Choosing to file for bankruptcy is a decision that should not be made lightly. It’s only when there are no other options that someone should file bankruptcy. There are several options to choose from to consolidate debt and even reduce monthly payments. Depending on what chapter is filed the debtor will have to agree to a legally binding repayment plan, or possibly even sell the property to recover some of the debts. There are exceptions to what can be sold to recover the debt, for instance the trustee of the court cannot place the debtor’s home for sale. Debtors can talk to a bankruptcy attorney in Ozaukee WI for detailed information about how to file and what actions need to be taken.
The first thing the debtor will need to do is to file the initial paperwork to make a claim of bankruptcy. There are two main chapters used when filing. The Means Test will determine what chapter is qualified. In chapter 13 the debtor must repay debts that are owed, and only a few exceptions are made. Child support, taxes, benefits or salary owed to employees, and loans must all be paid in full. In essence chapter, 13 is a legally binding repayment plan. Chapter 7 is more like a liquidation of property and assets to repay as much of the debts owed as possible.
A Bankruptcy Attorney will help their client file the necessary paperwork. Part of the initial filing process requires that the debtor attend a credit counseling course in order to include a certificate of completion with the paperwork. The court will make a judgment on the case and decide whether the claim for bankruptcy has been accepted. If chapter 13 was filed the debtor and the creditors owed, payment will need to formulate a repayment plan that can be accepted by the court. When the claim is accepted, the debtor will have a stay of action. This means that creditors cannot take any further legal action to collect any debts that are not included in the payment plan accepted by the court.. Any communication with debt collectors can be directed to a Bankruptcy Attorney in Ozaukee WI.
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