Drowning in debt is a stressful situation to be in. The loss of a job, illness or injury may have put an individual in a position in which they are no longer able to pay all of their bills. When the bill collectors begin calling all hours of the day and night, it only adds to an already stressful situation. If you find yourself in this type of predicament, contact a bankruptcy attorney in Gainesville, GA to discuss the options available before foreclosure or repossession proceedings begin. Bankruptcy can stop the harassing phone calls and could permit an individual to remain in their home even after bankruptcy.
Speaking with an attorney can help someone determine if filing bankruptcy is the right choice in the current situation. An individual could have the option of filing for chapter 7 or chapter 13 bankruptcy. Only a dedicated and knowledgeable bankruptcy attorney can determine which type of bankruptcy is best for the individual. Chapter 7 is considered a liquidation bankruptcy. A means test must be performed to determine if an individual qualifies for this type of bankruptcy. Chapter 7 bankruptcy will assign an individual to liquidate any assets that aren’t excluded from the bankruptcy and sell them to pay off the debt. There are various items that cannot be discharged in a bankruptcy such as alimony, child support, student loans and some taxes.
Chapter 13 bankruptcy offers someone the opportunity to reorganize their debt and structure a payment plan through the bankruptcy court. The plan must be approved through the court. Repayment of the debt is usually a 3-5 year repayment of the debts which can stop the repossession of cars or other property someone owns. Garnishments of wages can also be stopped through this type of bankruptcy. Chapter 7 is for individuals who do not have the means to pay back the debt, while chapter 13 is for someone that has the income to pay, but the debt is currently too high.
A bankruptcy attorney in Gainesville, GA can give the legal guidance necessary to determine which type of bankruptcy will achieve the goals of the individual. For more information on bankruptcy relief, please feel free to visit website.