Bankruptcy is often viewed as a form of relief for individuals who have become overwhelmed with debt. There are many advantages associated with insolvency, which include giving debtors the opportunity to regroup and negotiate with creditors instead of feeling the weight of all past due commitments on their shoulders all at once. What exactly is a chapter 7 bankruptcy, though? Also, how do active bankruptcies affect your ability to obtain credit in the future?
There are all types of bankruptcies. Chapter 7 bankruptcies tend to be more common among consumers who are looking for total relief from debt. When an individual files for Chapter 7 bankruptcy, he or she is admitting that there are no funds available to cover all debts. The possibility of a payment plan is not feasible, which is why the debtor typically sells his, or her, most prized possessions to pay down the debt. A Chapter 13 bankruptcy is different.
You do not have to sell all your possessions in a Chapter 13 bankruptcy. Indeed, there are many who keep their cars and homes by establishing an acceptable payment plan that typically leads to repaying creditors a substantial portion of the debt owed within five years.
It is best to seek legal counsel from a bankruptcy attorney when you feel like insolvency is your only option. Read on to learn more about the advantages of Chapter 13 over Chapter 7 bankruptcy.
Supposedly, the three most stressful life events that a person might experience in his or her lifetime are, in order, death, divorce, and moving. However, it would be hard to imagine moving being more stressful than banktuptcy. Not making enough money to pay the bills and defaulting on loans is not only embarassing, it can be humiliating. For people who have no choice to contact a bankruptcy attorney in Vernon, the stress and humiliation might feel socially and domestically debilitating.
However, when it comes to bankruptcy, it is possible for financially responsible people to end up declaring bankruptcy through a bankruptcy lawyer in vernon. This has been especially true since the recession of 2007. During that time unemployment rates hit an all time high, and the economny is still in recovery. For those who find themselves in the unfortunate positions of being faced with bankruptcy, a bankruptcy attorney in vernon can helpt make the process less painful. During a time when a family has no choice but to pursue bankruptcy, there are often other things in their lives that they need to worry about. In fact, some financial situations can be so bad, that bankruptcy is merely a band aid for a problem that a bankruptcy attorney in Vernon cannot solve.
The bankruptcy is merely one way that financially strapped individuals can get their creditors off their backs. In the event that the individual who is declaring bankruptcy is unemployed, they have immediate concerns such as paying the current electric bill, the water bill, the car payment, and for food to feed their families. There is not money for emergencies and the family may be uninsured. Clearly, bankruptcy could occur at a time when there are more immediate concerns for a family. A bankruptcy attorney in Vernon will help his or her client to navigate the legal red tape and help them achieve a settlement that will allow individuals who are working with a bankruptcy attorney in Vernon to focus on their families, and not have to worry about being stalked and harassed by creditors. For those who are in desperate need for financial relief, they should not hesitate to contact a bankruptcy attorney in vernon.