Chapter,Seven,Bankruptcy,Overv law Chapter Seven Bankruptcy: An Overview
When you work with an attorney, you will have no problem reducing the risks associated with getting your case in front of a judge and jury, or other formal court, when you need to. However, every case is different. It is important to work wi Bankruptcy is a situation, wherein an individual is termed as unable to discharge all the debts. When a person or a company is not able to pay off its creditors, it has an obligation to file a bankruptcy suit. In fact, a bankruptcy suit is a
This can happen, as it has to a lot of people, because of the current economic recession. Good paying jobs disappear and the main or only breadwinner in the family suddenly cant afford the lifestyle that they are accustomed to anymore. Car payments, credit card debt and mortgages can rapidly snowball after only a few months of not being able to make toppled by high interest rates and fees. The end result is often taking that credit hit to declare bankruptcy because there is no way to work your way out of the debt.Chapter thirteen however is different. The assumption with this type of bankruptcy is your situation, which kept you from paying your bills is now resolved and with some sort of repayment plan in place you can once again resume your payments.Because this is not erasing your debt or selling your assets it can be a trickier type of bankruptcy to work with. It is vital for any bankruptcy that you have a qualified bankruptcy attorney to help you but it is even more important in this type of filing. A bankruptcy attorney can explain if this is the right type of bankruptcy for you or not. If your current economic situation is not stable you may end up rapidly backsliding on your payments and as your bankruptcy attorney can explain to you, even one missed payment is grounds for the court to dismiss the entire payment plan. At that point you would be faced with declaring chapter seven and losing most if not all of your assets.You should also be aware that this type of bankruptcy even though you are assuming the debt and keeping the assets will still have a negative effect on your credit score. Most likely if you are able to stay afloat and get your debt back under control you wont be to anxious to incur any more debt so the hit wont be to terribly felt by you as you recover. However, your bankruptcy attorney can explain to you in better details how much of a future impact this type of discharge will ultimately have on your credit and life.Once you schedule a consultation with a bankruptcy attorney be sure to bring a listing of all of your debts and all of your assets including proof of your current income. Your lawyer can easily help you understand if you meet the criteria to be filing under chapter 13 or not with this information.
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