Debt is something that must be taken care of promptly or it can quickly become more than a person can deal with. Individuals often make the mistake of attempting to pay off debts with their credit cards which only further compounds the problem. Some individuals somehow believe if they ignore their debts they will simply disappear. When creditors are ignored, they can become even more aggressive in their attempts to collect. Thankfully, there are legal options that can help those who are entrapped in more debt than they can pay.
If a person has exhausted all of their available options for settling their debt, it can be advantageous for them to seek the help of a lawyer. A lawyer can review an individual’s financial records to help determine the best type of bankruptcy for them to file. There are two types of bankruptcy for individuals, depending on their financial needs, assets, and the amount of debt they owe. After careful consideration, the lawyer can offer advice on which of the two will be most beneficial.
Chapter 7 is a type of bankruptcy that is most appropriate for those with unsecured debts. The time period for debt settlement is typically six months or less and many can have their debts absolved, depending on the type. Certain types of property may need to be liquidated. In this bankruptcy, a court-appointed trustee takes over the settlement of debt.
There is also the option of chapter 13 which seeks to settle debt that is secured. This bankruptcy is especially beneficial for those who are about to lose their home. This bankruptcy can stop the foreclosure process and help individuals to avoid losing their property while restructuring their payments to make them more affordable. It will be up to the judge to determine how long the applicant will be given but most are given between three to five years.
If you feel like you are drowning in debt and there is no way out, a lawyer can help. Contact the law office of Maynard Cooper and allow them to meet with you to go over your rights and options so you can make a sound decision.