If your debts have become unmanageable, a Chapter 7 bankruptcy can provide you with a "fresh start." In Chapter 7 you receive a "discharge," a permanent injunction which prohibits any attempt to collect a debt from you as a personal liability. So, creditors cannot proceed with any lawsuit against you, and they cannot contact you... ever again.
You might think: "sure, but to get that, I will lose everything"... fortunately, in the vast majority of cases, the opposite is true! Here's why. Only your non-exempt assets are exposed. In most Chapter 7 cases your home, car, furniture, personal belongings, and, often a substantial amount of cash or cash equivalents, can be claimed as exempt. Qualified retirement savings and pension benefits are also completely protected and cannot be touched. Under federal law, your home mortgage cannot be defaulted as a result of your bankruptcy, so long as you are maintaining the current installment payments. Your car is also safe, so long as you are maintaining the car loan payments.
The vast majority of clients lose all their debt, permanently, but none of their assets. That is the fresh start that you may need, too.
Like most people, you probably consider bankruptcy your very last resort. Although you are quite right to feel that way, far too many people spend down their retirement savings and waste their hard-earned pay in futile attempts to repay high interest credit card and other types of debt, when they should have come to us sooner. Honest, well-meaning individuals often bring unnecessary pain to themselves and their families by postponing the inevitable... then realize how smooth and painless the bankruptcy process really is. Your financial situation can improve drastically... and surprisingly quickly.
In many years of bankruptcy practice, we have successfully helped hundreds of people to a fresh start. Please contact us for a free consultation.