Choosing to file for Chapter 7 Bankruptcy in Delavan Wi is never an easy decision. The goal of bankruptcy is to give individuals with staggering debt a fresh start at a prosperous financial future. For nearly 100 years, U.S. citizens have had the right to start over again through bankruptcy. Honest, hardworking, and ethical people can be saddled with debts they cannot pay. Whether it is due to a serious illness, traumatic accident, or the loss of a job, financial difficulties are some of life’s most stressful events. Legal counsel can help you navigate the course by preparing the plethora of paperwork and filing the required documents with the bankruptcy court. If you are struggling to pay your bills each month, consult with a bankruptcy attorney to determine your best course of action. Chapter 7 and Chapter 13 bankruptcies are different in their requirements, laws, regulations, and outcomes, and a bankruptcy lawyer can help you sort through and figure out what avenue is best for you.
Chapter 7 Bankruptcy For Medical Debt
Industry analysts believe that over 60% of bankruptcies that are filed each year are due to medical bill debts. If you have experienced a traumatic accident or been diagnosed with a chronic illness and are unable to pay your medical bills, a Chapter 7 bankruptcy might be right for you. Accidents and illnesses can cause tens of thousands or even hundreds of thousands of dollars in medical bills. If you don’t have insurance or have limits on your insurance, the result can be financially devastating. It is important that you seek Chapter 7 Bankruptcy in Delavan WI lawyers that can help you make the right choice for your financial future.
Chapter 7 Bankruptcy Benefits
Tonight when you try to sleep, you may be overwhelmed with thoughts of your debt and how you are going to survive. First and foremost under Chapter 7 Bankruptcy protection, your legal counsel can work to halt wage garnishments, lawsuits from creditors, and stop the harassment from debt collection agencies. In Chapter 7 bankruptcy, your non-exempt properties are liquidated and the bankruptcy Trustee distributes the funds to your creditors. In most cases, you can keep your home, and your vehicle, as well as most of your personal possessions. Call an expert in Chapter 7 bankruptcy now, so you can sleep better tomorrow night.
The Tax Man May Cometh
One of the many overlooked downsides to any debt forgiveness, including bankruptcy, includes the IRS tax implications. Under the law, businesses that forgive personal and business debt are required to file 1099’s with the IRS and indicate the value of the debt forgiven…as INCOME. This income is then considered part of your taxable income for the year it was forgiven. Unfortunately, many people who file for bankruptcy are not prepared for the tax bill the following year. An experienced bankruptcy attorney can help you negotiate multi-year deferrals or payment plans for this new income source.
We don’t have debtor’s prison here in the United States, and in fact, we have great protection under our bankruptcy laws. Depending on your personal financial status, a Chapter 7 or a Chapter 13 bankruptcy might be your best avenue to reducing your debt, and breathing easy. It is vital that you seek professional counsel to help you with your Chapter 7 Bankruptcy in Delavan WI.
