For many people, the word bankruptcy conjures up negative feelings. But bankruptcy attorney Diane Anderson knows that bankruptcy is nothing more than way to get a fresh financial start. If you are in debt and have no reasonable means to pay it off, we can inform you of your options and guide you through the bankruptcy process.
Why File Bankruptcy?
People get in over their head financially for many reasons: divorce, medical debt, loss of employment, cut in hours or pay, business failure, foreclosures and short sales. Most people would avoid bankruptcy if they could, but like many things in life, sometimes bankruptcy is just unavoidable. That’s why you need a bankruptcy attorney who has your best interests in mind and will work to get you on the road to recovery.
By filing bankruptcy, you can erase most of your unsecured debts and keep most of your property. As many know, debt causes all type of problems: health, marital, physiological, and self-esteem. Getting rid of debt with the help of an experienced bankruptcy attorney can subsequently ease some of that stress.
How A Bankruptcy Attorney Can Help You?
At the Law Offices of Diane Anderson, our goal is to make the process go as smoothly as possible. We have over 10 years’ experience as well as a combined 34 years of a mentor's’ experience in protecting consumer and small business owners. Together, we can work with you to:
- Discharge your debts
- Stop foreclosure on your home
- Stop repossession of your car or other property
- Unfreeze your bank accounts
- Stop wage garnishment
- Stop debt collection harassment
Bankruptcy attorney Diane Anderson will examine your case and develop a strategy for you to recover your financial situation. She has experience in handling Chapter 7 bankruptcy and Chapter 13 bankruptcy cases throughout Northern California. Diane is dedicated to helping her clients resolve their financial problems both in court and after filing. She will also give you the individual attention, respect, understanding and assistance you both need and deserve.
What Is Chapter 7 Bankruptcy?
As the most common form of bankruptcy, Chapter 7, commonly referred to as “liquidation bankruptcy,” can provide you with elimination of all of your eligible debts. This type of bankruptcy can take between three and six months to complete, and will result in a clean slate for you to start over.
You must first qualify for Chapter 7 through a means test, which determines if you make too much to file this type of bankruptcy. If your income does not exceed median annual income for your household size and area, then you should qualify for Chapter 7. If not, your best option may be another bankruptcy chapter.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy, or “reorganization bankruptcy,” is a good option if you have enough income to pay back part of your debts. A chapter 13 is used to repay your past due mortgage and stop foreclosure if you want to stay in your home. Or pay back taxes that are less than 3 years on a payment plan so no interest and penalties are accruing. This may lower payments on some of your debts. In the end, eligible debt that has not been paid may be discharged.
There is no means test for Chapter 13; however, you must have enough income to repay existing debts through a payment plan. You will work with your bankruptcy lawyer and trustee to develop a plan that works for you in your specific situation.
Dischargeable Debt in a Bankruptcy
When you decide to file bankruptcy, the type you file may be determined by what kind of debt you have. If your debt is mainly dischargeable, then Chapter 7 may be for you. Dischargeable debt includes credit cards, medical bills, personal loans, and other unsecured debt. Non-dischargeable debt may include child support, alimony, criminal fines and court fees, some tax debt, student loans, and others. Your bankruptcy lawyer can assess your debt and help you determine if it is dischargeable and which type of bankruptcy is right for you.
Can Bankruptcy Stop a Foreclosure or Repossession?
A chapter 13 is used to repay your past due mortgage and stop foreclosure if you want to stay in your home. Or pay back taxes that are less than 3 years on a payment plan so no interest and penalties are accruing.
When you file bankruptcy, the court will issue an automatic stay. This is a legal order that stops all legal processes against you regarding your debt. Home foreclosure and car repossession are legal processes that may be delayed or stopped by an automatic stay. You may gain extra time to handle the matter or renegotiate the terms of your agreements with your creditors.
Stop Creditor Harassment Through Bankruptcy
If you are in debt, you likely have creditors calling you, sending you mail, and contacting you by all means. This can be stressful and overwhelming. One benefit of bankruptcy is that it will stop this creditor harassment. When you file Chapter 7 or Chapter 13, creditors will not be allowed to contact you personally any longer. Instead, they will have to go through the bankruptcy process and attend the 341 meeting of creditors or contact your bankruptcy lawyer instead.
Small Business Bankruptcy
Small businesses often deal with financial difficulty, and bankruptcy may be an option to alleviate some of the stress. After you file bankruptcy, you may still be able to operate your business. Bankruptcy can be, but does not have to be, the end of a business. Bankruptcy can help businesses eliminate debt, get rid of an oppressive lease, or reorganize finances. Additionally, if you file bankruptcy with a business, there is no prohibition on you starting a new business.
People often think that bankruptcy is a negative process, but in reality it can give you relief. Bankruptcy can provide you with a clean slate and give you options that you would not have had otherwise. You may be able to keep your property and reorganize the debt that you have into a manageable payment plan. Or, you may be able to eliminate debt that is keeping you from moving forward in life. Although bankruptcy will be on your credit report, it often does not have the negative impact that people think. Instead, it shows that you are taking positive steps to resolve your situation. A bankruptcy lawyer can help you get started with a financial plan.
Contact the Law Offices of Diane Anderson and Take the First Step to Financial Recovery
If you are facing unbearable debts, collection calls, foreclosure, or other financial difficulties, contact us today to learn about how we can help. Bankruptcy attorney Diane Anderson has the knowledge and experience to inform you of your rights and will help you protect your assets. Call the Law Offices of Diane Anderson today for a free initial consultation at 530) 317-5556 | (209) 881-9222.