Debt Doctor

You need a helping hand from an expert, but first you need to get the facts.

  • Bankruptcy and debt relief refer to certain laws created to help you get out of debt. For one reason or another, you may find yourself over your head in debt and in need of help. The purposes of these laws are to give you a “fresh start.” Bankruptcy court offers two main paths for people who are deep in debt. One is called Chapter 13, which gives people time to pay a percentage of their bills while there’re protected from their creditors. A court-appointed trustee supervises repayment in monthly installments over three to five years. The other is called Chapter 7, which legally erases debts on which creditors do not hold liens such as credit card balances and hospital bills. A lien is a legal claim on property that allows it to be sold to satisfy the debt.

    Here are six things you need to know: 

    Number 1:  First and foremost, bankruptcy and debt relief can get rid of the stress and pressure. If you are over your head in debt, you are no doubt under a lot of stress. Some of the stress is caused by having more bills than you can pay. Most of the stress is caused by creditors who harass you for payments. Filing for bankruptcy or debt relief can get rid of this stress – without delay. You may be relieved of any obligation to pay or you may work out a plan for extending and repaying debt through a Chapter 13 reorganization without the pressure.

    Number 2: You should not believe what most people tell you about bankruptcy law. There are many misconceptions and “old wives tales” about this area of law. Don’t believe them. Get professional advice.

    Number 3: Most people believe that if you file bankruptcy, you lose all of your property. This is simply not true.

    Number 4: Most people say: “Don’t file bankruptcy. It will ruin your credit.” But the fact is, if you are already over your head in debt, your credit is already ruined or heading in that direction. If so, bankruptcy probably will not hurt your credit. In fact, as your attorney will explain, filing bankruptcy may be the first step toward fixing your credit.

    Number 5: Bankruptcies are not published in the newspaper, and generally, the only way that your employer, family or friends would find out you filed is if you tell them. You cannot lose your job or be denied a license because of filing

    Number 6: Going to see an attorney does not mean that you are going to file. That decision is yours. It does mean that you will find out information about your rights and the truth about bankruptcy or debt relief, in case you decide to file.

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