When should an individual consider filing bankruptcy? If an individual has more bills due each month than the money they have coming in, they should consider filing bankruptcy. Bankruptcy is legal and has the ability to completely eliminate or majorly reduce the debt an individual has accumulated.
There are two popular types of bankruptcies an individual could benefit from depending on their financial situation. Chapter 7 bankruptcy is a complete liquidation of any assets that remain after exemptions are listed, and Chapter 13 is repayment of debts over a three to five-year timeframe.
When an individual files for Chapter 7, the bankruptcy court will appoint a trustee to sell any assets an individual has that are exempt. This type of bankruptcy is ideal for an individual who has a limited amount of income and limited assets. If the individual has a limited amount of equity in their home and is current on their payments, they might be able to retain their house when the bankruptcy is discharged.
Chapter 13 bankruptcy requires an individual to repair their debts over a three to five-year period. An individual will be able to retain their assets. After the payments have been completed, the balance of an individual’s debt will be discharged. An individual will have financial freedom when the payments are finished.
Reasons Why An Individual Needs To File Bankruptcy
Every individual who files bankruptcy has their own reason why they’ve chosen this particular path. Divorce, illness, injury, the loss of a job, and much more could cause an individual to file bankruptcy. Bankruptcy Lawyers in Tallassee AL will never judge an individual for a reason they need to file for bankruptcy and are only concerned about helping an individual gain the financial freedom they need.
Being overwhelmed with debt and the threat of losing a home or a car can be the most stressful thing an individual will face in their life. With the help of a bankruptcy lawyer, you can feel confident the case is getting resolved and that your debt will be eliminated soon. Please feel free to contact Courtney & Mann LLP for more information.