Credit Card Defense Lawyer
The term bankruptcy is often viewed as an ominous word, that the media and today’s culture views as a bad thing. However, for the right people, bankruptcy can be a helpful resource in overcoming financial hardships. Those who are debating whether to file for bankruptcy but are nervous about being judged can meet privately with an attorney for insight. It’s quite easy to accumulate significant debt, with all the ads and marketing that is thrown our way every single day. Anyone who doesn’t make enough to slowly start paying off debts may need to reevaluate their financial habits or consider filing for bankruptcy.
Assess Your Financial Situation
There are several signs that may mean it is time to look deeper into your current financial situation. If you are unable to make minimum payments for your credit cards, bill collectors are incessantly calling you, you feel like as though your finances are out of control, or you are unsure how much you actually owe – it may be time to do a thorough assessment of your finances. If you continue to handle money in the way you are now, your debts may only continue to add up.
Chapter 7 and 13 Bankruptcy
People often apply for bankruptcy due to lack of employment, overextended credit, burdensome medical bills, and/or marital issues. There are more than just two types of bankruptcy chapters. However, the most commonly utilized are Chapter 7 and Chapter 13. Each comes with its own pros and cons, so it is important to understand the differences and which one can benefit you the most. Here we have defined these two bankruptcy chapters:
- Chapter 7 = entails liquidating assets in order to pay off as much of the debt as possible. The funds from selling your assets are distributed to creditors for payment, such as credit card companies and banks. This form of bankruptcy can be helpful for people who want to get rid of a chunk of their debt (if not all of it entirely) and are not attached to their possessions. If a person has a family home or owns a company and wants to keep it, Chapter 7 may not be the most suitable choice.
- Chapter 13 = enables people to reorganize their finances and pay off debts within a span of about 3-5 years. This chapter doesn’t include selling off any assets and is appropriate for those who have a predictable and consistent income. After the repayment plan term, the rest of the debts are likely to be discharged.
Before meeting with an attorney, take inventory of your assets. Bring documents to the meeting that go over your stocks, real estate, bonds, vehicles, retirement funds, and savings accounts. Then, make a list of your debts. During the consultation, you and your attorney can do some calculations to figure out whether the solution is simply a change of habits, or that bankruptcy is the last viable option. Please call a law firm for a free, no-obligation consultation.