Bankruptcy and Too Much Debt
If you feel as though you have too much debt to catch up with your payments, you may want to consider the path that many have chosen to find debt relief: bankruptcy protection. Bankruptcy protection for individuals was established as a way to help people to get out from under debt that is keeping them from fulfilling their financial potential and contributing to society and the economy.
There are several types of bankruptcy, and your particular circumstances will have a lot to do with the type of debt relief option that may work best for you.
Chapter 7 bankruptcy is an option in which the filer can typically receive a relatively quick discharge of eligible debts. In Chapter 13 bankruptcy, a plan is put together for the debtor to pay off creditors in an organized way over a period of years.
Both of these bankruptcy options may be something to consider for those with too much debt. If you would like to discuss bankruptcy with one of our sponsoring bankruptcy attorneys, simply fill out the free case evaluation form today.
Chapter 7 Bankruptcy Liquidation Information
Chapter 7 liquidation is typically for those without much regular income, and who have mainly unsecured debt, meaning debt without physical property associated with it. Unsecured debts can include credit card debt, medical bills and other loans that were made based solely on the borrowers ability to repay, rather than being associated with physical collateral. With the Chapter 7 debt discharge, many of these unsecured debts can be discharged, meaning the borrower is no longer responsible for them.
To qualify for Chapter 7 bankruptcy, one's income must be at or below the median income for comparable families in the state. Those who do qualify will often have their bankruptcy cases converted to Chapter 13 bankruptcy reorganization cases.
Chapter 13 Bankruptcy Reorganization Information
Chapter 13 reorganization is often the option for those who have regular income, and who are in a position to pay off their debts over a few years once a reorganization plan is in place. This form of bankruptcy can even halt foreclosure, so it's often the choice for those with homes or property that they don't want to lose.
Discuss Your Bankruptcy Options with a Local Attorney
If you want to learn more, or to discuss your case with one of our sponsoring bankruptcy attorneys, please fill out the case evaluation form below. We can help you arrange a free, no-obligation consultation with an attorney in your area.
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