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CA Lawyer
CA Lawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1655
Experience:  Bankruptcy Attorney
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I have between 60 - 70K debt and have not been able to keep

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I have between 60 - 70K debt and have not been able to keep up with the payments since last November. What is the difference between bankruptcy and debt settlement......and how do I find a firm that could assist me?
Thanks for your time.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  CA Lawyer replied 8 years ago.
Bankruptcy is a legal proceeding with the federal bankruptcy Courts.

Depending on the type of bankruptcy you qualify for, you can either eliminate all of your dischargeable debts (credit cards, medical bills, other debts but not taxes, student loans, and certain specific debts) or can create a 3 to 5 year repayment plan where you repay part or all of your debts. You can exempt whatever property is allowed by your state laws in either chapter of bankruptcy.

The easiest place to find a bankruptcy attorney is in the local phone book. Many will give a free initial consultation where they can figure out if bankruptcy is right.

Most debt settlement companies are, in my experience, scams. They tell you not to pay your creditors, but they can't stop them from suing. They take huge fees upfront. Then, because you don't pay, they sue and the debt settlement company won't help with the lawsuit because they aren't attorneys. Creditors start suing typically around the time that the debt settlement companies get their upfront fees paid. By that time, people usually go to a bankruptcy attorney.

Filing a bankruptcy puts an automatic stay on lawsuits and stops creditors from trying to collect against the debtor in any fashion. Starting debt settlement doesn't.


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Customer: replied 8 years ago.
Where can I find more 'guideline' information on the different types of bankruptcy so I at least feel like I know something about my potential filling when I meet with a local attorney?
Expert:  CA Lawyer replied 8 years ago.
Here is a link to a "Notice to Consumer Debtor" CLICK HERE. (PDF FILE)

This is a Court form that is required to be given to anyone who files, it explains the different chapters. Chapter 7 is the most common option and typically the best if all of your assets can be exempted. It just wipes out debt. Chapter 13 is a repayment plan bankruptcy. Chapter 11 is a more complicated type of repayment plan bankruptcy, usually for people or businesses with over $1Million or so in debt.



If this information was helpful, please click ACCEPT to give me credit for answering. Bonuses and positive feedback are appreciated if deserved. If you have any related follow up questions or need clarification, just ask!


Remember, this is for entertainment and educational discussion only and is not intended as legal advice and that no attorney client relationship is formed.
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