Areas of Practice
Bankruptcy
Thinking about filing bankruptcy? Deciding to file bankruptcy is a difficult decision and, for some people, an embarrassing situation. Many people find themselves unable to pay their bills through no fault of their own. Perhaps one has lost their job or experienced an illness causing ever mounting medical bills. Still others may have experienced a divorce or death of a loved one. Whatever your circumstances may be, L. A. Johnson & Associates, LLC is here to help. We are sensitive to our clients’ issues and will maintain your privacy. We will meet with you and discuss your situation; we will provide you with options and allow you to decide what course you would like to take.
Chapter 7
Chapter 7 bankruptcy, a federal court procedure in which debtors are able to eliminate most types of unsecured debt, is one option. This type of bankruptcy gives an individual a fresh start. As stated above, it eliminates most debt; however, there are some debts (court ordered debts from intentional acts, child support, and taxes less than 3 years old) that cannot be discharged. Some people believe that you lose everything when you file this type of bankruptcy. That is not true. Through a process of reaffirmation, one can possibly keep their home, car, and other property; it helps if you are current on these particular items but this too can be negotiated. There are several factors that must be weighed to determine if this would be a suitable solution.
Chapter 13
Chapter 13 is a type of bankruptcy often referred to as "reorganization" or “the catch your breath” provision of bankruptcy; it involves a repayment plan that sets forth with specificity the manner in which debtors will settle their debts over a three to five year period. The minimum amount of payment required depends on the debtor's income, balance, and the amount that unsecured lenders would have been paid if the former had filed for Chapter 7 bankruptcy. Garnishments, foreclosures, and repossessions are stopped.
Other Alternatives
There are other possible alternatives to bankruptcy: Out of court settlements, payment reductions or consulting a consumer credit counseling service. However, these alternatives must have the cooperation of the creditors. These alternatives, if desired, are more likely to be successful when attempted early when financial difficulties first begin.
Consultation is free. To do nothing will ensure that your situation will continue to spiral out of control causing you more stress in your life. Give us a call. Let us help you catch your breath and regain control.