What is Bankruptcy Law?
Bankruptcy is a legal proceeding involving a person or business who is unable to pay their debts and seeks to have them discharged or reorganized. There are several types of bankruptcy, which are typically referred to by their chapter within the U.S. Bankruptcy Code. The most common are Chapter 7 individual petitions, Chapter 11 business reorganization and rehabilitation petitions, and Chapter 13 wage earner’s plans.
Facing bankruptcy can be incredibly stressful, but an experienced bankruptcy attorney can help you explore all the legal options available to you and maximize the benefits while minimizing the negative effects on your life.
What Bankruptcy Can Do:
- Discharge liability for most or all debts to get a fresh start.
- Stop foreclosure actions on their home.
- Prevent repossession of a car or other property.
- Stop wage garnishment and other debt collection harassment.
- Restore or prevent termination of certain types of utility service.
- Allow debtors an opportunity to challenge the claims of certain creditors who have committed fraud or who are otherwise seeking to collect more than they are legally entitled to.
What Bankruptcy Cannot Do:
- Eliminate certain rights of secured creditors. Although a debtor can force secured creditors to take payments over time in the bankruptcy process, a debtor generally cannot keep the collateral unless the debtor continues to pay the debt.
- Discharge types of debts singled out by the federal bankruptcy statutes for special treatment, such as child support, alimony, student loans, criminal fines, and some taxes.
- Discharge debts that are incurred after bankruptcy has been filed.
Some other ways we can help are with:
Loan Modifications
This is a process in which we re-negotiate the terms of your loans to make them more affordable. A loan modification will typically result in the change to the loan’s monthly payment, interest rate, term or outstanding principal.
Credit Counseling
This option involves establishing a plan with your creditors to repay your debts in a manner that is affordable to you. We can help get your payments and interest reduced, and get you back on a healthy path to a stable financial situation.
Compassionate and Professional Service
Why Choose Jennifer Armstrong-Souza?
Experienced
I have been practicing law in Massachusetts and Rhode Island since 2007.
Trusted
My clients know they can always rely on me to act in their best interests. Most of my clients are referrals from others.
Dedicated
Helping people is my passion, and I am a tireless advocate for my clients throughout whatever difficulties they are facing.
Frequently Asked Questions
Common Questions Regarding Bankruptcy Law
All forms of bankruptcy allow for the reduction or elimination of certain debts, but they vary in form and procedure. The most common types are as follows:
Chapter 7 allows an individual (or in some cases, a business) to liquidate their assets to settle their debt. Certain assets may be exempt, such as a home or car.
Chapter 11 provides for a reorganization of a business’ liabilities and assets while allowing the debtor to maintain the business as they work on a debt repayment plan. Individuals can also file for Chapter 11 but it’s much less common.
Chapter 13 allows a debtor to ask the courts for additional time to pay off their debts, as long as they maintain a consistent income. Individuals who make too much money to file under Chapter 7 may qualify for Chapter 13.
Filing for bankruptcy adversely affects your credit and stays on your credit report for a long time. However, filing for bankruptcy can also grant relief from debts and will (at least temporarily) prevent repossession of property and foreclosure. Bankruptcy is a complex area of law and consulting a lawyer will provide you the best understanding of the options available to you.
It depends on the type of bankruptcy you file for, but many debts can be eliminated through a bankruptcy discharge, such as credit card balances, medical bills, overdue utility payments, personal loans, and gym contracts. However, there are several categories of debts that are considered non-dischargeable, including most tax debts, child support, alimony, and student loans (except in limited circumstances).
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