Each year, millions of people end up needing to file for bankruptcy because they are in over their heads with debt and cannot seem to find a solution. Bankruptcy can allow a person to stop foreclosure, repossession and collection letters and phone calls. People who owe more money than they can afford can often find the help and guidance they need through a bankruptcy law firm. A law firm can help a person make the tough decision on which bankruptcy type will most benefit them.
To determine which bankruptcy type will be most prudent to file, the bankruptcy attorney will need to review the person’s financial records. The determining process will take into account the types of debt owed, the income of the person and the assets they own. There are two main types of bankruptcy individuals file. One is mostly for secured debts and the other is for unsecured.
Chapter 13 is a type of bankruptcy that allows people time to pay down their secured debts. This bankruptcy can stop foreclosure proceedings and prevent repossessions. Most people are given two to five years to pay their debts through payments that are set up based on their income. Once their bankruptcy is over, their debts will have been paid and they can start a better financial future.
There is also the option of chapter 7 bankruptcy. With this type, a person can settle their debt in as short a time as six months. If non-essential property is owned by the person, they may be required to submit their property to be sold so their debts can be paid down. If no property is owned, the court-appointed trustee will make the decision on whether or not the debts can be absolved.
To learn more about these options and the qualifications they require, visit us. They will provide their clients with the legal assistance they need to ensure their bankruptcy is filed properly and gives them the financial freedom they seek. Through a free case consultation and evaluation, people can learn more about their options and what the lawyer can do to help improve their financial situation.
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