If you are currently facing a large amount of debt for one reason or another, it may be time to consider filing for bankruptcy. Many people who are facing debt because of situations like credit card pileup, medical bills, IRS taxes, or other forms of financial debt turn to bankruptcy to help them regain control of their finances.
However, before moving forward, you should have a plan in place that will get you the best debt relief solutions possible. Bankruptcy can be a complicated process, which is why it is recommended to consult with an experienced law firm that specializes in bankruptcy to determine if now is the right time to file and what your next steps may be.
At Loan Lawyers, we know that every situation is different. This is why we always complete a thorough review of the financial situation at hand to see if bankruptcy is the appropriate option or if there are other debt-relief options available to you. If bankruptcy is the best option, we will help advise on the best chapter of bankruptcy to file under.
Filing For Bankruptcy
Under Chapter 7, consumers are typically able to liquidate all of their non-exempt assets and repay creditors for any overdue debt. All other debt is eliminated or discharged accordingly. To file under Chapter 7, it is required that you pass a Means Test to see if you are eligible in regard to your income vs. debt. In many cases, consumers who file under this chapter are able to retain rights to their big assets, such as their house.
If you make too much of an income to qualify for Chapter 7, you can file under Chapter 13, especially if you are facing the threat of foreclosure. Here, your bankruptcy attorney will negotiate new payment terms with your lenders to help you start repaying your debt as soon as possible. In most cases, consumers receive a five-year extension on when their debt must be paid off. This gives consumers more time to pay off their debt and the ability to make monthly payments that are more feasible for their financial situation.
Many times, small business owners will file Chapter 11, but individuals with very high amounts of debt may also have to file under this chapter. This chapter is one of the most complicated chapters to file under because it deals with business loans or high personal loans. As a result of filing for this chapter, consumers are usually able to negotiate a new payment plan.
Contact Our West Park Bankruptcy Lawyers
For more information from our West Park bankruptcy lawyers, contact us and request a consultation.