.Are you concerned about losing your home or car due to overwhelming financial obligations? Financial problems can happen because of many reasons including divorce, illness, loss of a job, and overspending. Protecting a home is usually the main priority for many people because they need a place to live. A debt relief attorney can help to eliminate creditor harassment, protect your property and safeguard the things things you own.
Filing bankruptcy is nothing to be ashamed of. Unsecured debt, such as credit cards, can get someone into a financial burden that is difficult to get out of. One late payment and the company might raise the interest rate to some astronomical percentage. Dealing with aggressive collection agencies only adds to the stress someone’s already facing being unable to pay their bills. Chapter 7 and chapter 13 bankruptcy allows someone to get a new financial start.
Chapter 7 Bankruptcy
This type of bankruptcy is a liquidation of assets that aren’t exempt. A means test will be given to determine if someone’s no longer financially capable of paying their current debt. Once this type of bankruptcy is filed, creditors can no longer contact someone on the phone to harass them for payment. This type of bankruptcy is ideal for someone that does not have a regular source of income.
Chapter 13 Bankruptcy
Chapter 13 does not include the liquidation of assets. It involves a reorganization plan which will allow someone to pay their debt back over a more manageable timeframe. It can stop the repossession of a car and other property. It can get back repossessed assets and strip 2nd and 3rd mortgage liens. After the payback period is complete, the balance of the debt will be erased.
Both Chapter 7 and chapter 13 require you to attend a certified credit counseling program. Although you can file bankruptcy on your own, it’s always recommended that you hire a debt relief attorney. They can electronically file the bankruptcy papers with the court on your behalf and help you through the creditors meeting. They offer a free consultation and can help you decide if this is the right choice
