Bankruptcy

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Financial stress can affect nearly every part of daily life. Job changes, medical expenses, rising costs, or unexpected events can quickly place individuals and families in a difficult financial position. For many people, the idea of bankruptcy brings uncertainty or concern, often based on misconceptions rather than facts. Our goal is to provide clear, straightforward information so you can understand whether bankruptcy may be a useful option for your situation.

Bankruptcy is a legal process designed to give individuals a structured way to address overwhelming debt and regain financial stability. It is not a sign of failure. For many, it is a practical tool that allows breathing room, protection from creditors, and an opportunity to reset financially under the protection of the court.

Most consumer bankruptcy cases fall under Chapter 7 or Chapter 13, each serving a different purpose depending on income, assets, and financial goals.

• Chapter 7 is often used by individuals seeking a fresh start through the discharge of unsecured debts such as credit cards and medical bills. The process is generally straightforward and can be completed in a relatively short period of time for qualifying individuals.
   
• Chapter 13 is a repayment-based option that allows individuals to reorganize debt through a court-approved payment plan. It is commonly used by those who wish to catch up on mortgage arrears, stop foreclosure, address tax debt, or retain valuable assets while working toward long-term financial stability.
   

During an initial consultation, we help determine which option, if any, is appropriate based on your circumstances.

One of the most immediate benefits of filing bankruptcy is the automatic stay. Once a case is filed, most creditor actions must stop. This can include collection calls, wage garnishments, repossessions, and foreclosure proceedings. The automatic stay provides relief and structure, allowing time to evaluate options without constant pressure from creditors.

Bankruptcy is a powerful tool, but it is not a one-size-fits-all solution. Certain obligations, such as child support and many student loans, are generally not discharged. Understanding both the benefits and the limitations is an important part of making an informed decision.

At The Tancredo Law Firm, P.A., we focus on helping clients understand their options and make thoughtful decisions about their financial future. If you are experiencing financial strain or simply want to know whether bankruptcy may be appropriate for you, we invite you to contact our office to discuss your situation and receive clear, practical guidance.