When a person begins experiencing overwhelming debt, it is important they are aware of the options they have for legally settling their debt. One of the biggest mistakes individuals make is attempting to ignore collection calls and letters, somehow thinking the collector will simply go away. When a debtor ignores collection attempts, this can lead to an unfavorable outcome. In some cases, a collector has the right to seize property. When debt becomes too much to handle, debtors can find help by hiring a bankruptcy lawyer in Gainesville.
Before a person hires a bankruptcy lawyer in Gainesville, they need to first contact their creditors to determine if any payment arrangements can be made. If this is successful, a person may be able to pay their debts with a restructured payment plan. If the attempts are not successful, meeting with the lawyer will help a person determine whether they are a good candidate for bankruptcy.
There are a couple of types of bankruptcy a person can file, depending on their financial situation. Chapter 13 is the type that is most beneficial for homeowners who are in danger of losing their home to foreclosure. When this type of bankruptcy is put into effect, the creditors can no longer pursue collections and must wait for payment according to the agreed-upon payment plan that is approved by the court.
There is also an option called chapter 7. This type of bankruptcy is most beneficial for those who have unsecured debts, such as credit card debt and hospital bills. The process of settling debt with chapter 7 generally only takes around six months. A trustee is put over the case and helps ensure debts are paid or absolved, depending on the type and what assets the debtor owes.
Debt is something that can truly become stressful for a person. Ignoring the collection attempts will not make the debt go away. If you are in need of further information on bankruptcy, visit us. Here, you can learn the information you need so you can make a sound decision on whether or not bankruptcy is a viable option for you.
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