The nation’s unemployment rate is hovering above 9 percent and many workers are under-employed, which can make it nearly impossible to get out from under a mountain of debt. Sometimes people find that unforeseen circumstances have gotten them in dire straits. There are options available to help you deal with this problem and for some bankruptcy is the most viable solution.
A personal bankruptcy isn’t an easy choice to make and shouldn’t be taken lightly. Every person’s situation is different and future prospects may seem grim, but there are legal means to discharge debt which can be explained by a bankruptcy attorney.
A bankruptcy filing is a legal means to halt calls from creditors, avoid wage garnishment and foreclosure. There are a couple structures available to reduce or eliminate household debt; they include Chapter 7 or Chapter 13 bankruptcy protection. Student loans and current taxes cannot be dismissed with bankruptcy.
If your bankruptcy lawyer recommends Chapter 7 your unsecured debt, credit card balances and medical bills will be erased entirely. In some cases, personal property can be sold off to pay down debt, but this largely depends on which state you reside.
Another structure of personal bankruptcy is Chapter 13. Under this filing you will be able to maintain ownership of property and will be entered into a payment plan aimed at reducing your debt over three to five years. Once you complete the plan, all your remaining debt is erased.
This may be a hard decision for many to make and when considering this move a consultation with a bankruptcy attorney can help you make an informed decision.
