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Consumer Bankruptcy Cases

The Phillips Law Offices, LLC helps consumers decide on what course of action that they need to take with respect to their consumer debt issues. We strive to give honest and accurate information to consumers with respect to their current financial situation. Our bankruptcy attorneys assist Debtors filing Chapter 7 and Chapter 13 bankruptcy cases.

Chapter 7 Bankruptcy is a great tool for consumers who have lost a job, or are in a low-income situation, but whose debts are getting out of hand. Similarly, if you are going to loose a home to foreclosure and can not afford to save it through a Chapter 13 payment plan or some other modification, a Chapter 7 case can discharge your obligation to the bank, especially if the home sells for less.

Bankruptcy Reporter Books

What is Bankruptcy?

We’ve heard a lot of confusion around what exactly bankruptcy is.  Bankruptcy is defined by Black’s Law Dictionary as “a federal system of statutes and courts which permits people which are insolvent or face potential insolvency, to place his/her/its financial affairs under the control of the bankruptcy court.”  What do all those fancy words mean for you?

In a nut shell, it means that people that are struggling with debt can seek protection from their creditors through the bankruptcy court.  This is not a new concept in American History; rather bankruptcy law existed from the beginning of this country. It was so important to our Founding Fathers that they gave congress the power to create bankruptcy courts and rules in Article III of the Constitution. Not, Article Ten or Twenty but as early as three in the Constitution.

Why did our Founding Fathers do that? Well, the reality is that America was designed to allow people to be free to make mistakes without facing Debtors or prison and ruining their entire life over Debt issues. Bankruptcy is a process that provides consumers an option to seek protection from the Federal Government, from their creditors and not to be harmed for the rest of their lives due to the Debt mistake they made.

Bankruptcy is a tool provided to the citizens of the United States to help those who have unfortunately gotten into some debt that they cannot handle.

Infographic on the bankruptcy process

Common Misspellings of debt relief terms are:

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