Perhaps you have gotten to the place where you realize you are buried deep into your debt and it feels as though there is no possible way to escape. You have tried to pay off whatever you can, and despite your efforts the creditors keep calling and threatening you to make the payments “or else”. Maybe they are stating that they will take your home or your car, and whatever it might be it is frightening to think about. Are you feeling the pressures and the weight of debt in your close relationships, too? Often times those who are dealing with debt will have to realize that their suffering is also hurting the family and possibly even the marriage. So, what now? Is there any way to get on with life and conquer the battle that is otherwise known as debt? For this very reason, filing for bankruptcy was established in order to help individuals and families who feel as though there is no hope left for addressing their indefinite amount of debt.
One of the most important aspects of bankruptcy, no matter which chapter you file for, is that you will now have the legal protection from creditor harassments. Because filing for bankruptcy means that you are now actively fighting against the debt to your name, the creditors can no longer threaten you. When dealing with debt, there are different chapters available that address the various needs in order to get on the road to recovery. While there are many different types available, for the average person, Chapters 7 and 13 are the most common forms available. Depending on the amount of your debt and what type of debt you have determines what path that you and your attorney will deem best for your situation.
Chapter 7 can be a bankruptcy filing for either a person or a business, and with your attorney you can decide if it is the wisest option for you. Another way to identify this option is to have it called the debt elimination or discharge. For example, if you are in such high debt because of your credit cards, unsecured loans, broken lease agreement or perhaps even your medical bills, this might be a good choice for you. Determining this option is wise if you are unable to make your credit card payments and the collectors won’t stop calling, or perhaps your credit interest rates are beyond imaginable caused by late payments. Sometimes credit card companies will increase your monthly minimum therefore making it impossible for you to make the payments every month, at least the minimum, and now you are in debt.
Even if you are in the place that you realize you are able to only buy your food and pay the minimum of your bills, you may want to consider bankruptcy as the next step. In the event that you have noticed yourself being unable to save money for retirement, you may also want to consider filing for bankruptcy. When dealing with Chapter 7 it is also essential to realize that despite the many loans that can be discharged in this option, student loans are not included. If you have $100,000 of debt from college this option will unfortunately not be able to make it go away, however the following option is what can help college debt. Chapter 7 is not for everyone, which is why hiring an experienced bankruptcy attorney is so essential to the process.
Chapter 13 is another common option for those who are dealing with the weight of debt over their heads. What makes this option different than the first is that is it considered to be more of a debt consolidation as opposed to completely erasing your debt. First off, this will stop the same processes of foreclosure or wage garnishment caused by your debt and it will change your payments into a payment option that you are actually able to pay off. This route is wise for those individuals who do have a steady income and we just overwhelmed with the many payments they were late on, allowing them a chance to catch up and pay back what they owe. In contrast to Chapter 7, that option is more often for people who are so buried in debt that they will never be able to pay it back.
Whatever the case may be, if you are currently struggling with your payments, consider the various options open to you with the help of a bankruptcy attorney. Even if you do not want to choose bankruptcy perhaps they can help you to determine a different debt elimination solution with you. Contact one close to you soon.