Can Bankruptcy Law Impact Your Life?
Despite your best efforts, managing your debt responsibly remains a challenge. In the face of mounting debt, you feel like you’ve exhausted all of your choices.
It’s possible that declaring bankruptcy will solve your problems. However, it will depend entirely on whether or not you can successfully navigate the bankruptcy process. Bankruptcy relief comes with many rules, and getting help from a lawyer will make your life much easier. The procedure’s steps are described below, along with the reasons why so many businesses and individuals rely on Level One Law to help them through it.
Under the bankruptcy legislation of the United States, two main types of debt relief apply to individual consumer debt. When it comes to the legal process, it’s crucial to have a qualified bankruptcy attorney handle your Chapter 7 or Chapter 13 application to protect your rights.
A bankruptcy trustee liquidates all of your nonexempt assets during a Chapter 7 bankruptcy. If you cannot pay your creditors with the proceeds from the sale of your assets, the court will “discharge” any outstanding debts you owe.
If you file a Chapter 13 bankruptcy, we will formulate a repayment strategy to your creditors that restructures your debt payments over a three-year to five-year period. During this period, creditors will not be able to pursue additional collection measures against you. After completing the plan, any residual debt may be eligible for discharge.
How will bankruptcy affect me?
Each type of bankruptcy has its own set of responsibilities and obligations.
For example, with Chapter 7 bankruptcy, you may only apply once every six years. Under Chapter 13, there are restrictions on the discharge of debt related to the amount and type.
Going bankrupt might also affect your purchasing power in the future. If you can avoid defaulting or otherwise neglecting your payments, then filing for bankruptcy and settling your debts lawfully will do less damage to your credit score. Bankruptcy filings in Chapter 13 and Chapter 7 remain on your credit records for ten years.
If you cannot repay a substantial amount of debt, you may wish to consider Chapter 7 bankruptcy. Before choosing, consider your legal, personal, and financial situations.
Getting Off to the Right Start
Without years of experience, it can be hard to figure out what kind of bankruptcy is best for your situation or if there are other options. Many devastating outcomes might follow from making the wrong decision or mishandling your case.
Regardless of your financial situation, there is assistance available. To help you establish a brighter financial future, we will examine your current financial condition and determine the best course of action for your requirements.
Now is the time to get in touch with Level One Law for a free consultation.