While filing for bankruptcy might sound like a scary proposition, it just may be the only solution to financial woes. But, just how can you tell when it’s time to throw in the towel and declare bankruptcy? Turn for advice from attorney Joel Elkin. Joel K. Elkin is a debt relief agency under federal law and provides legal assistance to consumers seeking relief under the bankruptcy code. He will carefully review your individual circumstances and determine whether or not bankruptcy is a good fit for you.
Chapter 7 Bankruptcy: Attorney Joel Elkin
Many folks file for Chapter 7 bankruptcy due to a variety of reasons, such as seriously overextended credit, unemployment, large medical expenses and marital issues. Known as a “straight bankruptcy,” Chapter 7 bankruptcy liquidates non-exempt assets to pay off as much debt as possible. Cash from such assets is distributed to creditors, although most Chapter 7 cases are “no asset” cases where the debtor has no assets available to satisfy creditor claims. At the end of the Chapter 7 process, a discharge is issued by the bankruptcy court discharging all debts other than those debts that are non-dischargeable in accordance with the Bankruptcy Code. Once you receive a notice of discharge, the record of the bankruptcy stays on your credit report for 10 years. But it’s not all doom and gloom. Many people who have filed Chapter 7 bankruptcy have been able to get credit cards and purchase homes. For many, Chapter 7 bankruptcy offers a fresh start. At the same time, it’s not for everyone. Under certain circumstances, a Chapter 13 bankruptcy may be a better option.
Chapter 13 Bankruptcy: The Law Office of Joel Elkin
For those who have non-exempt property they wish to retain or have excess income sufficient to pay a reasonable dividend to unsecured creditors, Chapter 13 bankruptcy may be a better choice than Chapter 7 bankruptcy. This type of bankruptcy is referred to as a reorganization bankruptcy. People can pay off debts over a time period of three to five years. Any unsecured debts not paid off during this three to five year period, with some exceptions, are discharged. After the court approves the bankruptcy, creditors must stop contacting debtors. Chapter 13 bankruptcy often allows individuals to keep their personal possessions and property.
Filing for bankruptcy is nothing to be ashamed of. Even business icons like Donald Trump and Mike Tyson have filed bankruptcy. If you’re considering declaring bankruptcy, contact attorney Joel Elkin. He’ll assess your situation and give you the best legal advice.