For some time now, the client has struggled with financial issues. It seems as if no amount of budgeting, counseling, or even the use of debt reduction programs seems to make any difference. Some of the strategies that the client tried actually made things worse. At this point, the only thing to do is talk with one of the Attorneys in Glendale AZ and find out if bankruptcy is an option.
Meeting the Qualifications
Not everyone meets the qualifications set by current laws. This means that there are people who are not eligible for any type of bankruptcy protection. This includes people who generate over a certain amount of income annually and have financial assets that could be liquidated to settle all, or at least, most of the outstanding debt.
Others will find that meeting the criteria for bankruptcy protection is not difficult. This is especially true for those who can readily pass what is known as the means test. Individuals who make under a certain amount will automatically pass this test and be eligible to file for at least one form of bankruptcy protection.
Which Type of Personal Bankruptcy is Better?
As any of the Attorneys in Glendale AZ will explain, there is no one form of personal bankruptcy that is right for every situation. Clients with a considerable amount of unsecured debts are prime candidates for Chapter 7 bankruptcy actions. Any assets the client owns that are not considered exempt will be sold by the court trustee and the funds distributed to the creditors. All remaining debt is discharged. The benefit of this approach is that it is possible to be debt-free in a matter of months.
For individuals who are carrying debts that cannot be discharged in a Chapter 7 action, filing a Chapter 13 bankruptcy petition is the way to go. This essentially places the client under the protection of the court and allows the debt to be repaid according to an approved plan. At the end of three to five years, the client will have repaid all priority debts and possibly some unsecured debt. Any remaining debt is discharged by the court.
For anyone dealing with more debt than they can handle, Click Here and arrange a meeting with Asheton B Call today. After going over the particulars and settling on a course of action, the future will look a lot brighter.