Whether you are an individual consumer or running a business, debts can pile up until they become overwhelming. Credit cards can become a trap for the unwary and student loans can haunt you for decades. You may be able to wipe out or ease the payments of your debts, of whatever kind, through bankruptcy, but you need an experienced and knowledgeable firm to guide you through that technical and often difficult process. Gates Law Group, A Professional Corporation is ready to help, as we have done for our other bankruptcy clients for the past four decades.
There are two main ways in which bankruptcy grants debt relief. Liquidation, also known as Chapter 7 bankruptcy, eliminates most debt completely, but may require selling part of your assets, if they are not exempt from sale. In a reorganization (either Chapter 11 for businesses or Chapter 13 for individuals), the court approves a plan for paying off the debts over a three-to-five-year period, often on more favorable terms for the debtor than the original agreement with the creditor provided. We can advise you of the advantages and disadvantages of each approach, advise you which is best for you and represent you throughout the bankruptcy process.
Most consumer debt can be eliminated, or discharged, in a Chapter 7 case, but there are exceptions. If you used a credit card to purchase more than $750 worth of luxury goods within 90 days of filing for bankruptcy or took more than $950 in cash advances within 70 days of filing, you probably won’t be able to discharge them. The creditor can also file a complaint challenging dischargeability. In a Chapter 13 case, you can generally discharge such things as credit card debt, medical and utility bills and personal loans. We will do our best to make sure as many of your debts as possible are discharged.
Student loan payments usually aren’t dischargeable, unless you prove to the bankruptcy judge that you fall within an exception, such as:
However, we may be able to negotiate a restructuring of student loans to allow more manageable repayments. If you are overwhelmed by student loan debt, we will present the best care possible to have it restructured or discharged.
If you need debt relief, Gates Law Group, A Professional Corporation can help. Please call 559-432-9944 or contact us online to schedule a free initial consultation. We serve clients from our main office in Fresno and locations in Paso Robles and Visalia.