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Unsecured Debt Relief

What is unsecured debt relief?

Debt comes in two main types: secured and unsecured. Secured debts are specifically tied to one object, like an auto loan or a mortgage on a home. Unsecured debt, on the other hand, is just about everything else - like medical bills, credit cards, or payday loans.

With secured debt, there is pressure to keep up on payments, because a default can lead to the creditors taking back the property that secures the debts - missed car payments can lead to repossession, and missed mortgage payments can lead to foreclosure. If you fall behind on an unsecured debt, creditors may call and demand payment, bring lawsuits against you, or garnish your wages.

If you're facing pressure from unsecured creditors, bankruptcy may provide relief. Bankruptcy's automatic stay can halt all collection efforts, while a Chapter 7 discharge could free you from obligations to pay back certain unsecured debts.

For more information, speak with a local bankruptcy attorney today. Simply fill out the case review form below to get started.

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Qualifying for Unsecured Debt Relief

Chapter 7 bankruptcy is a legal process that is designed to wipe out unsecured debts in as little as 4 to 6 months. However, because of the power of Chapter 7, not everyone is eligible to file.

In order to seek Chapter 7 protection, you'll need to pass a means test, which looks at your income. If your income is below the median in your state, you'll likely be eligible to file. This makes Chapter 7 especially suited for people with little regular income, with income from unemployment or other government benefits, or who have been unable to work due to a medical emergency.

If your income is greater than the median for your state and household size, you may still be able to file Chapter 7 in certain situations, or you may be able to seek unsecured debt relief through Chapter 13 bankruptcy, which creates a structured, interest-free payment plan through the court.

Seek a Bankruptcy Attorney

While hiring an attorney to help you with your bankruptcy case is optional, having a lawyer may help ensure that all your paperwork is in order and can present a clear-cut case to creditors and the court. An attorney can also help you establish a payment schedule that is reasonable for you and your family.

The whole country is in a financial slump and the only way out of one is by keeping the economy moving. Ask an attorney about getting relief from extraneous fees, wage garnishment and harassment from creditors.

Have Additional Chapter 13 Questions?Connect with a Local Attorney

If you have more questions about filing for Chapter 13 bankruptcy, speak with a bankruptcy lawyer near today. Connect with an attorney today for a free case evaluation. Fill out the form below or call 877-833-2410 to get started.

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