The money you have earned is better in your pocket. A qualified bankruptcy attorney can turn a horrible word like bankruptcy into a breath of fresh air for your financial troubles. Remember that presentation is not necessarily a bad thing for people in need, as the process was created to provide relief.
The different types of presentations
Chapter 7 is beneficial to debtors who qualify and want to keep the properties covered in exchange for manageable monthly payments. Almost all debts are completely erased. Debtors cannot legally contact you for collections.
Chapter 13 is a court-ordered payment plan for all financial problems, giving you three to five years to pay off all debts with new income. You have to pay back a portion of your debt to creditors, based on the amount of money you have available and the amount you owe. With Chapter 13, there is more responsibility for payment and continued payment after the plan. This qualifies for minor and major settlements.
Chapters 11 and 12 are used for companies, allowing them to continue operating without any harm to the company. This is beneficial on many fronts and happens more than you think. The latter is for commercial farmers or fishermen, allowing them to make payments in the season when it is most advantageous.
Student Loans and Tax Debt
Student loans and tax debt are difficult to eliminate. In court, you would have to show ‘undue hardship’, which means that you are completely unable to maintain the lowest standard of living if you are asked to pay a tax debt or student loans. An example of undue hardship is if you become disabled.
Ask questions that matter
You cannot just file for bankruptcy; you have to go to court and petition a judge. A bankruptcy attorney can help you navigate this complicated process, ensuring the best possible results. Many people are under the impression that bankruptcy will ruin your credit score. However, a lawyer will tell you that bankruptcy will stay on your credit report for ten years, but it will help you start rebuilding your credit almost immediately. A bankruptcy attorney can also help you keep your home. These laws are federal regulations and cases go to federal courts, not state. However, many states have homestead exemptions that allow you to keep your home. A professional can help you interpret the laws in your state to protect your home and your financial future.