Being in debt makes the future uncertain. Especially if it is possible to lose a home or a car. Fortunately, filing bankruptcy will help some consumers. How do you know whether it will help you? Evaluate the situation and examine the possibilities. First and foremost, debt collectors will haunt you as long as you owe them. When one files bankruptcy, the court issues an automatic stay. This means that all collection activities must stop. No one has to worry about hiding the car from the repo man. Further, the debtors cannot sue you.
If a creditor wins a lawsuit, they can garnish wages. If this happens, the debtor may not be able to provide for their family. Likewise, a lien can be placed on the family home. If this occurs, the house cannot be sold until the debt is paid. Talk to a Bankruptcy Attorney in Martinsburg WV about the situation. The attorney looks at what and who the client owes. An attorney at the Sherman Law Firm may recommend bankruptcy. The two most common consumer bankruptcies are Chapters 7 and 13.
Chapter 7 bankruptcy goes quickly but the debtor has to qualify. In Chapter 7, assets are liquidated to repay some debt. However, the debtor gets to keep a lot of their property. On the other hand, Chapter 13 is a repayment bankruptcy. Chapter 7 filers must show they do not make enough money to file Chapter 13. The Bankruptcy Attorney in Martinsburg WV files the Chapter 7. The case is usually closed within three to six months.
A Chapter 13 bankruptcy takes between three to five years to complete. Additionally, the debtor must make a certain amount of money to qualify. A large portion of the filer’s monthly disposable income goes towards paying the debt. The family must get used to living on less to survive a Chapter 13. Indeed, current bills must be paid as well. There are advantages to Chapter 13. Those who are facing foreclosure may include the arrears in the bankruptcy. In addition, the same applies to arrears on car payments. Bankruptcy may not be for everyone. Nonetheless, it is a tool that gives consumers a fresh financial start.
