Bankruptcy and Debt Relief

“ Your MidCoast Lawyers ~ Solving the Problems that Matter Most to You.”

In these tough economic times, many hardworking people have become overwhelmed by debt problems. One of the most effective ways to solve these problems is to file for protection under the U.S. Bankruptcy Code. Unlike private debt relief programs, a bankruptcy filing gives you specific legal protections that stop debt collectors dead in their tracks while you get back on your feet again. Bankruptcy is designed to give people a fresh start, and the opportunity to become a productive participant in the economy once again.

Chapter 7—Debt Liquidation

In a Chapter 7 bankruptcy, your legal obligation to pay debts is eliminated in exchange for liquidation (sale) of non-exempt assets. However, most filers are able to keep all their personal property because Maine law provides exemptions (protections) that protect this property from creditors. You may keep your home, cars and other debts secured by collateral if you can afford to pay and are up to date on your payments. This Chapter is perfect for people who have credit card debt, unpaid medical bills and other obligations that would be impossible to pay off without a significant increase in income (or winning the lottery!). Creditors have to stop contacting you immediately upon filing your case. It is relatively fast—most cases are finished within 4-6 months of filing.

Our Practice

Richard Regan is our principal bankruptcy attorney. He is a member of the National Association of Consumer Bankruptcy Attorneys and has helped his clients eliminate millions of dollars of debt. He takes great pride in developing creative, compassionate, and effective ways of solving his clients’ debt problems. Please feel free to contact Attorney Regan for a free consultation at 729-0856.

Chapter 13—A Payment Plan that Really Works

In a Chapter 13 bankruptcy filing, you agree to work out repayment plans with all of your creditors, promising to satisfy all debts over a 3 to 5 year period, often at a reduced percentage of the debt actually owed. In exchange, your creditors agree not to pursue any attempts to recover debts outside the bankruptcy process. You need a steady, predictable income for this type of filing to succeed. Filing in Chapter 13 is an effective way to stop foreclosure and pay off arrearages on your mortgage. One of the nice things about paying credit card debts in a Chapter 13 Plan is that interest and late charges are not allowed. In some instances, you are responsible for paying the current value of your car—not what you actually owe on the loan. A Chapter 13 Plan allows you to take control of your finances once again.