If all the bills are behind and there’s no money to pay them, you’re probably at the end of your financial rope. The mortgage is behind and you’ve received a foreclosure notice. It may be time to consider bankruptcy.
It’s a good idea to consider all options before filing bankruptcy. If your bills are behind, it’s unlikely any one will give you a loan. Check with family members and see if they’re willing to help you out. If there’s no help on the horizon, it’s time to see a Bankruptcy Lawyer in Huntersville NC.
The two most common forms of personal bankruptcy are chapter 7 and chapter 13. New federal laws require consumers to attend credit counseling before filing either chapter. Chapter 7 involves liquidating your assets. A trustee collects the debtor’s assets, turns them into cash, and distributes the money to creditors. The debtor should check with a Bankruptcy Lawyer in Huntersville, NC, to see if any of their property is exempt.
Chapter 13 is for people who want to keep assets, like their home. Chapter 13 is a repayment bankruptcy. The Lake Law Office PLLC will help you formulate a plan to repay creditors over a three to five year period. Consumers must have a regular source of income to file chapter 13. In Chapter 7, the consumer’s debt is automatically discharged. Under Chapter 13, the debt is not discharged until the time period of the repayment plan ends.
You’ll get a little relief, once the bankruptcy is filed. An automatic stay is issued. The stay makes your creditors back off. They have to stop collection activities, including home foreclosure. How does filing bankruptcy affect your credit? If you’re behind on the bills, your credit score is probably already low. However, a bankruptcy will stay on your credit report for several years. Many lenders approach a person who’s filed bankruptcy. They know that you’ve got more disposable income, and theyl try to give you credit. It’s important to use bankruptcy as a fresh start, in all ways. Try and avoid the mistakes of the past, and don’t get into debt.
