Getting Help From A Bankruptcy Attorney

Unfortunately too many Americans have gotten themselves into debt and cannot get out and have no other choice but to file for bankruptcy. This option is for those who have tried other methods of paying debt and are not able to continue due to recent financial hardships, loss of job, or other difficulty. There are two different types of personal bankruptcy and these are Chapter 7 and Chapter 13. Your bankruptcy attorney can guide you through the process and help you determine for which you may qualify.

Chapter 7 is the preferred method and can help you get back on track. When you file for Chapter 7 you go before the court so that the debt that you have left to pay can be wiped away and you can start fresh. Once it has been settled, if you have little income, little property and large unsecured debts, those unsecured debts will be eliminated. For this to happen, much of your personal property will be taken away and sold, then given to your creditors. Not everyone can apply for Chapter 7, however. You must know what your state laws require. Your bankruptcy attorney can help clarify them for you.

On the other hand, Chapter 13 lets those who have steady money coming in keep some of their property, such as a mortgaged home, which would normally be lost in the process. In this type of bankruptcy you will be put into a debt repayment plan that is approved by the court to be paid off within a 3-5 year period. After all the payments have been made, your debts will be wiped away. You do, however, have to make sure that you can pay the extra fees that are required by the court on top of you would normally pay each month.

If you have too much debt, your bankruptcy attorney will not allow you to choose the Chapter 13 method. In order to qualify you must be able to meet 75 percent of what you earn per week, are behind on payments on property that you want to keep, have smaller debt amounts, debt that includes taxes, property that you want to keep that is not exempt from taxes, student loans that are past due, and are not able to file for Chapter 7 bankruptcy because you have filed within the past 8 years.

If you are struggling to make ends meet and you have gotten behind in payments, consult a bankruptcy attorney and he will be able to guide you through the process.

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