Dealing with tons of debt is not easy. You are often bombarded with the hassles of creditors calling you all the time and their threats of repossession and wage garnishment. Though you want to be free of your debt, you cannot seem to pay your bills and overcome the mounting debt you are dealing with. For many, these situations can be more than they can handle. To find your way out of debt, it can help to file for bankruptcy. Though this should never be a first option, it often becomes a lifesaver for those who cannot control the amount of debt they are under.
Which Bankruptcy Will Work for You?
Depending on your financial needs, the amount of debt you owe and how much income and assets you have, will decide which bankruptcy will be best for you. The two most common forms of bankruptcy are chapter 7 and chapter 13. Each have their benefits for different reasons. When you first meet with your Tucson Bankruptcy Attorney, he or she will take a long look at your finances and help you to make the decision on which type will best benefit you.
Chapter 7 bankruptcy involves you having your assets liquidated through a court appointed trustee. The trustee has the power to absolve you of some of your debt and will work to get as much money for your creditors as possible, by selling all of your non-exempt property. It typically takes about six months for this to be accomplished and out of the choices is the faster of the two filing statuses.
Filing for chapter 13 bankruptcy allows you to get rid of your debt through a more traditional means. You are not required to liquidate any assets, but you are required to pay a monthly payment to the court. This payment amount is based on your income and will allow you to pay off your debt in a period of three to five years, for most people. It is important you are able to afford this payment, so the judge will need to approve it.
