How to Legally Get Rid of Debt

When debts begin to rise to the point a person can no longer pay their bills, it is time for individuals to learn about their options for chapter 7 bankruptcy. Bankruptcy allows individuals to legally overcome their debts so they can be free of them and get a fresh start.

How to Get Started

To get started on filing for bankruptcy, a person needs to schedule a consultation with the bankruptcy attorney. A consultation meeting allows a person to learn about their bankruptcy options so they can decide whether or not they want to pursue bankruptcy.

Once the attorney has carefully reviewed the client’s financial records, they will help their client fill out the paperwork that must be filed. The application must be approved by the court and mean’s testing must be carried out to ensure the individual is a good candidate.

Types of Bankruptcy

There are two types of bankruptcy individuals are allowed to file. With chapter 7 bankruptcy, individuals can have their debts taken care of in as few as six months. Chapter 7 is a type of liquidation bankruptcy. This bankruptcy type requires a person to surrender certain assets so they can be sold to pay off the debts that are owed.

Chapter 13 is a bankruptcy type that is geared towards helping those with secured debts, such as a home. If a person is in danger of losing their home to foreclosure, bankruptcy can help them avoid losing their home because it causes a cease and desist to be filed so no collection activity can continue.

If a person is unable to be approved for chapter 7, they can file for chapter 13 but will need to prove to the court that they will be able to make monthly payments to pay off their debts. A repayment schedule must be submitted to the court for approval and then the payments must be made as scheduled so the bankruptcy stays in good standing.

If you are dealing with more debt than you can handle, now is the time to seek help from an attorney. It is important to bring all financial records to the appointment, including information on all of the debts that are owed.

The attorney will carefully review your documents and help you through the process of filing for bankruptcy so your debts can be legally taken care of. Call today so your appointment can be scheduled.

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