Do You Want A Fresh Start And Freedom From Your Debt?

Does having freedom from your debt sound like a dream that’s too good to be true? Dreams can become a reality with the help of chapter 7 bankruptcy. This type of bankruptcy eliminates your debt and you may still be able to keep your home and car. If you don’t own any assets and very little income, this type of bankruptcy is ideal for you to use and is much faster than many other types. Before you can file bankruptcy, the law requires you to consult with a nonprofit credit counseling agency to determine if your debt can be paid in any way. This must be completed with 180 days before bankruptcy is filed.

A bankruptcy attorney should be consulted before visiting a credit counseling agency. They can thoroughly evaluate an individual’s financial situation, determine which type of bankruptcy they would qualify for, and conduct a means test. An individual will need an attorney to file the appropriate bankruptcy forms and determine what exemptions they’re allowed to take under the law. Once the bankruptcy is filed, a trustee will be appointed to take over the assets that aren’t exempt and reduce them to cash. The trustee will make distributions to the creditors.

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There are some debts that chapter 7 bankruptcy cannot eliminate. Certain taxes, student loans, child support, and alimony are a few of these debts that will still need to be paid during and after a bankruptcy proceeding. If an individual as a source of income, they may have to file Chapter 13 bankruptcy. In this type of bankruptcy, an individual is permitted to retain all of their assets and their debt will be reorganized. A payment plan will be established for a three to five year period. When the payments are completed, the balance of their debt will be discharged. Chapter 13 bankruptcy also requires an individual to attend a credit counseling session. Failure to supply the court with a certificate of completion within fifteen days of filing bankruptcy could dismiss the case.

Debt can become overwhelming for many different reasons including divorce, illness, injury, loss of employment and so much more. An attorney is not going to judge you and will guide you through the legal process. They will provide all of the legal guidance you need to receive a successful conclusion of your bankruptcy. If you want a fresh start with the financial situation you’re in, contact and experienced bankruptcy attorney.