Chapter 7 and Chapter 13 bankruptcy laws are designed to provide people protection from creditors in order to give people an incentive to go to work, pay income taxes and support their families. Sometimes things happen in a person’s life that cause a disruption of cash flow or unexpected expenses such as medical bills or a car repossession. If your creditor gets too aggressive, that single creditor can disrupt a person’s entire monthly budget.
As a bankruptcy lawyer with over 31 years of experience, I have seen it happen over and over again. The good news is that there are laws that will help you get back on track.
I meet with over 250 clients a year. Based on my observations, the following are the top 5 Situations where filing for bankruptcy protection is helpful to get your financial life under control:
1. Lawsuit and Pending Garnishment. You got served with a lawsuit for some unpaid bill, didn’t do anything about it and got a judgment against you. Now, the creditor is trying to collect by garnishing your wages and bank account. We can stop the lawsuit and the garnishment for you to take control of your financial situation. If you file for bankruptcy as your debt attorney, we can help you.
2. Lost Job/Laid Off/Hours Reduced. A lot of my clients have experienced a decrease in income due to periods of unemployment and reduction of income. Here is a tip: If you have been unemployed for more than 3 months, you probably qualify for bankruptcy protection where you can eliminate all of your debts and keep all of your assets. You need to make the best financial decision for you. The are two common options: File a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
If you have experienced a reduction in income and can’t catch up, a Chapter 13 bankruptcy may be best for you. In a Chapter 13 bankruptcy, all of you unsecured debt (credit cards) is reduced to 0.00% and you have up to 36 months to make up any past due mortgage payments.
3. Short Sale of House and/or Change in Mortgage Interest Rate. Many people have “pay option ARM” loans with a 3 to 5 year balloon. Those people have experienced a big increase in the mortgage payment and cannot refinance their house to pay off the existing loan. Through a Chapter 13 Reorganization, we can help you save your house and cure loan arrearages over 36 months.
4. Medical Bills and Collection. Sudden illness or injured on the job. Although they have not lost their job, they have experienced a reduction in income and a dramatic increase in monthly expenses and overall debt load.
5. Divorce. Sometimes it make sense that although you are going to eventually dissolve the marriage, both spouses participate in a bankruptcy resolution together to eliminate a lot of stress and argument over debt. The resolution may consist of filing together prior to divorce or each spouse filing separate after divorce.
Over the past 31 years, the Law Offices of Christopher A. Benson, PLLC has helped over 3,000 of Washington clients take control of their financial situation. We can stop your wage garnishment and change your monthly payments for all your combined unsecured debt, and if you have had more than $600 garnished within the last 90 days, we can get all of the money back in most cases. But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today.