2. Can Bankruptcy Help Me?

Bankruptcy is a process by which you can receive protection from your creditors. Not everybody needs to file bankruptcy. People who have no assets are judgment proof, and don’t need protection from the bankruptcy court.

In general, a Chapter 7 liquidation bankruptcy is only useful for people who have assets of less than $25,000. If you own more than that, you may have to pay a portion of what you owe your creditors by making payments over 3 to 5 years in a Chapter 13 bankruptcy plan. You may also have to file Chapter 13, if your monthly income is above average.

Although it is improper to file a bankruptcy only for the purpose of delaying your creditors, the filing of bankruptcy case puts into effect a law which stays (temporarily stops) all creditors from taking action against you or your property.

The goal of the bankruptcy is to obtain a discharge, which is an order from the bankruptcy court stating that all your debts are erased, except for certain types of debts which are not erased: Child support, taxes and student loans being the most common.

If you have questions about whether you should file bankruptcy, call Attorney Evan Livingstone at (707) 206-6570 or email him at evanmlivingstone@gmail.com for a free consultation.

Leave a Reply

You must be logged in to post a comment.