Mounting debt can become a serious issue if it continues. Collectors can be ruthless in pursuing debtors and will work to get their money through any method allowed under the law. This may mean garnishing your wages or taking you to court. When you have done all you can to pay off your debts and are still not feeling any relief, it may be time to contact a Bankruptcy Attorney in Huntersville NC. With the guidance of an attorney, debtors can finally be free of their debts.
Though filing for bankruptcy is not for everyone, it is a viable option for many. An attorney can assist their client in deciding which type of bankruptcy will be advantageous. There are two types individuals may file. Chapter 7 and chapter 13 bankruptcy offer different benefits, depending on the types of debt a person owes.
Chapter 7 is better for those with unsecured debts. To file for this type of bankruptcy, a Mean’s Test must first be passed. This is a wage test that ensures a person’s income does not exceed the median income in their state. Once approved, a trustee is placed over the case. The trustee is in charge of making sure any non-essential property is sold to pay down debts. Since most people do not own these types of assets, the trustee has the authority to absolve some debts. Chapter 7 is usually able to settle all debts in as little as six months.
Chapter 13 is a bankruptcy type that is geared towards those with secured debts. It can prevent foreclosures and repossessions and does not require any income approval. With this type of bankruptcy, individuals must pay a monthly payment through the court. The amount required depends on their income and the amount of debts owed. The court will decide the payment amount and the payment period. Most people are given two to five years to pay down their debts.
While dealing with too much debt can be stressful, hiring a Bankruptcy Attorney in Huntersville NC can help. For further information, visit domain URL and learn all you can about your options for filing for bankruptcy.