Though everyone deals with some form of debt in their lives, some people end up dealing with more than they can handle. Overwhelming debt can make a person feel like they are drowning and will never be free. There are a couple of things a person needs to do when they find themselves in debt. The first is they need to contact their creditors to see if any satisfactory payment arrangements can be made. Should the creditors be unwilling to work out arrangements, there is always the option of filing for Chapter 7/13 Bankruptcy.
To find out if bankruptcy will be an option, a person needs to schedule a consultation with a lawyer. The lawyer can view their financial records and determine whether or not bankruptcy is a viable choice to free them from the debts they owe. There are two different options individuals can file for bankruptcy. Through this information, people will learn more about chapter 7/13 bankruptcy so they can make an informed decision that will better benefit their financial needs.
Chapter 7 is a type of bankruptcy that allows a person to settle all of the debts they owe within six months. The person will need to go through a mean’s test to determine whether or not their income is within the limits. They may also need to submit some of their property for auction so their debts can be paid down. In many cases, the court-appointed trustee offers debt forgiveness.
Chapter 13 is another option and is especially beneficial when a person is facing the loss of their home through foreclosure. This type of bankruptcy has limits on the amount of debt a person can file. Chapter 13 allows a person to pay monthly payments on their debts to work to pay them down within a period of three to five years.
If you are deciding whether or not bankruptcy is an option, visit website. This site will give you all the information you need so you can make a sound decision on bankruptcy. Call the office today and schedule a consultation appointment so they can help you through your bankruptcy.
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