Being in debt and not having enough money to pay bills on a regular basis can lead to foreclosure of a home and repossession of a car. Losing these two things can mean an individual can no longer drive to and from work or have a place to live. When an individual is sinking in debt, they should contact Joseph I Wittman Attorney at Law to learn how they can become free from their debt and, possibly, keep their house and car. Bankruptcy is a legal option for many individuals to eliminate debt and start a clean financial slate for the future.
How Do Individuals Get Into So Much Debt?
There’s no single thing that puts an individual in a financial crisis and circumstances can vary from person to person. Common reasons are divorce, the loss of a job, a serious illness, or a combination of many factors. A bankruptcy attorney doesn’t judge an individual on the reason they cannot pay their bills and is only interested in helping them move forward, financially, with their life.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a complete liquidation of an individual’s assets after their exemptions have been applied. A court appointed trustee will liquid any assets that aren’t exempt from paying the creditors. This is an ideal bankruptcy to use when an individual has a lot of unsecured debt, like credit cards, and very few assets.
What Is Chapter 13 Bankruptcy?
If an individual has a source of income and other assets, this type of bankruptcy will restructure their debts. An individual will have to make payments for three to five years as the court determines and, at the end of the time, the remaining amount of an individual’s debt will be forgiven. This type of bankruptcy can be discussed with Joseph I Wittman Attorney at Law to determine if it’s right for the person.
If you’re swimming in debt and don’t know where to turn, speak with a bankruptcy attorney. Their legal guidance will help you get on the road to financial freedom. Visit the website for more information about the various types of bankruptcy.
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