Financial difficulties can affect anyone and can permeate all aspects of a person’s life. The process of filing for bankruptcy or the process of determining if bankruptcy is the right choice, and if so, which kind, can be stressful, overwhelming, and confusing for anyone. If you believe bankruptcy is the right option or need help deciding which kind of bankruptcy to pursue, let Laws & Demers, PLLC, hear the details of your particular situation. We can help you navigate the entire bankruptcy process and find the stable financial footing you are seeking.
Benefits of Bankruptcy
Bankruptcy is essentially the legal process of halting the negative effects of debt and also discharging most debt. It can be a legal means of simply obtaining a fresh start financially or a reprieve that gives you time to catch up and repay debts you owe. The legal process can be complicated as there are several types of bankruptcy in New Hampshire and you must qualify for some. Bankruptcy also is shrouded in myths and misinformation. Some people believe you will lose everything and others believe it is a way of not having to pay back what you owe anyone. Both are incorrect. Having the most up-to-date and correct information about the different types of bankruptcy is the best way to proceed and the best way to protect what you have, including your credit rating.
Types of Bankruptcy
One of the most common forms of bankruptcy in New Hampshire is Chapter 7 bankruptcy. This form of bankruptcy is basically a form of liquidating assets. Assets are appraised and liquidated and the funds are used to pay back creditors. You could lose your home or car, but there are exemptions that may allow for keeping these vital assets. Not everyone qualifies for Chapter 7 bankruptcy and it meant for those who know there is no other way for them to repay debts.
Chapter 13 is also a common form of bankruptcy in New Hampshire. This type of bankruptcy is a plan to repay debt over a period of time. A plan for repayment is put forth to the courts and approved. Typically, most plans are drafted according to a 3 to 5 year timeline. This kind of bankruptcy lets you keep your house and essentially gives you time to catch up on your back due debts.
Stopping the Collection Calls!
Once you file bankruptcy, the immediate benefits include a stoppage of harassing phone calls and letters. Foreclosure proceedings may also have to stop while the bankruptcy is approved. Wage garnishments may also stop given the right kind of bankruptcy. For many people who are struggling, the end of harassment by creditors is an enormous relief.
While discharging or eliminating a great deal of debt is possible with bankruptcy, some debts are not able to be discharged. Some of the debts that will still have to be repaid include:
- Child support
- Student loans
- Some taxes
- Court ordered restitution
Some people feel defeated when they come to the point of needing to learn more about bankruptcy. Our firm understands the emotional and financial turmoil that this legal process can entail. We approach bankruptcy cases without judgment and with the respect and dignity you deserve. Bankruptcy can happen to anyone across all socio-economic lines. With Laws & Demers, PLLC, in your corner, you can move forward from a bankruptcy filing with confidence in the system and with the fresh financial start you deserve. Let us help you take control of the struggle and regain the financial independence and confidence you may have lost during this difficult time.