Overwhelming debt can be incredibly stressful when someone’s faced with a foreclosure or repossession. The inability to pay the bills that keep flooding the mailbox can be eliminated through debt relief in Lawrence, KS. If someone is unemployed or has had a decrease in their income, owes back taxes, has past-due medical bills, or is borrowing money to pay their debts, they should consider this alternative. Credit card companies will raise someone’s interest rate when they become late on their payments. When someone’s behind on their house payment, the risk of not having any place to live could be stopped through bankruptcy.
There are several different types of bankruptcy someone can use to eliminate their debt, but the most popular ones are chapter 7 and chapter 13. These types are similar but not exactly the same. Chapter 13 is a good option for someone with a regular source of income. This type of bankruptcy allows them to keep their assets and restructure their debt. A repayment plan will be established over a three to five-year period. When the payments are completed, the rest of the debt to the creditors will be forgiven.
Chapter 7 debt relief in Lawrence, KS will wipe out debt through a liquidation process. A trustee will collect all of the assets that are not exempt from the bankruptcy. The trustee will sell the assets and distribute payments to the creditors. Certain secured debts such as a car, house, or furniture may be excluded from bankruptcy is a reaffirmation agreement is signed. Certain debts are not permitted to be eliminated through bankruptcy, such as certain taxes, child support, student loans, and fraudulent debts. Bankruptcy cannot be filed again for eight years.
Both types of bankruptcy require you to attend certified credit counseling sessions. A repayment plan will be established for you if you’re eligible to file chapter 13. The bankruptcy court will approve, deny, or modify the plan. If your debt has taken over your life, Business Name, can help you get your financial future back on track. Visit his office and find out what choices you have to get the debt relief you need.
