Overwhelming debt can become stressful to deal with. No one enters any financial agreement expecting to get into too much debt. Unfortunately, situations can arise that are out of a person’s hands. When debt becomes too much to deal with, people often reach out for credit cards which only makes the situation worse. Thankfully, there are options that can help a person to settle their debt. With Consumer Bankruptcy in Lawrence KS, people can finally be free of their excess debt so they can secure a brighter financial future.
The type of debt a person owes will depend on the type of bankruptcy they file. Those who owe mostly unsecured debts, such as credit card bills, will likely need to file chapter 7. Chapter 7 is the fastest method of overcoming debt. This type of bankruptcy can be settled in around six months or less. To file, one must first pass a mean’s test. This test ensures a person’s wages do not go over the mean income for the state. A bankruptcy lawyer can help a person decide if this bankruptcy is for them.
When a person has debt that is secured, it can be more difficult to settle. This type of debt requires a person to file for chapter 13 bankruptcy. Chapter 13 is the right choice for those who are facing foreclosure or the repossession of a car. This bankruptcy can help them to avoid further collections and give them time to pay down their debts so they can keep their property. Chapter 13 requires a person to pay monthly payments on the debts they owe. They are given three to five years to pay down their debt.
To find out what type of bankruptcy options one should choose, a person first needs to schedule a consultation appointment with a bankruptcy lawyer. The lawyer will review the person’s financial records and help them determine which option will be most beneficial. Those who are interested in consumer bankruptcy in Lawrence, KS should contact the John Hooge Law Office to schedule an appointment. He and his team will help you overcome your debt so you can be free of stress.