated to pay them back. To learn more about how bankruptcy can give you a fresh financial start, read our articles:

 

All of us here at the Law Office of Barbara B. Braziel are here to help you end your financial struggle and gain financial freedom. Contact us or call (912) 351-9000 to schedule a free consultation today!

We proudly serve the people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.