Unmanageable debt can create many questions. Unfortunately, many myths and misconceptions exist about what filing bankruptcy may mean for consumers. At Giddens & Gatton Law, P.C., in Albuquerque, our attorneys are well-versed in all aspects of bankruptcy law. We help clients regain freedom from debt through negotiations, bankruptcy, loan modifications and other legal options that may apply to specific debt problems. We can analyze your unique debt problems and provide knowledgeable and straightforward guidance to obtain meaningful results.
If you have specific questions about how our debt relief lawyers can help you, we invite you to call 505-273-3720 to schedule a meeting to discuss your bankruptcy and debt-relief options. Below we have provided a short list of common bankruptcy questions to get you started:
Will filing for bankruptcy get creditors off my back?
Bankruptcy is an effective tool to stop creditor harassment. When a bankruptcy petition is filed in court there is a legal process known as a “stay” that arises immediately and automatically. The stay prohibits most creditors from continuing to make any efforts to collect on debts. At this point, both the collector calls and collections letters must stop.
Are medical debts dischargeable in bankruptcy?
Medical debt is a form of “unsecured” credit. These debts are dischargeable in bankruptcy. In fact, medical debt is one of the leading reasons people choose to file for bankruptcy. In many cases, a medical emergency has tipped the scales, leading to a mix of medical debt, credit card debt and other forms of personal loans that can get out of hand.
How are credit card debts handled in bankruptcy?
Credit card debt is generally dischargeable in bankruptcy – meaning that you will be free from the credit card debt at the conclusion of the bankruptcy process. However, creditors may likely object to the discharge of debts incurred just before someone files for bankruptcy, especially debts incurred during the 70 to 90 days prior to the bankruptcy petition. Your bankruptcy lawyer can review your unique circumstances and explain your legal options.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 bankruptcy is often called a “liquidation” bankruptcy. Many people worry that means they will lose all of their property – as it is “liquidated” to pay debts. In reality, that is not true. Most people do not lose any property as the bankruptcy process includes “exemptions” that protect assets. Chapter 7 is a streamlined form of bankruptcy relief that discharges, or eliminates, most forms of debt in a short period of time.
Chapter 13 bankruptcy involves a payment plan over the course of three to five years to “reorganize” debt. Do not confuse the “repayment plan” as a form of debt consolidation. We work with you to create a budget, based upon your income, expenses, overall debt and other issues to propose the payment plan. Not all debts have to be paid off through Chapter 13. At the conclusion of the plan, any outstanding unsecured debt is discharged. This form of bankruptcy is versatile and can help protect assets, such as your home, if you are facing foreclosure. We can explain how the law applies under your unique circumstances, so you fully understand which form of bankruptcy makes sense for you.
How does Chapter 11 work for businesses?
Chapter 11 is a form of debt relief specifically tailored to businesses as opposed to individuals. When filing for Chapter 11, businesses can reorganize their debt in a more manageable payment plan. As part of the Chapter 11 process, they work out the repayment plans with creditors and unload some unwanted debt. In most cases, businesses are able to continue operating even while going through the Chapter 11 bankruptcy process. Business owners and executives facing significant debt problems should consider Chapter 11.
Arrange Your Free Consultation To Discuss Bankruptcy
For direct and tailored answers to your unique questions, we invite you to arrange a face-to-face meeting with one of our bankruptcy attorneys in Albuquerque. Call 505-273-3720 or send us a message online to get started on your fresh financial start through bankruptcy. We serve clients throughout New Mexico. The initial consultation is complimentary.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.