Washington, D.C. Bankruptcy Lawyer

Although people facing enormous debts often consider bankruptcy to be their last resort, sometimes filing for bankruptcy is the smartest financial decision. Bankruptcy could potentially offer you the chance to keep your home, car, and other valued personal possessions. It allows people to make a fresh start financially without the constant harassment from creditors, lawsuits, and the continuing threat of wage garnishment. It can also prevent foreclosure on your home or repossession of your vehicle.  Making the choice to file for personal bankruptcy is difficult, so it is essential to speak with an experienced Washington, DC bankruptcy lawyer who can help you through every step of the process. A local attorney can review the details of your case and get you started on the road to financial freedom.

What Type of Bankruptcy Should Someone File for?

A dedicated local bankruptcy attorney could meet with a person to see if filing for bankruptcy is the right choice in their situation. They will also look at the unique circumstances of each potential client to see if filing for bankruptcy under Chapter 7, Chapter 13, or Chapter 11 is more appropriate.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common type of personal bankruptcy. People often refer to Chapter 7 bankruptcy as straigt bankruptcy because it allows people to eliminate many of their personal debts without making payments. If people do not believe that they will ever be able to pay off their debt successfully, then Chapter 7 is usually the best option. Chapter 7 discharges people from the obligation to pay most unsecured debts. Credit card bills and medical bills are examples of unsecured debts that would be discharged under a Chapter 7 filing.

Chapter 7 filings do not discharge all debts and financial obligations, as liabilities such as child support, alimony, certain tax debts and student loans will remain. After thoroughly reviewing a potential client’s financial situation, an experienced Washington, D.C. attorney will explain what types of debts would remain so that the client will be fully informed of his or her future financial status before proceeding with the filing.

Chapter 13 Filing

Chapter 13 bankruptcy allows people to reorganize their debts so they are able to pay off part of what they owe over time. Any unpaid amounts are usually discharged, with certain exceptions.  A filing of Chapter 13 enables people to consolidate all of their debts into one repayment plan. Typically, by filing for Chapter 13, a person is given a three to five payment plan. During this time,  the court will appoint a trustee to oversee the case and disburse funds to the creditors. One of the many benefits to Chapter 13 filings is that creditors are given a notice to cease contact with the client. This could give people the reprieve they need should they find themselves overwhelmed with debt and repayment efforts.

Chapter 11 Filing

Chapter 11 bankruptcy filings most commonly involve businesses and individuals with extremely large amounts of debt. As with Chapter 13 filings, they include reorganizing debts, but often on a larger scale and with a different timeline. Due to the size of assets and liabilities involved in these cases, it is essential to work with a Washington DC bankruptcy lawyer who has experience handling complex bankruptcies.

Call a Local Lawyer for Help

If you are in debt, being sued, dealing with a garnishment, facing foreclosure, or are being hounded by debt collectors, it might be time to look into filing for personal bankruptcy. A qualified lawyer can review your accrued debts and sources of income to determine if filing for bankruptcy under Chapter 7, 11, or 13 is your best solution. Call a Washington, D.C. bankruptcy lawyer today to see if you can secure your financial future.