Filing for bankruptcy is a huge financial gamble, but it’s one that many reluctantly have to take. Both individuals and businesses have been forced to take the plunge due to their current financial health. The bankruptcy process can be brutal, intrusive, and eye opening for some people. However, if you know what you’re up against, you might do a better job at handling it.
If you have creditors calling you nonstop every day and every hour on the hour, then filing for bankruptcy will fix this problem. Once you file your bankruptcy claim these calls will stop. Courts issue an automatic stay that requires arll creditors and lenders to cease any and all collection attempts. Any creditor or lender who attempts to collect from your will be in violation of the automatic stay and may be subjected to a penalty. If you have creditors calling you after you’ve filed your claim, call a Lawyer in Topeka, KS to see what kind of actions can be done.
Most of those who file for bankruptcy will likely file Chapter 13. Filing Chapter 13 allows individuals the chance to restructure their finances, keep their assets, and still pay back the money they owe. Debts are usually paid off with future income. Filing Chapter 13 is ideal for most people because it gives the debtor a bit more control when it comes to paying off their debt. For instance, debtors can create their own repayment plan, just as long as it’s approved by the bankruptcy court. Filing this way also gives debtors an opportunity to work with creditors in order to pay lower and more accommodating payments.
Those who don’t file Chapter 13 will likely file Chapter 7. Chapter 7 is probably the harshest of the two because it liquidates the debtor’s assets in order to pay off the debt. Debtors will be required to sell off assets (i.e. cars, homes, stocks, art, etc.) and use the money received to pay their creditors. Luckily debtors don’t have to sell everything they own. They can’t ask the court to make certain possessions exempt, however, any debt that isn’t paid back will still be owed. Talk to a Lawyer in Topeka, KS to see which chapter you should be filing under.
To know more about bankruptcy visit joewlaw.com