Klamath Falls Bankruptcy Attorneys
If you’re in the midst of an economic crisis, and don’t know where you can turn, let the law practice of Shlesinger & deVilleneuve advise you about your options. With the decline in the economic climate, numerous hard-working Americans have been forced into distressing financial situations because of losing a job, unexpected healthcare bills, or real estate that did not hold its value. Pursuing bankruptcy might be the only viable option in order to get on with your life. Many paths lead people from all walks of life to seek bankruptcy relief. The six main reasons people file for bankruptcy are:
Healthcare expenditures: This is actually the no. 1 reason for personal bankruptcy; in fact 62% of all bankruptcies are caused by healthcare expenses; and 78% of these bankruptcies had health insurance coverage
Loss of employment: The decline in the economy triggered layoff and terminations across the country. Often times individuals are unable to find comparable jobs and are left unemployed or underemployed on a long-term basis.
Divorce or separation: A divorce or separation can create massive economic strain because of legal fees, dividing assets, child and spousal support, as well as the cost of maintaining two households.
Foreclosure or Short Sale: The decline in the real property market leaves people with mortgages they can no longer afford and properties that have lost value.
Poor or excessive usage of credit: The excessive spending and use of credit cards, installment debt, and loan repayments is a leading cause of bankruptcy.
Unanticipated expenditures: From time to time, there are simply unexpected or devastating losses attributed to such things as natural disasters. If property is not insured for such events, the loss cannot be recovered and must be borne by the already financially burdened individuals.
There are two main types of personal bankruptcy, Chapter 13 and Chapter 7. While both forms provide reduction or relief of debt, you should realize that both forms will adversely affect your credit rating for 7 years, and specific financial obligations can’t be discharged including taxes, child support, spousal support, college loans.
Chapter 7: Filing Chapter 7 will absolutely release you from many of your financial obligations; which means you simply will not be responsible for repaying them. Any real estate that you own, however, is considered non-exempt and will need to be sold and the proceeds from the sale will likely need to be applied to your overall amount owed. Among the many downsides of a Chapter 7 filing is you will lose your house and/or property. However, you will be able to keep your exempt assets such as your car and any personal belongings. One main advantage to Chapter 7 is that you will be relieved of most of your financial obligations.
Chapter 13: When you submit a claim for Chapter 13 bankruptcy, it in essence “reorganizes” your financial obligations and sets up a manageable payment plan allowing you to pay back your debt over a period of three to five years. The drawbacks of Chapter 13 include the increase in filing cost and you will need to live on a restricted budget while you are paying off your debt. On the upside however, you will likely be permitted to keep your real estate.
At Shlesinger & deVilleneuve, we counsel more than one thousand clients through the challenging process of declaring bankruptcy under Chapter 7 or Chapter 13 each year. Our dedicated Bankruptcy Division is led by one of our outstanding attorneys, Kevin Swingdoff, who has over 25 years of expertise in the world of federal bankruptcy. Kevin is sincerely dedicated to improving the lives of people who don’t have a choice, but to seek bankruptcy protection. We strongly encourage you to reach out to our firm and we will discuss a time for scheduling your free first consultation with Kevin. We can also outline our reasonable fee schedule. Our priority is to help you get a new beginning and a fair shake! Isn’t it time for you to get a good night sleep?
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