Trying to manage overwhelming debt can be scary and embarrassing. Accounts go to collections, and collections representatives call all day long. Threatening letters arrive in the mail. The person fears that a credit card company will file a lawsuit. They wonder if bankruptcy is an option. Bankruptcy Lawyers in Wetumpka AL provide complimentary consultations so people considering this possibility can learn more.
When Bankruptcy Is a Necessity
Filing for bankruptcy may not only be an option but may have become a necessity. When debts are unmanageable, and the person does not have any way to pay them, life becomes extremely stressful. Late fees continue to mount. Lawsuits can, indeed, happen.
Two Main Types
The two main types of bankruptcy for individuals are Chapter 7 and Chapter 13, as filed through a law firm such as Courtney & Mann LLP. Chapter 13 is a repayment arrangement with all the qualifying creditors that can last up to five years. Chapter 7 dissolves debt after paying as much as possible by selling a specified amount of assets. This is a quicker solution and usually wraps up within just a few months.
Some property is exempt from the Chapter 7 sale of assets. For example, if the person owns a car outright or is current on payments, the car typically is exempt. However, the sale of the car may be required if it is worth a large amount of money, as the owner could buy something more affordable after paying down some of the debt.
A Court Order
After Bankruptcy Lawyers in Wetumpka AL file the documentation with the court, a subsequent court order requires that collectors stop trying to make contact. If any of them do call or send mail, the person should tell the lawyer. The attorney then will tell the collectors to cease or risk being found in contempt of court.
People in the chaotic situation of overwhelming debt can barely imagine being free of it. Although Chapter 13 does not erase debt, the payment arrangement is intended to make the payments manageable. If the individual does not have enough income for this filing, Chapter 7 provides a new start.