Are you thinking about entering bankruptcy protection?

Entering bankruptcy protection triggers the “automatic stay,” a powerful tool for consumers experiencing harassment from creditors and debt collectors. Bankruptcy’s automatic stay stops ALL creditors and collectors from pursuing you or your property outside of the bankruptcy proceeding. In other words, collection calls, letters, and visits stop immediately!

If you’ve got a pile of debt, sinking self-esteem, and a phone ringing off the hook from creditors and debt collectors, then filing personal bankruptcy might be your best option. However, if you’re like me, (yes I was in your shoes once) you have questions such as:

  • What is a bankruptcy discharge?
  • When does the discharge occur?
  • What happens after I enter bankruptcy protection?
  • Are all of my debts discharged?
  • Can I keep some of my assets?
  • Should I file Chapter 7 bankruptcyor Chapter 13 bankruptcy?
  • Do I qualify to file bankruptcy?
  • Does my spouse have to file?
  • How soon can I file? And perhaps the most important question of all:
  • How much will it cost me?

I’ve provided answers to these and over 40 more bankruptcy questions on my FAQ page. I’ve designed this FREE site to help you decide whether to enter bankruptcy protection or to try another solution such as debt consolidation or a debt relief program. The information provided will also help you decide whether you should file bankruptcy yourself or hire a local bankruptcy attorney.

One of the most difficult questions is whether to enter bankruptcy protection and, if so, under chapter 7, chapter 13, or another chapter. I highly encourage you to use the free no-obligation Legal Evaluation below from a qualified bankruptcy attorney.

What is bankruptcy protection?

There are two types of personal bankruptcy protection for consumers experiencing a financial crisis.

The first type of protection is chapter 7 bankruptcy, also called liquidation.  A chapter 7 bankruptcy eliminates unsecured debt (credit cards, medical bills, old utility bills, unsecured personal loans, etc.), and takes less than three months (usually). Most people who enter chapter 7 bankruptcy protection can keep their property while eliminating unsecured debts.

The second type is Chapter 13 bankruptcy protection, and it involves a simple repayment plan. It is generally a good option for people who have steady income but have fallen behind on their bills. Under Chapter 13, bankruptcy protection, you establish a repayment plan based on what you can truly afford (not what creditors and collectors are demanding). Repayment plans typically last between three and five years and payback may be as little as 10 cents on the dollar.

Entering Bankruptcy Protection

When we’re in a financial crisis, we have just three options:

Option 1: Do nothing and chance losing everything!

Option 2: Seek relief through custom debt solutions (debt consolidation, consumer credit counseling, debt consolidation loans, etc.). If you have not tried these alternatives, then this should be your first choice because entering bankruptcy protection should be a last resort.

Option 3: Enter bankruptcy protection under either chapter 7 or chapter 13 might be your best option if you’ve already tried the alternatives above. Use this site to learn whether entering bankruptcy protection is right for you. If you believe filing bankruptcy is your best option, I highly encourage you to consult a bankruptcy attorney before taking any bankruptcy-related actions.

A local bankruptcy attorney can help you understand the differences between chapter 7 and chapter 13 bankruptcy protection, and help you make an educated decision about entering bankruptcy protection.