Filing for bankruptcy can be a very sobering thought to many people. However, there are financial situations that can only be resolved by an individual filing for bankruptcy. There are many questions that need to be answered if a person is filing for chapter 7/13 bankruptcy in Marietta, GA, though. The first one is what type of bankruptcy does the individual qualify for.
It may surprise people to know that there are multiple types of bankruptcies that can be filed for. Some are prohibited due to a person’s financial stature or circumstances. For example, chapter 7 is the most common type of bankruptcy that individuals file for. This filing allows for debts to be legally wiped out by the courts, and it helps a person start with a clean financial slate. There are instances where excess income or assets may be required to be sold off in order to repay a portion of the debt. However, this is more the exception than the rule for people filing for chapter 7.
There are some people who have a certain income level which disqualifies them for chapter 7. This exclusion is normally determined by an income means test that must be taken prior to filing for bankruptcy. In these cases, chapter 13 bankruptcy is the next option. The way to describe this type of bankruptcy is that it is a court-mandated repayment plan ranging anywhere from 3 to 5 years. This plan is established by the courts and it is a way in which the debtor repays their debts or a portion of them. Once the repayment plan is finished, the bankruptcy is officially discharged.
Filing for chapter 7/13 bankruptcy in Marietta, GA can be complicated, and there’s a number of different things to consider. That’s why it’s better to consult with a bankruptcy attorney before considering filing. There may be options that you haven’t discovered that could help prevent bankruptcy. However, if bankruptcy filing is inevitable, an attorney from website can answer your questions about the process and help you get the ball rolling on filing for bankruptcy to give you and your family some relief.
