When someone gets into a situation where they feel they’re being consumed by debt and unable to pay their bills, they should consider speaking to a bankruptcy attorney. Bankruptcy is a legal process that helps an individual gain the financial freedom they need to move forward with their life. Depending on the number of assets and the type and amount of income an individual has will determine what type of bankruptcy they might be eligible to file. Filing bankruptcy is nothing to be embarrassed about because excessive debt can happen to anyone for a variety of reasons.
Bankruptcy Is Not A Scam
Bankruptcy is legal. It is not some type of debt relief scam that will leave an individual with the debt while after a bogus company got paid to help someone. Bankruptcy is a federal program and can block creditors from harassing individuals and trying to collect on a debt.
Chapter 7 Bankruptcy
This type of bankruptcy is a complete liquidation of an individual’s assets that aren’t exempt from the bankruptcy proceedings. This is ideal for individuals who have a limited amount of income and have a lot of unsecured debt like credit cards. A trustee will be appointed to liquidate any of the remaining assets to pay off the creditors and finish the bankruptcy proceeding.
Chapter 13 Bankruptcy
Chapter 13 is ideal for individuals who have a home, car, and other assets that want to keep but can’t afford the current payments on. The bankruptcy court will establish a repayment plan that will last from three to five years. After the payment plan is completed, the balance of the debt is forgiven and the individual will be able to retain their assets.
Can An Individual Continue To File Bankruptcy?
An individual can continue to file for bankruptcy after their debt has been discharged, but they will not be granted another discharge for several years and will have to continue to make their payments on their debt.
If you have a limited amount of assets and your income is low, Chapter 7 is definitely worth considering to erase the debt that’s holding you back. For more information, please visit www.tulsabankruptcylawyers.net/bankruptcy-attorney-tulsa-chapter-7-bankruptcy/.