There are often times when unexpected situations can arise that result in a massive amount of debt for individuals. Whether it is a medical emergency, loss of a job, or high-interest rates for credit cards, this can be a very overwhelming time for anyone experiencing debt that seems simply unattainable to pay off in a specific time period.
If you have found yourself in this situation, it is a good time to start exploring your debt relief options with the help of an experienced bankruptcy law firm. If your bankruptcy attorney determines that it is the right time for you to file for bankruptcy to relieve your debt, then he or she will advise on the best chapter for you file under depending on your specific financial circumstances.
How Does the Bankruptcy Process Work?
The bankruptcy process can become complicated if you are unfamiliar with how it works and the various terms and procedures associated with it. This is why it is important to consult with a qualified bankruptcy lawyer who can thoroughly review your specific case and advise on the best plan of action.
Filing For Bankruptcy
Chapter 7 is one of the most common chapters that individuals typically aim to file under when it comes to bankruptcy. This is because, at the end of the process, most debt is eliminated and individuals are often able to retain the rights to assets like their home and cars. To qualify for this chapter, you must pass a Means Test that looks at your income against your overall debt.
Chapter 13 is another common chapter that individuals file under. This is for those that are still able to make monthly payments on their loans, but are in need of a payment restructure to help them pay off their debt completely. This can mean extending the timeline that they have to repay the loans, lowering total monthly payment amounts, lowering overall amount of loans, and so on.
Chapter 11 is probably the most complex chapter of bankruptcy to file under. This is because it is for those that have very high amounts of debt but also have a steady, high income still coming in each month. This is typically the chapter that small business owners file under to help them keep their businesses running while continuing to make payments based on a payment restructure.
Contact Us For A Consultation Today
With over 100 years of combined experience in helping people file for the right chapter of bankruptcy, our ultimate goal is to assist people in regaining control of their finances. Having the right people behind you and helping you through this process can lead to positive results for you in the short-term and the long-term.
Contact us today and request a consultation with our Wilton Manors bankruptcy lawyers for more information.