Overwhelming financial concerns can be corrected when someone visits Business Name, Attorney at Law, for the debt relief they need. Bankruptcy can be a complicated process but can eliminate most, if not all, of someone’s debt. In some cases, someone may be able to keep their home and their car. This is where the experience of a bankruptcy attorney is very helpful. They can thoroughly review the income versus the debt and give a client the bankruptcy type they will probably be able to use. Even though a discussion takes place with a bankruptcy attorney, anyone filing bankruptcy must attend credit counseling within six months before filing. They must also complete a financial management instructional course after the bankruptcy has been approved.
Income and expenses of an individual must be analyzed to determine if they’re eligible for chapter 7 or chapter 13 bankruptcy. In order to make this determination, the court will average the income for the six months immediately before someone files and compare it to the median income in the state. If their income is below the median income, they will be able to file for chapter 7. If someone’s income is above the median income, the rests of the test will be applied to determine if someone should file chapter 13 or chapter 7.
The difference between the two types of bankruptcy is that chapter 7 is a complete liquidation of any assets. A trustee will be appointed to sell any assets that are not exempt from the bankruptcy, while chapter 13 provides a repayment plan over a three to five-year period. After the end of the payment plan, the balance of the debt will be forgiven by the creditors. Certain debts will not be forgiven in a bankruptcy, including student loans, child support, spousal support, and other items. Business Name, can help someone to answer the questions they have about both of these types of bankruptcy.
Filing bankruptcy is not a terrible thing to do. It is lawful and can help individuals that are in over their head with debt for different reasons. Please visit the website for more information about bankruptcy.
