American Legal Network

Bankruptcy is a legally declared inability of an individual or organization to repay outstanding debts. This is usually the last option being considered by most individuals who are experiencing financial crisis especially if they are underwater in debt.

The bankruptcy process begins with a petition filed by the debtor (voluntary) or on behalf of creditors (involuntary). If in case you would be filing for bankruptcy, it can fall under one of several chapters of the Bankruptcy Code, such as Chapter 7 (straight liquidation of assets), and Chapter 13 (wage earner plan).

If on one hand you are just experiencing a temporary hardship and your intention is to save your house from foreclosure and at the same time get a bit of relief from other outstanding debts, you should file for a debt repayment plan – also known as ‘Wage Earner Plan’ under Chapter 13 of the Bankruptcy Code.

If on the other hand you are experiencing severe financial hardship and you’re incapable of paying all outstanding debts that you have, then you should file for straight bankruptcy or total liquidation of assets under Chapter 7 of the Bankruptcy Code.

Want to know more? Call us…. find out if Bankruptcy is right for you.

…and other UNSECURED DEBT solution

The Nation’s spiral descent into recession is creating a lot of financial hardships to people from all walks of life. More and more are getting caught in the web of debt. The growing problem is reflected in cases of financial ruin, and home foreclosures. The Cases of pay-cuts, hour-cut, job loss, and business closures results in delinquencies of monthly payments on mortgage, credit, and loans.

Many consumers nowadays have no other choice but to depend mostly on credit spending thus making them more indebted and underwater on loan payments. Increasing number of consumers are complaining from the banks’ continuous punishing blows evident in the sudden credit card limit reduction and interest rate increases. The situation makes it harder of people to manage their finances between paying bills, making mortgage payments, and avoid going broke.

If in case you are one of these people getting weary of financial concerns, then of course it would be a great relief if you can get out of the exhausting situation the soonest possible time.

We believe that your main concern is the insurmountable debt that you have acquired over a certain period of time where it came to a point that it’s getting hard for you to cope up with the regular monthly payment, then of course you would find ways in order for you to solve that. What do you think are the options available for you?

It’s a little-known fact that when you fall further and further behind on your payments, creditors would much rather agree to settle your debts than have you file bankruptcy and not get paid at all. Unknown to most people, this procedure is called “Debt Settlement”. In exchange for an agreed-upon one-time payment — for instance, half of what you owe — the creditor forgives the rest of your debt and starts reporting it to the credit bureaus as settled. Meanwhile, you’ll need to put money aside toward the settlement and stop making payments to your creditors.

The goal of debt settlement is to reduce the overall amount of the debt, by negotiating payoff amounts with your creditors. We at American Legal Network Online does just that. We would negotiate with creditors on your behalf and work out an agreement regarding payment schedules, including the total amount of debts to be settled.