Need Debt Relief? We can help!
Mar 27, 2018
Thirty –three percent of Americans have more credit card debt than savings according to the most recent bank rate survey. The survey also states that one in three Americans are ill-equipped for an emergency. With our reliance on credit cards and lack of emergency funds, it is no wonder that medical debt is the number one reason people file for bankruptcy. Getting into debt is easy, but getting out of debt doesn’t have to be hard. Depending on the amount of debt you are facing and your financial circumstances, there are options available to help get you out of debt.
SECTION 128
A Section 128 is a debt repayment program where the court orders creditors to stop interest from accruing and accept smaller payments until the debts are paid in full within a 36 month maximum timeline. The court appoints a Trustee to receive and distribute your payments and work directly with your creditors on your behalf. A Section 128 stops garnishments once the case is filed and is a great way to stop collection and harassment over a smaller amount of debt.
CHAPTER 7 BANKRUPTCY
In a Chapter 7 Bankruptcy the court wipes out your unsecured debts, credit cards, medical bills, pay day loans and other non-collateral debts. For secured debts, such as auto loans and home mortgages, the bankruptcy court lets you choose if you would like to keep the asset and keep the loan or surrender the asset and no longer be responsible for the loan. If your income qualifies, a Chapter 7 Bankruptcy is a great way to get out of a large amount of debt and get a fresh start. See our blog, “Do I Make Too Much to File for a Chapter 7 Bankruptcy?”
CHAPTER 13 BANKRUPTCY
A Chapter 13 Bankruptcy is commonly used to stop foreclosure or for debt relief if you make too much money to qualify for a Chapter 7 Bankruptcy. A Chapter 13 Bankruptcy is a 3 to 5 year repayment of your debts, many times at a zero percentage rate or a reduced rate depending on your income and assets. If you are behind on your mortgage, you are able to put the arrearage into your Chapter 13 Plan and repay it at 0% interest over the length of the plan. A Chapter 13 bankruptcy is a great way to stop foreclosure, repay tax debt, or get out of debt if you don’t qualify for a Chapter 7 Bankruptcy.
FREE CONSULTATIONS
Whether you are burdened with credit card or medical debt, currently having your wages garnished, or are facing a foreclosure, don’t lose hope. There are options available to help you get a fresh start. Pedersen Law Office, LLC offers free consults in all of our areas of practice and will meet with you personally to discuss your specific circumstances and see what options are available for you. Our law office serves the communities of Appleton, Neenah, Menasha, Oshkosh, Green Bay and their surrounding areas.
