Question: I know I have too much debt and I need to file bankruptcy. I'm getting calls from debt collectors day and night (I keep my phone mostly turned off) and I am being sued on an old credit card bill. I really can't afford to get a wage garnishment and I need a fresh start. My credit is horrible and I need to rebuild it so I can get a house one day.
I started to get into debt in college, when I got my first credit card. I pretty much lived off of my credit cards and then I got laid off from my sales job. I was married, had a kid and got divorced and that cost me a lot of money. I know I'll be alright once my new job starts at a software company, but I do want to get rid of the debt that I've racked-up over the years.
What makes things worse is paying child support. That's a lot of money and because I'm pretty much broke it's hard to afford.
I want to know if I should file a chapter 7 or a chapter 13 bankruptcy. My friends have filed and they've told me that bankruptcy really helped them and it stopped the creditor harassment. But I'm not sure which type of bankruptcy I should file. Can you give me some advice?
N.S. in Alpharetta, GA
Answer: The type of bankruptcy you should file is really dependent upon your specific personal circumstances. Most people file a chapter 7. But not everyone can file a chapter 7.
For those people who can't file a chapter 7, there is a chapter 13. Basically, a chapter 7 eliminates all of your debts; it "discharges" them, gets rid of them.
A chapter 13 is also great. A chapter 13 is reorganization where you pay back a certain amount of the debt. With a chapter 13, the debtor is usually "debt-free" after 5 years. A chapter 13 can stop a foreclosure and a car repo. With a chapter 13, you don't have to worry about those horrible late fees or interest rate hikes.
Some people can't file a chapter 7 because their income is too high or because they have too much equity in their home. We help clients determine which bankruptcy they can file by doing an in-depth financial assessment of their specific financial circumstances.
Both chapter 7 and chapter 13 are proven, effective options for people who need debt relief. Both work very well and they stop creditor harassment, repossessions, lawsuits and garnishments.
Don't face the nightmare of debt alone. Call us now at (678) 712-8561.
When you need strong and effective attorneys, Bill Sherman and Valerie Sherman and the team at the Sherman Law Group will help you navigate the entire bankruptcy process.
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