When the bills are mounting and the creditors are harassing, individuals can begin to feel overwhelmed. Dealing with too much debt can become stressful when a person simply does not have the funds to pay their bills. Thankfully, there is the Fresh start bankruptcy. With bankruptcy, a person can legally overcome their mounting debt and get a fresh start on their finances so life is much less stressful.
Understanding the Basics of Bankruptcy
Bankruptcy is a legal process that offers debt forgiveness or gives time for a person to make payments on their debt. There are two types of bankruptcy individuals can file, depending on their needs and the type of debt they owe.
Chapter 7 is a type of bankruptcy that is settled the fastest. If individuals qualify, they will be approved and can have their debt settled in as few as six months. The process of approval involves passing a mean’s test. Some of the individual’s assets may be seized to pay off the debts they owe. There are types of assets that are exempt so a person can keep their home and some other assets.
Chapter 13 is a good choice for those who are in danger of losing their home to foreclosure. This type of bankruptcy causes all collection activity to be stopped and sets up a repayment plan that is extended for three to five years. As long as a person pays on their debts as scheduled, the bankruptcy will remain in effect and the creditors can no longer pursue any collection activity, including foreclosure.
Scheduling an Appointment
To get started, a person will need to first schedule a consultation appointment with the bankruptcy lawyer to determine if they are a good candidate. If found to be a good candidate, the lawyer will work to fill out the appropriate bankruptcy paperwork so everything can be filed and put in order.
Those who are dealing with more debt than they can handle are urged to call the lawyer today to get started. With the help of the lawyer, the process of legally overcoming debt is much easier and less stressful.