How A Bankruptcy Attorney Can Help You After A Divorce
Bankruptcy is not a good solution for everyone. If you have a lot of debt that can't be discharged in bankruptcy, such as student loans or tax debt, then filing for bankruptcy won't really help you. On the other hand, if most of your debt is consumer debt, such as credit cards, then filing for bankruptcy can make a big difference to your finances.
Filing for Bankruptcy is always traumatic and an individual should never file as an easy way to get out of trouble. Before filing, other repayment options should be examined, like selling assets, including an extra home, boats, jewelry, etc. Bankruptcy filings stay in your credit report for as long as ten years. It could affect your chances of securing a new job, promotion, or even further credit.
Chapter 7 bankruptcy is sometimes the more sutible choice for those whose debts, such as credit card debt and medical bills, are largely unsecured. So, if you don't have many assets, your your earning are below the median, and the bulk of your debts are unsecured, Chapter 7 bankruptcy could be your best choice.
The financial situation of the United States is looking pretty dismal of late. The stock market has taken its second nosedive in several years, unemployment figures have not improved, and people are looking for relief from their economic woes. Some have gotten to the point where they are considering bankruptcy. In cities like Chicago, Chapter 13 bankruptcies are on the rise, and even in suburbs like north Riverside, chapter 13 filings are increasing as well. It is one way for businesses and individuals to get relief from the constant hounding of collection agencies. Two questions must be asked before deciding what type of bankruptcy you want to pursue. Do you want to eliminate your debt without paying it off because you do not think that paying it off is possible? Or, do you want to extend the time for repayment and get your creditors off you back so you can have time to satisfy your debts?
If the restitution is part of a criminal conviction, it will be treated as a criminal fine, which will not get discharged in bankruptcy in most cases. In a 1986 case (Kelly versus Robinson), the US Supreme Court clearly ruled that under the Federal Bankruptcy Code criminal restitutions are non-dischargeable in bankruptcy. However, you can pay it under the Chapter 13 Bankruptcy repayment plan.
Once bankruptcy proceedings begin, your creditors are no longer allowed to contact you or harass you for money. However, it can take some time for your creditors to get this information, which means you may still be getting irritating phone calls. This can add to the stress you're already feeling, but it doesn't have to.
Likewise, your expert lawyer should be able to classify your bankruptcy case based on your circumstances. One type, is Chapter 7, which is straight bankruptcy. This is the most common type of bankruptcy, by which a person does not have any income source, so any type of monthly payments seem impossible. This chapter implies that your non-exempt assets are sold so that the proceeds are utilized to pay unsecured debts, such as loans and credit card debts. On the other hand, many debtors, through their competent bankruptcy law firm, do not lose any asset. Another type of filing is Chapter 13, which is consolidation bankruptcy. Here, all debts of a person are merged together to form a single debt with low-interest monthly repayments. This is a viable choice only if the person has monthly regular income. If you have gone to a competent lawyer, they will be able to provide you the best recommendations according to your unique needs.