Overwhelming debt can happen to good people. Life circumstances beyond our control can create situations in which unpaid bills stack up and repayment becomes difficult if not impossible. Harassing phone calls and nasty letters from creditors create enormous amounts of stress and make it hard to see a way out of your situation.
Most people want to pay their bills. But a major financial crisis such as loss of a job, vehicle repossession, injury, divorce, family emergency, or unexpected medical bills can sometimes change your financial obligations faster than you can repay them.
Bankruptcy can be a scary word, but many people do not realize that bankruptcy laws were created to help good people get a “fresh start” and pursue productive lives relieved from past financial problems.
What is Bankruptcy?
Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidations” or “reorganizations
How Can Bankruptcy Help?
Filing for bankruptcy can help in many ways, such as:
- Stopping harassing letters and phone calls
- Protecting your home from foreclosure
- Stop repossession of your vehicle or other property
- In certain circumstances, stripping the 2nd mortgage from your home
- Ceasing paycheck garnishment
- Unfreezing bank accounts
- Reducing or eliminating debt liability without loss of assets such as your home, car, etc.
- Holding creditors accountable for illegal collection methods
- Remove liens against your property
At Amanda Todd Daniels we understand the burden that overwhelming debt places on individuals and families. We offer:
Experience: Bankruptcy attorney Amanda Daniels has years of experience helping people determine whether bankruptcy is the best option for their specific financial situation. This experience will ensure your case is handled correctly and as quickly as possible.
Competence: All aspects of your case will be handled in a thorough and expert manner. We stop harassing phone calls and nasty letters from creditors. We will tell you what to expect at each step and help you through the filing process.
Reasonable Pricing: Our expertise helps us make decisions that will minimize further financial stress. By choosing the option that best addresses your financial situation, and by handling your case in an efficient and concise manner, we minimize the cost of getting your financial situation back on track.
Amanda Daniels has worked with many families in the Tupelo and North Mississippi area to save their homes and get them started on the right path. She treats every client with respect and dignity as she works with them to create a path to a fresh financial start. Call (662) 678-8009 to schedule a free consultation.
Frequently Asked Questions about Bankruptcy
Q: Which type of bankruptcy do I need?
A: There are 2 types of Bankruptcy:
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is for individuals or businesses that no longer have the means to pay their debt. In a Chapter 7 bankruptcy, all unsecured debt (such as credit cards, car repossession, or home foreclosure judgments) is liquidated. Reasons to consider Chapter 7 bankruptcy include:
- It gives the debtor a “fresh start”
- The debtor keeps future income (other than inheritances)
- Collection efforts and wage garnishments stop immediately after filing
- There is no limit on the amount of debt the filer has
- In some situations, you are able to keep some or all property
- The process is relatively quick (a typical case might take 3-6 months)
- There is no repayment plan; the debtor is no longer responsible for repayment of debt
- In certain situations, you can keep your house
Chapter 13 Bankruptcy
Chapter 13 bankruptcy reorganizes your debt, allowing you to catch up on your payments so you can possibly keep your home and car. If you have unsecured debt, such as credit cards, filing Chapter 13 can reduce the amount you have to pay back – sometimes pennies on the dollar.
Chapter 13 bankruptcy can be advantageous when:
- You are behind on your auto loan or your mortgage. Chapter 13 bankruptcy allows you to make up missed payments over time in order to avoid repossession of a car or a home.
- You have financial obligations you cannot absolve such as taxes or domestic support.
- You need a longer timeframe to repay your debts.
- You have property that you want to keep that you would lose in a Chapter 7 filing.
- You want to protect co-signers of consumer debt
Q: What information will I need to provide to file bankruptcy?
A: Documents needed include:
- A copy of your federal and state income tax returns from the last three (3) years
- Your paycheck stubs for the last six (6) months plus the current month
- Copies of the last three (3) months checking and/or savings accounts
- A copy of your insurance on your auto and/or home
- A copy of your driver’s license and social security card
- A copy of your credit-counseling certificate
- A copy of your credit report
Q: Does my spouse need to file with me?
A: Your spouse does not need to file with you. Amanda Daniels will discuss this option with you and give you the information necessary to decide if you should file individually or jointly.
Q: Will filing for bankruptcy stop my creditors from calling me?
A: Yes. Creditors are not allowed to have any contact with you once they have been notified of the bankruptcy filing. If calls or letters continue, let us know and we will ensure that all calls and letters cease and desist.
Q: Will my credit rating be ruined for a long time?
A: No. We will give you detailed instructions on how to restore your credit rating. Most people have their credit rating back on track within a year of filing.
Q: If I have filed bankruptcy before, could I file again?
A: Yes you can, however, there is a limit to how many times you can receive a “discharge” (a statement when your bankruptcy is finalized that your debts cannot be collected by creditors). We can help you sort out what you are eligible for and the advantages of each.
Q: What does Bankruptcy cost?
A: The cost of bankruptcy will depend on the complexity of your case. During your free consultation, we will listen intently to your needs, explain the many options available and the associated costs, then help you decide the solution that best addresses your situation.
Bankruptcy is a serious step; it’s critical to consult with an expert to be sure you choose the option that is best for your specific financial and life situation. The knowledgeable and professional team at Amanda Todd Daniels will draft a plan, negotiate with your creditors, and handle the legal process so that you can focus on other areas in your life.
During your first free consultation with Amanda Daniels, she will go over your financial situation in detail in order to determine if filing bankruptcy is a viable option for you. Contact her today at (662) 678-8009 to request a consultation.