Debt Relief | Bankruptcy Attorney | Kurt O'Keefe

Chapter 7 bankruptcy can help struggling consumers in a number of ways. First, when you file, the court will order an automatic stay that will stop all collection efforts by creditors. This stay also serves to stop legal actions against you for money, foreclosures or repossession attempts, certain wage garnishments, and certain account levies for collection.

A common misconception about Chapter 13 is that you pay back everything that is owed to your creditors.  This is NOT true. In the vast majority of Chapter 13 cases, unsecured creditors are NOT paid back everything you owe. In fact, they are paid pennies on the dollar, with no interest.  Chapter 13 can often be a better option than debt consolidation, debt settlement, or paying the debts off yourself.  

Business owners and individuals struggling under the weight of debt may find new life under Chapter 11 bankruptcy. Commonly called reorganization bankruptcy, Chapter 11 allows businesses to continue operating while the business owner and creditors reorganize the debts so the business can be profitable once again.  This means there is light at the end of the tunnel!