Paying the bills on time and settling pending debts has never been this difficult. With the economy in the doldrums and no sign of any quick recovery in the near future, many ordinary folks are facing precarious circumstances. If you are in dire straits and require some of or your entire debt burden to be removed you should call a bankruptcy attorney and consider filing for bankruptcy.
Bankruptcy is usually seen as a last resort – a last ditch effort to get your finances in order. Before you consider taking this step, you should realize the gravity of bankruptcy and what it means for your financial future. The law requires you to get credit counseling from a government approved provider at your own expense, six months prior to filing and also to undergo a means test. Proof of credit counseling would be required during the filing procedure.
The bankruptcy attorney should be consulted as soon as possible. The legal professional is better qualified to expedite matters and achieve a more favorable result for you. The lawyer would determine under which chapter you should file. Personal bankruptcy is of two types: chapter 7 and chapter 13. Once you file, your credit ratings would be drastically reduced and it would become very difficult to retain credit cards and bank accounts. You would face difficulty buying or renting a car or home, finding an insurance provider and sometimes finding employment. In some cases you may be forced to part with some of your valuable possessions. On the other hand, a bankruptcy petition would ensure you are instantly relieved of harassment from creditors and saved from the imminent loss of your home and belongings.
If you have a steady income, your bankruptcy attorney would suggest you file under chapter 13 that would allow you to retain your home and car. The court would approve any repayment plan whereby you would pay for all or some of what you owe from your future anticipated income, in lieu of surrendering your property. Debts that cannot be waived via chapter 13 are child support, taxes, overdue school and car loans and mortgage payments on your home. In some cases all of your debts would need to be settled.
Chapter 7 allows an individual a fresh start by erasing all debts. Non-exempt property would have to be collected and sold by a trustee to use the proceeds to pay off creditors. Certain debts are not waived and loss of property is a risk. For best advice on how to proceed, contact an experienced bankruptcy attorney. Kansas City residents can consult local lawyers for updated legal advice.
