Serious financial troubles can bring a person to their knees. Once the bills start piling up, it can be nearly impossible to catch up. Late fees and additional interest charges make the bills impossible to repay. Fortunately, the United States bankruptcy law offers people a way out of this situation and allows them to get back on track over time.
Chapter 7 Bankruptcy
This type of bankruptcy protection is designed for people with little income and few assets. By filing for chapter 7 bankruptcy relief, an individual or couple may be able to have all of their unsecured debts discharged without having to repay any of their debts. If they own assets, they may need to sell them in order to pay some of the money they owe. Secured debts, such as mortgages and car loans cannot be included in chapter 7 bankruptcy and these assets are typically returned to the finance company. A law office in Martinsburg, WV may help a client decide if this is the best option for them.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy offers more flexibility for people with more income and more assets. Instead of having to sell all of their assets to repay their debts, people who choose this type of debt relief allows people to keep their assets and repay their debts over an extended period of time. Another benefit of chapter 13 bankruptcy is that the monthly payments are based on income, not the minimum payments of the creditors. The monthly payment is made to the bankruptcy court and then disbursed to the creditors, who agree to take a lesser payment while their customer is in bankruptcy. People who are struggling to pay their bills can learn more about this type of bankruptcy by visiting lshermanlawfirm.com.
There’s no reason for people to struggle to pay their bills when they are doing everything they can to live responsibly. Chapter 13 bankruptcy helps individuals and couples pay off their debts over time. For those who can’t afford to pay the bills, chapter 7 bankruptcy helps people get rid of their debts so they won’t be harassed by creditors. A law office in Martinsburg, WV can help clients decide which option is best for them.
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