Bankruptcy is a federal legal proceeding that can help someone get a fresh financial start when they’re unable to pay their bills. Filing this type of action can immediately stop all of the creditors from harassing someone in an attempt to collect the debt that is owed to them. There are several types of bankruptcy that can be used to eliminate debt, but the most popular ones are Chapter 7 and Chapter 13. Chapter 7 is used for individuals that have no source of income to pay their debt and includes liquidation of any of their assets through a trustee. Chapter 13 permits someone to keep their assets and is used for someone who has a regular source of income to make payments on the debt once it’s been restructured.
When a bankruptcy is approved by the court, it will remove the legal obligation someone has to pay most or all of the money they owe on their debts. The term used by the courts is a discharge of debts. Foreclosure is very frightening to many people when they won’t have a home to live in. Bankruptcy can stop foreclosure on a house or mobile home and prevent an automobile from being repossessed. Wage garnishments and debt collectors will be eliminated by bankruptcy as well as termination of a utility service. There are certain taxes that cannot be discharged in a bankruptcy proceeding. Child support and spousal support will not be forgiven through the bankruptcy process and is still owed.
Both bankruptcy proceedings give the filing individual various exemptions. Credit counseling is mandatory, and a certificate of completion must be filed with the bankruptcy proceedings. A from charges a minimal fee to start the process and will help someone determine which type of bankruptcy they are eligible to file. There will be a meeting of the creditors where they’re permitted to ask someone various questions that an attorney can help someone to prepare for. Here provides outstanding legal for anyone that needs guidance through the bankruptcy process. Feel free to call them today and start a new road to financial freedom.
