The money you have earned is better in your pocket. A qualified bankruptcy attorney can turn a horrible word like bankruptcy into a breath of fresh air for your financial problems. Remember that filing is not necessarily a bad thing for the people who need it, as the process was created to provide relief.

The different types of presentations

Chapter 7 is beneficial for qualifying debtors who want to keep covered property in exchange for manageable monthly payments. Almost all debts are completely eliminated. Debtors cannot legally contact you for collections.

Chapter 13 is a mandatory short-term payment plan for all financial problems, giving you three to five years to pay off all debts using new income. You have to pay a portion of your debt, calculated by the amount of money you have available and the amount you owe, to creditors. With Chapter 13, there is more responsibility for payment and continued payment after the plan. This qualifies for both minor and major settlements.

Chapters 11 and 12 are used for businesses, allowing them to continue operating without harm to the business. This is beneficial on many fronts and it happens more than you think. The latter is for farmers or commercial fishermen, allowing them to make payments in season when it is most advantageous.

Student loans and tax debt

Student loans and tax debt are hard to get rid of. In short, you would have to show ‘undue hardship’, meaning that you are completely unable to maintain the lower standard of living if required to pay off tax debt or student loans. An example of undue hardship is if you become disabled.

ask questions that matter

You can’t just file for bankruptcy; you have to go to court and file a petition before a judge. A bankruptcy attorney can help you navigate this complicated process, ensuring the best possible results. Many people are under the impression that bankruptcy will ruin their credit score. However, an attorney will tell you that bankruptcy will stay on your credit report for ten years, but will help you start rebuilding your credit almost immediately. A bankruptcy attorney can also help you keep your home. These laws are federal regulations and cases are brought in federal courts, not state courts. Many states, however, have homestead exemptions that allow you to keep your home. A professional can help you interpret the laws in your state to protect your home and your financial future.

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