Each year, many hard-working and honest individuals find themselves facing sudden changes in their finances, leading them to consider declaring bankruptcy. Whether it’s the loss of a family member, loss of a job, or divorce, bankruptcy can be an emotional choice. Yet, it provides people with a fresh start with their finances. It also offers certain advantages over other forms of debt relief, such as debt settlement or counseling.
Generally, bankruptcy covers more debts. One example is accounts referred to as collections. In these cases, once paperwork is filed, individuals stop paying bills immediately. Efforts to collect are also stopped. Unlike debt settlement or counseling, bankruptcy puts a stop to monthly payments.
In addition to covering more debts, bankruptcy can protect against foreclosure, repossession, lawsuits, and garnishment of wages.
Chapter 7 or Chapter 13
A competent attorney is recommended to help determine a person’s eligibility for filing a Chapter 7 or Chapter 13 bankruptcy. While you may feel as though you can file on your own, the knowledge and experience of a lawyer will ensure that you get the best possible terms for your case.
Chapter 7 bankruptcies allow for elimination of almost all debt. Automobile payments, real estate, home loans, and credit cards are some examples. Even so, individuals may choose to keep some debt and discharge other forms. In this case, a person can keep a mortgage payment and eliminate all credit card bills.
Chapter 13 bankruptcies generate a payment schedule, allowing individuals to “catch up” on delinquent payments. This may involve totaling all payments and consolidating to one lower monthly payment. Specifically, Chapter 13 helps people who are behind on mortgage payments, taxes, child support, or other loans. It also helps individuals to keep their homes, if they are facing foreclosure.
Shepard, Plunkett, & Hamilton, LLP is dedicated to finding solutions to your financial issues. Our bankruptcy attorneys are certified by the American Board of Certification, and are knowledgeable about new and complex bankruptcy laws. You can be sure that we will work to maximize your debt relief, and protect your assets. If you are suffering financially, do not wait. Call us today.
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