The money you earn is better in your pocket. A qualified bankruptcy attorney can turn a terrible word like bankruptcy into a breath of fresh air for your financial woes. Keep in mind that filing isn’t necessarily a bad thing for people who need it, as the process was created to provide relief.
Different Types of Submissions
Chapter 7 benefits debtors who qualify and wish to retain protected property in exchange for a manageable monthly payment. Almost all debts are completely written off. The debtor cannot legally contact you for collection.
Chapter 13 is a court-mandated payment plan for all financial matters, giving you three to five years to pay all debts back using new income. You have to pay back part of your debt, calculated by how much money you have and how much you owe, back to the creditor. With Chapter 13, there is more responsibility for repayments and ongoing payments after the plan. It qualifies for both small and large settlements.
Chapters 11 and 12 are used for businesses, allowing them to continue to operate without endangering the business. This is beneficial in many areas and happens more than you think. The latter is for farmers or commercial fishermen, which allows them to make payments at more favorable seasons.
Student Loans and Taxes Payable
Student loans and tax debt are both difficult to get rid of. In court, you will have to prove ‘undue hardship’, meaning that you simply cannot maintain the lowest standard of living if asked to pay back tax debts or student loans. An example of undue hardship is if you become disabled.
Asking Important Questions
You can’t just claim bankruptcy; You have to go to court and petition before a judge. A bankruptcy attorney can help you navigate this complex process, ensuring the best possible outcome. Many people are under the impression that bankruptcy will hurt their credit score. However, an attorney will tell you that bankruptcy will remain on your credit report for ten years but will help you start rebuilding your credit right away. A bankruptcy attorney can also help you look after your home. These laws are federal regulations, and cases are brought before federal courts, not state courts. However, many states have homestead exceptions that allow you to defend your home. A professional can help you interpret the laws in your state to protect your home and financial future.