Making the decision to file for bankruptcy can be difficult unless the individual has all of the answers they need from a bankruptcy Lawyer in Lawrence KS. Filing bankruptcy can be a difficult decision to make because the laws have changed over the years. There are several questions that an individual should ask themselves when they are considering bankruptcy such as:
* Do they owe medical bills that they can’t afford?
Are they constantly borrowing money?
Are they behind on their mortgage?
Are they behind on their car payment?
Did the interest rates recently increase on their credit card debt?
Has there been a large decrease in their monthly income?
What Type Of Bankruptcy Should An Individual File?
An experienced Lawyer in Lawrence KS can help an individual determine what type of bankruptcy they should file. There are two popular choices that most individuals use, including Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy has different income requirements, but both will take into consideration the amount of assets an individual has.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is ideal for an individual who has very few assets. This type of bankruptcy is considered a fresh start and is perfect for an individual who has a limited source of income. Any assets that are not exempt will be sold by a trustee who is appointed by the court to pay off the debt.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a three to a five-year repayment plan that will pay off all or part of an individual’s debts. This type of bankruptcy can stop foreclosure on a home, stop interest from accruing on a tax debt, make up missed car payments and much more. When an individual finishes the repayment agreement, all of the remaining debt will be erased.
Will All Of The Debts Be Eliminated?
There are certain debts that cannot be discharged in a bankruptcy proceeding. These debts are alimony, child support, certain taxes, student loans, and fraudulent debts.
If you’re interested in obtaining financial freedom from the overwhelming debt you have, contact Joseph I. Wittman Attorney at Law for more information about filing bankruptcy.
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