What is Bankruptcy?

Santa Rosa and Napa Bankruptcy Attorney Ellyn M. Lazar Explains

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Bankruptcy is a legal procedure whereby individuals and businesses may seek relief from their debt. Federal law generally governs bankruptcies. Individuals and businesses seeking bankruptcy protection must do so through the federal bankruptcy court. Debts can be totally eliminated or repaid through a payment plan.

The two most common types of bankruptcies are Chapter 7 and Chapter 13.

  • Chapter 7 bankruptcy, or liquidation bankruptcy, provides individuals and businesses a fresh start by forgiving debts while giving creditors a chance to obtain repayment based on what assets are available for liquidation.
  • Chapter 13 bankruptcy, or debt repayment bankruptcy, provides individuals with a regular source of income, the opportunity to repay some or all of their debt, while retaining all of their assets.

The Benefits of Bankruptcy

  • The Automatic Stay. Immediately upon the filing of a bankruptcy, all creditors must cease collection actions against you, including harassing telephone calls and letters, lawsuits, wage garnishments, bank levies, repossessions and foreclosures.
  • The Bankruptcy Discharge. Individuals who successfully complete their bankruptcy will be granted a discharge of most types of debt. A discharge is a court order that says you do not have to repay your debt. Debts that may be discharged include credit cards, unsecured personal loans, medical bills, utility bills, business trade debt and some income taxes. Debts that are not dischargeable include student loans, child and spousal support, some income taxes, court fines and criminal restitution obligations, certain debts for personal injury and debt incurred fraudulently or by theft.

Each individual and business financial situation is unique. If you are struggling financially, filing for bankruptcy protection will lead you to freedom from your debt.

Napa and Santa Rosa bankruptcy attorney Ellyn M. Lazar can answer any questions you may have about bankruptcy. Contact Santa Rosa and Napa bankruptcy attorney Ellyn M. Lazar for a free confidential consultation. She will review your financial situation in a personal and caring manner and will advise you, based upon her decades of experience, of the best debt relief options for your circumstances.

Freedom from Debt with the Service You Deserve – Contact Santa Rosa and Napa Bankruptcy Attorney Ellyn M. Lazar to Schedule a Free Confidential Consultation

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