Dealing with debt and financial problems can be a lot less complicated with the help of an experienced bankruptcy attorney. Struggling with debt and dealing with calls from lenders and debt collectors can affect an individual’s health and everyday life. Worrying about how to repay debts would be stressful especially when you recently lost a job or your monthly income was significantly reduced. Filing bankruptcy will help you have a fresh start and rebuild your financial future.
Filing for bankruptcy enables you to pay back or even wipe out debts from your creditor list. There are several types of bankruptcy that a debtor can choose from, but the most common are Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy).
In filing Chapter 7, a bankruptcy trustee shall liquidate your nonexempt assets and manage the proceeds that will be given to your lender or creditor. In contrast, in a Chapter 13 bankruptcy proceeding, you are to financially reorganize and come up with a payment plan. You may be able to retain your properties as long as you make monthly payments following the repayment plan approved by the bankruptcy court. If you have filed for bankruptcy, you may be able to have your debts eliminated without having to pay all of them. The assigned trustee in bankruptcy cases, regardless of filing chapter, shall manage all the transactions between the debtor and the concerned creditor.
If you are considering bankruptcy, deciding on the best option for your circumstance is crucial. Qualifying for a certain bankruptcy case will also depend on whether or not you pass the bankruptcy means test, which looks into your monthly income and living expenses. A reliable bankruptcy lawyer will help you decide on the bankruptcy chapter most suited for the types of debt you owe. Bankruptcy lawyers can also help you understand the basics of bankruptcy law and how to properly file a bankruptcy petition. He or she will likewise assist you throughout the entire bankruptcy procss.
Once your bankruptcy petition has been approved by the bankruptcy court, an automatic stay shall be effective immediately. This prohibits any activities from debt collectors. An automatic stay can stop wage garnishment, foreclosure, and harassment. A bankruptcy filing may be able to stop the constant ringing of your phone as well as reminders to pay all your debts and make monthly payments when you do not have the means to do so. Under the bankruptcy code, collection agencies and creditors are not allowed to demand any payments from you. When you file for bankruptcy, you may also be able to stop foreclosure and save your car from repossession.
There are certain bankruptcy rules that you must be aware of. Filing bankruptcy will allow you to have your unsecured debts, such as medical bills and credit card bills, discharged or eliminated. This will allow you to save for your or your loved one’s needs, such as health insurance or emergency expenses. Bankruptcies, however, cannot wipe out a secured debt. Secured debts include child support, alimony, and certain tax debt. Even after completing bankruptcy proceedings, you have to pay off these debts.
Being bankrupt is not easy. Hiring the best attorneys with extensive knowledge of bankruptcy laws is important for you to not commit any errors related to your bankruptcy proceeding. Bankruptcy filings can help you get back on track, so make sure you make the most out of it. Call us at Bankruptcy Law Network, LLC for a free consultation and legal help from an experienced bankruptcy attorney.