Anyone who has ever been deeply in debt knows how it can affect every aspect of life. When it seems as if nothing is putting a dent in the debt, talking with a Bankruptcy Lawyer in Lawrence KS is a wise move. Here is how the advice provided by the lawyer can be a turning point in the client’s life.
Learning About the Qualifications
One of the first things that the client will learn is that not everyone will qualify for bankruptcy protection. As the Bankruptcy Lawyer in Lawrence KS will explain, the court has specific criteria that must be met before any petition is approved. In order to determine if the filing is a possibility, the lawyer will need to take a close look at the income and the assets of the client. Those are compared to the amount and types of debt the client currently owes. Assuming the client is eligible for bankruptcy protection, the discussion can move on to the next stage.
Which Type of Personal Bankruptcy is Best?
Many people are surprised to learn there is more than one kind of personal bankruptcy. The lawyer will go over each option and explain how they work. For example, a person who is carrying a great deal of unsecured debt and does not have the means to pay off the debt in a reasonable amount of time is a candidate for a Chapter 7 bankruptcy. With this solution, the court-appointed trustee will arrange the sale of any assets that the court deems is eligible, then split the proceeds between the creditors. Any remaining debt is discharged. Typically, this process can take a few months, but it does leave the client with no outstanding debts.
People with what is known as priority debts as well as unsecured debts often choose a Chapter 13 bankruptcy. Priority debts cannot be discharged in a Chapter 7 action, but they can be repaid under the protection of the court using a Chapter 13 plan. Depending on the amount of priority debts involved, the remaining unsecured debt may be discharged at the end of the three to five-year duration of the bankruptcy.
There’s no need to lose one more night of sleep because of financial worries. Talk with Business Name today. Bankruptcy may be the most practical way to put the past to rest and get a fresh start.
