Many people are just one paycheck from financial disaster. If anything goes wrong, it can lead them into a financial free fall. A large car repair bill can be beyond the financial capability of some families. Without a car, the family breadwinner can lose their job. They are then unable to pay many of their bills. Once behind, it’s impossible for them to catch up. Hardworking people are often embarrassed by this situation and hope they can turn things around on their own. However, this usually doesn’t happen. They should call Carlton Legal Services for a Bankruptcy Consultation as soon as they begin to fall behind on their bills.
If they are more comfortable doing their research online they can browse through website to learn more about the bankruptcy options available to them. Most individuals use either Chapter 7 or Chapter 13 of the Federal Bankruptcy law to eradicate their debt. Their type of debt and overall income determines which one is best for them. People who make under the median income for their state are automatically allowed to use Chapter 7. This is known as the Fresh Start bankruptcy law. The court appoints a bankruptcy trustee to sell off any assets that aren’t protected by the law. Usually a house and car are protected assets. Any money made by the sale of assets is then distributed to the creditors. The entire process takes from three to six months. During that time creditors aren’t allowed to attempt to collect any debts.
People who make more than the median income and have money remaining after they pay their living expenses are required to use Chapter 13. The bankruptcy trustee establishes a budget that the family has to live within. He then takes any money made that month above the budget level and disperses it to the creditors. Depending upon the person’s debt level, this process can continue between two and five years. Any debt remaining at the end of the process, is forgiven.
At the initial Bankruptcy Consultation the attorney will carefully examine the type of debt and payment history to make sure that the person keeps as many of their assets as possible. The earlier in the process that this occurs, the better chance there is for the attorney to do this successfully.
