Should I file Bankruptcy?

At the Butler Law Office, we do our best to keep out clients out of bankruptcy through Loan Modifications and Debt Settlement. However, in many instances, bankruptcy is the best, or the only, alternative. If you do not have enough money to pay all your debts and you will not likely be able to pay your debts in the future, you may need to file bankruptcy.
While every situation is different and requires careful analysis, here are some of the advantages that bankruptcy may offer:

  • Bankruptcy STOPS foreclosure, car repossessions, wage garnishments, tax garnishments, lawsuits; and can allow you to make up past-due payments over time.


  • Assuming that your home is worth less than amount of your first mortgage, your second mortgage (or home equity loan) can be “stripped off,” meaning that the lien is taken off of your home. In that case, the second mortgage debt can be discharged like a credit card or medical bill. Note: This applies to
  • Chapter 13 bankruptcy cases only.

  • In most cases credit card debt, medical bills, payday loans and other similar debts are dischargeable in bankruptcy, which means they never have to be paid back. Certain other debts, including taxes, child support obligations, and student loans are more complicated and may be dischargeable only in certain situations.


Due to changes in the bankruptcy law in 2005 a careful analysis is required to determine if you qualify for a Chapter 7 bankruptcy, Chapter 13 bankruptcy, or Chapter 11 bankruptcy.

Which kind of bankruptcy you might qualify for, and which is best for your situation, depends upon your income level, which assets you want to keep, and other factors including whether you are attempting to obtain a Loan Modification.
The Butler Law Office has over thirty three years of experience and can help you make a decision that will be best for you!