Millions of people across the country are dealing with financial problems. While many are struggling to pay their monthly bills others are faced with mounds of debt. If you feel that you may never be able to pay off your debt, bankruptcy might be a viable option for you. A Bankruptcy Attorney in Huntsville NC can help you file a claim in order to get approved.
Most people who file for bankruptcy believe that their claim will automatically be approved. Unfortunately, not everyone who files is granted bankruptcy. Once your claim has been reviewed your creditors must cease all attempts to collect from you. Any attempt to collect from you at this point will be illegal.
You’ll have to speak with a judge about your decision to file for bankruptcy. At this point, it’s important to note that all of your creditors have been notified about your decision. After being notified, they can either choose to object to bankruptcy being granted or allow the proceedings to continue. You’ll then need to explain why you feel your circumstances warrants bankruptcy.
There are two main types of bankruptcy most people choose: Chapter 7 and Chapter 11 bankruptcy. Talk with a Bankruptcy Attorney in Huntersville NC before you make a decision between these two choices. Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy.” Why? Because the process will require you to liquidate all nonexempt property that you might have. The sale of this property will go towards the debt that you owe. After your property is liquidated the rest of your eligible debt will be erased.
Chapter 11 bankruptcy is for those who are employed and make too much money to use liquidation bankruptcy. Instead of erasing your debt, Chapter 11 bankruptcy allows you to reorganize your debt. You’ll have the opportunity to work with your creditors in order to create repayment plans that are more suitable for you.
Visit Lake Law Office, PLLC to speak with a bankruptcy attorney about your situation. Again, many people who file for bankruptcy are denied. Your creditors will want a very good reason for why you can’t pay them. In the end, you’ll have a choice between liquidating your assets or rearranging your debt. Work with your lawyer to learn how you can get your finances back on track.