Nobody likes to think about considering bankruptcy. Unfortunately, for some, bankruptcy is unavoidable. While this can be a very difficult time in a person’s life, it may be precisely what is needed. However, once a person decides that bankruptcy is the only option available to them, that isn’t the end of the decisions that will have to be made. In these situations, a person will need to determine what type of bankruptcy they should file for. This is when speaking with a Chapter 13 Bankruptcy Lawyer makes the most sense.
What many people don’t understand is that there are different types of bankruptcies. For individuals, the most common types of bankruptcies are chapter 7 and chapter 13. For people that don’t make a great deal of money, chapter 7 is the type of bankruptcy that they will need to file for. In this bankruptcy, most, if not all, of the individual’s debts are cancelled by the courts. If the individual has certain assets that can be sold, the court may require that person to sell those assets in order to repay a portion of their debt.
For people who meet a certain income level, they may be prohibited from filing chapter 7 bankruptcy. In these cases, chapter 13 is the only other option. With the help of the courts, the creditors and the Chapter 13 Bankruptcy Lawyer, this bankruptcy process is a court-ordered repayment plan. This is where the court and the bankruptcy lawyer works directly with creditors to set up a payment plan to repay a portion or all of the debt that is owed in a 3 to 5 year repayment plan. While this is still considered a bankruptcy, it doesn’t affect on a person’s credit score as negatively as a chapter 7.
If you make a good amount of money, but your financial situation still requires bankruptcy as a consideration, chapter 13 bankruptcy may be precisely what is needed. This is a way to relieve some of the stress, as well as some of the financial implications, of creditors hounding you. This option, which you can lean more about at Chriscarouthers.com, can satisfy some, if not all of your existing debt with a court-ordered repayment plan. Financially, it can also get you back on your feet quicker than expected.