Debt has become a national problem as more and more people are reaching for credit cards and financing purchases. Though most people are able to manage their debts, unexpected issues can arise and cause a person to no longer be able to afford their payments. Whether debt comes as a result of unexpected illness or injury, job loss or poor financial planning, it can be cumbersome to deal with the bill collectors. Through the help of a bankruptcy lawyer in Lawrence, KS, these issues can be taken care of.
Before contacting a bankruptcy lawyer in Lawrence, KS, it is essential to contact the creditors owed. Often, creditors will be willing to work with people on making payment arrangements so the debt can be successfully settled. If a person has done all they can to take care of a debt and still cannot find relief, it may be time to consult with a lawyer.
The first step in learning about options for filing for bankruptcy involves meeting with a lawyer and going over financial records. Bringing in debt, income and asset information is helpful so the lawyer can help to determine what filing option will be most advantageous. There are two types of bankruptcy individuals may file:
* Chapter 13 is for people who have acquired secured debt. Though it can cover unsecured debt, it is generally seen as an option to help those who are facing foreclosure or repossession. This type of bankruptcy allows people to lower their payments and pay one combined payment through the court system. During a two to five year period, the debts the person owes are slowly paid down and settled by the end of the period.
* Chapter 7 is an option for people with mostly unsecured debts. This type requires income stipulations and is settled much faster than chapter 13. In some cases, assets are sold to pay down the debts owed. In most cases, the debts are absolved through a court-appointed trustee who works to settle the debts in six months or less.
If you are living in a financial nightmare, there is help to be found. Contact Business Name and schedule a consultation appointment so you can learn more about your options for filing for bankruptcy.
