Bankruptcy Assistance at Johnson Law Office
Many different circumstances can lead people to consider bankruptcy debt relief. Common causes are rising mortgage rates, high medical bills and inadequate health insurance, foreclosure, repossession, divorce, a faltering business, unemployment and downsizing, retirement challenges, disability, adjustable rate mortgages (ARMs), home equity and interest-only loans, and high credit card interest rates. Below are the types of bankruptcy handled by Johnson Law Office:
Many different circumstances can lead people to consider bankruptcy debt relief. Common causes are rising mortgage rates, high medical bills and inadequate health insurance, foreclosure, repossession, divorce, a faltering business, unemployment and downsizing, retirement challenges, disability, adjustable rate mortgages (ARMs), home equity and interest-only loans, and high credit card interest rates. Below are the types of bankruptcy handled by Johnson Law Office:
- Chapter 7 Bankruptcy: Chapter 7 bankruptcy is a "fresh start" option. Under the guidance of the court, your total debt is reduced, and sometimes non-exempt property is sold and the proceeds are used to pay off debt. Garnishments, lawsuits, foreclosures, creditor harassment and repossession are halted. The goal of Chapter 7 is to leave you with your home, car, household goods and other exempt property, and with payments that you can afford.
- Chapter 11 Bankruptcy: This is used mostly by businesses. In chapter 11, you may continue to operate your business, but your creditors and the Court must approve a plan to repay your debts. There is no trustee unless the Judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property.
- Chapter 13 Bankruptcy: Chapter 13 is sometimes called "reorganization" bankruptcy. Under this plan, the individual works with the courts to create a three-to-five-year payment plan with reorganized debt and debt payments.
Chapter 13 enables debt payments to be reduced, property to be retained, and garnishments, creditor harassment and repossession to be halted. Chapter 13 is also highly effective in immediately halting foreclosure proceedings and providing a way to get current on your mortgage payments.
- Bankruptcy FAQ