Personal bankruptcy is one of the most misunderstood of all legal matters and is probably not what you think that it is.

If you are in debt and need financial relief, the Federal Bankruptcy System allows you to rid yourself of unneeded, unsecured debts and still keep items of collateral, which are needed. You'll pay secured debts and pay only a small percentage of unsecured debt.

Today's bankruptcy system will almost always allow you to keep secured debts - those secured by collateral such as houses, mobile homes, automobiles, furniture and jewelry - and repay the debt at lower interest rates. Also, you'll usually pay no interest to unsecured creditors. The interest savings alone can reduce your debt by thousands of dollars.

With the exception of mortgage payments, I can generally reduce the balance, interest and monthly payments on most of your debts. Once these debt payments are reduced, your cash flow will be improved and mortgage payments should be much easier.

Bankruptcy can also stop the constant calls from collection agencies. When you file a bankruptcy petition with the Federal Bankruptcy Court, all your creditors (including the IRS and other governmental creditors) are prohibited from contacting you - no phone calls, no letters. Even state law judges are prohibited from proceeding against you (except for criminal matters) without permission of the Federal Bankruptcy Court.

The two main types of bankruptcy available to individuals and married couples are Chapter 13 (reorganization) and Chapter 7 (liquidation). Neither of these force you to necessarily give up your houses, cars, furniture and personal possessions.

Please note that bankruptcy filings are quite complicated and you should only trust an experienced bankruptcy attorney. I offer a free, no-hassle, no pressure consultation. Bankruptcy filing is an extremely personal and often very emotional decision. I respect both your privacy and your dignity while giving you the information you need to make an informed and rational decision about your financial future.

To schedule your free consultation, please contact your nearest Gaffney Law Office today.