When Might Bankruptcy Protection be the Right Choice?

It is understandable that you may be very worried about making a choice that could cause more harm than good if you are overwhelmed with debt. That is why you should speak with a bankruptcy attorney right away if you need help managing debt or are considering bankruptcy protection. Every individual's circumstances are different so you need personalized legal advice specific to your situation. In some cases, filing for Chapter 7 or Chapter 13 bankruptcy may be the most direct way to overcome financial difficulties so you can get a fresh start. Deciding whether or not to file must be a personal choice but a legal professional can help ensure you have all applicable information so you can make a fully informed decision. Bankruptcy protection will put a stop to collection actions, foreclosures, repossessions and other creditor actions which may have been creating a great deal of stress in your life. There are specific requirements for being eligible for Chapter 13 or Chapter 7 bankruptcy so it is important that all needed information is accurately given in the petition.

Chapter 7 and Chapter 13 Bankruptcy Protection

Chapter 7 bankruptcy protection is a much shorter process than Chapter 13. The debtor must liquidate applicable property as required after a negotiation with your creditors. The funds from the liquidation are paid to creditors. In a matter of weeks, the petitioner may be debt free. A Chapter 13 bankruptcy differs from Chapter 7 in that there is no liquidation of assets but a payment plan is created instead. Creditors are negotiated with so debt balances are reworked and then a plan to repay the negotiated amount is agreed upon. The purpose is to create a payment plan that the person can actually manage. Debts are fully discharged in about three to five years. Most student loans as well as tax liabilities cannot be discharged under any personal bankruptcy protection so these factors must be taken into consideration when working out your full debt relief plan.

See how a bankruptcy lawyer may be able to help you!

Exorbitant medical costs, student loans, underwater mortgages, credit card debts, car payments and any number of other financial liabilities can get out of hand and be leading you to financial ruin if you don't have skilled legal help on your side. A lawyer with the Maida Law Firm may be able to help you find a solution that you never thought was possible. Contact the firm today to schedule a time to meet with a dedicated attorney who may be able to help you become debt free!