People usually try everything they can to pay their bills and avoid bankruptcy. Often they max out their credit cards and even turn to payday loans. As a result, they are faced with monthly payments that they can’t make. As soon as they start to fall behind, they should contact a Bankruptcy Attorney. Bankruptcy is a legal process that exists to help debtors start over. The lawyer’s first task is to determine if the debtor qualifies for bankruptcy.
Once a person’s debts have been discharged by a bankruptcy process, the court will not discharge them again within certain time periods. This varies according to which bankruptcy chapter the debtor used. If the debts were discharged under Chapter 7, then the debtor must wait eight years from the date of the initial filing to refile under Chapter 7. If the debtor used Chapter 13, then they must wait two years to refile under Chapter 13. Some debtors switch between the two bankruptcy chapters. A debtor who has had debts discharged under Chapter 13 must wait six years to use Chapter 7. A debtor who used Chapter 7 initially must wait four years to use Chapter 13. Legal exceptions to all of these time limits are possible. A Bankruptcy Attorney will evaluate each case to determine which waiting periods if any apply.
In order to file for Chapter 7, the debtor must have made less than the medium income for his state for the last six months. If he makes more, then he is usually required to file for a Chapter 13 bankruptcy. However, debtors with higher incomes can apply for a hardship waiver to allow them to use Chapter 7. If the lawyer determines that the debtor can use Chapter 7, he will file the application with the court. The judge with appointing a bankruptcy trustee to oversee the process. He will sell off any unprotected assets and distribute the proceeds to the creditors. Often the debtor can keep their house, car, clothes, furniture and the tools they need to make a living. The process usually takes three to six months to complete.