Many people live with large amounts of debt. One incident, emergency, or loss of work can cause that debt to spiral out of control. This can lead to creditors calling and harassing the borrowers at home and even at work. In addition, the spiraling debt can impact a person’s ability to get new credit, a job, or even a home. Fortunately, there is Information About Debt Reduction available that can provide assistance for anyone to lower their debt and find financial freedom.
When debt has become insurmountable, it can feel like there is no help available. This feeling is especially true when creditors are calling and threatening the person with legal action. However, hope is not gone. An attorney can assist in providing information to help anyone get control of their debt. Bankruptcy is an option that may be the best way for many people to regain control of their lives.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a great option for debt relief for those who have a stable income. In this form of bankruptcy, all debt and income will be gathered and considered. A repayment plan will be developed and creditors repaid over the next three to five years. This allows people to find an affordable payment amount to settle their debt. This bankruptcy provides options for people to keep their home and other property while paying down their debt. After the plan is fulfilled, any remaining debt can be discharged.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy provides debt relief for those with little or no income. Again, all income and debt must be provided to the court. In this process, any property owned, outside of exceptions such as a home or vehicle, is liquidated to pay creditors. Once complete, all debt is discharged. This process provides relief for those unable to pay these debts, often due to illness, injury, or loss of work. This provides an option to get out of debt and start again.
Any type of bankruptcy can be a confusing and lengthy legal process. Fortunately, an attorney can assist with helping people understand the process as well as gather the necessary information to complete the process. Debt can be a hindrance to finding proper work or even a place to live. Bankruptcy provides an option to get out of debt.