Lowell Bankruptcy Attorney
No one ever wishes to go into bankruptcy. However, as difficult as it is to imagine, sometimes bankruptcy can change your life in the most positive of ways. It can give you a new start and provide hope for your financial future. People typically start considering bankruptcy after they have lost a job, suffered an injury or illness, or when they have incurred a great reduction in a household income.
In all of these circumstances and many more, people often turn to bankruptcy as a last resort, but also as a solution that will help them. It often is, and a Lowell bankruptcy lawyer can help individuals facing this difficult time in their lives.
Chapter 7 Bankruptcy in Lowell
Not everyone files for the same type of bankruptcy. The two main types are Chapter 7 and Chapter 13 bankruptcy. Both can help individuals out of financial hardship, but they are very different.
A Chapter 7 bankruptcy can:
- Provide peace of mind to the debtor
- Stop calls, harassment, and intimidation by creditors
- Stop wage garnishments
- Stop lawsuits
- Temporarily stop foreclosures
- Stop wage levies by the IRS or Indiana Department of State Revenue
Chapter 7 bankruptcy is the most common type of bankruptcy. It can discharge unsecured debts including:
- Credit cards
- Medical bills
- Unsecured personal loans
- Taxes owed to the State of Indiana or to the IRS
Debts that are not dischargeable under Chapter 7 bankruptcy include:
- Debts from alimony or child support
- Debts due as a result of driving under the influence
- Any debt incurred as a result of fraud or misrepresentation
- Certain taxes
- Fines ordered by a court
- Student loans, in most cases
- Any purchase for luxury goods made within 90 days of filing for bankruptcy
When trying to discharge debts, individuals are required by law to fully disclose a listing of all of their debts. Those filing for bankruptcy must sign the documents as if they were under oath, which means that if they do not, they may face charges of perjury. Filing for Chapter 7 bankruptcy also requires giving sworn testimony under oath at a Meeting of Creditors.
Chapter 13 Bankruptcy in Lowell
Chapter 13 bankruptcy is different than Chapter 7 bankruptcy. Instead of discharging your debts, it simply reorganizes them into a manageable payment plan. Most Chapter 13 bankruptcies include repayment of the debt within three to five years.
However, many people think that they do not discharge any debt after filing for Chapter 13 bankruptcy. This is not true. Many people who file for Chapter 13 bankruptcy only end up paying cents on the dollar for their unsecured debt. Due to the fact that Chapter 13 focuses on restructuring your debt rather than eliminating it, it is often a great option for those who want to keep their home or their car.
Think You are Out of Options? Contact a Bankruptcy Attorney in Lowell
If you have run into financial trouble, you might think you are out of options, but you are not. A Lowell bankruptcy lawyer can help you see just how many you have available to you.
At the Law Office of Kevin M. Schmidt, we want to help you find your way out of the financial hardship you are currently facing. We know there are options, and we want to review them with you to determine which one is best for you. Do not think you have to go through this alone. Call us today or fill out our online form for your free consultation.