Debt is one of the most stressful things individuals can go through because it can cause so much chaos. The constant calls from bill collectors and the threatening letters can become too much for a person to deal with. When debt is on the rise, it is important to confront it head-on. Debt should never be ignored because bill collectors can make good on their threats and use every available means in an attempt to collect what is owed to them. Those who are dealing with increasing debt need to seek the help of a bankruptcy lawyer.
There are two main types of bankruptcy and each has its own requirements. Meeting with a bankruptcy lawyer will allow a person to learn about their options and receive guidance when applying for the correct one. The type of bankruptcy a person is offered will depend on factors such as their income, debt amount, and assets.
Many individuals choose chapter 7 bankruptcy because it is so easy to settle fairly quickly. Individuals can settle their bankruptcy in as few as six months but they must first pass a mean’s test before they can apply. The mean’s test is a way to measure the applicant’s income, to be sure they do not go over their state’s income medium. If passed, the process is fairly straightforward and overseen by a court-appointed trustee.
Individuals can also be approved for chapter 13. In this type of bankruptcy, there are debt limits but no test to pass. Chapter 13 requires individuals to develop a structured payment plan they can adhere to, to bring their debts under control within two to five years. The payment plan is based on the individual’s income and debt ratio. It is imperative the payments are made as scheduled so the bankruptcy stays in good standing.
Although it can be overwhelming to decide which bankruptcy to choose, meeting with a bankruptcy lawyer can make the process easier. If you would like further information, visit Law-margulies.com. Schedule a consultation appointment to learn which steps to take so you can overcome your debt.
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