Excessive debt is stressful. People worry about how they will pay their bills, which creditor they will not pay so they can pay another one, and how in the world they will ever get back on track. Over time, as it gets more difficult to make minimum payments, the stress tends to get harder to bear. Creditors might be calling all day, trying to collect money on the outstanding bills. When an individual or family has nothing to pay, these calls eventually go unanswered and the creditors are forced to take further action.
Fortunately, this is not the end of the world. People with a lot more debt have been able to eliminate most or even all of it through bankruptcy. The first step is to schedule a consultation with a bankruptcy lawyer in Cornelius, NC. During this initial consultation, the attorney might review a potential client’s financial situation, including all the money that goes into and out of the household. Some people do not qualify for chapter 7 bankruptcy but for those who do, the option can quickly relieve a lot of the stress they’ve been facing for months.
After talking to the bankruptcy lawyer in Cornelius, NC, a potential client will need to decide whether they will use the federal courts to discharge their debts. Knowing that bankruptcy is a very common method of debt relief that people just like them use every day may make the decision easier. Once the documentation is filed with the court and the client attends a credit counseling session, the court hears the case and the debts may be discharged in as little as four to six months. During that time, creditor are not permitted to contact their customer to ask for payment on the debts.
Although chapter 7 bankruptcy is a fast and effective way to get rid of overwhelming debt, there are downsides. People who file bankruptcy can expect to have the blemish on their credit report for 10 years. They may not be able to purchase a home for at least 3 years and affordable credit might be very difficult to obtain for quite a while. Despite these consequences of bankruptcy, it is still worth it for many families.