Bankruptcy Relief: The Basics

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 If you are overwhelmed by debt, you are not alone. Many people struggle with credit card debt, medical bills, tax debt, and loan payments and wonder if bankruptcy can help. This page answers the most common questions about debt relief and explains your legal options for getting a fresh financial start. We get a lot of questions about bankruptcy and how it can help.    Below are some of the most asked questions and answers.

*  How do I get out of debt or get rid of debt?

*  What is the best way to pay off credit card debt?

*  Should I get a loan to pay off credit card debt?

*  I am drowning in debt.  How can I clear my debt?

*  How do I become debt free? 

*  What is the quickest or fastest way to get out of debt?

*  How to get rid of tax debt? 

*  Do you provide a free consultation?

While every financial situation is different, these questions all have one thing in common: finding the safest and most effective way to eliminate overwhelming debt.

The best way to understand your options is to speak with an experienced bankruptcy attorney. Bruce W. White, a Richmond bankruptcy attorney, offers free, confidential phone consultations to review your situation and explain whether bankruptcy or another solution is right for you.

There are several ways you can solve your debt problems

Easier said than done.  If you are looking for answers to any of the questions above, this option is probably too late in coming.  It could work if all of your creditors are willing to work with you, but it will not work if some of the creditors are not willing to work out a repayment plan with you.  The unwilling creditors can and will begin the process of collection, judgments and garnishment of your wages or bank account. 

 Why Debt Settlement Is Often Risky for Consumers

 Debt settlement companies often advertise that they can reduce debts for pennies on the dollar. While this may sound appealing, debt settlement carries serious risks.
 

Key risks include:

• You are usually required to stop paying creditors
   
• Collection calls, lawsuits, and garnishments often increase
   
• Creditors are not required to settle
   
• Large lump-sum payments are often required
   

In many cases, debt settlement causes more financial harm and legal exposure than relief.
 

A bankruptcy attorney can help you compare debt settlement with Chapter 7 or Chapter 13 bankruptcy, which provide immediate legal protection from creditors through the automatic stay.

 Credit counseling agencies may consolidate some debts into a single monthly payment, but you must repay the full balance plus interest. Payments are often high, not all debts qualify, and missing payments can cause the program to fail. 

Filing Chapter 7 or Chapter 13 bankruptcy is often the fastest and most cost-effective way to eliminate debt. Bankruptcy can discharge:
 

• Credit card debt
• Medical and hospital bills 
• Personal loans 
• Certain tax debts 
• SBA and business-related debt
   

While bankruptcy does affect your credit, so do lawsuits, charge-offs, and garnishments. Most clients see their credit scores improve significantly within a year after receiving their discharge. Many individuals are able to finance a vehicle and rebuild credit shortly after completing their case.

 If you are struggling with debt, help is available. Call Bruce W. White, a Richmond bankruptcy attorney, for a free, confidential phone consultation. Call (804)-288-4328 and learn your options and take the first step toward financial relief today.