The average person carries approximately $38,000 in debt, not including mortgages. This can be a lot of money to pay each month to manage this debt. Most people work very hard to keep up with their debt payments to prevent the many problems that come from a poor credit rating. Unfortunately, things can happen without warning that can make this impossible. Injuries, job loss, illnesses, and a variety of other unexpected events can create serious financial difficulties. A bankruptcy attorney in Wellington FL can help in these situations.
Is Bankruptcy the Right Option?
There is a serious stigma attached to filing for bankruptcy. Many people view this as failure. In addition, it can have a long-term effect on a person’s credit rating. However, falling behind on debt payments and becoming overwhelmed with the harassment and difficulties of debt can be far more devastating than bankruptcy. Bankruptcy provides a method to get out from under debt and begin again. A bankruptcy attorney in Wellington FL can help consumers determine if bankruptcy is the best option for their situation.
Chapter 13
For individuals, the most common type of bankruptcy is the Chapter 13 filing. This type of bankruptcy is for those who have become overwhelmed with debt but do still have a reliable income. This option allows consumers to establish an affordable payment plan for their creditors. This payment plan helps a person get control of their debt in about three to five years. As long as all payments are made as agreed, any remaining debt can be discharged. This provides consumers the opportunity to gain control of their finances.
Chapter 7
Chapter 7 bankruptcy is an option for those with little or no income. When a job loss, illness, disability, or other major financial challenge has created difficulties in paying back debt, this option can provide assistance. In this form of bankruptcy, any non-exempt property is sold to repay creditors. Any remaining debt is discharged. This gives these filers the opportunity to start over and gain financial security without the burden of major debt.
There are other types of bankruptcy filings available for specific situations. Business owners and municipalities can also file for protection under the various bankruptcy laws to help alleviate financial burdens. Click here for more information about these filings or to get help from an attorney.
