The founders of our country foresaw that good, honest people might face hard financial times and be unable to pay their bills. Rather than send them to debtor’s prison like many European countries did, they provided the foundation for the debt relief process we know as bankruptcy.
Bankruptcy is a legal solution designed to help those who are struggling with financial hardships such as foreclosure, eviction, vehicle repossession, wage garnishment, or mounting unpaid bills. It allows you to eliminate or restructure your debts under the protection of the bankruptcy court. Here’s an overview of the most common types of bankruptcy for individuals:
Chapter 7 Bankruptcy
Chapter 7, sometimes called liquidation bankruptcy, is a fast and affordable way to:
- Stop wage garnishments and bank levies.
- Temporarily pause repossessions and foreclosures.
- End creditor harassment.
- Get a fresh financial start.
Most individuals who file for Chapter 7 are able to keep all of their property and have their debts wiped out (“discharged”) upon the successful completion of their case.
Learn more about Chapter 7 here.
Chapter 13 Bankruptcy
Chapter 13, sometimes called the wage-earner bankruptcy, involves creating a repayment plan to pay back debts over three to five years. It allows you to:
- Retain valuable assets you may have lost in a Chapter 7.
- Catch up on overdue mortgage or car payments while the bankruptcy court protects you from foreclosure or repossession.
- Discharge certain debts that are not dischargable in Chapter 7.
This option is ideal for those who make too much to qualify for Chapter 7, are temporarily behind on payments but need some time and protection from the court to catch up, or are seeking discharge debts not dischargable in Chapter 7.
Learn more about Chapter 13 here.
The Benefits of Filing for Bankruptcy
Bankruptcy provides a range of protections and opportunities to help you regain control of your finances. Key benefits include:
1. Automatic Stay
- Immediately halts creditor harassment and debt collection efforts, including wage garnishment, repossessions, and foreclosures once you file for bankruptcy.
2. Asset Protection
- Bankruptcy is an equitable process that does not aim to leave debtors on the street with nothing. Rather, it aims to give debtors a meaningful fresh start. That means you keep your property protected under Montana’s bankruptcy exemptions. Exemptions including clothing, home furnishings, equity in a vehicle, government benefits, retirement accounts, your primary residence, and many other assets.
- Non-exempt assets, such as luxury or high-value items, tax refunds, or cash accounts may be liquidated in bankruptcy and distributed to your creditors. Properly evaluating these exemptions is complex, making it essential to consult with an experienced attorney.
3. Debt Relief
- Discharge or reduce most debts upon successful case closure. While many debts can be discharged, some obligations—such as certain taxes, student loans, and child support—may not qualify.
- Speak with a bankruptcy lawyer to understand what debts can be forgiven in your case.
4. Credit Score Rebound
- Although bankruptcy appears on your credit report, it can often be a better long-term option than continuing to struggle with unmanageable debt. Starting fresh allows you to rebuild your credit score sooner than struggling to make payments for years, only to file bankruptcy later.
Is Bankruptcy Right for You?
Filing for bankruptcy is a significant decision that depends on your unique financial circumstances, including:
- The types and amounts of your debt.
- Your income and expenses.
- Your long-term financial goals.
At Murnion Law, I offer a comprehensive evaluation of your situation to help you determine the best path forward. Bankruptcy is not a one-size-fits-all solution, but when it’s the right choice, it can provide the relief you need to reclaim your financial freedom.
Why Choose Murnion Law for Your Bankruptcy Case?
It is crucial to work with a bankruptcy lawyer who will evaluate your financial situation and discuss all available options—including alternatives to filing for bankruptcy if they better suit your needs. At Murnion Law, I provide personalized guidance to help you find the debt relief solution that’s right for you.
Take Control of Your Finances Today
Don’t let debt control your life any longer. Contact Murnion Law for a free initial consultation, or schedule one directly:
Together, we’ll find the best solution for your financial future.
Disclaimer: This page is for informational purposes only and does not constitute legal advice. Bankruptcy is a complex, fact-intensive process. Only after a detailed examination of your financial affairs can a lawyer provide sound bankruptcy advice.
I am a debt relief agency. I help people file for bankruptcy under the Bankruptcy Code.