Experienced St. Charles Bankruptcy Attorneys
No one wants to have to file for bankruptcy relief. But, if you are struggling with debts that are growing out of control, it can feel like there is no other way out.
Many people see bankruptcy as a last resort. However, it may actually be the best option for many people facing unpayable debts. This is especially true if you are facing a garnishment, repossession, or any other difficulties.
The best thing a bankruptcy can do is stop the harassing phone calls from a collection agency. Using a qualified bankruptcy lawyer will help put a stop to collection efforts.
Chapter 7 Bankruptcy
Many debtors may be eligible to file a fresh start bankruptcy under Chapter 7 of the Bankruptcy Code.
Chapter 7 bankruptcy is more often known as a “fresh start” bankruptcy. This is because you complete a Chapter 7 bankruptcy in a short period of time. The trustee uses the non-exempt assets of a debtor to pay off the creditors. However, in most cases, debtors will not have any non-exempt assets to turn over to the trustee. Meaning, most people who file for bankruptcy do not lose any property. This is why it is important to hire a qualified bankruptcy attorney to protect your property.
Chapter 13 Bankruptcy
Sometimes debtors may be better served by filing for Chapter 13 bankruptcy protection. A Chapter 13 bankruptcy creates a payment plan to pay off some or all a debtor’s debts. This is helpful when an individual needs to catch up payments on a secured debt, such as a car or a home. It is also helpful if the debtor has a property that is not exempt that they wish to keep. Chapter 13 may also be a good option for those debtors that do not qualify for a Chapter 7 due to income and the means test.
In most cases, the payments made in bankruptcy will be less than trying to pay off the debts otherwise.
A Chapter 13 debtor will come up with a plan to pay off their debts in a structured manner. There are many factors which go into creating this plan. These factors can include the debtor’s ability to pay, equity in assets, and types of debts.