Difficult debt situations can happen to anyone. Unexpected situations such as divorce, loss of a job, medical emergencies, and business disputes can disrupt income on which people had built their financial plans.

When considering whether to file for personal bankruptcy, first consider talking to a lawyer. The bankruptcy process is confusing and can be overwhelming without an attorney to guide you through it.

Chapter 7

For individuals and families, Chapter 7 can offer a new beginning. Some unsecured debts, such as credit card debt and medical bills, can be discharged in a few months. Bankruptcy law allows certain assets to be exempt from the liquidation requirements of Chapter 7. Thus, most people are able to keep certain essentials such as cars and homes.

In a Chapter 7 case, many of your debts are canceled forever. However, certain types of debts are not allowed to be canceled by a bankruptcy filing. These are debts that you will still have to pay, even after your bankruptcy case is finished. Some examples include child support obligations, certain taxes, and student loan balances.

We will determine whether any of your debts cannot be included in your bankruptcy case after reviewing the specifics of your case and we will help you through the process. We can help you understand what the potential benefits of bankruptcy are, and what the negative consequences will be.

    Key Distinctions:

  • Generally takes four to six months from filing to complete and require you to complete credit counseling
  • Filing immediately stops most creditors from trying to collect from you once you file
  • Will not cancel certain debts prohibited by state law

Chapter 13

Chapter 13 bankruptcy is structured as a repayment, and is often available to those who do not qualify for a chapter 7 bankruptcy. Chapter 13 allows you to keep your property, but you must continue to repay your debts over a newly calculated time period and under court supervision. The terms of the payments you will make depend upon how much you owe and the total value of your property. The repayment plan allows you to become current on your mortgage over a three or five-year period, and may allow for the discharge of unsecured debts remaining at the end of the repayment period.

    Key Distinctions:

  • Require that you prove to the court that you have the income to be able to repay the debts you owe and that you complete the required budget-counseling course
  • Filing immediately stops most creditors from trying to collect from you once you file
  • Conclude once you complete the repayment plan and meet some other conditions such as remaining current with child support and alimony obligations

Bankruptcy & Foreclosure

If you are facing foreclosure in New Hampshire and cannot work out a deal, or other alternative with the lender, bankruptcy may help. When a Chapter 13 or Chapter 7 bankruptcy is filed, the court automatically issues an order (called the Order for Relief) that includes a what is known as an "automatic stay." The automatic stay directs the debtor's creditors to cease their collection activities immediately, no excuses. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending—typically for three to four months. However, there are a few exceptions to the protection of the automatic stay. If you are facing foreclosure, contact us to see if filing bankruptcy is a viable option for you.

 

 

Does your case type not fall into one of our categories?

If you’ve searched through all of our practice areas and haven’t found one that seems to apply to your legal need, please feel free to give us a call anyways. Maybe it's still something we can help you with, and if not, we may be able to direct you to an attorney who can. Contact us today for a free consultation.