If your debt is overwhelming your life and you are interested in a way to free yourself from this situation, Joseph I Wittman Attorney at Law in Topeka KS can help. An attorney will never you about your financial situation. They understand that divorce, death, injuries, illness, and a variety of other circumstances can cause an individual to have a financial crisis.
Bankruptcy is a legal way for an individual to eliminate the debt they have accumulated. Two common types of bankruptcy are Chapter 7 and Chapter 13. One type of bankruptcy is a complete liquidation of assets that are not exempt, and the other bankruptcy allows an individual to retain their assets while restructuring their debt.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is an ideal choice for an individual who has a high amount of credit card debt and a limited amount of income. In certain situations, an individual might be able to retain their home or car under this type of bankruptcy. When a Chapter 7 bankruptcy is discharged, an individual will not have to repay any of the debt and will be free of all of their debts.
There are certain debts that will not be discharged, such as child support, alimony, certain taxes, and student loans. The majority of an individual’s debt will be erased when the bankruptcy is final.
Chapter 13 Bankruptcy
When an individual finds himself or herself in a situation that they can’t make their monthly payments on their car, home, credit cards, and other debts they’ve accumulated, they should consider Chapter 13 bankruptcy. Individuals who have a regular source of income can have their debt restructured and reduced payments. A plan will have to be submitted to the bankruptcy courts.
If the bankruptcy court approves the payment plan that is submitted for a Chapter 13 bankruptcy, the individual will have to make their monthly payment for the next three to five years. When the payments are complete, the balance of the debt will be forgiven.
Joseph I Wittman Attorney at Law in Topeka KS has the bankruptcy experience you need to gain the financial freedom you need. For more information, please feel free to Click here.