Debt Relief through Bankruptcy
Tough Economic Times and High Debt, Low Income You Need Relief
With today’s economic hardships more and more people are struggling to makes ends meet. Debt is at an all time high, both at the government level and the individual level. People have lost their jobs or have had their pay reduced. But, the monthly expenses and the debt remains. Often times when a person experiences a loss of income, they incur more debt by using credit cards. The unfortunate result is usually maxed out credit cards, and no way to pay them off. Over a short period of time the interest and fees on credit card debt can make your situation virtually unmanageable.
Typically Most People Qualify For Either Chapter 7 or Chapter 13 Bankruptcy
Now you need debt relief! Is either chapter bankruptcy available to you, and will it resolve your debt nightmare? This question is best answered after a consultation with a bankruptcy attorney. But, generally speaking most people qualify for chapter of bankruptcy or another. For an individual with primarily consumer debt a Chapter 7 or liquidation bankruptcy may be available and would allow you to discharge your debt. A Chapter 13 bankruptcy would also be available which would relieve your debt by allowing you to pay all or a major portion of your debt over period of 3 to 5 years.
A Chapter 7 bankruptcy allows you to discharge or wipe out all of your unsecured debt, like credit cards, medical bills, personal loans, etc. You can also discharge secured debt like a car loan or home mortgage if you surrender the property to the creditor. However, you can only file a Chapter 7 bankruptcy once in a period of eight (8) years and you must show that you do not have the ability to pay a significant portion of your debt.
A Chapter 13 bankruptcy allows you to pay your debt through a Chapter 13 Plan which is administered through the court. Most people can file a Chapter 13 at anytime, and sometimes you can discharge a portion of you unsecured debt as well as secured debt. One if the greatest benefits to a Chapter 13 bankruptcy is that the interest stops accruing on unsecured debt as soon as you file your petition for relief. Learn more about bankruptcy and the different chapters.
Speak to an experienced bankruptcy attorney about your debt situation and see if you qualify a particular chapter bankruptcy.