Personal Debt Solutions with a Bankruptcy Attorney
A bankruptcy attorney guides individuals through discharge of unsecured debts or an interest-free repayment option of Chapter 7 or Chapter 13 respectively. After all, during difficult times such as these when credit is sometimes all you have to cover necessary expenses, you can't afford to lose majority of your income to covering compounding bills. You need to cover your day to day living expenses and a bankruptcy lawyer will help you understand and utilize your options with consolidation and relief.
The decision to file for assisted debt consolidation and repayment plan options with your local bankruptcy attorney is never an easy conclusion to reach. It affects the individual,
married couple, family, and business credit future for several years. However, the mounting debt has already had an effect on one's stress and budget that has been tightened to the degree of a juggling act of minimal resources from one utility to the other. It has barely left room to sustain your business, to continue mortgage payments, or for enough groceries for the month. Once you discover that filing for Chapter 7 or 13 is your last option then seeking the counsel of a learned bankruptcy attorney to confidently guide you through the steps of government agency consolidation to acknowledge and itemize your income and debt. Your ability to file is based on several conditions one of which is your personal or professional debt to income ratio.
The two types of personal filing that a bankruptcy attorney can help you with are Chapter 7 for those with very little property and no equity and Chapter 13 for those with home equity as well as other assets and steady income to facilitate a limited but meaningful form of debt repayment. On the one hand, for Chapter 7 filers they must meet two pre-filing obligations. First, they must complete credit counseling to make sure they understand their individual debt to credit ratio and become better prepared for the steps that lay ahead. Second, he or she has to complete a means-test that indicates whether their income is capable of covering basic expenses and the amount of excess, if any at all. On the other hand, Chapter 13 filers must have unsecured and secured debts below specific figures of $360,475 and below $1,081, 400 respectively. Once the specific case has been deemed worthy of Chapter 13 because existing assets will not cover the repetitive onslaught of monthly bills, a repayment plan will be enacted. During a period of 3 to 5 years, the filer will not be contacted by or have any direct payment dealings with collectors. A specific amount will be agreed upon and distributed amongst the debt collectors on the filing party's behalf. These steps make it a successful system to assist individuals whose insurmountable debt requires guidance to rectify.
A bankruptcy attorney can help you through the understanding of the benefits and your application process. Yes, your inability to pay your debts does reflect badly on your ability to effectively utilize credit, to certain employers and future credit lenders. However, during your time of repayment lawyers protect you against aggressive debt collectors as well as abreast of the details of the chapter that you have filed and the obligations thereafter once it is carried out. You don't have to fear the consequences of filing because the results are transparent. The only thing to fear is the lasting results of going into default, losing your vehicle for work, your home for your family, or ability to feed your children. There are certain staples of life that aren't worth risking because of a temporary mismanagement of credit.
