While things have not been great financially for some time, it seems as if it is getting harder to manage the debt. In fact, there is a very real danger of falling behind in the payments next month. Before things get any worse, it pays to make an appointment with a bankruptcy attorney in Dodge WI area. The results of that consultation could be the starting point for a brighter future.
Assessing the Situation
As part of the initial consultation, the bankruptcy attorney in Dodge WI, will want to take a look at the overall financial condition of the client. This will involve taking a close look at the secured and unsecured debts, the amount of income that the household generates every month, and any assets that the client happens to own outright. The goal is to determine if the situation is dire enough to begin considering any form of bankruptcy protection.
Discussing Options
Assuming that the client meets the current criteria for bankruptcy, the attorney will discuss the pros and cons of each option that is available. For people who have little in the way of assets and income, and who are on the verge of being unable to keep up with the bills, filing a Chapter 7 may be the best approach. As the attorney will explain, this form of bankruptcy makes it possible to liquidate any eligible assets under the direction of the court, distribute the proceeds among the creditors, and then dismiss the remaining balances. When everything is done, the client will be debt-free and in a position to start over financially.
For those who do not meet the qualifications for this type of bankruptcy, there is the possibility of filing for a Chapter 13. This is basically a debt reorganization program that places the debtor under the protection of the court. Outstanding balances no longer accrue interest and penalties, and the debtor makes payments directly to the court. Those funds are distributed to creditors in accordance with a schedule approved by the court. Once the balances are paid in full, the bankruptcy is considered complete.
Once the client determines what he or she would prefer to do, the Bankruptcy Attorney will file the right documents with the court. In a short amount of time, it will be possible to settle the debt and begin to make plans for the future.
