Debt can easily become overwhelming, especially when there is little to no income to make payments with. Individuals can become bombarded with debt when they lose a job or face an unexpected illness or injury. When debt becomes more than can be managed, individuals are urged to seek help from the Bankruptcy Attorney in Frederick. An attorney can offer their client options for legally settling their debt.
What Are the Options For Bankruptcy?
When a person meets with the Bankruptcy Attorney in Frederick, they will first need to present information to their attorney. Financial records, pay stubs, tax forms, and other pieces of information prove helpful when pursuing bankruptcy. The more information an individual can provide their attorney, the better the chances of the attorney being able to help their client by offering the most beneficial option.
There are two main bankruptcy options individuals can pursue. It is important individuals learn all they can about these options so they can make a sound decision.
* Chapter 7 is the fastest bankruptcy option because it allows individuals to eliminate their debt in six months or less. Individuals must go through means testing before being accepted for this type of bankruptcy. In some instances, a person must surrender certain types of assets so they can be liquidated to pay off the amount owed. Some assets are exempt from liquidation, such as a person’s residential home, furniture, and clothing.
* Chapter 13 is a bankruptcy option that allows individuals to repay their debts over a period of time. Individuals will have three to five years granted to them by the court. The debtor must set up a satisfactory payment plan so they pay a set amount each month to pay off the debts they owe. This type of bankruptcy is often referred to as the “wage earner’s bankruptcy” because a person must have a reliable income coming in each month.
Call Today For an Appointment
Dealing with debt can be a nightmare. Those who are having difficulty overcoming their debt are urged to schedule a legal consultation right away. With a consultation appointment, individuals can learn which type of bankruptcy will be most beneficial for their financial needs.