Filing for Chapter 7 or 13 bankruptcy can be a tough decision for anyone. People who are considering this option should know what options they have, which includes any inconveniences their choice may have. An individual that has lost their job is probably under a significant amount of stress because there are still bills to pay whether a person is working or not.
Experts recommend hiring a lawyer
Finding reputable bankruptcy law firms is something that is highly recommended. Sure, people can file for bankruptcy on their own, but nothing can replace the experience of a professional lawyer. One of the key reasons for hiring a bankruptcy lawyer is because they know bankruptcy laws well.
Hiring a lawyer who knows bankruptcy law will give you a better chance of success when filing your case. Without a decent lawyer, you may end up paying more to settle your debts. People should make sure that, when hiring a lawyer, they are looking for a local one. This will benefit them greatly because bankruptcy laws can vary from state to state. Hiring an attorney from another area is possible, but make sure the lawyer is up to date on the requirements of your state.
Understanding Chapters 7 and 13
- Chapter 7. Filing a claim under chapter 7 bankruptcy lets a person remove some debts like hospital bills, credit card bills, utility debt, and unpaid traffic fines. At the same time, it will put a halt to calls from creditors, wage garnishment, while also freezing foreclosures and vehicle repossessions until the case is finalized.
- Chapter 13: If a person’s salary is too high to file Chapter 7, or if they have too much equity in their home and are unable to apply for Chapter 7 bankruptcy, they may find financial relief under Chapter 13.
What to do with credit consolidation and credit card debt
For some individuals, credit consolidation offers a way around bankruptcy. Consolidating credit card debt does not provide the same protection as a bankruptcy. Discussing your options with an experienced lawyer is imperative.
If an individual is facing foreclosure, they can put a stop to the process by filing for bankruptcy. This process gives people the time to evaluate his or her options, and perhaps think about loan modification or Chapter 13 bankruptcy.