Anyone that finds themselves in a financial bind may find it difficult to file for bankruptcy. When faced with a financial crisis it can be a huge life choice to make in whether they should file for bankruptcy or not. However, there is no reason to suffer from debt when there is a solution out there for them.With the assistance of a knowledgeable lawyer, they can provide information on how to stop debt collectors from calling, prevent a client’s bank or wages from being garnished, and even delay the process of a foreclosure on a home.
Chapter 7 Bankruptcy can give you a New Start
Chapter & is the liquidation process where the debtor’s non-exempt assets are sold by a trustee and then distributed out to the creditors. This type of bankruptcy will allow the person to keep their cars, homes, and other assets that they own. Non-exempt assets are properties such as a second home or car, family heirlooms, stocks, bonds, or collectable items. These properties have to be given up to help offset the debt the person owes. While other items such as an automobile up to a set value, homes, pensions, or household appliances are a few properties that the individual will be allowed to keep. Chapter 7 will not remove any past mortgage payments that are owed but will delay the process during the proceedings.
Chapter 13 Bankruptcy Permits Retaining Your Property
Chapter 13 will allow the debtor to keep possession of their property when they agree to pay over three-to-five years on the debt that they owe to creditors. Once this has been completed any debts before the bankruptcy was filed will be forgiven. The individual will not have to give up any non-exempt property and can be relieved of their debt straightaway. This will help the person get rid of any second mortgage they have and even makeup missed payments on their car or automobile.
Do Not Feel there is No Way out of Debt when you can Contact an Expert
If you are feeling overwhelmed by your financial situation and cannot see any relief in the near future. You should consider consulting with an attorney to learn how they can help you find the relief you need. An experienced bankruptcy lawyer in Charlottesville can provide you with information on which debts that you can be relieved of and which ones such as student loans you will still be responsible for. They have years of experience and vast knowledge on finding ways to begin living your life debt free.
