When a person is dealing with mounting debt, they often feel as if there is no hope. When faced with too much debt, people often try to ignore the problem, only making it worse. If you are facing more debt than you can afford, it is important you contact your creditors and do all you can to settle your debt. In the event this is not possible, you may can benefit from consulting with Bankruptcy Law Firm Services.
There are two types of bankruptcies individuals and married couples can file when they are in debt. Both types have their own pros and cons and can benefit a person in different ways. The first type is for those who have mostly secured debts. Chapter 13 helps home-owners to avoid foreclosure and can assist a person in paying down their debts and taking back control of their finances.
When you file for Chapter 13, a monthly payment is required so your debts can be paid down. You are responsible for keeping your payments current so the terms of your bankruptcy are followed. Chapter 13 can last between two to five years, depending on the amount of debt a person owes and their monthly income.
There is also the option of chapter 7. Chapter 7 bankruptcy allows a person to settle their debt in six months or less. By passing a Mean’s Test to ensure you meet income qualifications, you can be approved for filing for this type of bankruptcy. If you own certain types of assets, these may be liquefied to pay off any debt you owe.
Chapter 7 bankruptcy is overseen by acourt-appointed trustee. The trustee works to pay down your debts and has the power to absolve them if there is no qualifying property to liquidate. Most people find this type to be the fastest and easiest method of overcoming debt through bankruptcy.
If you are in need of Bankruptcy Law Firm Services, contact your lawyer right away. A lawyer can go over your finances and debts to help you determine which bankruptcy option will best benefit your situation.
