Bills can become consuming after a job loss, during or after a divorce or due to other circumstances. When this occurs, it feels as though no matter what money is paid on the bills, the situation will never improve. Attorneys in Topeka, KS can help guide an individual on the steps to follow for their financial concerns. Choosing whether to file for chapter 7 or chapter 13 bankruptcy can be very confusing to many people; however, an attorney can explain the differences, evaluate the client’s income and debt, and determine if bankruptcy should be considered. Bankruptcy does not mean that everything an individual owns has to be sold for.
Attorneys in Topeka, KS can explain to an individual how to proceed and they can give them the debt relief they’re looking for. Chapter 7 is considered a liquidation bankruptcy. It permits an individual with little or no income to keep their home and their car. A trustee is assigned to sell all of the assets except for those that are exempt from the bankruptcy. When an individual has little or no assets, they can rid themselves of unsecured debts through bankruptcy.
Chapter 13 bankruptcy is much different than chapter 7 since it reorganizes the debt of the individual with regular income, including weekly, monthly and semi-monthly income. The debt is repaid through a repayment plan. Chapter 13 is more appealing to many individuals because it gives them the opportunity to catch up on any mortgage or car payments they have missed. In addition, the individual is permitted to keep all of their assets providing they are paid for through the repayment plan. It can also give the individual an opportunity to catch up on alimony or child support payments.
Before filing for bankruptcy, it is important to understand there are various things that are not dischargeable during a bankruptcy; this includes taxes, fines, child support, alimony and a variety of other items. It’s important to disclose all of the debt with the attorney before filing since they need to have a very clear picture of the financial despair an individual is suffering. Business Name offers the legal advice on individual needs for making a bankruptcy decision.
