When debts become more than a person can handle, the situation can be stressful. Bill collectors work to collect the money they are owed and have the right to garnish wages or take a person to court if they cannot pay their debt. Often, people try to ignore the debt they owe, mistakenly thinking it will go away. Instead of ignoring debts, it is important to face them head on. Getting help from a bankruptcy attorney in Washington, Indiana can allow a person to learn about their rights for filing for bankruptcy.
Bankruptcy is a viable option for millions of people who are dealing with much more debt than they can afford. The services of a bankruptcy attorney in Washington, Indiana seek to review a person’s financial records so a determination can be made on what type of consumer bankruptcy will be most beneficial to file.
There are two types of bankruptcy that consumers in the United States have the right to file. Chapter 7 is a liquidation bankruptcy and is the fastest option for settling debt. Passing a Mean’s Test ensures the person meets any income standards. If certain types of non-essential property are owned, these may be sold to pay off debt. The person’s residential home, car, furniture and clothing are all exempt from liquidation. Most people are able to settle their debts in as few as six months with chapter 7.
Chapter 13 is also an option for people to file. This type of bankruptcy is a fit option for many who have secured debts, such as a mortgage payment. With this type of bankruptcy, there are no major financial requirements and no liquidations of property. Instead, individuals make monthly payments to the court. These payments are dispersed among those they owe and the debts can be settled in two to five years.
For those who feel they are drowning in debt, there is a solution. Contact the Feavel Law Office and learn about their options for overcoming debt permanently. They will assist in helping to decide which type of bankruptcy will be most beneficial.
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