Dealing with debt can be difficult no matter the circumstances, especially when a person loses their job or goes through an unexpected illness. Fortunately, there is help available for those who are struggling with debt and cannot seem to overcome it. Through the help of a bankruptcy law firm, a person can learn more about their options for filing for bankruptcy so they can receive the financial relief they need.
A person would be wise to schedule a consultation appointment with a bankruptcy law firm before making any decisions. The lawyer will need the person to bring in all of the bills they owe, proof of their monthly income and information on the assets they own in order to make a determination on which type of bankruptcy will be best.
Bankruptcy offers two options based on the type of debt a person owes. Those who are facing foreclosure or repossession would be wise to choose chapter 13 since it produces an automatic stay that prevents creditors from pursuing a person for collection. It stops wage garnishments, property repossession, and foreclosure. Chapter 13 gives people a period of a few years to pay down their debts by lowering their monthly payments to make them more affordable.
Those who have unsecured debts may benefit more by filing for chapter 7 since this is a faster option for debt settlement, because within a period of six months, a person can be completely free of their debts and the stress that goes with them. The lawyer will file the bankruptcy through the courts and a trustee will be appointed to take charge. Trustees must surmise the assets a person owns and decide if any are eligible for liquidation, and they have the power to discharge certain types of debts.
No matter which option a person chooses for filing, bankruptcy can offer financial freedom and the chance to start again. To learn more about the different bankruptcy options, visiting Thompsonanddeveny.com can be helpful by giving people the answers they are looking for, and it allows them to schedule a consultation with the lawyer.
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