North Dakotans Can Get Debt Relief through Bankruptcy

Although North Dakota has one of the lowest numbers of bankruptcy filings in the country many residents in the state still face economic troubles. Many individuals and businesses that are saddled with debt need relief and a bankruptcy attorney can offer them solutions to their financial troubles.

The decision to enter bankruptcy is not an easy one to make. The indebted individual is generally not aware of what the process entails and what their obligations are once they enter into a structured bankruptcy.

A North Dakota bankruptcy lawyer often recommends that individuals enter into Chapter 7 or Chapter 13. While both of these structures will stop all collection activities,such as property liens and harassing phone calls, and gives the debtor the opportunity to start over, they vary in the way debts are paid off.

Chapter 13 is the debt-relief structure where the individual and their creditors agree to a repayment plan. Some debts are reduced under this fling, but the filer must have a regular source of income and make payments according to the dictates of the court.

Under a Chapter 7 plan the debtor agrees to sell off assets of value in order to pay creditors. Various states allow certain assets to be exempt from bankruptcy auction such as a home. This plan is most often utilized by persons who don’t have regular income.

If you have decided that bankruptcy is your best option for debt relief, a North Dakota bankruptcy attorney will clarify the different aspects of each plan and help you determine which structure is best for your needs.