Lowell Bankruptcy Lawyer

Helping Individuals Obtain a Fresh Financial Start through Consumer Bankruptcy

People find themselves in financial difficulty for a variety of reasons. Perhaps you had an unexpected medical issue or lost your job due to no fault of your own. Maybe an investment did not go as well as you expected it to go. Whatever the reason, if you are having trouble meeting your financial obligations and feel like you are stuck in a never-ending cycle of debt, bankruptcy may be able to help.

At Whitten & Whitten we are committed to helping people reduce or even eliminate their debts through Chapter 7 and Chapter 13 bankruptcy. To schedule a free case evaluation with a bankruptcy lawyer in Lowell, call our office today.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy,” as it involves the sale of a debtor’s nonexempt assets in order to pay back creditors. It is the most commonly filed type of bankruptcy in the United States and often results in the elimination of most or even all of the filer’s debts. In fact, the majority of Chapter 7 bankruptcies are “zero-asset,” which means that debtors have no assets that are reachable by the bankruptcy trustee. In other words, most debtors are able to obtain the benefits of filing for Chapter 7 without having to give up any of their assets.

Some examples of debts that are often eliminated through Chapter 7 bankruptcy include:

• Medical bills
• Credit card debt
• Past-due rent
• Utility bills
• Personal loans
• Auto loans
• Collection accounts
• Civil judgments
• Certain tax debts

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, on the other hand, is known as a “wage earner bankruptcy” that is most appropriate for people who earn a regular amount of money each month. In this type of bankruptcy, the debtor enters into a bankruptcy plan that lasts from three to five years, during which he or she makes regular payments to the bankruptcy trustee, who then distributes the funds amongst the debtor’s creditors. At the end of the plan, the debtor’s remaining debts will be discharged, meaning that he or she is under no obligation to pay them back.

Stopping Foreclosure through Chapter 13

One of the specific situations in which Chapter 13 can be of tremendous help to people who are behind on their bills is helping homeowners avoid foreclosure. Chapter 13 allows you to wrap your mortgage arrears (the amount you are behind on your mortgage payments) into your bankruptcy plan, giving you from three to five years to get caught up. Of course, you’ll have to stay current on your payments moving forward in order to prevent foreclosure.

Call Us Today to Schedule a Free Case Evaluation with a Lowell Bankruptcy Lawyer

If you are having trouble keeping up with your bills, are facing foreclosure, or simply want to explore your options, it’s in your best interest to speak with an experienced bankruptcy lawyer in Lowell as soon as you can. To schedule a free case evaluation with a lawyer, contact Whitten & Whitten directly today.